The Comprehensive Guide to Amazon Ads. Learn how to use Amazon PPC to get more sales for your business. We cover types of ads, keyword match types, and more.
Amazon continues to be one of the biggest players in eCommerce, with a 37.8% market share in the U.S. and servicing virtually every corner of the globe. That’s more than one-third of all eCommerce sales in the U.S., happening on one platform. And yet, it’s a super competitive space within the platform, itself. There are more than 75 million products in Amazon’s inventory and 6 million third-party sellers. So, if you want to sell on Amazon, you have to do everything you can to leave the competition in the dust and win those first spots on the Amazon product listing page.
A solid Amazon PPC strategy can help you with that. An Amazon PPC strategy complements your organic sales strategy. In this article, we break down what Amazon Ads are, how they work, what different campaign types are, and how they can get you more sales on the world’s biggest eCommerce platform.
What is Amazon PPC?
An auction-style paid advertising system, Amazon pay-per-click (PPC), sometimes referred to as Amazon sponsored ads, lets independent Amazon vendors and businesses purchase advertisements for targeted exact phrase keywords and display their sponsored products’ first results in Amazon’s search.
Amazon PPC Services pays for clicks alone, not impressions. That means, independent of the several kinds of search results your advertisement will show, you just pay for genuine clicks. Based on the product’s appeal, those searches could occur hundreds or perhaps thousands of times a month!
While maintaining modest expenses, this distinguishes you from your rivals. When you still lack sales or reviews and a fresh product launch is about to start, it also helps greatly to get things moving.
Amazon PPC campaigns are useful in a variety of situations. They can help you
Stand out from your competitors with a new product that has no sales or review history your product’s performance and organic ranking
Looking for an Amazon Ads Expert? Find one on Mayple. We’ll match you with one of our hand-picked marketers with proven experience, within 72 hours.
How does the Amazon PPC auction work?
Amazon PPC bidding operates much as Google PPC bidding. You bid on the specific terms you wish to target, then fight other companies for the advertisement space.
Your cost per click must be 0.01 more than the next lowest bid of a rival. You will thus pay $0.76 if your bid is $1.00 and the next lowest bid is $0.75.
When should I launch Amazon PPC ads?
Start your Amazon advertising strategies and plan right away upon opening a fresh listing. An early start of your Amazon PPC ad campaign will not only help you get more product ad data but also increase your new product’s visibility. This helps you to maximize your marketing by focusing on the precise phrases customers can use to hunt for your goods or complementing products.
Why should I try Amazon PPC?
A well-made Amazon PPC plan provides a competitive edge in the market and visibility for your products. Since sponsored advertising usually shows in more visible places on the search engine results page, it’s also a fantastic way to improve your product rankings. This raises natural sales and directs visitors to your product page.
Investing in a strong Amazon PPC plan can help you reach a bigger audience and leverage the great buying power of Amazon consumers.
Think about the amazing influence Amazon can have on your company; it logs more than 66,000 orders each hour and more than 18 orders every second. This results in over 1.6 million shipments sent daily!
The entry cost on Amazon PPC is quite minimal, however there is even more good news: you may tweak your campaigns as more data and sales enter to maximize results. Start at $5, test the waters, then progressively raise your Amazon marketing budget. Amazon PPC is a low, minimal-risk business based on the investment as well as the simplicity of the bidding mechanism. You can arrange your advertising budget differently or raise or lower as you compile additional data.
Unlike other PPC channels, Amazon is special in that you may show consumers actively looking for goods similar to yours in your product listings. Consequently, the amount you spend on PPC directly correlates with the number of sales you may create. This is why you should monitor your click-through rate, how it affects your clicks into sales rate, and the advertising cost of sales.
6 Benefits of using Amazon PPC ads
For many reasons, Amazon PPC might be a total game-changer for your online store.
Boosts Your Product Sales
One great approach to get in touch with possible consumers and increase the profile of your product is Amazon advertisements. Targeting the proper, most relevant keywords and adjusting your campaign parameters and ad copy will help you increase impressions, clicks, and sales.
Use a search term report to find long-tail and high-performance keywords as well as to avoid low-performance terms. This guides your choice of how to distribute your keyword bid strategy among the several kinds of keywords.
Boosts Your Organic Rankings
Your product page will rank more naturally the more people view and purchase from it. Sponsored advertising increases page traffic, enables faster ranking, and shows up more in Amazon’s search system. Greater organic sales follow from this.
Creates Brand Awareness
Amazon PPC is a fantastic tool for both launching your goods and growing your brand in other areas.
The Mere Exposure Effect, sometimes referred to as the familiarity principle, holds that people start to favor objects just because they are familiar with them. Amazon advertisements can boost brand awareness and enable you to connect to more people. Effective awareness campaigns employ a bidding approach emphasizing terms likely to generate more impressions, thus increasing the number of individuals who will view the advertisement.
