{"id":373817,"date":"2024-05-31T06:34:52","date_gmt":"2024-05-31T06:34:52","guid":{"rendered":"https:\/\/webinterpret.com\/blog\/amazon-advertising-strategy"},"modified":"2026-06-19T12:16:15","modified_gmt":"2026-06-19T12:16:15","slug":"amazon-advertising-strategy","status":"publish","type":"post","link":"https:\/\/webinterpret.com\/en\/blog\/amazon-advertising-strategy","title":{"rendered":"Manage multi-country Amazon Advertising with ease"},"content":{"rendered":"

\"Amazon<\/p>\n

[FREE download: Guide to Amazon Advertising]<\/a><\/p>\n

The growing role of Amazon Advertising worldwide\u00a0<\/b><\/h2>\n

Amazon is the leading digital retailer and one of the most frequently visited web properties.<\/p>\n

According to Statista, in 2023, Amazon claimed the top spot among online US retailers, capturing 37.6% of the market.<\/p>\n

The same source claims that the digital ad spend on ecommerce platforms is expected to exceed $38 billion by the end of 2024. Amazon is also a key player among those channels.<\/p>\n

Even though such statistics and studies predominantly cover the US market context, Amazon’s dominance extends far beyond the US market<\/strong>.<\/p>\n

Amazon’s global reach, coupled with fierce competition among sellers, has fueled the growth of Amazon Advertising.<\/p>\n

In 2018, Amazon launched Amazon Advertising (formerly AMS or Amazon Marketing Services). The service works similarly to pay-per-click ads on Google: sellers only pay when shoppers click on ads (regardless of whether or not the item sells).<\/p>\n

More and more sellers are choosing Amazon Advertising<\/a> as a tool to improve product visibility and sales conversion rates.<\/p>\n

Amazon\u2019s advertising ecosystem is further growing as well, through products such as Amazon DSP (Demand Side Platform) that allows sellers to programmatically buy display and video ads at scale and target audiences on Amazon.com, Fire TV Sticks, IMDb.com, Kindles, Freedive, apps, third-party sites, apps and platforms.<\/p>\n

4 recent stats to know about Amazon Advertising: and how to interpret them<\/b><\/h3>\n
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  1. According to CommerceIQ, Amazon’s average cost per click (CPC) increased by 11.6% in 2023.<\/li>\n
  2. The average return on ad spend (ROAS) remained relatively consistent at the same time ($4.81 in 2023 vs. $4.83 in 2022 to $4.81 last year).<\/li>\n
  3. According to eMarketer, the average 2023 Amazon CPC peaked in July and October.<\/li>\n
  4. In 2024, Amazon is expected to represent approximately 74.2% of retail media ad revenues in the United States.<\/li>\n<\/ol>\n

    These trends and statistics carry several implications for selling on Amazon:<\/p>\n

    With the rise of competitiveness on the platform, more budget needs to be allocated to advertising to maintain visibility. That leads to increased advertising costs. However, even though advertisers on Amazon were paying more for each click on their ads, they were still able to generate a comparable return on their advertising investment.<\/strong><\/p>\n

    It’s also worth paying close attention to building an advertising strategy around a properly localized ecommerce calendar<\/a> to maximize advertising ROI. Planning advertising strategies and budgets accordingly can help capitalize on certain global and local events while managing expenses – such as the increased competition and consumer activity driving up CPCs in July and October, which can be directly linked to Amazon\u2019s Prime sales events.<\/p>\n

    Creating a winning multi-country Amazon Advertising strategy<\/h2>\n

    Some products can sell relatively quickly on Amazon with no excessive ad spend. But some cases require more advertising effort. It often concerns \u2013 and surprises \u2013 those who sell both domestically and internationally.<\/p>\n

    We asked Sergei Lapitzki, an Amazon Ads expert, about his take on the international context of advertising on marketplaces. Lapitzki has been deeply involved in the Amazon landscape for the past decade, with a background encompassing both seller and agency roles, which he now brings into our digital advertising at Webinterpret.<\/p>\n

