Effective marketing is often the backbone of a successful company strategy. Selling on Amazon means using Amazon’s PPC (pay-per-click) advertising program as one of your primary online tools for developing your marketing strategy.
Amazon PPC advertisements, when properly configured and implemented, may be a powerful tool for propelling your brand forward in the e-commerce sector. When you run an effective marketing campaign, customers will be directed to your Amazon shop, and you’ll connect with your intended demographic as well as others who share your interests.
Amazon customers often have a high propensity to make a purchase, which encourages retailers to employ PPC advertisements on the site.
Is it worth it to use Amazon PPC advertisements, nonetheless, to account for the prospective expenses and the time spent on creativity? We explain everything in detail down below.
How Amazon PPC Works?
Amazon Pay Per Click (PPC) ads are an important tool in any e-commerce business’s marketing arsenal. With Amazon PPC Ads Management, businesses can easily target customers who are already looking for the products they are selling. It’s a great way to increase visibility for your business and drive more sales.
👉🏼 In this step-by-step guide, we’ll cover how Amazon PPC ads work, how to get started, and how to optimize your campaigns for the best results.
First, let’s start with the basics: What is Amazon PPC?
Amazon Pay Per Click (PPC) is an advertising service offered by Amazon. It allows you to bid on keywords that are relevant to the products you’re selling. When someone searches for those keywords, your ad will show up in the search results. If they click your ad, you’ll pay a fee (usually a few cents) for that click.
Now that you understand the basics of Amazon PPC, let’s jump into the steps you need to take to get started.
Step 1: Set Up Your Amazon Ads Account
The first step is to set up your Amazon Ads account. This is where you’ll manage your campaigns and track your results. You can do this by going to your Amazon Seller Central dashboard and clicking “Advertising.” From there, you’ll be able to set up your account and start creating campaigns.
Step 2: Research Keywords
Once you’ve set up your Amazon Ads account, the next step is to research keywords. This is important because you want to make sure you’re bidding on keywords that are relevant to the products you’re selling. You can use the Amazon keyword tool to help you find keywords that are most likely to convert into sales.
Step 3: Set Your Budget and Bids
Once you’ve chosen your keywords, the next step is to set your budget and bids. You’ll want to make sure you’re not overspending, so you’ll need to set a budget and bids that are appropriate for your business. This will help you stay within your budget and maximize your return on investment (ROI).
Step 4: Monitor and Optimize Your Campaigns
Once you’ve set up your campaigns, it’s important to monitor and optimize them regularly. You can use the Amazon Ads dashboard to track the performance of your campaigns and adjust your bids and budget accordingly. This will help you ensure that your campaigns are running efficiently and that you’re getting the most out of your advertising budget.
These are the basic steps for getting started with Amazon PPC. It can take some time to set up and optimize your campaigns, but it’s worth it in the long run. Amazon PPC is a powerful tool that can help you increase visibility for your business and drive more sales.
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How to Cut Your Ad Spend On Amazon PPC?
Advertising on Amazon is a great way to drive sales, but it can be expensive. Fortunately, there are a few strategies that you can use to lower your Amazon PPC ad spend. In this article, we will discuss how to use consistent keyword research, automation, and optimization tools, advertise the right products and streamline to reduce your ad spend on Amazon.
1. Consistent Keyword Research
One of the best ways to lower your ad spend on Amazon PPC is to use consistent keyword research. This means doing regular research to find out what words and phrases customers are using to search for your products. By targeting the most popular and relevant keywords, you can ensure that your ads are seen by the people who are most likely to be interested in them. This will help to reduce your ad spending by limiting the number of impressions that are wasted on people who are unlikely to buy.
It’s also important to keep up with the latest trends in keyword research. By continuously monitoring and researching new keywords, you can keep your ads up-to-date and ensure that you’re targeting the most relevant keywords.
