Amazon is the #1 e-commerce platform in India and with 1.5 Billion monthly product searches, it is the preferred destination for Indian shoppers to do their product research. In addition, 65% of the users searching are returning customers who have a significantly higher propensity to make a purchase.

While 60% of Amazon visitors start out with a search, 70% of them do not end up moving beyond the 1st page of the search results where your product might happen to be located. It is this specific need of being visible when your customer is looking for you, your category or your brand on that 1st page of the SERP that makes the proposition of Amazon Marketing Services (AMS) an interesting one.

AMS is a service by Amazon that allows for paid promotion of products and offers on either of the search result or the product detail pages. The offering focuses on ad formats that can drive Awareness (Display Ads, Objective: Reach, Search Rank) as well as Purchase (Search/Display Ads, Objective: Clicks, Sales).

Since we’re interested in driving sales, we’ll focus on the search ads that operate on a CPC model. There are three ad formats primarily, two of these are ads that show up on the search results page(& the product detail page) and aim to deliver visibility as per the search query intent; the third of these is a contextual display ad that serves on product detail pages to direct traffic away from competitor’s or cross-sell your own products.

Top of the Funnel: Headline Search Ads

Headline Search is banner advertising on Amazon located in prominent placement above the search results.

From the ad, traffic can be driven to either of

  • Amazon Branded Page(Storefront Page)
  • Best-selling products or
  • A custom URL(SERP with at least 3 products)

Success with Headline Search Ads rests on matching keyword intent with

  • The right bid(improve visibility)
  • The ad copy(improve click through)
  • The landing page that the ad exits to(improve CVR)

Middle of the Funnel: Sponsored Products (~Google PLA)

Sponsored Products allow you to promote individual products using keyword targeting. The goal of Sponsored Products is to get products placed on the first page of the SERP for desired search terms/themes in order to increase visibility for new offers, unique selections, clearance items, and seasonal promotions

In addition to the SERP, these ads continue to appear on the product detail page that is directed from the SERP.

Bottom of the Funnel: Product Display Ads

Product Display Ads are display ads showcasing a single product and lie on the bottom right corner of your(or your competitor’s) product detail page. Since Product Display Ads are the last ad the shopper sees before clicking the “add to cart” button it’s an extremely important ad

placement provided the right competitor landing pages are targeted at the most appropriate bid.

Since this is the only ad format that allows for interest based targeting, audience learnings from Google and other display networks can be used in conjunction with the campaign strategy.

The Time Is Ripe

The massive growth of internet and smartphones in India has fueled e-commerce sales exponentially over the last few years. With traditional channels getting crowded by the day, there’s a parallel inflation happening in the CPCs and the acquisition costs to maintain the same share of the sales pie available through these channels.

Amazon with its burgeoning, purchase ready user base is the destination for brands who are looking for the next big thing in terms of sales growth. As AMS for brands is a newer offering in India, there’s a scope to get incremental visibility and sales at a fraction of the acquisition costs than what is delivered by the traditional channels. Moreover, the novel mix of ad formats, targeting and inventory available makes for an interesting digital marketing channel waiting to be explored and taken advantage of, especially by the first movers.

Authored by: Yatharth Tyagi | Digital marketer

Feel free to reach out for a discussion if this seems exciting to you as well.


Amazon Marketing Services