Anyone selling on Amazon knows that it is not only a great marketplace to showcase your products, but it’s also very competitive. Sellers on the platform, especially those leveraging Amazon advertising management services, have often taken advantage of Amazon’s Sponsored Product and Headline Ad features to grow sales. These features have seen some changes through the years and it seems new updates may be on the way.
Amazon has changed its ad placement for both Sponsored Product Ads and Headline Ads.
A quick view on Amazon today will reveal some of these changes. For one, Sponsored Product Ads have traditionally appeared at the top and bottom of a search results page, making it obvious and recognizable for the consumer that what they are seeing is an Amazon Ad. Now it seems however, an online shopper can search for a term and be presented with a results page that appears to show Sponsored Ads both at the top of the list AND displayed amongst the organic results.
Additionally, Amazon advertisers who are interested in purchasing real estate in the form of Headline Ads can do so with up to five placement options. Prior to today, Headline Ads were placed in only one available position – the traditional headline position (at the top of the landing page) all advertisers know.
WHAT DOES THIS MEAN FOR ME?
This update is great news for Seller Central brands advertising on Amazon. For Sponsored Product Ads in particular, advertisers could see higher click through rates because middle placement ads blend into organic search results, making the “Sponsored” notice less glaring to the shopper. Consumers tend to skip over Headline Ads and top-level Sponsored Product Ads so this update allows brands to catch the eye of a consumer who may have previously missed out on their sponsored product.
In addition, this update could lead to fewer bidding wars for top positions, which will positively impact cost per conversion and present more opportunities for Amazon sellers with limited advertising budgets.
When it comes to the news surrounding Headline Ads, more placement options mean a lower cost per click and Amazon estimated cost per click. That being said, advertisers who want to ensure their ads are hitting that traditional headline position at top-of-page should bid aggressively and exceed Amazon’s recommended bid.
In summary, the key takeaways in this very important Amazon update are;
• Advertisers can expect higher click through rates on their Sponsored Product Ads that show up in a position between organic results
• Consumers tend to skip top-level ads, so this update allows brands to catch the eye of shoppers they may not have accessed previously
• Ads mixed between organic results could mean fewer bidding wars for top positions, positively impacting cost per conversion and helping brands with low advertising budgets
• More placement options for Headline Ads mean a lower cost per click for advertisers