Prevents Competitors From Snatching Positions
Although organic rankings can be difficult to reach, Amazon PPC will assist you in quickly having your goods in front of possible consumers. This will help you to guarantee the top places ahead of your rivals. Using automatic targeting campaigns is the easiest approach you may start seeing success with Amazon PPC; yet, for more control over your advertisements, hand targeting is the better approach.
Gets You The Amazon Buy Box
One of the most critical components of Amazon the Buy Box directly affects sales. Customers may click this box on the right side of the product page to buy your goods. Since the Buy Box is the most obvious part of the website, securing it increases your click and sales activity.
Types of Amazon Ads
There are three main types of Amazon advertising: Sponsored Products, Sponsored Brands, and Product Display Ads.
Amazon Sponsored Products
Sponsored Product ads are displayed on the top of Amazon’s search results pages. They look just like organic listings but feature a “Sponsored” tag.
This type of ad drives traffic to your product listings. With sponsored products, it’s important to have a variety of goals and to develop performance metrics to monitor ad performance, sales, and profit margins. Ultimately, this will help you determine the ROI of your sponsored product ads.
Amazon Sponsored Brands
Amazon’s sponsored brands advertising option enables you to advertise your Amazon storefront or a collection of products on top of Amazon’s Search Engine Results Pages. You can do this with images or videos as you see fit. Keep in mind that Amazon video ads tend to be more engaging.
Sponsored brands include the brand logo, a headline, and multiple product offerings. This type of ad appears in more noticeable places on Amazon, so people who are looking for products like yours discover your store.
Sponsored Display
Amazon DSPs are audience-based and let you target particular groups or retarget a visitor to your goods; Amazon Sponsored Display advertising lets you Usually run on both Amazon and outside websites, the adverts maximize your reach using your Amazon PPC approach.
Amazon PPC Terms You Need To Know
One can bid on an Amazon keyword in several ways. These are some key terms you should be familiar with to decide on the best course of action for your Amazon PPC approach.
Broad Match
A broad match is a form of keyword match to the most extent. Whether in sequence or otherwise, your ads will show when all the broad match keywords are present. Thus, for instance, if your keyword is “Women’s Shoes,” your advertisement will show for “Flat Red Shoes Women’s” searches also.
Phrase Match
Your ad will show when your full phrase matches the exact sequence in the search term, including terms before or after your chosen phrase matches your Amazon keyword. Your ad will thus show the “Women’s Shoes” keyword when someone searches for “Red Women’s Shoes” or “Red Women’s Shoes high heels” but not “Women’s Winter Shoes.”
Exact Match
Your ad will only show when someone searches with the exact term you selected for the Amazon exact match bidding strategy. Your advertisement will thus show up when someone searches for “Women’s Shoes” just using the “Women’s Shoes” keyword. Search results for “Red Women’s Shoes” will show it nowhere. When you know how your prospective and present consumers search for your particular products, exact match keywords work.
Dynamic Bidding
Choose among several bidding techniques when planning a sponsored items campaign. The most often used one is “Dynamic bids – up and down,” whereby Amazon’s algorithm will raise or lower your price depending on the probability of the possible click converting to a sale.
They will thus raise your bids in real-time to help win impressions that might be more likely to convert to a sale or lower your offers for those less likely to convert to a sale.
For sellers who wish to be more hands-off with their Amazon PPC approach and do not need to have much influence over what occurs with their advertisements, dynamic bidding is more appropriate.
Negative Keywords
Negative keywords help your advertisement not show up in the incorrect searches. Your search term report will let you create a negative targeting list. When marketing men’s shoes, for instance, you would include “women” as a negative keyword to stop your product ads from showing up when someone is looking for women’s shoes.
Throughout the campaign setup, add negative keywords to your advertising at both campaign and ad levels. Negative phrase match and negative exact match keywords are two varieties of negative keywords.
Impressions
An ad impression is “the number of times an ad is displayed on a screen.” Stated differently, Amazon has shown your advertisement 1,000 times to individuals fit for the campaign requirements if it has 1,000 impressions. One of your key objectives should be to raise the impressions of your campaign to raise brand recognition.
Clicks
“Clicks” represent the number of times someone clicks on your Amazon ad. For instance, say your ad appears to 1,000 people when they search for a product on Amazon and 100 of them click on it. That means your click-through rate is 10%.
Amazon PPC: A Great Tool For Seller Success
Starting on Amazon PPC is simple and pretty reasonably priced as well. Amazon PPC appeals to sellers in all kinds of businesses because of the advantages running Amazon advertising offers and the possibility of generating large income. Try it then, if you’re serious about growing your company!
Amazon PPC may help you maximize your ROI and get the most out of every single dollar whether your product is unique or you work in an Amazon reseller marketing division. Track your ad expenditure and how it relates to click count and sales performance; then, change depending on the demands of your company.
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