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What is Amazon Marketing Services (AMS) and Why Should Sellers Use It

What is Amazon Marketing Services (AMS) and Why Should Sellers Use It?

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Amazon Marketing Services (AMS) is a powerful tool for sellers and brands looking to improve product visibility, drive targeted traffic, and increase sales on Amazon. It offers a variety of ad types that allow businesses to strategically showcase their products to millions of active shoppers. By leveraging AMS, you can optimize your marketing campaigns, boost conversion rates, and achieve long-term brand recognition.

Amazon Marketing Services is essential for any seller wanting to stand out in the highly competitive marketplace. Whether you’re a new seller or a well-established brand, using AMS correctly can drastically improve your chances of success.

Why Is Amazon Marketing Important for Product Visibility?

Amazon’s marketplace is crowded with millions of products. Without proper marketing, it’s easy for your items to get lost in the mix. AMS helps bridge that gap by offering targeted advertising solutions that position your products directly in front of shoppers who are actively searching for similar items. AMS increases discoverability, drives organic search rankings, and ensures that your ads reach relevant audiences, leading to higher click-through rates and conversions.

AMS also impacts organic search ranking. When shoppers engage with your sponsored ads, it can improve your overall product ranking, further boosting its visibility in organic search results.

Example: Brands using AMS have reported an average 30-40% increase in sales within the first 90 days of launching ads, with Sponsored Products being the most used ad type due to its direct impact on product sales.

How Does Amazon Marketing Services Work?

AMS consists of several advertising solutions tailored for different marketing objectives:

  • Sponsored Products: These are pay-per-click (PPC) ads that appear in search results and product detail pages. They are ideal for promoting individual items and increasing direct sales.
  • Sponsored Brands: These ads feature your brand logo, a custom headline, and multiple products. They’re excellent for building brand awareness and driving traffic to your brand’s Amazon Store.
  • Sponsored Display: Sponsored Display ads enable you to retarget users who have viewed your product or similar products, helping you re-engage customers.
  • Amazon DSP (Demand-Side Platform): DSP allows you to programmatically buy display, video, and audio ads both on and off Amazon. It’s used for broader campaigns and for targeting audiences outside Amazon’s platform.

Each ad type serves a distinct purpose, from launching new products to retargeting potential customers.

AMS works by offering targeted ad placements based on keywords, shopping behaviors, and demographics, giving you control over who sees your ads.

How Can You Set Up an Effective Amazon Marketing Campaign?

To begin with Amazon Marketing Services, you first need an AMS account, which is accessible through either Seller Central or Vendor Central, depending on your seller type. Here’s a simple walkthrough:

  1. Define Your Campaign Goals

Are you launching a new product, promoting an existing one, or building brand awareness? Knowing your goal will help you choose the appropriate ad type and strategy.

  1. Choose Your Ad Type

For product promotions, Sponsored Products are the go-to option. If you’re looking to create a broader campaign or showcase multiple products, Sponsored Brands or Sponsored Display might be more suitable.

  1. Keyword Research and Targeting

Use keyword research tools to find relevant keywords that customers are likely to search for. Select both short-tail and long-tail keywords, as well as negative keywords to avoid irrelevant clicks.

  1. Set Budgets and Bids

Determine a daily or lifetime budget and decide whether to use automatic or manual bidding. Manual bidding gives you more control, while automatic adjusts based on competition.

  1. Design Compelling Ads

Write persuasive ad copy that highlights the product’s key features. Ensure high-quality images or videos are used, as visuals can drastically improve click-through rates. Include A+ Content and enhanced brand content for a better presentation.

Example of Ad Cost Structure:

Ad TypeAvg CPC (Cost per Click)Average RoAS (Return on Ad Spend)
Sponsored Products$0.813.6x
Sponsored Brands$1.012.7x
Sponsored Display$0.852.9x

Well-structured campaigns, combined with keyword targeting and compelling visuals, lead to higher returns on investment.

How to Optimize Your Campaign for Better Results?

Optimization is an ongoing process when using AMS. Here are a few key areas to focus on:

  1. Use A/B Testing

Test different ad variations (e.g., headlines, images, calls to action) to see what resonates best with your audience. Track metrics like Click-Through Rate (CTR), Conversion Rate, and Cost-Per-Click (CPC) to measure success.

  1. Leverage Negative Keywords

Regularly update your negative keyword list to exclude irrelevant traffic. This ensures your ad spend is used efficiently and that your ads appear to the right audience.

  1. Monitor Key Metrics

Use Amazon’s Seller Central reporting tools to track impressions, clicks, sales, ACoS (Advertising Cost of Sales), and RoAS (Return on Ad Spend). Analyze which keywords and campaigns are driving the best results, and adjust bids or budgets accordingly.

  1. Bid Adjustments

Make use of dynamic bidding to automatically increase or decrease bids depending on conversion probability.

How to Measure Success with AMS?

To measure the success of your AMS campaigns, you need to focus on the right metrics:

  • Impressions: How many times your ad was shown.
  • Clicks: How many people clicked on your ad.
  • CTR (Click-Through Rate): The percentage of people who clicked on your ad versus those who saw it.
  • CPC (Cost Per Click): How much you’re paying for each click.
  • Conversion Rate: Percentage of users who clicked on your ad and then made a purchase.
  • RoAS (Return on Ad Spend): The amount of revenue generated per dollar spent on ads.

For example, a high CTR (2% and above) generally indicates that your ad copy and targeting are well optimized. Conversion rates of 10-15% are typically considered strong, but this varies by product category.

Regularly tracking CTR, Conversion Rates, ACoS, and RoAS will help you determine the health of your campaigns and where optimizations are needed.

Advanced Strategies to Help You Scale AMS Campaigns

Once your campaigns are optimized, you can start exploring advanced strategies to scale and improve your results:

  1. Retargeting with Sponsored Display

Use Sponsored Display to retarget shoppers who have viewed your product or similar products. This helps re-engage potential customers who didn’t convert on their first visit.

  1. Expand with Amazon DSP

If you’re looking to scale your campaigns beyond Amazon, Amazon DSP offers a way to target audiences across the web. You can use it for programmatic ad buying, allowing your ads to appear on non-Amazon sites, and even third-party apps, maximizing reach.

  1. Leverage Influencers with Amazon Posts

Partnering with influencers through Amazon Posts is a great way to organically promote your products and build a loyal following. This also gives you access to Amazon’s social media-like feature, helping you drive more traffic to your listings.

FAQs

How much should I budget for AMS campaigns?

Budget depends on your goals and product category. For Sponsored Products, sellers typically start with $10-$50 per day. For larger brands, $100+ per day may be required to see significant results.

What is a good ACoS?

An ACoS of 15-20% is generally considered good for most categories. However, this can vary depending on your margin and advertising strategy.

Can I run ads if I’m just starting on Amazon?

Yes, even new sellers can use AMS. However, it’s important to first optimize your product listings, images, and reviews to ensure your ads convert effectively.

How can I lower my ACoS?

Lowering ACoS involves better targeting, using negative keywords, optimizing ad copy, and focusing on high-converting keywords.

Summing Up

Amazon Marketing Services offers a suite of tools that can transform how your products are discovered, purchased, and reviewed by shoppers. By setting up well-targeted campaigns, regularly optimizing ads, and analyzing key metrics, you can grow your sales and brand visibility effectively. If you’re ready to take your Amazon selling experience to the next level, start exploring AMS and build campaigns tailored to your business goals.