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A helpful resource to guide you through the basics of digital advertising
An introduction to the world of online advertising
We understand that digital advertising can be a complicated field when you’re just getting started. We’re here to help you navigate your first steps in the world of ads.
This guide is about digital advertising. It takes you through the basics of what you need to know before you launch your first digital ad campaign, and prepares you with the right knowledge to confidently navigate the world of digital advertising. After you cover the basics, you can read on in the latter chapters how you can use and make the most of Amazon Ads.
This guide is for you if:
By the end of reading this guide, you’ll know what “CPC” means, understand how to best set your budget, and be ready to hit “launch” on your first ad.
Ready? Let’s get started.
What is digital advertising, and why is it important?
A definition:
Digital advertising: A form of marketing and advertising that uses the internet to promote products and services to audiences.
Digital advertising is the publishing and promotion of online content through a variety of different channels. Digital ads can take many different forms, including text, image, audio, and video.
Businesses advertise online to raise awareness of something, such as a product, a service, or a message. The goals with posting a digital ad is to drive the viewer to take a specific action. This could be buying a product or raising awareness of a brand or service.
Digital advertising can be an effective way to reach a wide, and specific, audience. As of October 2023, there were 5.3 billion* people using the internet across the world. That’s 66% of the global population.
* Source: Statista, WW, Oct 2023
There are many ways you can execute your digital advertising strategy. In this chapter, we’ll run through some of your options.
There are a few different options when it comes to your channel of choice. Here’s a summary of a few key options.
Definition: A marketing technique that places online advertisements in search engine results
Search advertising can be a very effective method of delivering relevant content to the user, as the user provides information on what they are looking for. Advertisers can help make sure that ads the user sees are related to these searches, and topics they have shown that interest them. Search engine optimization (SEO) is when online content is written in an optimal way to be discovered when a user is searching for something related to that content. The search engine will pick up keywords people use in their search queries, and deliver them related content that matches their searches.
Definition: A visually driven online ad, often comprising of text and images, hyperlinked to a specific website.
There are many different types of display advertising, including banner ads and ad spaces on websites. With all types, the main goal is to capture attention, and encourage the viewer to click on the ad and visit the website in question. The message or product in the ad typically aligns with that of the copy and context on the page in which it is shown.
You can find out more about Amazon Ads Sponsored Display here.
Definition: Using social media to advertise a brand, product, or service, with a visual ad that links to another destination, such as a webpage or social media account
Social media has become an effective (and necessary) digital marketing tool that can help businesses reach customers where they already are. An ad campaign on social media can promote brand awareness and strengthen reputation with new and existing audiences, directly engage with an audience, receive real-time results, and quickly reach a large audience, with a reactive or time-sensitive message.
Definition: The use of video content, or moving imagery, to help raise awareness of brands, and sell products or services.
Video ads are designed to be eye-catching to quickly draw a viewer’s attention. They are one of the most effective forms of advertisements, as moving images can be easier for customers to recall than static images or text.
Definition: In the context of digital advertising, audio ads are ads that play before, during, or after online audio content, such as streaming music or podcasts.
This type of advertising can help brands reach a wider audience. Audio marketing can also help brands build awareness campaigns, allowing you to communicate your brand message programmatically before or during audio streaming content, like when audiences listen to music or news.
Definition: Also known as over-the-top (OTT), these are a specific type of video ad that appears in streaming media content delivered over the internet without satellite or cable.
Streaming TV ads, also known as OTT ads, are the advertisements delivered to viewers within this video content. OTT, or streaming TV, ads offer an opportunity for advertisers to reach new audiences at scale as more viewers lean into streaming video content in lieu of traditional cable and broadcast TV.
The top terms you need to know to navigate your first ad campaign
Learn how your campaigns appear online once you’ve launched your campaign
It’s important to consider the delivery of your ads when creating your campaign. After you’ve clicked “launch” on your ad campaign, your ads then go through several steps to then appear in the most relevant place possible.
Tailoring your ad campaign is the way you define the context in which you want your ads to appear. It enables you to define the group of consumers who see your ad, based on things like an audiences’ shopping signals. It’s an important part of the campaign set up process to get right, as the more relevant they are to customers’ interest, the higher the chance they’ll click it.
