Is Amazon PPC Worth It? All About Amazon PPC (Pay-Per-Click)

If you sell products on Amazon, you may be curious about the value of using Amazon PPC. One of the advantages of Amazon PPC is its ability to enhance your visibility, boost sales and improve profitability on the platform.

Nevertheless, it’s important to take into account the challenges and expenses associated with Amazon PPC before initiating any campaigns. Throughout this article, we will delve into what Amazon PPC entails, as its advantages and disadvantages for your business.

Develop a robust Amazon PPC strategy with the information below!

What is Amazon PPC?

Amazon PPC, or pay-per-click, is a type of advertising that allows you to bid on keywords and display your ads on the search results or product pages of Amazon.

Sellers create an advertising campaign at no startup cost. When a potential buyer clicks on the advertisement, the seller incurs a charge. Utilizing Amazon PPC can assist sellers in enhancing their presence, boosting sales and improving profitability, on the platform.

Importance of Amazon PPC for Sellers

Amazon PPC ads boost seller’s product listings to the first search result page, boosting the chances of a sale.

PPC ads can help sellers increase their visibility, sales, and profitability by reaching potential customers who are searching for products related to their keywords. PPC ads can also help sellers compete with other sellers who may have lower prices, higher ratings, or more reviews. 

By using PPC ads, sellers can optimize their product listings and target their ideal audience.

Amazon PPC Basics

Amazon PPC

PPC advertisements appear on sections of the search results page, the product detail page or other relevant locations where customers are likely to search for products.

The primary advantage of PPC is that sellers are only charged when a customer clicks on their ad. This enables them to have control over their budget and make adjustments to their campaigns for return on investment.

How Amazon PPC Works

  • Shopper searches for “selfie stick” on Amazon
  • Amazon lists all relevant ads for the keyword “selfie stick”
  • Sellers set their bids for the keyword, and the highest bidder wins
  • Amazon displays the winning bid at the top of the search results
  • When shoppers click on the ad, the seller pays their fee to Amazon

Understanding the Cost of Amazon PPC

The cost of Amazon PPC is a little unpredictable, but a good rule of thumb is estimating it at about 2.5% of the total sales price of the product. 

Key Metrics and Their Significance

  • ACoS, or actual cost of sale is how much it costs you to make the sale, including the production costs, Amazon fees, and advertising costs. 
  • Impressions are the number of opportunities potential shoppers view your campaign. 
  • Clicks are how many potential shoppers clicked on the ad. 
  • Conversion is how many people who clicked on the ad made the purchase. 

Types of Amazon PPC Campaigns

There are three main types of Amazon PPC campaigns:

Sponsored Products

These appear in search results and product listing pages, resembling organic listings. They target specific keywords and match the shopper’s search intent.

Automatic Targeting

Amazon’s algorithm determines what keywords relate to a product listing with close match ads, loose match ads, substitutes, and complements. 

Manual Targeting

Sellers hand-select the keywords they wish to bid on, which takes more time, but is more optimized. 

Sponsored Brands

These are ads that appear on the top of the search results page or the product detail page. They showcase the seller’s brand logo, a custom headline, and up to three products. They help increase brand awareness and drive traffic to the seller’s store or product listing.

Product Collection Ads and Store Spotlight Ads

These appear as a headline advertisement, including a collection of two or more products with the brand logo and custom tagline. 

Video Ads

This format includes a 15-30 second long product showcase video shown further down on the results page. 

Sponsored Display Ads

These are ads that appear on Amazon or other websites and apps. Sponsored Display Ads retarget customers who have already visited product detail or store pages, appearing when customers search for similar products on amazon, or as side banners on Amazon’s affiliate sites like Google and Facebook. 

They target audiences based on their shopping behavior, interests, or product views. 

Creating a Successful Amazon PPC Campaign

Here are some steps to create a successful Amazon PPC campaign:

1. Choose your campaign type

Amazon PPC campaigns come in three types; Sponsored Products, Sponsored Brands and Sponsored Display. Each type offers advantages. Has specific requirements. It is important to select the campaign that aligns with your goals and fits within your budget.

2. Do keyword research

You need to choose the best, most relevant and profitable keywords for your products and target audience. You can use tools like Amazon Keyword Tool, Helium 10, or Jungle Scout to generate keyword ideas and analyze their search volume, competition, and cost per click.

3. Set your budget and bids

You have to make a decision regarding the budget for your campaign. The maximum amount you are willing to pay for every click, on your ads. You can choose between manual bidding strategies based on how much control you want to have over your bid amounts.

You can also use dynamic bidding options to adjust your bids based on the likelihood of conversion. Sellers see the best results with starting budgets between $50-$100. 

4. Create your ad copy and images

You need to write compelling ad copy and choose high-quality images that showcase your products and their benefits. You should use clear and concise language, include relevant keywords, and highlight your unique selling proposition.

You should also follow Amazon’s advertising policies and guidelines to avoid rejection or suspension of your ads.

5. Launch and optimize your campaign

Once you have created your campaign, you need to monitor its performance and make adjustments as needed. Amazon offers a range of reports and analytics tools that allow you to monitor metrics such, as impressions, clicks, conversions, sales, cost per click and return on ad spend. 