2. Automation and Optimization Tools
Another great way to lower your ad spend on Amazon PPC is to use automation and optimization tools. These tools can help you to track your campaigns in real-time and make adjustments as needed to ensure that your ads are reaching the right people. The tools can also help you to optimize your bids so that you’re only paying for clicks that are likely to lead to sales. By optimizing your bids, you can reduce your cost-per-click and get more out of your ad spend.
These tools can also help you to identify trends in your campaigns so that you can make adjustments as needed. For example, if you notice that certain keywords are performing better than others, you can adjust your bids accordingly. This can help to reduce your ad spending and ensure that you’re getting the most out of your campaigns.
3. Advertising the Right Products
Another way to lower your ad spend on Amazon PPC is to make sure that you’re advertising the right products. This means targeting the products that are most likely to be successful and limiting your ad spend on products that aren’t likely to generate sales. This can help to reduce your cost-per-click and ensure that you’re not wasting money on ads that are unlikely to lead to sales.
It’s also important to make sure that your ads are relevant to the products that you’re advertising. By targeting the right keywords and using the right images and copy, you can ensure that your ads are seen by the people who are most likely to be interested in them. This can help to reduce your ad spending and ensure that your campaigns are successful.
4. Streamline your campaigns
Finally, one of the best ways to lower your ad spend on Amazon PPC is to streamline your campaigns. This means cutting out any unnecessary steps in your campaigns and focusing on the ones that are most likely to lead to sales. By streamlining your campaigns, you can reduce the cost-per-click and get more out of your ad spend.
It’s also important to make sure that your campaigns are running smoothly. This means making sure that they’re properly set up and that all of the settings are correct. If there are any problems with your campaigns, it can lead to wasted ad spending and lower returns.
Best Amazon PPC Strategies
With so many different PPC strategies available, it can be difficult to know which is the best for your business. Let’s discuss the four best Amazon PPC strategies to help you maximize your advertising results.
✔️ Go for Interest Targeting
When it comes to PPC campaigns, it is important to target the right audience. Interest targeting allows you to target specific interests and topics that are relevant to your product, which will ensure that your ads are reaching the right people. This is especially important for Amazon Sellers, as targeting the wrong audience can lead to low conversions and wasted money. By targeting the right audience, you will be able to maximize your success and get the most out of your campaigns.
✔️ A/B Test Multiple Ads
A/B testing is an important part of PPC campaigns, as it allows you to test different ad variations and see which one performs the best. This is especially important for Amazon sellers, as different audiences may respond differently to certain ads. By A/B testing multiple ads, you can determine which ad is the most effective and use it to maximize your success.
Also Read: Experiment your way to sales growth using our new A/B testing options
✔️ Create a Diversified Bidding Strategy
When it comes to PPC campaigns, it is important to create a diversified bidding strategy. This means that you should adjust your bids based on the results of your campaigns and make sure that you are not placing too much or too little emphasis on certain keywords. By diversifying your bidding strategy, you can ensure that your ads are reaching the right people and getting the most out of your campaigns.
✔️ Add Keywords
In order to get the most out of your PPC campaigns, it is important to add relevant keywords to your ads. This will ensure that your ads are reaching the right people and that you are getting the most out of your campaigns. By adding relevant keywords, you can ensure that your ads are reaching the people who are most likely to buy your product.
✔️ Optimize Product Listing
Optimizing your product listing is an important part of PPC campaigns, as it will ensure that your product is reaching the right people. By optimizing your product listing, you can make sure that your product is being seen by the right audience and that you are getting the most out of your campaigns.
✔️ Try Brand Video Ad
Brand video ads are an effective way to reach your target audience and maximize your success as an Amazon Seller. Video ads can be a great way to showcase your product and get potential customers interested in what you have to offer. By utilizing brand video ads, you can ensure that your product is reaching the right people and that you are getting the most out of your campaigns.
✔️ Build Similar Product Ad Groups
By creating similar product ad groups, you can ensure that your ads are reaching the right people and that you are getting the most out of your campaigns. By grouping similar products together, you can make sure that your ads are reaching the people who are most likely to buy your products, which will help you to maximize your success and make the most of your PPC campaigns.