Here’s a few of the top ways to tailor your digital ads:
Generally, your ads go through a form of auction to be in with a chance of appearing online. This often involves a cost-per-click (CPC) bid, which is the highest amount you are willing to spend. Your ad’s placement also considers the relevancy and quality of the ad, in relation to the webpage where it’s being considered to be served. Combined, this means you can reach a relevant audience, within a budget that suits you.
While how you pay for your digital ads can vary, most often you only pay when your ad has been clicked on. This is called pay per click (PPC). Every time someone clicks on your ad and gets taken to the page you’ve defined, you’ll pay the business hosting that website.
Here’s a short overview of how your ad appears online after you launch it.
KitchenSmart is a fictitious kitchen appliance brand we’ll use throughout this guide to share examples of the points we’re discussing.
For example: KitchenSmart might define their tailoring strategy as:
Check out your options for advertising with us, to help give your products in the Amazon store a boost.
With hundreds of millions of active customer accounts worldwide,* Amazon has a deep understanding of how shoppers engage with products and brands as they discover and purchase online.
When you advertise with Amazon Ads, you’re leveraging insights based on more than 20 years of observed shopping behaviors in our store. Our offerings help you achieve your advertising goals while staying true to one philosophy: If it’s right for the customer, let’s explore it.
Target by keyword or product to help reach relevant customers as they’re browsing shopping results and product detail pages. When clicked, ads link directly to your product detail page, where customers can learn more about your newly launched product and purchase. Whether it’s your first time advertising in the Amazon store or you have experience using sponsored ads, launching your new product with Sponsored Products is a simple and effective way to get started.
Choose this product for:
Target by keyword or product with Sponsored Brands to help customers discover your brand and product portfolio. Ads feature your logo, a customized headline, and a collection of your products, and can drive to your Store. With the potential to appear at the top of shopping results, these ads can help you build awareness early in the product launch. If it’s your first time using sponsored ads, try starting with Sponsored Products and expanding to Sponsored Brands after two weeks of campaign results. If you have more experience, we recommend building a Sponsored Brands campaign to further establish your brand, and showcase your products in action with Sponsored Brands video* for the launch.
*Products and features may not be available in all countries.
Choose this product for:
Target by interest, category, or product with automatically generated display ads that showcase your new product. They can appear both on and off Amazon for the opportunity to reach audiences wherever they are in their purchasing journey.
*Products and features may not be available in all countries.
Choose this product for:
A self-service product to create a dedicated destination for your brand in the Amazon store. Create a unique page in your Store for your product launch and use Sponsored Brands to connect traffic to the page.
Note: Sellers already selling in the Amazon store in the country where they wish to advertise can create a Store at no additional cost. Otherwise, selling fees apply.
Amazon Ads also offers display, audio, and video advertising. Check out the following links for more information:
KitchenSmart is a fictitious kitchen appliance brand we’ll use throughout this guide to share examples of the points we’re discussing.
For example: KitchenSmart would choose Sponsored Brands as a solution. This could help catch shopper attention with their custom, brand-centric creative ads, and help raise awareness with shoppers looking at relevant products. It complements their objective of brand awareness and a goal of awareness.
Sponsored ads work together to help increase visibility and impact during your launch by reaching customers at different points in their buying journey.
Ad product | Ad placement opportunities* | Business objective |
---|---|---|
Sponsored Products | In shopping results and on product detail pages | Explore • Help interested customers easily discover your new product in shopping results • Helps increase visibility and consideration of individual products as customers are browsing the Amazon store |
Sponsored Brands | Within shopping results and on product detail pages | Discovery • Encourage customers to discover and engage with your brand • Boost brand awareness within shopping results with custom creative |
Sponsored Display | On product detail pages and sites anywhere customers spend their time | Reach and re-engagement • Drive awareness, consideration, and conversion with placements that appear anywhere customers spend their time • Help reach relevant audiences for your business |
Stores | Appears as a unique page in the Amazon store | Retention • Tell the story of your product in the context of your overall brand • Showcase your full product portfolio with content that can educate and inspire customers |
*Please note these ad placements are not guaranteed when using any of these advertising solutions.
