This article from DOC EDUCATES explains the most important guidelines for your Amazon Business, the PPC.
You will learn what is Amazon PPC, Why it is important? , What are different types? , How you can maximise your profit and best strategy to choose for Amazon PPC.
Seems Interesting? Let’s get started.
What is PPC on Amazon?
Amazon PPC is the advertising network where third-party sellers can create ad campaigns to boost sales on Amazon’s website. Amazon charges a fee from advertisers when shoppers click on their ads.
It has become a powerful marketing channel on the Amazon website.
Running Amazon ads allows sellers and vendors to buy visibility for their products at Amazon’s search results page
The number of sellers leveraging Amazon advertisements’ potential continues to grow significantly each year. So if you do not have a defined plan in mind, it may be difficult to achieve your PPC goals on Amazon.
You’ll need to know how to set up an Amazon account in order to get started. You should also know what keywords to use when searching for products on Amazon. Finally, you need to understand how to optimize your campaigns.
Why should you use Amazon pay-per-click PPC?
Advertising is not the first thing you think about when someone mentions Amazon. Amazon is an online retailer that sells books, music, electronics, toys, and more. Over time, Amazon has become a large company that dominates the advertising industry.
People use Amazon PPC to save money by buying products online. They’re searching for products to buy, and they’re interested in making purchases. So, your ads are more likely to be clicked when customers are actively looking to buy.
The user base is also constantly growing. This is particularly true in 2022. Most retail stores closed down in 2019 after the COVID-19 strikes, and consumers turned to online retail to fulfill their shopping needs. Revenue figures for 2020 reflect this change in consumer behavior.
In 2021, Amazon’s net sales were $469.8 billion, a 22% increase. (Source).
So, Amazon has a captive audience that spends more and more each year.
With Amazon PPC campaigns, you target this consumer base.
A well-executed campaign can bring in some handsome money.
How does the Amazon PPC auction work?
Amazon PPC auctions are simple. Each advertiser bids a price per click (PPC) and then competes against each other. The highest bidder wins the ad spot, but he doesn’t have to pay what he initially bid. Instead, he pays less than the next highest bidder.
The Amazon PPC auction process was designed to be fair. All advertisers submit a default bid. Then, the bids are compared. If an advertiser has a higher bid, then he wins the ad space. But if two or more advertisers have the same bid, then the advertiser who submitted the lowest bid wins the ad space.
CPC depends on the highest bid, not the lowest bid.
Types of Amazon PPC Ads
For new sellers, sponsored products are the only option to choose.
You should create an ad group before starting a campaign. This means that you’ll be able to manage your ads across different devices easily.
Ad groups represent the products sharing the same bid and budget. The name should help you remember the purposes of the ad group. For example, if you run an automatic campaign, then the name could be Automatic Campaign Name. If you run a manual campaign, then the name might be Manual Campaign Name.
With an automatic campaign, you don’t have much control over the settings. Amazon will automatically select which keywords to include in your ads. These will be based on specific search terms that it thinks are relevant to your product. You can also test which keywords work for you.
– How to create an automatic targeting sponsored product ad
You can choose how long your campaign lasts. Set the max daily budget as well as the starting and ending dates. If you’re running an indefinite campaign, leave the end date blank. Your remaining funds can be increased by 10% each day.
We recommend setting your daily budget for $25 or more.
The majority of your money will be spent when someone clicks on ads, and also, some clicks may cost up to $1.50 each. Your budget will quickly run out if you set it too low. Also, ad costs will be charged at the end of every month.
It would be best if you chose whether or not you want to target automatically based on your previous purchases. You can also select to target manually by choosing specific products.
– Choosing your campaign strategy
There are three types of campaign bidding strategies for automated targeting.
Dynamic bids – down and up Amazon lowers bids in real-time when you’re less likely to make a sale. This prevents your ad from appearing on irrelevant product searches. You may also be charged higher prices if your sponsored product is more likely to convert than others.
Bamboo skewers are recommended by Amazon. When you are starting out, you should select only one product per ad group because there are many different kinds of bamboo skewers. When you have selected your products, you can set a bid of up to $2.00.
You can set bids by targeting the group.
For advanced automatic targeting, you can select bids by targeting specific groups and placing different amounts of money for each strategy. The four types of automatic bidding are Close Match. This shows your sponsored products ad to those who use searches terms closely related to your product.
For example, if your product is a white warming comfort tub, your product would show up in searches for a white comfort tub or white warming tub.
Similar matches are shown to people searching for the tubs or baby tubs.
Substitute matches are shown to people looking for bathtubs similar to yours.
Complementary products are shown to users when they view details about items that match the item you’re selling.
These ads appear as part of the product listing page.
We don’t want our products to be shown in any keyword search. So we’re going to put some bad keywords into the automatic-targeting blacklist.
With manual campaigns, you can choose the keywords and products that you want to target. You can also set up the bids and placement options for each keyword.
This allows you to get more specific about what you’re targeting.
This type of targeting is ideal if you’re more comfortable with the Amazon platform.
You can also strategize more. Manual campaigns are more complicated than automated ones.
Be careful when doing keyword research, and bid carefully to avoid losing lots of money.
Sponsored products appear on the first page, but they can be found anywhere in the search results. Sponsored products can be found at the top, middle, or bottom of the search results. They can also be found on product detail pages.
This is an ad for a sponsored product. You can see the name of the product, the price, and the description.
Be sure to double-check everything before launching your campaign. Once you’re ready, click on the yellow launch campaign button at the bottom of this page. You can also go back and edit your campaign if you want to change anything about it. It usually takes 30 mins to an hour for your ads to be published on Amazon.
How to Increase Conversions to maximise the profit
I’m sure there are many ways to optimize your Amazon PPC campaigns. But here are some things we’ve done to increase conversions:
- Create landing pages for each product page.
- Smart Search engine optimization (SEO) techniques
- Compelling Pricing
- Use Of Deals
- A+ Content
- Affiliate Marketing
How to choose the right type of Amazon PPC ad
Amazon offers many different types of PPC ads to choose from. We suggest trying them all out to see which one works best for your business.
Additionally, you can target specific products or categories using these ads.
The highest ROI comes from Sponsored Brand ads, followed by close match keywords, then loose match keywords. Price doesn’t matter much when you’re selling high-priced items.
Of course, it takes time to optimize PPC campaigns. Your mileage may vary.
Knowing a ballpark ROI can help guide your decisions about which PPC strategies work best for your business. You can try out different PPC strategies until you find ones that work for you. Once you have enough data, then you can remove ads that aren’t performing well while boosting those that do.
When should I launch Amazon PPC ads?
You need data to optimize your campaigns. Optimizing your campaigns takes time. So, start early! Launching Amazon PPC ads early on in the product life-cycle is the best time to do it.
Not Using Amazon Negative Keywords Can Be Dangerous
The best way to avoid wasting money on irrelevant ads is by using negative keywords. You’ll get better results by using them. Your competitors might use them too, so you need to be careful about what you say.
The conclusion is simple: if you want to get to the top, you should consider starting out using the Amazon PPC Campaign. It will take a little effort and money to build up traffic and sales, but it’s well worth the effort.
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