Methods of Amazon Pay-Per-Click Advertising
PPC (pay-per-click) advertisements on Amazon direct potential customers to your online business, increasing the likelihood of a purchase being made. You solely pay when a buyer clicks on your particular ad, and merchants on the site may make an offer to include their ad show anytime a shopper looks for a product. The advertiser that bids the most for the sought-after keywords will get the placement.
Cost-Per-Click Bidding Operates Like a Resale Market
If a client sees and clicks on an ad, the “winner” is the only one who has to pay for that ad. The final price will be determined by two factors: the highest and second-highest bids for the targeted keywords. From the following video, you know about how to calculate CPC for your keyword
Even if your offer is the highest, you’ll just have to pay a penny more than the next highest bidder. You will only be required to pay $4.31 for a click on your ad if the second top offer for the term “pet spray” is $4.30 and you’ve bid a staggering $5.50.
If you’re a serious vendor, you know that your chances of getting that all-important click are directly proportional to the amount of money you’re willing to spend on pay-per-click (PPC) advertisements.
Additionally, as long as you are able to achieve your ROI (return on investment) objectives, your ACoS (advertising cost of sales) does not need to be exorbitant. Plus, who can say? It’s possible that your ad will be wildly successful.
Calculating Amazon PPC Cost and CPC Considerations
Consider your seller’s CPC before calculating your Amazon PPC charges if you’re trying to step up your advertising game (cost-per-click). A company’s “cost-per-click” refers to the amount they fork out whenever a potential customer clicks on one of their ads.
When creating an advertising campaign on Amazon, you have the option of specifying a time frame and budget range. The average cost-per-click for pay-per-click advertising is between $0.11 and $7.00 USD.
The amount you set aside for Amazon PPC advertisements may be estimated using the average cost-per-click. It’s also a terrific approach to figuring out how much money you can afford to put into advertising in the present climate.
Because pay-per-click advertising is based on a bidding mechanism, pinpointing a precise cost might be difficult. Your final Amazon PPC ad cost will depend on a number of factors that are:
Factors Affecting Amazon PPC Cost
1. Your Rivals
Find out what your competition is offering on Amazon by looking at their bids.
What kind of rivalry do they have? Bidding on popular search terms will increase the cost per click.
3. Type of Commercial
Advertised Name, Advertised Good, Advertised Space, Advertised Medium, Advertised Medium: Video
4. Production expenses
Spending time and money on things like keyword research, product improvement, and making a video all contribute to your advertising strategy.
After launching your first Pay – per – click ad campaign, you may evaluate its performance and adjust your spending accordingly.
Experts say, in general, you should aim for a TACOS of 10% or less for better-established goods. This implies you should allocate 10% of your product’s entire income to marketing. Depending on the product’s lifespan, TACOS may change dramatically. For instance, until a product’s organic rankings improve, it receives some reviews, and its sales velocity increases, TACOS may be expected to be between 50 and 70 percent.
Examples of Amazon PPC
1. Sponsored Products
Sponsored Products are advertisements that appear alongside organic listings in Amazon search results. These ads have a “sponsored” label and appear above or below the organic listings.
Sponsored product advertisements are the paid placement of a professional seller’s sponsored products anywhere on the Google search page or related product pages. PPC ads like this are now the most often employed by Amazon vendors.
They are cost-per-click, and you only pay when someone clicks on your ad. This type of ad is great for targeting potential customers who are already searching for a specific product.
It is also a great way to increase visibility for products that may not be appearing in organic search results.
The sponsored products advertising program allows vendors to establish their own bids based on the keywords they believe would generate the most traffic and sales for their Amazon shop. Alternatively, you may set them up with automated targeting, in which case Amazon will select the keywords for the ad depending on the products you list.
Supported goods are also a great way to reach out to customers who are actively looking to purchase a product. This means that these ads can generate higher conversion rates than other types of ads. Additionally, they are relatively easy to set up and manage.