    \n
    <\/div>\n
    \n
    An effective long-term advertising strategy for a multi-country Amazon seller can depend on factors such as local market saturation, the competitive landscape, nuances in local consumer behavior, regulatory compliance, and locally established price levels within a niche.<\/div>\n
    Sergei Lapitzki, Digital Advertising Expert at Webinterpret<\/div>\n<\/div>\n<\/div>\n

    As he further explains, e.g., \u201cknowing where higher competition demands higher quality earned and owned media content, understanding consumer motivations: how people choose and buy products, etc. Understanding these variables helps tailor ad campaigns for optimal performance and sustainable growth across diverse markets.\u201d<\/p>\n

    Forget the common “the more, the better” approach. An optimal multi-country Amazon Advertising strategy requires a flexible plan and strategic fund allocation<\/strong> to maximize ROAS.<\/p>\n

    International advertising opportunities on Amazon<\/h2>\n

    Selling internationally on marketplaces can help unlock full sales potential and mitigate risks when the unexpected occurs<\/strong>.<\/p>\n

    Amazon Advertising can further enhance it and open up many opportunities for those willing to juggle different markets. One way to maximize ROI from advertising is minimizing cost per click, which may be possible in less competitive markets.<\/p>\n

    Testing new markets<\/h3>\n

    Advertising internationally gives a chance to explore new markets and find profitable opportunities. The ultimate goal is to investigate which markets have lower competition and thus offer better ROAS. Why?<\/p>\n

    When, over time, paid marketing campaigns reach a plateau in a given market<\/strong>, acquisition costs can significantly go up without adequate return on investment. It means little room for growth. Further increasing CPCs to grow traffic can decrease campaign clicks, sales, and overall profitability.<\/p>\n

    \"Ecommerce<\/p>\n

    In such cases, exploring less competitive markets with lower CPCs can help increase profitability<\/strong> and unlock huge sales potential. It\u2019s also how conversion rates can go instantly up.<\/p>\n

    These are often foreign markets where local online sellers can\u2019t offer specific products or meet the local demand. A good example is Italy, where car parts must be imported from abroad.<\/p>\n

    One of the most significant worldwide opportunities for marketplace sellers is the possibility of satisfying an unmet demand for certain products from a foreign market.<\/p>\n

    Building brand awareness abroad through advertising<\/h3>\n

    A successful global marketplace expansion strategy is about more than just sales. Sometimes, launching into new markets requires investing in brand awareness first.<\/p>\n

    Building a solid brand presence in a new environment is a complex process. Advertising can be one of its steps.<\/p>\n

    There are many different types of ads on Amazon<\/a>, and each can serve a different purpose depending on the market you\u2019re targeting. Amazon Sponsored Brand Campaign is one interesting format for building brand awareness.<\/p>\n

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    \n
    Amazon Sponsored Brand Campaigns<\/div>\n
    Sponsored Brand Campaigns, also known as Headline Search Ads, are a type of ad on Amazon that allows the promotion of keyword-targeted ads of multiple products above, below, and alongside search results.<\/div>\n<\/div>\n<\/div>\n

    These campaigns operate on a pay-per-click pricing model, utilizing an auction-based system. They allow you to target three types of keywords:<\/p>\n

      \n
    • Branded product keywords: a combination of a brand name and a product sold<\/li>\n
    • Complementary product keywords<\/li>\n
    • Sponsored products\u2019 automatic targeting keywords<\/li>\n<\/ul>\n

      Most importantly, they are tailor-made to enhance shopper consideration through brand visibility across markets.<\/strong><\/p>\n

      We asked Bronwen Hunter, Webinterpret\u2019s Product Marketing Specialist, to further explain how brand awareness can serve as a strong foundation for cross-border trade, as she specializes in building product-related content that enables ecommerce sellers to achieve their best results. In her experience:<\/p>\n

      \u201cBrand recognition is fundamental for international marketplace sellers as it establishes trust, credibility, and customer loyalty within a dynamic ecommerce landscape. Not only does recognition attract new customers, but it fosters retention and empowers brands to market their products with premium pricing. A well-recognized brand can set itself apart from its competitors and strengthen its relationship with its audience, facilitating more visibility amidst a crowded marketplace.\u201d<\/p>\n