Amazon’s advertising business is just getting going and is estimated to reach $16 billion in 2021. Amazon’s dominance in product search is driving the growth. It being the world’s largest product search engine has its advantages and Amazon is starting to leverage that.
With more than 5 million sellers on the platform, all vying for visibility and sales, Amazon took a page from Google’s playbook. Advertisers on Amazon can now buy keywords related to their products & reach users as they are searching on the platform.
As the platform evolved, so has the complexity in managing & navigating the the spectrum of Amazon’s ad offerings. Amazon comes with it’s own set of acronyms that a seller or a brand needs to understand .
AMG, AMS, and AAP are the three main acronyms dominating the Amazon advertising landscape.
Amazon Marketing Services (AMS)
AMS is the search ads business for sellers on Amazon to promote their products. For people familiar with Google Ad Platform, this is Amazon equivaltent pay per click (PPC) paid search marketing platform. AMS offers brands three advertising formats;
- Sponsored Products
- Headline Search ads that show at the top of search results
- Product Display ads that show in a number of locations, such as product detail pages, the right rail of search results, and even in marketing emails to Amazon customers.
AMS is available for brands/sellers, and the ads will send customers to a product detail page or custom landing page on Amazon.
The popular ad formats being used by brands and sellers are the Sponsored Products and Headline Search ads. , with Sponsored Products offering the most granular control over ad targeting precision.
Amazon Advertising Platform (AAP)
AAP is Amazon’s programmatic ad buy platform, and enables brands to target Amazon shopper audiences of Amazon.com and Amazon owned sites. While Amazon’s search ads use a pay-per-click (PPC) model, AAP campaigns are cost-per-impression (CPM) based.
With AAP, brands can choose to work with an in-house Amazon team, or opt for the self-service AAP platform.
Amazon Media Group (AMG)
AMG refers to the in-house business team that sells Amazon’s ad products. AMG provides managed services for brands on and off the platform with video and display options on its properties, including Amazon, Kindle and Fire TV, as well as a wider network of sites.
The AMG team works closely with agencies and businesses to help them leverage Amazon’s ad offerings more effectively. As a managed service, AMG offers the complete planning and execution of all advertising activities on Amazon. This includes display banners, video ads, and custom ad units, displayed across Amazon and Amazon owned sites.
The managed services offered by AMG (including AMS & AAP management) are generally accessible to all advertisers (vendors, sellers or third parties), however the substantially high fees associated with using this service may not make it the best solution for all advertisers.
AMS and AAP are also available as self-service, however AMS is only available for brands/vendors with Brand Registry. When it comes to budget, AMS campaigns can be initiated with almost no budget requirements, but using AAP will require significantly higher budgets.