Put your money where your online retailer is.
August 14, 2019 5 min read
Opinions expressed by Entrepreneur contributors are their own.
While Facebook has become one of the world’s largest platforms for e-commerce marketing, this doesn’t mean that it’s necessarily the best pick for your advertising dollars. Yes, Pew Research’s latest data reveals that 69 percent of adults in the United States use Facebook, but the vast majority aren’t going there to discover new products and services. To many, Facebook ads are actually an intrusion that takes time away from checking in with family or sharing the latest cat memes. Worse still, even with Facebook’s audience-targeting metrics, many users are exposed to ads that are completely irrelevant to their interests.
On the other hand, when someone visits Amazon, they are specifically going there to shop. Broadly speaking, this is why investing in Amazon ads could be one of the most important things you do to grow your e-commerce brand, but ere are four reasons that make an even more targeted case.
1. There’s an audience that’s ready to buy.
According to a 2018 NPR/Marist poll, 44 percent of online shoppers begin their product search on Amazon, even greater than the 33 percent who start with a search engine like Google. Amazon shoppers are also far more likely to have purchased products online than those who use other platforms. For example, data from the same survey found that 72 percent of Amazon shoppers had purchased electronics online, in comparison to 48 percent of all American adults.
With ads on Amazon, you aren’t just building awareness that may or may not influence a future purchase. You are getting a key placement at a time when users are ready to buy, greatly increasing your chances of making a sale.
2. You’ll improve organic listing rankings on Amazon.
For organic Amazon listings, sales volume plays a significant role in how products show up in search results. The better your product sells, the higher it will be placed when someone types in a relevant search query on Amazon. This has proved especially helpful for e-commerce brands like baby-product site Mushie. Levi Feignenson, the company’s co-founder and CEO, explained via email that for them, Amazon ads “were essential for us to get our initial customers to buy our products. As those first customers bought our items and left reviews, it helped increase our organic search rankings as well, which naturally led to more sales. Over time, it’s had a kind of snowball effect where the ads and improving organic rankings have helped us continue to bring in new customers.”
Facebook product ads don’t deliver this kind of boost to your online profile, while Amazon ads offer a direct benefit to your organic listings that will continue to pay off even after you conclude a campaign.
3. Amazon ads are considered more trustworthy.
One of the reasons behind Amazon’s success is the option for customers to leave reviews of products they’ve purchased. These reviews are extremely influential, with data published by Qualtrics reporting that 82 percent of customers check online reviews before buying. One of the more popular types of Amazon advertisements options is its Sponsored Product ads, which display your product listing as part of a user’s search results. These ads look just like a typical Amazon listing, complete with a star rating. If you’ve already gained positive reviews, this makes users much more likely to click on your sponsored post.
While you can mention review information in Facebook e-commerce ads, your audience won’t necessarily believe the testimonials because they are included as part of your ad copy. Because Amazon’s reviews come from actual customers, potential buyers are much more likely to believe claims of quality.
4. There are a variety of ad types to experiment with.
While a Sponsored Product ad is an undeniably attractive option, this is far from the only way you can advertise on Amazon. Sponsored Brands ads (formerly known as headline ads) typically appear above or below the search results, advertising your brand or a few of your latest products. These ads can take buyers to a custom landing page, where they can view several of your products and gain greater exposure to your business as a whole. Product Display ads are another unique option. Rather than appearing in the initial search listing, they materialize on customer review pages or as a “related product” suggestion. With these ads, you can actually earn revenue that might have otherwise gone to one of your competitors.
Testing the various ad options available through Amazon can help your e-commerce brand find the perfect mix for increasing sales. Even more importantly, because you are bidding on keywords rather than audience metrics, you can have greater confidence that your ads will appear before relevant users.
While Facebook can be a great platform to raise awareness for your brand, this doesn’t always lead to sales. When you advertise on Amazon, you’ll be better positioned to reach customers who are ready and willing to buy your product. By using high-quality, compelling images of your products and bidding on the right keywords, you further increase your appeal with customers who are far more likely to engage.