Amazon Sponsored Ads are a cost per click (CPC) advertising service for Amazon sellers to increase the visibility of their product(s). CPC merchandising allows sellers to bid on keywords relevant to their product and, dependent on the competitiveness of the seller’s keyword(s) bid, the Sponsored Product Ad may be displayed when a shopper searches for said keyword. Ads are typically displayed to shoppers on the search results pages and product details pages.
Sellers pay for Amazon Sponsored Product Ads via an auction-based pricing model, in which a maximum CPC is set. Sellers also set a daily budget to determine the average daily amount they are willing to spend per day on product advertising.
Taking advantage of Sponsored Products is an excellent way to boost your product visibility and sales. The Seller’s selection of applicable product keywords is likely to drive conversions, as ads are only displayed to relevant traffic already searching for the products keywords.