What is Amazon Advertising?

TL;DR

Amazon advertising operates like an online auction, where advertisers bid on search behaviors to show their ads to relevant audiences.

Transcript

hi my name is matt davis and i'm the advertising director here at my amazon guy and today i want to walk you through some of the basic functionality of amazon advertising so what is amazon advertising how does it work well effectively you can think of amazon advertising as a large online auction house but instead of bidding on artwork or classic ca... Read More

Key Insights

• 🫠 Amazon advertising functions as a virtual auction house, with ads displayed based on bid amounts and relevancy.
• 🎯 Keyword targeting and product targeting are the two main ways to target specific search behaviors.
• 🤩 Relevancy and bid amounts are key factors in determining which products are shown in search results.

Questions & Answers

Q: How does Amazon advertising work?

Amazon advertising is similar to a virtual auction house, where advertisers bid on search behaviors to determine ad placement. The higher the bid and relevancy, the greater the chance of displaying ads.

Q: What are the two main targeting methods in Amazon advertising?

The two targeting methods are keyword targeting, where advertisers focus on specific search behaviors, and product targeting, where ads are shown based on the relevance of the product to the search query.

Q: How does Amazon determine which products to show in search results?

Amazon considers both the bid amount and product relevancy to determine ad placement. The algorithm analyzes various data points, such as consumer interactions and conversions, to improve search result accuracy over time.

Q: What does "conversion" mean in Amazon advertising?

Conversion generally refers to a desired action, such as a sale, that advertisers want consumers to take. It can also include other behaviors, like clicking on an ad or adding a product to the shopping cart.

Summary & Key Takeaways

• Amazon advertising is a virtual auction house where advertisers bid on search behaviors to determine where their ads are displayed.

• There are two primary targeting methods: keyword targeting and product targeting.

• Amazon's algorithm considers relevancy and ad bid amounts to determine which products to show in search results.