Before you launch an ad campaign, make sure you’re clear on the objective
Digital advertising can help you do many things, but you need to be clear on your objectives, before you launch your campaign.
In this chapter, we lay out how to decide on the objective of your campaign, and how best to define what your specific goals should be.
Let’s look at the two specific types of marketing: performance marketing and brand marketing. Understanding these two different approaches will help you define your advertising strategy.
The Performance Marketing Association’s definition of performance marketing is:
A comprehensive term that refers to online marketing and advertising programs in which advertisers (aka “retailers” or “merchants”) pay marketing companies (aka “affiliates” or “publishers”) when a specific action is completed, such as a sale, lead, or click
Some benefits of performance marketing are:
With campaigns that use performance marketing, there are some key metrics you should track, including:
Paying close attention to these metrics will help you monitor the performance of your campaigns, and enable you to adjust if you’re not hitting your performance goals.
Some Amazon Ads solutions that can help you improve your advertising performance include:
Brand marketing is all about building and enhancing positive consumer perceptions of your brand.
Brand marketing is a slower pace compared to performance marketing. A lasting relationship between a brand and consumers is built up over time, and therefore, while it can cost more, the benefits last longer. This is because consumers are more likely to return to purchase from your brand, even when they don’t see your advertising.
Some benefits of brand marketing are:
With campaigns which focus on brand building, there are some key metrics you should track, including:
Paying close attention to these metrics will help you monitor the performance of your campaigns, and enable you to adjust if you’re not hitting your performance goals.
Some Amazon Ads solutions to help you build your brand include:
KitchenSmart is a fictitious kitchen appliance brand we’ll use throughout this guide to share examples of the points we’re discussing.
For example: KitchenSmart want to increase their brand awareness as a high-quality kitchen appliance brand, with the aim of engaging shoppers across the world. Based on this, they’ll choose brand marketing as their objective.
Setting goals can help you optimize your results and grow your business. Your goals should always help you work toward your business objective.
Before you launch your first campaign, it’s important to define your business goals so you can monitor your performance to check you’re heading in the right direction to reach your desired outcome.
There are four ways you can define your goals.
Awareness goals focus on expanding your audiences so more people discover your brand and products. You want to help customers learn your brand story and keep your brand top of mind while they shop.
For consideration, you want to engage shoppers as they shop during the decision-making process before they buy. Help customers understand what sets your brand or products apart from other options, and why they should choose you when they make their purchase.
Purchase or conversion goals focus on driving sales. Help potential customers make the decision to buy your product.
If loyalty is your focus, then your goal is to engage your existing audience to help them become repeat customers. You’re showing them why they want to return to your brand and buy from you again.
KitchenSmart is a fictitious kitchen appliance brand we’ll use throughout this guide to share examples of the points we’re discussing.
For example: KitchenSmart would choose awareness as their goal, as it would help keep their campaign strategy focused on reaching a broad audience, and complement their objective of brand awareness.
Once your campaign is launched, regularly monitor its performance to see if you can improve it.
After your product launches and your campaigns have been running for at least two weeks, review your advertising reports to understand your performance, keeping in mind the goals you previously set.
The best way to find success with your digital ad campaign is to keep testing variables to optimize performance. Staying up to date with how your ad campaign is performing, so you can see what is working and what isn’t, can be an efficient use of your ad spend.
In case you’re not seeing expected results, here are some tips:
Review your budgets: The bid might be competitive and your ads are not showing.
Review your targeting strategy: You might be reaching customers not looking for products like yours.
Review your product detail pages: This helps the customer decide.
Consider expanding your targeting (other products and keywords): There is potentially opportunity to reach other customers interested in your product.
Scenario 1: Customers are discovering your new product and engaging with your ads
If creating product awareness and engagement was your priority, review the impressions, as well as clicks and click-through rate.
