Friday, July 15, 2011

Online Advertising with Amazon Product Ads

Two emails and two pieces of bad news of the same nature in a single day have prompted me to write this post about Amazon Product Ads...

Dave, a close friend of mine had his Adwords account terminated last week wrote to ask for information of alternative paid advertising sources and paid media buying sites that I use. The second case is a Super Affiliate - a lady (I choose not to mention her name for privacy reasons) who's quite well known in the IM community, also lost her Adwords account around the same time as Dave. But she said that's no big deal to her since she had decided to do away with paid advertising completely and focus on SEO.

It makes me wonder just how many other marketers are having the same problem out there!?

Back to Amazon Product Ads...

I started using Amazon Product Ads nine months ago in place of Google Adwords and I'm fairy happy with my result (averaging about 4% conversion rate) so far. To be honest, I was making heavy losses with Adwords during the first 6 months of 2010 and since the Google Slap had become too ridiculous I'd no choice but pulled out completely. Before moving over to Amazon Product Ads, I also tested Facebook Ads. To these days, I still use Facebook Ads for some of my CPA offers and low ticket info products but not for any physical products.

Amazon Product Ads has great potentials as a highly targeted advertising channel. But I think it's unfair to consider Amazon Product Ads as a direct alternative to Google Adwords. Firstly, unlike Google which is a search engine, Amazon.com is an e-commerce marketplace. Secondly, Amazon Product Ads is only good for promoting physical products. Whereas Adwords is for everything - physical products, services, CPA offers, digital products, just about anything.

What is Amazon Product Ads?

Launched in February, 2008, Amazon Product Ads is a cost per click (call it pay per click or ppc if you like) advertising program that allows marketers, retailers and business owners to drive traffic from Amazon.com to products sold on their own website.

There are no monthly fees and no minimum spend. As an advertiser of Amazon Product Ads, you are charged only when someone (an Amazon customer or site visitor in this case) clicks on your ad and is taken to your web site. You're in full control of the maximum price you are willing to pay for that click (bidding), as well as your daily budget.

How Amazon Product Ads Works:

1. First, sign up for an Amazon Product Ads account.


2. Upload Your Product Catalog and Set Your Budget

A Product Ad is created for each product that you upload to the Amazon.com catalog. Once you have signed up for an account, you can upload your items directly through Amazon's online account management interface or Seller Central. Your ads will then appear on Amazon.com.

When you get your first click, Amazon.com will give you the next $75 worth of clicks for FREE. Some restrictions apply -- Read details here.


3. Customers See Your Product Ads on Amazon.com

Your Ads will be viewed by active Amazon.com customers 24/7 via Amazon product pages, as well as being displayed in relevant Amazon.com product search and browse results and contextually targeted placements.





4. Customers Click to Product Pages on Your Website

When Amazon.com customers click on your ad they are taken directly to your Web site where you control the brand and buying experience for your products. This allows you to deliver a unique buying experience, giving you the opportunity to acquire new customers and grow revenue for your business.

5. You Are Charged a Cost-Per-Click

Using Seller Central, you can easily view your invoices and track your advertising budget. There are no fees for impressions - you are only charged when Amazon.com customers choose to click on your ad and are directed to your web site. You control not only the maximum price you are willing to pay for each click, but also your daily and monthly budget. Most importantly, you can measure your return on investment and optimize your budget accordingly. Invoices are published as you accumulate clicks and payment is collected via credit card.

6. Customers Purchase Products From Your Website

You control the buying experience because Amazon.com customers are clicking through to your Web site. Customers benefit from the seamless discovery of your products on Amazon.com and your e-commerce expertise. Your Amazon Product Ads will deliver you engaged customers giving you the opportunity to acquire repeat orders and increased sales for your business.

Eligible Product Categories and Pricing at time of writing:

Please note:
You don't pay for customers who spend time to read and view your products on Amazon. You only pay when they click on your ad to go to your website.

Minimum Cost-Per-Click Bid changes with each product's unit price, meaning, the higher the unit price the higher will be the bid.


Open Categories

Baby:
Baby Apparel, Baby Bedding & General Baby Products
Minimum Cost-Per-Click Bids: $0.15 - $0.70

Computers:
Computer Accessories, Desktops and Servers, Drives and Storage, Laptops, Monitors, Netbooks & Networking and Communications
Minimum Cost-Per-Click Bids: $0.20 - $0.70

Electronics:
Blank Media and Film, Cameras and Camcorders, Electronics Accessories, GPS and Accessories, General Electronics, Home Theater Components, Home Theater Systems, MP3 Players, Portable Audio and Video, Musical Instruments, Televisions, USB Drives and Flash Memory & Video Players and Recorders
Minimum Cost-Per-Click Bids: $0.10 - $1.40

Health and Beauty:
Diapers, General Health and Beauty & Shaving and Hair Removal
Minimum Cost-Per-Click Bids: $0.10 - $0.60

Home:
Furniture, General Home Products, Home Decor, Kitchen and Dining, Large Appliances, Pet Supplies & Small Appliances
Minimum Cost-Per-Click Bids: $0.10 - $0.80

Home Improvement:
Battery Packs and Chargers, General Home Improvement, Lighting, Power Tools & Storage and Shelving
Minimum Cost-Per-Click Bids: $0.15 - $1.00

Office:
General Office Products, Ink and Toner Cartridges, Printers and Scanners & Projectors
Minimum Cost-Per-Click Bids: $0.20 - $0.80

Sports:
Exercise and Fitness Equipment, General Sporting Goods & Sports Apparel
Minimum Cost-Per-Click Bids: $0.15 - $0.70

Toys:
Toys and Games
Minimum Cost-Per-Click Bids: $0.10 - $0.20

Restricted categories:

Advertisers must obtain approval from Amazon.com in order to list products in the following restricted categories.

Grocery:
Grocery and Gourmet
Minimum Cost-Per-Click Bids: $0.10 - $0.40

Jewelry:
Minimum Cost-Per-Click Bids: $0.25 - $1.00

Shoes:
Handbags, Luggage, and Fashion Accessories & Shoes
Minimum Cost-Per-Click Bids: $0.15 - $0.60

Watches:
Watch Accessories & Watches
Minimum Cost-Per-Click Bids: $0.25 - $0.80

The following categories of products are not supported by Amazon Product Ads:

Apparel
Automotive Parts and Accessories
Books
CD and Vinyl
Cell Phones & Accessories
DVD
Kindle Accessories
Motorcycles, ATV and Protective Gear
Music
Software and Computer Games
Video Game Consoles
Videos VHS

Who Should Advertise with Amazon Product Ads?

To advertise with Amazon Product Ads, you need an eCommerce website with a secure checkout. Each product you list must have a unique detail page URL on your website. Customers must be able to add the product to their shopping cart directly from your detail page.

Need help to create your eCommerce website? Click here.

Conclusion:

I like Amazon Product Ads. It's a great place to advertise and sell physical products. Amazon.com is currently the #17 most trafficked website in the world (#5 in the US), representing nearly 0.4% of the total global page views according to Alexa.

It seemed like Google was the only game in town for years. However, more and more PPC marketers are becoming progressively more despondent as Google's rules got tougher. Amazon Product Ads can be the salvation route I see for many of us who are marketers of physical products -- lesser rules, quality traffic and most importantly, CHEAPER.

So, if you're also sick of busting your tail for traffic or getting slapped by Google, I suggest you give yourself a chance to test out Amazon Product Ads. Who knows, you may discover a whole new world of advertising opportunities with Amazon.com!

One Very Useful Amazon Product Ads Tip - Make sure your products have UPC codes to get better exposure.

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