Amazon PPC (Pay-per-Click) ads, also known as Sponsored Products, are one of the many forms of online marketing that every Amazon seller should be taking advantage of. But like any other advertising methods, knowing important facts about Amazon PPC ads is a must for a successful campaign.
In this article, we’ll guide you through things you need to know to ensure your Amazon PPC campaigns are working for your benefit by increasing sales as well as improving organic rankings and not just eating your profits.
PPC or Pay-per-Click ads are one of the many online marketing methods that most entrepreneurs are making use of. The most common types are Google Ads (formerly known as Google AdWords), Facebook Ads, Instagram Ads, and now Amazon Ads.
With Amazon Ads, Amazon sellers are charged by Amazon for every click their listing/s is receiving from potential customers. It is one of the ideal ways for a seller to “buy” a top position on Amazon SERPs where customers are more likely to buy. This type of online marketing is an auction system where sellers bid on search terms. Bid amount and ad quality are what will determine the product listings’ visibility and ad ranking on the search results page or SERP.
Below are the top 5 reasons why you need to run Amazon PPC Campaigns:
There are three types of Amazon PPC Ads namely;
Let’s take a look at these Amazon PPC Ad types in detail:
This type of Amazon PPC ad allows businesses/sellers to advertise their product based on keywords or search terms. This is also the most popular among the other ad types because it shows up at almost every stage of the buyer’s journey.
You may see them below the Headline Search Ads, at the right of organic listings, and on related product detail pages.
Headline Search Ads show as banners above Sponsored Product Ads and organic listings and can also be found at the left side of the search results page. This ad type would require you to come up with a short but enticing ad copy to persuade customers and grab their attention.
The last type of Amazon Pay-per-Click ad is the Product Display Ads. Ads under this type are found on product details pages of related or competitor products. This ad aims to persuade a customer to buy the sponsored products over the competitor product or buy the related product together with the product being viewed by the customer.
Another important thing you should familiarize yourself of before you start setting up your Amazon PPC campaign is the type of campaign that you’ll be using. Amazon PPC Campaign Ads come in two types, namely automatic and manual campaigns.
To help you get started with Amazon PPC campaigns, let us help you understand what is the difference between the two.
The automatic campaign is the type of Amazon PPC campaign where you will let Amazon do the work of finding keywords for you. Basically, what you only have to do is to decide and select the ad budget and let Amazon do the rest. Amazon will have the full control on whether they are to show or not to show your ad based on the details you have on your product listing – title, description, bullet points, and back-end search terms.
This campaign is best for new sellers or those who don’t have enough experience with pay-per-click campaigns yet.
The manual campaign, on the other hand, will give you full control of your campaign as well as its spending. In a manual campaign, you will handpick the keywords you want to bid on. This will mean you will only be charged for clicks where you really intend your ads to show.
When creating your Amazon PPC campaign, you’d also need to decide on what keyword match types you are to bid.
Below are the types of keywords to choose from:
Keywords or search terms that are broadly relevant to your product. This match type has the tendency to show on irrelevant searches but is less competitive and cheaper.
Keywords that appear in phrases that customers are using to search for the product. This is more competitive, expensive, more specific than broad match type.
Keywords that exactly matches your product. Very competitive and the most expensive.
These are the search terms that you don’t want your ad to show up. Negatives tend to refine your campaign by telling Amazon not to waste your ad budget to specific keywords which you know won’t convert into a sale.
Below is a comprehensive video from Amazon with the step by step process on how to set up your first campaign. Watch and learn!
Congratulations on launching your first campaign! So what’s next? If you think the work is over, well it isn’t. It’s just a start. But a good one at that. The next step is to analyze and understand the data. This will allow you to monitor and make necessary adjustments on your campaign/s to improve it and get the most out of your advertising costs.
Based on the results of the metrics above, modify your campaigns towards profitability.
Note: There is a delay of 48 hours for you to be able to view your metrics for a specific date. These data can be seen on the Reports tab on Amazon Seller Central.
There you go! Amazon PPC campaign might be challenging. But with enough knowledge and patience in learning and analyzing data, your success with paid campaigns is within reach.
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