What Is Amazon PPC? Everything You Need to Succeed
To succeed as a seller on Amazon, you need a solid Amazon PPC strategy. Brands, agencies, and third-party sellers can use Amazon PPC to create ads that appear in search results and on competitor product listings. Advertising with Amazon provides numerous opportunities to promote your products. This article answers the most important questions: What is Amazon Pay Per Click? How do I set up a campaign (step-by-step)? How much does it cost per month? These and more questions are explained below.
What Is Amazon PPC?
Amazon PPC is the advertising service that Amazon provides to its third-party sellers specifically for the Amazon environment. It enables you as a seller to promote your products through targeted ads that appear in search results or on product detail pages on Amazon. This is important when it comes to selling with Amazon FBA as well.
Amazon PPC is a very visible and effective promotional tool that enables professional sellers to create Amazon advertising campaigns by adding keywords to the product for improved exposure in search results or rival listings, as well as greater organic ranks.
Why Is Amazon PPC Advertisement so Important?
There are a number of reasons why you should reinvest a part of your revenue in Amazon PPC advertising, not least because it helps you stand out against the evergrowing competition.
Types of Amazon PPC Ads
Let’s go over the different forms of accessible Amazon PPC advertisements, in order of third-party seller popularity.
Sponsored Product Ads
This form of Amazon PPC is highly recommended to start with. When you put a keyword into the Amazon search box and get results, some of the top results will be sponsored articles, which are classified as Amazon ads. They’re identified by text that says “sponsored” or “ad.”
Sponsored Product adverts imitate organic listings and show in search results and product listing pages.
There are two sorts of keyword targeting tactics that a seller may employ when developing sponsored product ads: automatic targeting and manual targeting. What exactly is the distinction?
Sponsored Brand Ads
Sponsored Brand advertisements, originally known as “headline search advertisements,” allow sellers to promote multiple products at once and capture consumers’ attention with more detailed imagery than Sponsored Products advertisements.
Sponsored Display Ads
Customers who have visited certain product detail pages on and off Amazon can be retargeted with Sponsored Display advertising. Sponsored Display advertisements, unlike Sponsored Product and Sponsored Brand ads, can be found on Amazon’s affiliate sites, such as Netflix, Google, and even mobile phone apps. A seller must have a registered brand to use this Amazon PPC advertising method, just like Sponsored Brand ads.
Benefits of Sponsored Products in PPC On Amazon
Amazon’s Sponsored Product ads are game-changers when it comes to maximizing ROI for sellers. These ads have prime real estate on the platform – they appear under Headline Search ads, to the right of the SERP, and on product detail pages. This means that your products are receiving the right kind of attention when shoppers are actively looking.
What’s great about this visibility is that it leads to higher conversion rates. Sponsored Product ads blend seamlessly into the shopping experience, making them more likely to be clicked by customers who are already interested in similar items. Essentially, these ads target people who are ready to buy, driving more qualified traffic to your listings.
Sponsored Product campaigns also offer the unique advantage of retargeting. This means you can reach out to potential customers on third-party websites even after they’ve left Amazon. By keeping your products in front of these shoppers, you increase the chances of bringing them back to complete a purchase.
How Much Does Amazon PPC Cost?
PPC on Amazon does not cost a fortune. The average cost of a click on Amazon is about 10 cents. If the advertisement is to be placed in the top section, the click price must be set higher depending on the category.
The amount you spend when a consumer clicks on your Amazon ad is known as your Amazon cost-per-click (Amazon CPC).
Because Amazon PPC is an auction, the amount you pay is only a cent more than what the next highest bidder for that term is willing to spend.
While the highest bidder has the best chance of winning, a lower CPC translates to a greater return on investment. On Amazon ads, the average CPC is $0.71. You’ll be in a terrific position with your campaign if you can acquire a lower CPC than the average CPC of $0.71.
Creating a PPC Campaign – Step-by-Step
Step 1: Log into Seller Central
1. Go to Amazon Seller Central and log in with your credentials.
2. From the main dashboard, navigate to the “Campaign Manager” under the “Advertising” tab.
Step 2: Choose your campaign type
1. In Campaign Manager, click on “Create campaign.”
2. You’ll be prompted to choose a campaign type – typically, you’ll start with “Sponsored Products,” but you can also explore “Sponsored Brands” or “Sponsored Display.”
