Oct 31 2019 Saumil Pandey Blog Retail & E-commerce Strategy Everything You Need to Know About Amazon Ads in 2020 Amazon is becoming more important for eCommerce advertising every year. In 2019, marketers will spend $11.33 billion on Amazon advertising. Forrester predicts that in 2020 this number will grow exponentially. As competition rises, it will become more difficult to get visibility for your products while meeting budget and profit goals. To stay ahead of the game, now is the time to start optimizing your Amazon ads for better eCommerce results. Here’s an overview of how Amazon ads work, and how to start optimizing them for performance marketing. The Main Types of Amazon Ads Right now, Amazon offers four main ad types: Sponsored Products Sponsored Brands Sponsored Display Ads Video Ads These ad types are designed to help marketers reach their target audience at different points of the shopping process and to target unique business goals. Below we offer a quick insight into how they work: Sponsored Products Sponsored Products are ads that appear on the first page of Amazon search results and product pages. They aim to help you boost product visibility and drive sales. These ads are run on a cost-per-click model, so you only pay when someone clicks on your ad. You set your ad budget at a campaign level and designate how much to bid per click. Sponsored Brands Sponsored Brands are ads that appear in the search results, typically as a banner at the top of the page. They’re designed to reach customers before they know exactly what they want to buy, ultimately helping them to discover new brands and product offerings. For example, a Sponsored Brand ad can target generalized keywords such as “baby care” or “sporting goods.” Shoppers can click on a brand logo or product in the ad. The brand logo takes them to your store page or a custom landing page while clicking on a product takes them to your product page. These ads are also cost per click-based and can be customized for campaign strategy. Sponsored Display Sponsored Display ads are designed to reach audiences both on and off Amazon. These ads are automatically generated based on shopping activities and your business objectives. Visual aspects of the ads are also auto-generated to aid the promotion of your product catalog. Sponsored Display ads can be used for product awareness, consideration, and driving conversions. Video Ads Video ads allow you to deliver high-quality video content on Amazon sites such as IMDb, Fire TV, and other places around the web. Their purpose is to empower businesses to capture audience attention, as well as influence and engage people with their brand. Video ads can be used to deliver a specific brand message or to demo your products and services. Wrapping Up The popularity of Amazon today is indisputable. And for good reason. Where else can you buy high-end clothing, technological gadgets, cleaning products, and home furniture all in one place? According to emarketer forecasts, 51.3% of American households will be Amazon Prime members by the time 2019 draws to a close. A quite staggering statistic. Of course with this number of customers, it stands to reason that Amazon will be packed with vendors. With this in mind, then, it’s never been more important to take advantage of the various ad options on Amazon to optimize your output and ensure you’re standing out in front of your competitors.