Will products with top rankings lose importance in the future? Most recently, sponsored products on Amazon have been featured above the best organic search results. The visibility of advertisements and top rankings can be strongly influenced. What impact will that have?
What are sponsored products?
Amazon's sponsored products allow sellers on Amazon to place their products in search results and product detail pages. The additional placement increases the visibility and traceability of the product and, as a result, improves sales. The ads used to appear solely below the search results. Recently, however, in some product categories, they are now featured above the search results, which significantly increases visibility.
The ads are paid for in a similar fashion as Google AdWords ads, namely per click. This means that although the sponsored products are already displayed to the user, there are no additional costs for the advertiser. You are only billed after the customer clicks on the ad and is directed to the product detail page.
How do I create sponsored products as a Vendor?
Retailers select the product to be advertised from their inventory and then choose the desired keywords for the ad. In addition to defining the keywords, the advertiser can also define the maximum bid, which is always pay per click. If the ad is online and a potential customer searches for the keywords, there are two options: either the sponsored product appears below the search results or on the product detail page of related products. Where the ad is ultimately placed depends on the maximum bid and the product’s overall relevance. In the end, the ad is placed according to Amazon’s discretion.
The administration structure is similar to that of Google Adwords. Retailers manage campaigns, ad groups, keywords and advertisements in their account. Impressions, clicks and costs can also be monitored there. The advertisements don't have to be designed by Amazon itself, as the assigned products are used for this purpose.
Advantages for vendors and retailers
Increasing visibility and traceability in the Amazon marketplace
Chance to highlight new products or offers in the marketplace
Push products with low visibility and traffic
Increase visibility of products or goods in seasonal sale
Positive effect of factors influencing the Buy-Box
With sponsored products, Amazon offers manufacturers and retailers an effective way to increase the visibility and traceability of the products they already listed. Due to the small size and/or spreading of Amazon marketing measures in contrast to e.g. Google AdWords, advertisers can still profit from low click prices and favorable CPOs.