How much does Amazon brand advertising cost? What are the results?

There are three types of Amazon ads: product promotion ads, brand promotion ads, and display promotion ads. Many businesses are concerned about the proportion of advertising expenses. So, how does Amazon charge for brand ads?

1. How much does Amazon brand advertising cost?

CPC is generally charged based on the number of times the ad is clicked. The cost of CPC is related to the keywords selected for the ad and sales data. Sales data is also related to the number of clicks and conversion rate of the product.

PPC advertising is charged based on the number of users who click on the ad.

In simple terms, if a seller's product uses PPC advertising and gets 120 clicks with $30, the cost per click is $0.25. Every buyer who clicks on the seller's promoted ad needs to pay the platform a promotion fee of $0.25.

As for Amazon's advertising fee deduction mechanism, the platform will provide each seller with an initial credit of $50. Each time the seller hits the credit, the credit will increase after the payment is successful. The maximum credit is $500.

2. How effective is Amazon brand advertising?

Amazon Brand Advertising:

①Advertisements dominate the screen and enhance brand influence.

Imagine this: when a customer searches for a product category that he has never come across before, and sees that the search results are mostly all of a certain brand, he or she will basically think that this brand is very strong in this category. Leaving this first impression on the customer is very helpful in promoting conversions.

② Flow closed loop to reduce flow loss.

When our product detail pages are surrounded by our own ads, the traffic we attract will not be taken away by competitors, which greatly improves the traffic retention rate. There are three points to note about this:

1) Ensure that the performance of your products is not too bad (such as star rating), otherwise customers will not buy even if they close the website;

2) The cost of achieving 100% closed loop is too high. It is recommended to increase exposure as much as possible while the cost can be held;

3) To achieve a closed loop, there must be enough products in the same category, so it is more suitable for sellers who focus on a specific category.

③ Surround with traffic and build a traffic moat

When we have a leading advantage in a certain category, we can use our ads to surround competing products as much as possible, absorb their traffic, limit their sales and rank growth, and stabilize the ranking of our products.

Traffic closed loop and traffic encirclement are actually the same idea, but one is for yourself and the other is for competitors.

Generally speaking, there are two charging methods for Amazon brand advertising. One is to charge based on the number of times the ad is clicked, and the other is to charge based on the number of users who click on the ad.