Recent statistics show that Amazon generated $52.7 billion in ad revenue. Despite having only 242.6 million monthly visitors, which is much less than what Google and Meta receive, it surpasses both tech giants significantly in terms of traffic-to-revenue ratio.
What does this tell us? The advertising landscape is shifting. Advertisers, particularly in the retail sector, are spending more money on Amazon than on any other platform. The reason? They've seen the massive impact of Amazon Ads on their sales, and they're getting it for about 40% less than the cost of Facebook and Google ads.
What does this tell you? As an Amazon seller, advertising must be a non-negotiable component of your business. When you list a product, ads must be set up in the pipeline to ensure visibility in front of the right eyes.
In this article, we'll explore the nuances of Amazon Ads, determine whether outsourcing ad management is necessary, and discover an efficient way to hire an Amazon Marketing Service professional to optimize your advertising strategy.
How do you run ads on Amazon?
There are two things an Amazon seller should remember before listing a product:
- Newly listed products on a new or lesser-known Amazon account won't show up anywhere near the first page of relevant search results because Amazon prioritizes existing products, particularly those with high sales volume. Running ads can push your listings to where your target market can see them.
- Ads must be set up strategically and consistently to boost your click-through rate (CTR) and conversion rate (CVR).
Amazon offers various types of ads to qualified sellers:
- Sponsored product: You can create ads for individual listings that appear on related search results.
- Amazon store: Build a separate page where you can curate content that can help shoppers discover your products.
- Sponsored brands: Like sponsored products, these ads appear on related search results, except they include custom headlines, videos, images, and listings.
- Sponsored display: This ad helps you reengage with buyers off Amazon who previously viewed your product or a related product category.
- Amazon Demand-Site Platform (DSP): This ad type allows you to reach Amazon audiences through programmatic advertising.
- Video ads: Amazon offers its own websites and partners with third-party publishers to help sellers and non-sellers advertise their brands with videos.
- Audio ads: This works like video ads and is available on Amazon-owned platforms.
Collectively, these ads are called Amazon Ads, an Amazon service designed to help Amazon sellers connect with customers on and off the platform. Formerly known as Amazon Marketing Services (AMS), this service is accessible to Amazon sellers with the following qualifications:
- Professional seller, vendor, author, or advertising agency
- Active account in good standing with Amazon (near-perfect seller rating)
- The ability to ship to the country in which you're advertising
- Valid payment method (credit/debit, deduct from payment, seller account method, and invoice)
DIY or Outsource?
Amazon continues to integrate new technology to streamline its processes and improve user experience. However, even with these upgrades, Amazon ad campaign creation and management still requires a certain degree of expertise to execute proficiently, which you may not have.
Before choosing between doing it yourself and hiring an Amazon Marketing Service professional, try enrolling in the program and running your first ad to understand the process better. This will help you decide if it's manageable alone or if you need expert assistance.
Here's a quick overview of the process:
Step 1: Sign up for an Amazon Ads account here.
Step 2: Choose products to advertise. Your best options are in-stock and reasonably priced products. You can use a repricing tool to assign competitive prices and adjust them in real-time. Prioritize products that regularly display the featured offer and have at least 15 reviews and a 3.5-star rating.
Step 3: Prepare your product detail pages. Here's what a product detail page should consist of:
- A descriptive and informative title no more than 60 characters long and includes the brand name, materials, colors, and size.
- Detailed information about your product in three or more bullet points, including dimensions, uses, compositions, and other descriptive features. Use relevant shopping terms for better visibility.
- Upload images and videos that showcase every aspect and function of your products. The photos must be at least 1000 pixels in height or width to remain clear even when zoomed in.
- If you're a brand-registered seller, use A+ Content to create more appealing ads.
Step 4: Create an advertising campaign. Here's the standard procedure:
- Define your business goal (for example, build awareness or generate more from a high-selling product).
- Choose a product to advertise, preferably one that's eligible to win an Amazon Featured Offer, has a retail-ready description, and has sufficient inventory.
- Create a campaign. Depending on your goal, you can choose from three ad categories: sponsored product, sponsored brand, and sponsored display. Since you're advertising an individual product, a sponsored product is the most suitable option.
- Set a budget.
- Choose a duration.
- Select your targeting.
- Choose a bid strategy.
Step 5: Use reporting to monitor your ad performance.
Decision time—
These five steps show how tedious and complex Amazon ad campaign creation and management is, especially since it encompasses product listing. Hiring an AMS professional is a sensible option at this point. To be sure of your decision, ask yourself these questions:
- Did the process consume a lot of your time?