Step 3: Set campaign settings
1. Name Your Campaign: Choose a descriptive name to easily identify your campaign.
2. Set a Daily Budget: Define how much you’re willing to spend daily.
3. Duration: Select your campaign’s start and end dates. You can also set it to run continuously.
Step 4: Select campaign targeting type
Choose between “Automatic Targeting” or “Manual Targeting.”
– Automatic Targeting: Amazon will choose the relevant keywords for you.
– Manual Targeting: You’ll select specific keywords and bids.
Step 5: Create an Ad Group
1. Name Your Ad Group: Choose a name that describes this set of ads.
2. Select Products: Add the products you want to promote in this ad group.
Step 6: Set Bids
1. Automatic Targeting: Set a default bid that Amazon will use to bid on keywords.
2. Manual Targeting: Add keywords individually or in bulk. Set the bid for each keyword.
– You can choose between broad, phrase, or exact match types.
– Configure bids based on competition and your budget.
Step 7: Add Negative Keywords (for Manual Campaigns)
1. If you want to prevent your ad from showing up for specific terms, add negative keywords.
– This helps reduce wasted spend on irrelevant clicks.
Step 8: Craft Your Ad Copy (for Sponsored Brands)
1. If you’re creating a Sponsored Brands campaign, write an engaging headline.
2. Upload your brand logo and choose which products to highlight.
Step 9: Review and Launch
1. Review all the settings, bids, and targeting options.
2. Click “Launch Campaign” to start your PPC campaign.
Step 10: Monitor and Optimize
1. Once your campaign is live, regularly monitor its performance via the Campaign Manager.
2. Analyze metrics such as impressions, clicks, sales, ACoS (Advertising Cost of Sale), and CTR (Click-Through Rate).
8 Tips for your PPC Campaign
Kind reminder: PPC campaigns are an essential part of your marketing strategy, but setting up, managing and optimizing ads can be complex if you want to get good results and not burn money pointlessly. If you have any doubts about your strategy, seek help from professionals.
Final Thoughts
Amazon PPC is one of the most straightforward and efficient methods for reaching new customers. It enables you to place your products prominently in search results and on product pages, driving visibility and sales. A strategic approach is vital.
Start by creating campaigns aimed at discovering keywords that convert into sales. Use automatic campaigns to generate initial keyword data, and then refine your manual campaigns based on this information. Continuously monitor and analyze your campaign metrics, identifying and eliminating underperforming keywords to optimize your budget and improve your Advertising Cost of Sale (ACoS).
It’s important to take calculated risks and experiment with different strategies. Whether it’s adjusting bids, exploring long-tail keywords, or implementing negative targeting, experimentation will give you insights you can work with and help refine your approach. While the process may seem complex at first, consistent practice and fine-tuning will lead to proficiency.
Amazon PPC is a powerful tool for increasing product visibility and driving sales. With careful planning, continuous optimization, and a willingness to experiment, you can master Amazon PPC and improve business performance quickly and effectively.
FAQs
PPC (Pay-Per-Click) on Amazon is a form of advertising where sellers pay a fee each time their ad is clicked. It allows sellers to promote products, increase visibility, and boost sales by appearing in prominent search results or product pages. Amazon PPC includes ad types like Sponsored Products, Brands, and Display.
Hiring an Amazon PPC agency can be beneficial if you lack expertise or time to manage campaigns. Agencies offer professional optimization, keyword research, and performance tracking, leading to better ROI. However, sellers with small budgets or basic PPC needs can often manage campaigns effectively using Amazon’s built-in tools.
Amazon PPC costs vary widely based on factors like product category, competition, and ad strategy. On average, small businesses spend $500–$3,000 monthly, while larger sellers may invest over $10,000. Cost-per-click (CPC) typically ranges from $0.02 to $3.00, depending on keywords and targeting settings.
Amazon PPC marketing refers to using paid advertisements on Amazon’s platform to drive traffic to your product listings. It involves creating and optimizing campaigns to target specific keywords or audiences, improving product discoverability, increasing sales, and controlling advertising costs for better overall profitability.
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