Best Strategic Guide For Setup An Amazon PPC Campaign:
If you sell or want to sell on Amazon, so you would also do some research for it. So, there’s no way you don’t know about the Amazon PPC Campaign. Amazon PPC advertising has very significant effects on your selling.
This campaign will have a very profitable impact on boosting sales and increasing product visibility.
What is an Amazon PPC Campaign? How does it work? Why is it important for sellers? These are the central questions asked by new sellers or beginners. And to start selling successfully on Amazon, you need to know the ideal answers to these questions! which you will get through this guide.
In this guide, you will get to know the following:
- What is Amazon PPC?
- Amazon PPC Auction and How does it work?
- Importance of Amazon PPC campaign for Sellers
- Requirements to run a PPC campaign
- Types of Amazon PPC
- How to Set Up an Amazon PPC Campaign
- Reasons To Use Amazon PPC
What is Amazon PPC?
Amazon’s Pay-per-Click (PPC) advertising campaign is a way of Amazon’s inner advertising. This advertising campaign helps sellers to raise their product visibility and sales. It is a sponsored ad campaign in which sellers create ads for their product advertising, and then they have to pay Amazon only if someone clicks on their ad.
While advertising through Amazon PPC, you don’t have to pay for impressions. Instead, you will only have to pay when someone clicks and views your ad.
Auction system / Bidding for Ad Placement
Amazon PPC is an auction system where sellers bid on keywords, the sellers with the highest bid on related keywords win the auction, and their product is listed in their chosen place. But you don’t have to pay a lot to win the auction; you will only have to pay a cent more than your competition.
The average CPC on your ad is $0.81. But this is not the standard cost, as there are numerous aspects that affect Amazon’s advertising cost.
But remember that Amazon only charges you when someone clicks your ad. Here’s a small example to show how PPC cost is calculated: For instance, if you are spending $40 on your ad, and 80 people click your ad, your CPC would be 40÷80= $0.5 per click.
Importance of Amazon PPC campaign for Sellers
The online user base is constantly growing. Amazon has around more than 350 million products, and the products easily get lost in between. Especially after 2020, many retail sellers shifted to online platforms, and that’s when the traffic started to increase, and the products started to jam.
Amazon’s PPC campaign is a great way to persuade people to buy your product. People open Amazon when they want to buy something, so the ads will target such consumers and display your product right in front of them.
Improving Product Visibility
The PPC ads also positively impact the visibility of your product. It is very challenging for your product to come on top because of the heavy traffic on Amazon. The keyword competition ranking is not easy on Amazon, but with the right PPC strategy, your products will appear on top of the first page.
Amazon shoppers are most likely to click on the products appearing on the top of the result page, whether they are organically appearing or are sponsored ads.
That is why Amazon ads claim to raise your product’s perceptibility and sales. And then, through these ads, once your actual ranking increases due to these ads, you won’t even need these ads campaign to attract customers.
Create a Strategy for your Amazon PPC Campaign
Before you start advertising on Amazon, you must make a strategic plan for your ad campaign. There are numerous ad formats offered by Amazon to advertise your product in the best way possible. So you need to try what format works best for you. You also have to compile a list of keywords by conducting research for your product that shoppers might use.
Initially, set an everyday budget and bid a few cents higher than Amazon’s recommendation. Due to this, your chances of appearing as the highest bidder will increase, and it will drive good traffic to your product.
Don’t make alterations very fast. Let your ad campaign run for at least 2 weeks. After that, you can analyze, make adjustments, review your reports and add or subtract keywords as required.
Requirements To Run A PPC Campaign
If you want effective results from your PPC campaign, you need to fulfill all the requirements. Here are the requirements:
- Seller account: To run a PPC campaign on Amazon, you must have an active seller account for advertisement.
- Shipping: The seller must have a plan or method to ship the product to the buyer.
- Buy Box: If you want to advertise your product through the Sponsored product category, you should satisfy the Buy Box eligibility measures, such as
1. Have a Professional Seller Account
2. Stock Availability
3. Show metrics ( For order defects rate, cancellation
rates, and late delivery rates).
- Amazon Brand Registry: This requirement is applied when sellers want to use Headline Search Ads. This requirement is to protect intellectual properties and to better the user experience.
Types of Amazon PPC
The PPC ad falls into three categories which are as follows:
- Sponsored product ads
- Product display ads
- Sponsored brand ads
Let’s discuss all three of them in detail.