- Did it disrupt your core tasks?
- Did any mistakes impact the outcomes?
- Do you have funds to hire an AMS professional?
- How is your Amazon business doing overall?
Here's a tip: If you believe hiring an AMS professional can significantly improve your sales, budget won't be a problem. Remember that this isn't just an additional overhead but a money-spinning investment.
How to Hire an Amazon Marketing Service Professional
Now that you're sure about investing in an AMS professional, here's a quick guide to help you find the perfect candidate.
Step 1: Decide between a professional and an agency.
AMS started in 2012, and since then, many agencies and freelancers have begun offering it. Both types of providers are skilled, but there are pros and cons to consider before choosing either.
Hiring an agency fosters diversity. If you require services beyond AMS management, they offer a superior option as they consist of multiple professionals and provide a broader range of services. Additionally, their production process involves multiple layers of proofreading and auditing, guaranteeing the quality of your ad campaigns.
However, this meticulous process has its downsides. For example, it takes longer for an agency to complete each ad campaign. Because they're paying more employees, their services can be costly, sometimes three times as much as working with a single AMS professional.
However, an AMS professional offers quicker results and consistent quality. Plus, they often have extensive experience with Amazon Ads, unlike agencies that may hire inexperienced staff to cut costs. Additionally, there's a larger pool of AMS professionals than agencies.
AMS professionals have access to advanced tools and industry resources that boost marketing effectiveness. They stay updated on the latest trends and algorithm changes, ensuring campaigns are optimized for success.
Important: Think about hiring remote workers from abroad, particularly in Asia. Many virtual assistants there are skilled AMS professionals, and they often come at a lower cost and are more accommodating to work with.
Step 2: Search for AMS professionals.
Where better to start searching for an AMS professional than on Amazon itself? Many job listings on Amazon Jobs attract professionals experienced in e-commerce, increasing your chances of finding the right candidate.
You can also check job sites such as Upwork, Indeed, Glassdoor, FlexJobs, and LinkedIn. Use their filters to refine your search. Additionally, consider recruitment agencies specializing in Amazon jobs when finding AMS professionals. These agencies often provide training to enhance their employees' skills.
Step 3: Ask for a portfolio.
A skilled AMS professional will have a strong portfolio showcasing their expertise, which should include:
- Case Studies: These are successful Amazon marketing campaigns they've executed for previous clients, showing details on the objectives, strategies employed, and measurable results achieved, such as increased sales, improved product visibility, and enhanced brand awareness.
- Client Testimonials: Feedback or endorsements from past clients highlighting their expertise, reliability, and the impact of their services on their Amazon business.
- Performance Metrics: Quantitative data such as CVR, CTR, return on investment (ROI), and other relevant performance metrics that demonstrate the effectiveness of their Amazon marketing strategies.
- Certifications and Qualifications: Any relevant documents or titles, such as being an Amazon Advertising Accredited Professional or other industry-specific credentials that validate their expertise in Amazon marketing.
- Skill Demonstration: Proof of their proficiency in various aspects of Amazon marketing, including product listing optimization, keyword research, sponsored ads management, storefront design, A/B testing, etc.
- Visual Content: They should incorporate visually appealing elements, such as images, graphics, and charts, to enhance the presentation of their portfolio and make it more engaging for potential clients.
- Diverse Client Portfolio: Examples of their work across different industries or product categories to prove their versatility.
- Innovative Strategies: Any inventive or creative approaches they've used in their ad campaigns to solve their clients' pain points efficiently.
Step 4: Test and Interview.
If you want to verify the authenticity of their portfolio, conduct a simple test and interview. A written or practical test where they can demonstrate their knowledge in areas like keyword research, campaign optimization, budget management, and performance analysis is a good idea.
During the interview, ask them scenario-based questions to gauge their problem-solving skills. You may also ask behavioral questions to learn how they handle pressure, work with a team, and align with your company values. Request contact references, preferably previous clients, to verify their qualifications.
Hire an Amazon Marketing Service Professional Now!
Outsourcing product listing optimization and ad campaign management to an AMS professional can significantly improve your marketing strategies and increase ROI. It also helps you concentrate on product sourcing, financial projection, business expansion, and other core tasks.
The key is to be meticulous when selecting a candidate. Ensure that your AMS professional's expertise and attitude align with your company's values and goals. Offer reasonable compensation to ensure they recognize and adhere to their professional value.