Before discussing how to create a sponsored product campaign I would like to discuss with some terminologies related to sponsored products.
Campaign Name – Unique name required to identify a particular campaign. It will not display to your customer.
Daily Budget – It is the total amount you want to sell in a day on your campaign.
Automatic Targeting-In Automatic Targeting Amazon will target ads to the relevant customers based on your product search. A seller is not required to provide keyword in case of automatic targeting. It is best for beginners.
Manual Targeting – In Manual Targeting a seller need to provide keywords and based on those keywords and bid ads start appears on amazon.
Ad Group – Ad group refers to the group of a similar item. A campaign can have more than one ad group.
Bid – It is the amount you will bid for a keyword. More the bid on a keyword more the chances that the keyword won and your product ad starts appearing for that search term. As we know that there are hundreds of sellers selling the same item and many of them want to promote their listing but there are only a few placements for ads for a particular keyword so amazon finds a simple way of bidding. The seller who wins the bid amazon will show their ad and will charge an amount equal to 1 paisa more than the next lower bid when a person clicks the ad.
Think of two sellers Ram and Shyam both selling Kurtis and wants to promote them to increase their sales. Ram and Shyam both have created a sponsored product campaign. Ram enters a bid amount equal to Rs 5 and Shyam enters a bid amount of Rs 4. Now the bid amount provided by Ram is greater so ad created by Ram will appear and when someone clicks his ad he will be charged Rs 4.01.
The appearance of ad not only matters on the bid but also matters on the keyword you provide.
Impression – Impression is calculated when your ad is viewed either on the product’s search page or product details page. A seller will not be charged for an impression.
Keywords – Keywords refer to the search terms.
Match types
- Broad – Your ad appears when a shopper search for a keyword that is relevant to the keyword you provide.
- Phrase – Your ad appears when a shopper search for a keyword that contains the phrase or keyword that you provide.
- Exact – Your ad appears when a shopper search for a keyword that is exactly same the keyword you provide