EVERYTHING YOU NEED TO KNOW ABOUT AMAZON PPC
A complete roadmap to scale your Amazon business!
With the budding e-commerce strategies, effective marketing has become a key to attaining the most phenomenal business model. Sellers on Amazon are constantly seeking effective game plans to boost their product visibility and valuably increase sales. Here, we’ve enumerated a detailed summary of how this remarkable tool has emerged as a game-changer in Amazon PPC (Pay-Per-Click) advertising. We shall delve into the world of Amazon PPC, exploring everything that it has to offer.
1. What is Amazon PPC?
2. How does Amazon PPC work?
3. Why is PPC important for Amazon sellers?
4. Amazon PPC advertising Key terms
5. Amazon PPC Features
6. Amazon PPC Ad Types
7. How to create an automatic Sponsored Product campaign
8. How to Optimise automatic Sponsored Product campaigns
9. How to create a manual Sponsored Product campaign
10. How to Optimise manual Sponsored Product campaigns
11. Final Thoughts
1. WHAT EXACTLY IS THE DEAL WITH AMAZON PPC?
Amazon PPC is an advertising model where sellers bid on keywords, and their product ads appear at the top of search results or on product detail pages. Unlike traditional advertising, sellers only pay when a shopper clicks on their ad. This cost-effective model allows businesses to target specific keywords and reach their target audience with precision. It is an advertising model on the Amazon platform that allows sellers to promote their products through paid advertisements. With Amazon PPC, sellers bid on specific keywords or product categories, and their ads appear when customers search for those keywords or browse products related to the selected categories. Advertisers are charged only when a user clicks on their ad, hence the term "pay-per-click.
2. HOW DOES AMAZON PPC WORK?
Ad Campaign Creation: Sellers create ad campaigns through the Amazon Advertising platform. They can choose between different campaign types, such as Sponsored Products, Sponsored Brands, and Sponsored Display.
Targeting: Sellers set targeting parameters for their ads. This includes selecting relevant keywords, defining product categories, and specifying audience demographics. The chosen parameters determine when and where the ads will be displayed.
Bid Management: Sellers set bids for their selected keywords or placements. The bid represents the maximum amount they are willing to pay when a customer clicks on their ad. Higher bids increase the likelihood of the ad being displayed in a prominent position.
Ad Placement: Ads appear on various Amazon pages, including search results, product detail pages, and even on external websites as part of the Amazon DSP (Demand-Side Platform). The exact placement depends on the type of campaign and the bidding strategy.
Cost Structure: With Amazon PPC, sellers are charged on a cost-per-click (CPC) basis. This means they only pay when a customer clicks on their ad. The cost of a click is determined by the bid amount and the competitiveness of the keyword.
Budget Control: Sellers set daily or campaign budgets to control their advertising spend. Once the budget is exhausted, the ads stop appearing until the next budget cycle.
Ad Rank and Placement: Amazon uses a combination of bid amount, relevance, and other factors to determine the ad rank. Ads with higher ad ranks are more likely to be displayed in prominent positions. Relevance is crucial, as Amazon aims to show ads that are most likely to result in a conversion.
Performance Monitoring and Optimization: Sellers regularly monitor the performance of their ad campaigns using the Amazon Advertising dashboard. They can Analyse metrics such as click-through rate (CTR), conversion rate, and return on ad spend (ROAS). Based on this data, sellers can Optimise their campaigns by adjusting bids, adding or removing keywords, and refining targeting parameters.
3. WHY IS PPC IMPORTANT FOR AMAZON SELLERS?
Visibility and Exposure: Amazon PPC allows sellers to bid on keywords relevant to their products. When shoppers search for those keywords, the seller's products are displayed prominently on the search results page, increasing visibility and exposure to potential customers.
Controlled Budget and Costs: Amazon PPC operates on a pay-per-click model, meaning sellers only pay when a shopper clicks on their ad. Sellers can set a daily or campaign budget, allowing for better control over advertising costs. This makes it a cost-effective way to promote products.
Data and Analytics: Amazon PPC provides valuable data and insights into customer behavior. Sellers can Analyse metrics such as click-through rates, conversion rates, and more, helping them understand the effectiveness of their advertising campaigns. This data can be used to refine strategies and improve overall performance.
Boost Sales and Rankings: PPC can contribute to increased sales by driving targeted traffic to product listings. Additionally, the increased click-through rates and conversions resulting from successful PPC campaigns can positively impact a product's organic ranking on Amazon. Higher rankings often lead to more visibility and sales.
Seasonal and Promotional Campaigns: Sellers can use PPC to promote specific products during seasonal events, holidays, or other promotional periods. This allows for flexibility in marketing strategies and helps capitalize on peak shopping times.
