A Simple Guide To Amazon's Complicated Advertising Business

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AMG, AMS, AAP, ACoS… Trying to keep track of all these Amazon advertising acronyms is enough to make anyone’s head spin. But consumer brands and advertising agencies alike are learning the new language of Amazon advertising as it is set to start competing more directly with Facebook and Google.   

Put simply, Amazon Media Group (AMG) is the business team that works with marketers who access the two primary advertising platforms: Amazon Marketing Services (AMS) and the Amazon Advertising Platform (AAP).

AMS

Amazon Marketing Services is a suite of pay-per-click (PPC) performance advertising products available to advertisers via self-service portals. AMS offers three different types of PPC products: Sponsored Products, Headline Search Ads, and Product Display Ads.

Advertisers set up and manage campaigns using these ad products either through the AMS dashboard (for Vendors) or via their Seller Central account (for marketplace Sellers). Amazon Storefronts are a recent addition to the suite, and offer a way for brands to merchandise their product assortment on stylized landing pages.

PPC on Amazon is tied closely to revenue. Advertisers can, and should, expect to see a clear return on investment in their PPC campaigns. A common question is what kind of return should be expected, but this is almost impossible to answer on even a product category level, no less a brand or product level. Some brands may see their Advertising Cost of Sales (ACoS) in the single digits for their established, high-performing campaigns, other brands in competitive categories with newer campaigns may be above 50%.
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