It is also advisable to experiment with keyword variations, bids, ad copy and images to determine the effective combination for your campaign. Ad campaigns should run for at least two weeks. 

How to Create Automatic-Targeting Sponsored Products Ads

To create automatic-targeting sponsored products ads, you need to follow these steps:

Step-by-step Guide to Setting Up Automatic Targeting

  • In Seller Central, select Advertising, then Campaign Manager
  • Click “Create Campaign”
  • Under Sponsored Products, click “Continue”
  • Fill out the information under Settings
  • Name the Campaign
  • Select start and end dates
  • Set daily budget
  • Choose “automatic” 
  • Pick bid style
  • Create ad group
  • Set bids
  • Ad negative target keywords
  • Launch Campaign

Your automatic-targeting sponsored products ads will start running within an hour. You can monitor and optimize your campaign performance using the reports and analytics tools in your seller account.

Importance of Dynamic Bids

Down only means that Amazon will lower your bid if you’re less likely to make a sale. Up and down means Amazon will also increase the price of your bid by 10% when it is more likely to convert. 

Optional: Adding negative targeting keywords

Negative targeting keywords are words or phrases that you can use to exclude your ads from showing up on irrelevant searches. For instance if you’re selling coffee it would be wise to include “instant” as a keyword to exclude. This ensures that your ads won’t show up when people search for ” coffee”. 

By doing this you can optimize your budget. Enhance the click through rate by targeting the audience that’s most relevant to your products. Negative keywords prevent the product from showing up in irrelevant searches. 

How to Optimize Automatic-Targeting Sponsored Products Ads

To optimize these ads, you need to follow some best practices, such as:

Choose relevant product categories and keywords for your ads

You can use the Amazon keyword tool to find the most popular and profitable keywords for your products.

Set a competitive bid and budget for your ads

You can use the suggested bid range provided by Amazon or adjust it based on your goals and performance.

Monitor and analyze your ad performance regularly

You can use the campaign manager dashboard to track key metrics such as impressions, clicks, sales, and return on ad spend (ROAS).

Optimize your product listings and landing pages

You can improve your conversion rate by using high-quality images, clear and compelling titles and descriptions, and customer reviews.

Test different ad variations and strategies

You can experiment with different product categories, keywords, bids, and budgets to find the optimal combination for your ads.

How to Perform Keyword Research for Manual-Targeting Sponsored Products Ads

For manual-targeting sponsored products ads, keyword research can help you identify the most relevant and profitable keywords to bid on, as well as the negative keywords to exclude from your campaigns. Keyword research can also help you optimize your product listings and improve your organic ranking.

Using Jungle Scout’s Keyword Scout for keyword research

Keyword Scout is a powerful tool for finding and analyzing keywords for your Amazon product listings. It helps you discover high-demand, low-competition keywords that can boost your organic ranking and sales. 

Keyword Scout also provides valuable insights into keyword difficulty, relevancy, search volume, opportunity score, and more. 

Performing a related keyword search

One way to optimize your Manual-Targeting Sponsored Products Ads is to perform a related keyword search. This can help you find relevant keywords that match your products and target audience. 

You can use tools like Bing Keyword Planner or Amazon Advertising Console to generate keyword ideas based on your product title, description, category, and competitors. You can also filter the keywords by search volume, competition, and bid range to find the best ones for your campaign.

Performing a Reverse ASIN lookup

A reverse ASIN lookup is a process of finding the keywords that a product is ranking for on Amazon. This can help sellers optimize their listings, discover new opportunities, and spy on their competitors. 

To perform a reverse ASIN lookup, you need to use a tool that can extract the keywords from the product’s ASIN (Amazon Standard Identification Number). There are many tools available online such as Helium 10.There are both paid and free options for you to select based on your requirements and financial limitations.

FAQs

How much does PPC cost on Amazon?

PPC costs only as much as you bid. The typical cost, for each click (CPC) on Amazon hovers around $0.77. Although it may differ significantly depending on the category and keywords used.

How is Amazon PPC paid?

Sellers pay Amazon the PPC cost out of the sale. The seller only pays when a shopper clicks on their ad, hence the name pay per click.

What does an Amazon PPC specialist do?

As experts in PPC, they help sellers optimize their PPC advertising campaigns. Their role entails the creation, optimization and performance monitoring of advertisements.

Additionally they analyze the data, and provide reports on the outcomes. Amazon PPC Specialists assist clients in attaining their objectives of enhancing sales, brand recognition and profitability on Amazon.

Conclusion

Setting up a campaign on Amazon PPC can be a strategy for boosting sales, improving rankings and expanding your business.

To sum up, Amazon PPC offers a means to enhance sales, improve rankings and foster business growth. By optimizing your campaigns through management of keywords, bids and budgets you can yield a return on ad spend while growing your business.

Remember that Amazon PPC requires dedication rather than just a one time effort. It involves testing, analysis and refinement of your advertising approach. If you need assistance in managing your Amazon PPC campaigns effectively feel free to reach out to us for a consultation and price quote.

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