Competitive Advantage: In a competitive marketplace like Amazon, PPC can provide a competitive advantage by ensuring that a seller's products are prominently displayed when potential customers are searching for relevant items. This can be crucial for outperforming competitors and gaining market share.
Brand Awareness: PPC can also contribute to building brand awareness. When shoppers consistently see a brand's products at the top of search results, it can create a sense of familiarity and trust, potentially leading to increased customer loyalty.
4. AMAZON PPC ADVERTISING KEY TERMS:
Understanding and effectively managing these key terms will empower you to create more targeted and successful Amazon PPC campaigns. Regular monitoring and optimization based on these metrics are essential for achieving your advertising goals on the platform.
Campaign: A set of ad groups (keywords, ads, and bids) that share a common advertising goal, budget, and targeting settings.
Ad Group: A subdivision within a campaign that contains a set of keywords, ads, and bids. Ad groups allow for more targeted organization of your advertising efforts.
Keyword: The specific words or phrases for which you want your ads to be displayed. Keywords are crucial for targeting your audience effectively.
Bid: The maximum amount you are willing to pay for a click on your ad. This is the bid amount you set for each keyword in your campaign.
CPC (Cost-Per-Click): The amount you are charged when a user clicks on your ad. It's the cost associated with each click on your advertisement.
CTR (Click-Through Rate): The percentage of users who click on your ad after seeing it. It is calculated by dividing the number of clicks by the number of impressions (views).
Impressions: The number of times your ad is shown to users. It represents the total views of your advertisement.
ACoS (Advertising Cost of Sales): The ratio of your ad spend to your sales. It is calculated by dividing your total ad spend by the total sales generated from the ads and then multiplying by 100 to get a percentage.
RoAS (Return on Ad Spend): The ratio of your revenue to your ad spend. It is the inverse of ACoS and is calculated by dividing your total sales by your total ad spend.
Amazon SERP (Search Engine Results Page): The page on Amazon where search results are displayed when a user searches for a particular keyword. It includes both organic and paid search results.
Negative Keywords: Keywords for which you do not want your ads to be shown. Adding negative keywords helps refine your targeting and prevents your ads from showing for irrelevant searches.
Campaign Budget: The maximum amount you are willing to spend on a specific campaign. Once this budget is reached, your ads will stop running for that campaign until the next budget cycle.
Ad Placement: The location on the Amazon website or app where your ad appears. This can include search results, product detail pages, and other placements within the Amazon ecosystem.
Bid Adjustment: A percentage increase or decrease to your bid based on various factors such as device type, time of day, or geographic location.
5. AMAZON PPC FEATURES:
Increased Visibility: Amazon PPC helps gain maximum visibility for your product when it’s amid a plethora of similar yet vast ranged products to potential customers. Not only does it increase the visibility of the brand but also the brand awareness, making it a cost-effective way to make a place in the heart of prospective customers.
Targeted Advertising: It allows you to target specific and custom terms, demographics and interests, ensuring your ads are reaching the right set of audience. With keyword targeting, you can reach customers actively searching for products similar to yours, increasing the likelihood of conversion.
Competitive advantage: Running Amazon PPC campaigns can give you an advantage over competitors who are not advertising on the platform. By taking advantage of the benefits of Amazon PPC advertising, you can drive more sales, increase visibility, and grow your business on the Amazon marketplace.
Cost Control: Unlike the generic, traditional advertising, you have utmost freedom over what you pay and how much you spend. Set your budget and bid amounts, giving you control over your advertising spend. You only pay when someone clicks on your ad, making it a cost-effective option for sellers.
Data-Driven Insights: Amazon PPC provides valuable data on customer behaviour, keyword performance, and ad effectiveness. It provides detailed performance data, allowing you to measure the success of your campaign and make data-driven decisions for optimization. Analysing this data will further allow you to refine your campaigns for better results.
6. AMAZON PPC AD TYPES:
Amazon offers various PPC (Pay-Per-Click) ad types to help sellers promote their products and increase visibility on the platform. As of my last knowledge update in January 2022, the following are some of the main Amazon PPC ad types:
Sponsored Products:
Placement: These ads appear in prominent positions on Amazon search results and product detail pages.
Format: They look similar to organic product listings, featuring a product image, title, and a custom message.
Targeting: Sellers can target specific keywords or let Amazon automatically target relevant keywords based on product information.
Sponsored Brands (formerly known as Headline Search Ads):
Placement: Displayed prominently at the top of search results.
Format: Consists of a custom headline, logo, and multiple products. Clicking on the ad takes customers to a brand's custom landing page or a specific product page.
Targeting: Keywords, products, or interests can be targeted.
Sponsored Display:
Placement: These ads can appear on product detail pages, customer reviews, shopping results, and in follow-up emails to customers.
Format: Includes product images, a custom headline, and ad copy.
