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Amazon Ads: What You Need to Know

Amazon Ads: What You Need to Know

Online spending represented 21.3% of total retail sales in 2020, according to estimates. Amazon accounted for nearly one-third of all eCommerce in the United States.*

Consumers spent over $860 billion shopping ecommerce in 2020 just on U.S. merchants alone. That’s a 44% increase year-over-year, not to mention the highest annual U.S. ecommerce growth in at least twenty years. And guess which digital commerce giant accounted for nearly one-third of all ecommerce in the U.S.? If you didn’t guess Amazon, guess again…

Reasons for Internet Users in the United States to shop on Amazon as of January

Amazon: America’s #1 eCommerce Platform

As the number one digital commerce platform in the nation, Amazon is an online tool eCommerce brands can no longer afford to ignore. With 300 million users and counting (as of January 2021), Amazon a no-brainer behemoth for small business owners looking to get their products in front of a sea of paying customers.

In a similar vein, Amazon’s paid advertising (PPC) reaches just as far and wide. In fact, the digital commerce giant boasts one of the largest online advertising systems today, alongside Google, Facebook, and Instagram. However – seeing as we’re in the business of teaching small businesses how to get down and digital for themselves – we’d like to use this blog post to address two FAQ’s from our clients: “Are Amazon ads worth it for small businesses?” and “What should I know before advertising on Amazon?”. Keep reading to learn more!

Are Amazon Ads Worth It for Small Businesses?

In short, yes— Amazon ads are definitely worth it, especially for small businesses.

When it comes to where small business owners would like to focus their digital marketing efforts, Amazon isn’t usually first on their list. In fact, we’ve come to learn that many small business owners view Amazon as “intimidating” or “beyond reach” for smaller brands like theirs. Our take on the matter? This couldn’t be less true.

Perhaps the best thing about running advertisements on Amazon is that it enables brands to put their products directly on a platform where their audience is already making purchases. This means that when consumers see your ad, they’re already primed to buy. What’s more, paid Amazon ads allow small businesses to reach their targeted audience, rather than spending their resources on irrelevant ones. This is especially important for smaller-sized businesses that don’t have big-brand budgets.

What Should I Know Before Advertising on Amazon?

Small businesses everywhere can benefit from running advertisements on Amazon. Here’s what you should know if you’re considering running Amazon ads for your small business:

  1. Your account type matters. Free seller accounts aren’t meant for sellers intending to run ads. The cost of a paid seller account depends on several factors, including product category, fulfillment strategy, and selling plan. Individual and professional selling plans are available. To learn more Amazon’s selling plans, as well as additional fees and costs, click here.
  2. Amazon ads work on an auction-based system. If your ad is relevant to someone’s search, it will be shown so long as your bid was the highest. However, you’ll only get charged a slightly higher amount than the next highest bid (aka the second-place bid). So, be sure to choose keywords carefully!
  3. The campaign type that’s best for you will be dependent on what you’re selling. Usually, a combination of sponsored brand ads and sponsored product ads will be the best plan of attack. Choose sponsored brand campaigns if you have a new line of products to show off. Choose sponsored product ads to showcase one product page in particular.

Looking for Guidance on Digital Advertising or Your Next Product Launch?

Take advantage of the expert knowledge and insights of our TTG Marketing Mentors. When you work with a mentor, you stay in the driver’s seat; we just help you navigate! Click the button below to learn more.
BUTTON: Learn More Now! 

Want us to take the wheel and set up ads for you? Check out our Digital Advertising packages. BUTTON: Shop Digital Ad Packages



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Creative Director/Senior Designer

Tom DiGrazia

With over a decade and a half of professional design experience, Tom brings his knowledge of design principles and focus on user experience to every aspect of his contribution to TTG. Paying special attention to each client’s brand, personalized needs and individual interests, he strives to create compelling concepts utilizing intuitive and highly-refined design solutions. In addition to traditional and digital design work and oversight at TTG, Tom also boasts a wide portfolio of web development projects with the company, allowing him to stretch his CSS and HTML skills across multiple platforms and disciplines. He feels that being a designer in the digital landscape of websites, eCommerce solutions, email marketing platforms and social media, it is important to understand the code that goes into these areas as it assists his ability to tailor designs specifically targeted to achieve the best end result and further builds understanding and communication with backend development teams.

In his off hours, Tom is an avid pop culture enthusiast, staying up to date on the latest shows, films, comics and games. He can also typically be found taking part in a whole host of artistic activities that help him further stretch his creative legs. Regardless of the activity, Tom is always accompanied by his dog, Eli, and his cat, Tib.

Design, Photography, Illustration, Digital Imagery Manipulation, Wesbite Development

Photoshop, Illustrator, InDesign, Lightroom, HTML/CSS, Wordpress


Courtney Dumont

As Senior Marketing Strategist & Analyst at Technology Therapy Group, Courtney is energized by the ability to flex both her left and right brain daily. Courtney discovered her passion for Marketing at Bryant University, where she spearheaded research on students’ perceptions of Social Media Marketing for her Honors Capstone Project. After graduating Bryant in 2012, she joined the Technology Therapy team, where she’s honed her skills in social media, search and social advertising, email marketing, SEO, and more.

Since joining the team, Courtney has created digital marketing strategies and managed campaigns for clients across the country, ranging from plastic surgery centers, to jewelry stores, to construction companies. With a cohesive, cross-channel approach and a focus on data-driven decision making, she has increased their leads by up to 217%. But Courtney doesn’t leave her zeal for social media at the office; she also runs a local foodie Instagram account with her husband to document their meals across Rhode Island and beyond. Check them out: @hoppilyfed.

Marketing Strategy, Data Analysis, Google Ads, Facebook Ads, Social Media

Google Analytics, Google Ads, Facebook Ads, Facebook Creator Studio, Instagram, Klaviyo, Mailchimp, Emma Mail, Google Data Studio, WordPress, YouTube, LinkedIn, Facebook, Microsoft Office