Scenario 2: Customers are discovering and engaging with your brand
Scenario 3: I want to review my sales performance
If your key goal was to drive sales, measure how many clicks converted into orders, as well as your ROAS. For a new product with limited awareness, it may take additional budget to drive sales, resulting in a higher ROAS.
Scenario 4: I want to know how customers are engaging with my new product in the context of my overall brand story
To learn if your Store is resonating with customers and supporting your goals, you can access a range of metrics in your Stores insights dashboard.
KitchenSmart is a fictitious kitchen appliance brand we’ll use throughout this guide to share examples of the points we’re discussing.
For example: KitchenSmart would be looking to see if and how shoppers are discovering and engaging with their brand (Scenario 2), and want to measure if their awareness has increased since running Sponsored Brands. In this instance, KitchenSmart should be looking to see if their orders and sales have increased since running Sponsored Brands ads. They should explore their new-to-brand metrics to find this insight.
A shopper can visit from more than one traffic source and visit more than one page. You can use this insight to understand which traffic sources shoppers use to arrive at your Store, and which pages they visit. That can help you determine if, for example, traffic increase from a paid source correlates with a traffic increase from Amazon non-paid sources, so you note if there’s a halo effect.
This insight can help you identify, on average, how many pages Store visitors view per day. A high number of visits to a single page in one day, followed by low page views per visit, could indicate that a lot of the traffic arriving to the first page doesn’t continue to explore your Store. You might want to consider refining your traffic sources (for example, linking a Sponsored Brands ad to your Store) to drive more relevant traffic, or optimizing the landing page where you’re driving traffic.
With these, you can calculate sales per visitor, sales per order, or units per order. Use the insights to identify pages and traffic sources that yield both the best and worst sales performance. If the sources or pages are performing well for you, consider comping these strategies with your low-performing sources and pages—or removing them if they’re not producing results in line with your goals.
We’ve referenced our fictitious brand, KitchenSmart, throughout this guide to help you apply our recommendations and guidance to your own campaigns. Here’s the full overview of our examples, to help you see how they all work together.
KitchenSmart wants to increase their brand awareness as a high-quality kitchen appliance brand, with the aim of engaging shoppers across the world. Based on this, they’ll choose brand marketing as their objective.
KitchenSmart would choose awareness as their goal, as it would help keep their campaign strategy focused on reaching a broad audience, and complement their objective of brand awareness.
KitchenSmart might tailor their ads campaign as follows:
KitchenSmart would choose Sponsored Brands as a solution. This could help catch shopper attention with their custom, brand-centric creative ads, and help raise awareness with shoppers looking at relevant products. It complements their objective of brand awareness, and goal of awareness.
KitchenSmart would be looking to see if and how shoppers are discovering and engaging with their brand (Scenario 2), and want to measure if their awareness has increased since running Sponsored Brands. In this instance, KitchenSmart should be looking to see if their orders and sales have increased since running Sponsored Brands ads. They should explore their new-to-brand metrics to find this insight.
KitchenSmart decides later that they need to increase sales across the world. Based on this, they’ll choose performance marketing as their objective.
KitchenSmart would choose consideration and purchase as their goal, as it would help keep their campaign strategy focused on driving sales with interested shoppers.
KitchenSmart might tailor their ads campaign as follows:
KitchenSmart would choose Sponsored Products and Sponsored Display as a solution. With Sponsored Display, the brand would re-market audiences that are on the consideration phase, as they have visited their product detail pages but have not done a purchase. With Sponsored Products, the brand would set a keyword targeting campaign, leveraging from terms that have proven to be successful on driven sale in the past.
KitchenSmart would be looking to see which Sponsored Display audience is bringing the most attributed sales and ROAS, as this means the strategy is effective on driving sales. At the same time, KitchenSmart would review the keyword strategy to refine the terms based on which are bringing the highest conversions. This will help improve the ROAS over time.
You’ll need an account with Amazon Ads to launch your first ads. If you already have an advertising account, you can sign in from here to create your first campaign, or register to set up your account.
If you wish to continue learning, in a different format, we have a series of videos available that introduce you to the basics of digital advertising, including how a digital ad is created and displayed to shoppers.
Thank you for reading
Digital advertising: everything you need to know, before you begin