Targeting: Targeting options include audiences (based on customerbehavior), interests, and products.
Product Display Ads:
Placement: Displayed on product detail pages.
Format: Includes product images, a custom headline, and ad copy. These ads can also feature a "Buy Box" that allows customers to add the product directly to their cart.
Targeting: Advertisers can target specific products, product categories, or interests.
Amazon Stores:
Placement: Not a traditional PPC ad type, but it's worth mentioning. Amazon Stores allow brand owners to create a customized storefront on Amazon to showcase their brand and products.
Format: A multipage, immersive shopping experience that includes a variety of modules such as product grids, videos, and images.
Purpose: While not directly pay-per-click, Amazon Stores contribute to brand visibility and can be linked from Sponsored Brands.
7. HOW TO CREATE AN AUTOMATIC SPONSORED PRODUCT CAMPAIGN:
Step 1: Log in to Seller Central
Access your Amazon Seller Central account using your credentials.
Step 2: Navigate to Amazon Advertising
In Seller Central, go to the "Advertising" tab.
Click on "Campaign Manager."
Step 3: Create a New Campaign
Click on the "Create Campaign" button.
Step 4: Choose Campaign Settings
Choose a Campaign Type: Select "Sponsored Products" as the campaign type.
Name Your Campaign: Give your campaign a name that helps you easily identify its purpose.
Set Your Daily Budget: Specify the maximum amount you are willing to spend per day for this campaign.
Select a Start and End Date: You can choose to set specific dates for your campaign if desired.
Step 5: Set Targeting Options
Select Targeting Type: Choose "Automatic targeting" for an automatic campaign.
Select a Default Bid: Set the default bid amount. This is the maximum amount you're willing to pay for a click.
Step 6: Review Your Campaign Settings
Double-check all your settings to ensure they are accurate.
Click "Launch Campaign" if everything is in order.
Step 7: Monitor and Optimise
Once your campaign is live, regularly monitor its performance. Pay attention to metrics such as impressions, clicks, click-through rate (CTR), and conversions. Based on the performance data, you can adjust your bid, add negative keywords, or make other optimizations to improve the effectiveness of your campaign.
8. HOW TO Optimise AUTOMATIC SPONSORED PRODUCT CAMPAIGNS:
1. Regularly Review Performance Metrics:
Impressions: Monitor the number of times your ads are displayed.
Clicks: Track how many users click on your ads.
Click-Through Rate (CTR): Closely watch the CTR to understand how well your ads are performing.
Conversions: Measure the number of clicks that result in actual sales.
2. Analyse Search Term Reports:
Use Amazon's search term reports to identify the actual search terms that triggered your ads.
Identify high-performing keywords and consider incorporating them into manual campaigns for more control.
Add irrelevant or underperforming keywords as negative keywords to refine targeting.
3. Adjust Bids:
Analyse the performance of individual keywords and adjust bids accordingly.
Increase bids for high-converting keywords to increase visibility.
Lower bids or add negative keywords for terms that are not driving sales or have a high ACoS (Advertising Cost of Sales).
4. Monitor ACoS (Advertising Cost of Sales):
Keep an eye on your ACoS to ensure that your advertising spend is generating profitable sales.
Set ACoS targets based on your profit margins and adjust bids to achieve your desired ACoS.
5. Utilise Negative Keywords:
Continuously update your list of negative keywords to exclude irrelevant or low-converting search terms.
Negative keywords help prevent your ads from showing for queries that are unlikely to lead to conversions.
6. Optimise Product Listings:
Ensure that your product listings are well-Optimised with relevant keywords and high-quality images.
A well-Optimised listing can improve ad relevance and overall campaign performance.
7. Experiment with Manual Campaigns:
Once you've gathered enough data from your automatic campaign, consider creating manual campaigns.
Manual campaigns allow you to have more control over keyword targeting and bid adjustments.
8. Test Different Ad Creatives:
Experiment with different ad copy and images to see what resonates best with your target audience.
A/B testing can help you identify the most effective ad variations.
9. Review and Adjust Budgets:
Regularly review your campaign budgets and allocate more budget to high-performing campaigns.
Adjust budgets based on the seasonality of your products and market trends.
10. Stay Informed and Adapt:
Keep up with changes in Amazon's advertising platform and adjust your strategy accordingly.
Stay informed about industry trends and competitor activities.
11. Use Automated Rules:
Amazon provides automated rules that allow you to set conditions for adjusting bids, budgets, or pausing campaigns based on specific criteria. Consider using these rules for efficient campaign management.
Regularly monitoring and adjusting your automatic Sponsored Products campaigns based on performance data is key to achieving success with Amazon PPC advertising. Testing and refining your strategy over time will help you find the most effective approach for your specific products and market.