Sponsored product ads
Sponsored product ads permit advertising based on keywords. This form of PPC advertising is very beneficial as it somehow intermingles with the organic listing and is the most commonly used type of Amazon PPC ad.
These ads are generally visible below Amazon’s organic search outcomes, on the product page or the right side of the search history so that they are easily visual to potential buyers and they can buy your product.
Best results are guaranteed if you do proper keyword research.
Setting up Sponsored product ads just require selecting a product, choosing the right keyword for it and setting a budget.
After it’s done, Amazon will display your sponsored ads automatically to a relevant audience.
Analysis reveals that Amazon Sponsored product ads have helped businesses gain more sales than Google Ads.
Product display ads
Product Display ads help sellers to retarget customers who visit their product pages from time to time.
A product Display ad is the most recent type of PPC and has yet to gain the popularity of Sponsored Product ads and Sponsored Brand ads. Only 25% of third-party Amazon sellers use Product Display ads.
Sponsored Display ads are visible in the following places:
- Below the “Add to Cart” option on Amazon product detail pages.
- Besides and below search results.
- On third-party apps and websites.
- Product Display ads can also be seen on Amazon’s affiliate sites, including Facebook, Google, Netflix, and even mobile apps.
Sponsored brand ads
Also previously known as “headline search ads,” these brand ads help sellers advertise more than one product at a time and help catch the customer’s attention perfectly.
These ads are placed right on the top of search results intentively to attract viewers towards a group of products.
This type of PPC ad gives you options with the format, whether you want the ad to appear as a banner on the top or as a video on the bottom.
This type of Amazon PPC ad contains the widest variety of customization. You get the option to choose your brand pages, product pages, search result pages, and a custom URL as well. You also get to choose the text and images shown in the ad.
It is necessary to correspond your objectives with the type of ad you select. For example, sponsored ads are used to target customers with their purchase plans, whereas headline ads are more valuable in creating brand awareness. And product ads can serve both options.
How to Set Up an Amazon PPC Campaign
As we have already told you the requirements to set up a PPC ad campaign, tho here are a few steps you can follow to run your campaign successfully:
- When you start up, we recommend you try out all types of PPC ad campaigns but especially automatic and manually targeting Sponsored Products ads. These two types of PPC ads help you get a clear image of what keywords and search terms you should use on Amazon.
- You should conduct detailed keyword research by using Jungle Scout’s Keyword Scout. You should try to keep your focus on relevant keywords and competitor strategy.
- You should start by setting a default budget, and you only have to bid a few cents higher than Amazon’s recommendation or your competitor’s bid.
- Let your ad campaign run for 2 weeks at least before making any adjustments or changes.
- By using ad reports from your automatic ad campaigns, you can find good keywords for your manual ad campaigns.
- Prior to removing any keyword from your manual ad campaign, you should ensure that the keyword gets at least 10 clicks.
- After that, you can continue inspecting and reviewing your ad reports weekly, adjusting and changing keywords as required.
And here’s how you can run a successful PPC ad campaign.
Reasons To Use Amazon PPC
Even if your product sells decently, there are still many reasons to use Amazon PPC campaigns. Here we have listed the most common reasons sellers use Amazon PPC ad campaigns:
1. To Increase Product Sales
Most sellers are looking for ways to increase their product sales and brand awareness. So, running a PPC campaign is the best way to bring their objectives to life.
2. To Increase Rankings Of Competitive Keywords
The best keywords out there are already in use by so many sellers and are highly competitive, so it’s not easy to rank them in an organic search. Using a PPC campaign can be very beneficial and increase your product visibility. These ad campaigns not only increase your visibility but also help you rank for that keyword organically.
3. To Build Brand Awareness For New Launches
Products with good sales have no problem ranking on top, but new products have difficulty ranking for competitive keywords. And as we all know, lower ranking results in lower sales and vice versa. So, running PPC ad campaigns is a perfect strategy to rank products on top and boost sales possibilities.
4. Competitor Analysis to Stay Ahead Against All Odds
Even if your product is among the best sellers, it won’t always stay in that position as there’s very high competition on Amazon.
Most top-ranked brands use Amazon PPC campaigns to secure their rank and position on Amazon in fear of being taken over by competitors.
In light of the above details, it’s safe to say that Amazon’s PPC ad campaign is highly beneficial to boost your sales and to improve product visibility. In this guide, we have given you all that you want to set up an Amazon PPC campaign. We know there’s a lot you need to do, but consequently, you will be on top making amazing sales on Amazon.
Best of luck!
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