9. HOW TO CREATE A MANUAL SPONSORED PRODUCT CAMPAIGN:
Creating a manual Sponsored Products campaign on Amazon PPC gives you more control over keyword targeting and bid adjustments. Here's a step-by-step guide as of my last knowledge update in January 2022. Keep in mind that the Amazon Advertising platform may evolve, so it's advisable to refer to the latest Amazon Advertising resources or Seller Central help documentation for the most current information.
Step 1: Log in to Seller Central
Access your Amazon Seller Central account using your credentials.
Step 2: Navigate to Amazon Advertising
In Seller Central, go to the "Advertising" tab.
Click on "Campaign Manager."
Step 3: Create a New Campaign
Click on the "Create Campaign" button.
Step 4: Choose Campaign Settings
Choose a Campaign Type: Select "Sponsored Products" as the campaign type.
Name Your Campaign: Give your campaign a name that helps you easily identify its purpose.
Set Your Daily Budget: Specify the maximum amount you are willing to spend per day for this campaign.
Select a Start and End Date: You can choose to set specific dates for your campaign if desired.
Step 5: Set Targeting Options
Select Targeting Type: Choose "Manual targeting" for a manual campaign.
Select a Default Bid: Set the default bid amount. This is the maximum amount you're willing to pay for a click.
Step 6: Choose Keywords
Enter the keywords you want to target in the "Enter keywords" box. You can add multiple keywords, separating them with commas.
Specify a bid for each keyword. You may choose to set the same bid for all keywords or adjust bids based on your strategy.
Step 7: Set Bid Adjustments (Optional)
You can set bid adjustments for various factors such as placement, device type, and more. This allows you to adjust your bid based on specific conditions.
Step 8: Review Your Campaign Settings
Double-check all your settings to ensure they are accurate.
Click "Launch Campaign" if everything is in order.
Step 9: Monitor and Optimise
Once your campaign is live, regularly monitor its performance. Pay attention to metrics such as impressions, clicks, click-through rate (CTR), and conversions. Based on the performance data, adjust your bid, add negative keywords, or make other optimizations to improve the effectiveness of your campaign.
10. HOW TO Optimise MANUAL SPONSORED PRODUCT CAMPAIGNS:
1. Review Performance Metrics:
Regularly monitor key metrics such as impressions, clicks, click-through rate (CTR), conversion rate, and Advertising Cost of Sales (ACoS).
2. Analyse Search Term Reports:
Use search term reports to identify the actual search terms that triggered your ads.
Identify high-performing keywords and incorporate them into your campaign as exact or phrase match keywords.
Add irrelevant or underperforming search terms as negative keywords.
3. Adjust Bids:
Analyse the performance of individual keywords.
Increase bids for high-converting keywords to increase visibility.
Lower bids for keywords with a high ACoS or low conversion rates.
4. Experiment with Match Types:
Test different match types (broad, phrase, and exact match) for your keywords to find the most effective ones.
Adjust bids based on the performance of each match type.
5. Negative Keywords:
Continuously update your list of negative keywords to exclude irrelevant or low-converting search terms.
Negative keywords help refine targeting and prevent your ads from showing for irrelevant queries.
6. Optimise Product Listings:
Ensure that your product listings are well-Optimised with relevant keywords and high-quality images.
A well-Optimised listing can improve ad relevance and overall campaign performance.
7. Utilise Bid Adjustments:
Experiment with bid adjustments based on factors like device type, time of day, and geographic location.
Adjust bids to reflect the performance of your ads under different conditions.
8. Monitor Competitor Activity:
Keep an eye on your competitors' products and strategies.
Adjust your bids and strategy based on the competitive landscape.
9. Test Different Ad Creatives:
Experiment with different ad copy and images to find what resonates best with your target audience.
A/B testing can help you identify the most effective ad variations.
10. Review and Adjust Budgets:
Regularly review your campaign budgets and allocate more budget to high-performing campaigns.
Adjust budgets based on the seasonality of your products and market trends.
11. Stay Informed and Adapt:
Keep up with changes in Amazon's advertising platform and adjust your strategy accordingly.
Stay informed about industry trends and competitor activities.
12. Use Automated Rules:
Amazon provides automated rules that allow you to set conditions for adjusting bids, budgets, or pausing campaigns based on specific criteria. Consider using these rules for efficient campaign management.
11. FINAL THOUGHTS:
Amazon PPC has proven to be highly effective for sellers in order to increase their product visibility and drive hefty sales on the platform. It offers a targeted approach, ensuring that your ads are shown to users actively searching for products similar to what you have to offer. With decent campaign management and optimization, Amazon PPC can generate a significant return on investment (ROI) for sellers. It is undoubtedly a powerful tool and by understanding the intricacies of keyword targeting, bidding strategies, and ad optimization, businesses can create fruitful campaigns that drive visibility and increase conversions.