2. Sponsored Brands
Sponsored brands are ads that are displayed at the top of the search results, with a “Sponsored” label.
These ads typically feature a brand logo, a headline, and up to three products. This type of ad is great for increasing brand awareness and recognition. It is also a great way to promote multiple products at once.
Typically, the ad will focus on relevant keywords, although PPC video advertising is also an option. However, at this time, sponsored brand advertising may only be created by Brand Registry Program vendors.
Sponsored brands are also a great way to build trust with potential customers. This is because these ads feature a brand logo, which customers are likely to recognize and trust. Additionally, these ads are relatively easy to set up and manage.
3. Sponsored Display
Sponsored display ads are ads that are displayed across Amazon’s websites and apps. These ads can be targeted at customers based on their interests and past purchases.
Sponsored Display advertisements are a relatively recent addition to Amazon’s pay-per-click advertising repertoire. Its goal is not to discover clients based on keywords but on their hobbies and purchasing habits.
This type of ad is great for targeting potential customers who may not be actively looking for a product. It is also great for reaching out to customers who have already purchased a product, as it can be used to promote related products.
For example, if an Amazon customer has ever spent more than a few seconds on the product detail page for a particular item, advertisements for that item will begin showing up on other websites and apps they use regularly, as well as on pages they may happen upon while browsing for other products on Amazon. Only participants in the Brand Registry Initiative are eligible to use this sort of pay-per-click advertisement.
Sponsored Display advertisements have no per-day budget requirements.
Sponsored display ads are also a great way to increase visibility and reach more potential customers. Additionally, these ads are relatively easy to set up and manage.
How to Make Money with Amazon PPC?
Plan for an investment return regardless of the marketing approach you choose when testing Amazon PPC advertisements.
Numerous elements determine whether or not it’s worthwhile. The good news is you are able to control your advertising costs by limiting your expenditure on Amazon’s PPC advertisements to an amount that works for you. However, you must plan ahead so that your advertising budget isn’t wasted, and then implement your plan.
If you want to run an effective marketing campaign that generates a return on investment, we suggest testing out a wide variety of different sorts of commercials.
Steps to Setting up PPC Campaign on Amazon
Start the ball moving, and watch as your Amazon shop receives clicks and purchases. In just 5 easy steps, you can have your very own pay-per-click advertising campaign up and running.
1️. Select Your Goods
First, you should evaluate the level of competition on Amazon and then choose the goods from your shop that you most want to sell. Remember, however, that we’re still working on this. Many retailers must try out many different kinds of marketing before they find what works.
Promote a new item in your store and experiment with various keyword tactics to reach your desired audience by setting up a Sponsored Goods ad now.
2. Optimization and Keyword Research
The moment to plan for effective keyword use has arrived. If you want to use automated targeting, Amazon will do all of the hard work for you. But if you’re interested in manual targeting, you’ll need to conduct your own keyword analysis.
You still need to optimize your Amazon shop and make sure the commodity listings (particularly the ones you’re intending on advertising) are optimized with correct information such as product descriptions, titles, and photos even if you choose to use automated targeting.
Need some help with keyword optimization? Try not to fret. If search engine optimization and keyword research aren’t your strong suit, try using the services of a virtual assistant on Amazon who specializes in these areas.
Additionally, you may check Amazon keyword volume and competitiveness using KeywordsEverywhere tool.
3. Kick off your pay-per-click ad campaign
It’s time to launch your advertising campaign, so sign in to your Seller Central account. Select “Create campaign” under the Advertising menu. Select the form of pay-per-click advertisement you want to test.
After deciding on a pay-per-click ad, you’ll be prompted to give your campaign a name, choose its beginning and ending dates, and establish a daily budget. Next, choose between manual and automated aiming. You may then choose your starting bid and the goods you want to promote.
If you want to target your audience manually, you will need to provide a list of keywords. For each ad type on Amazon’s PPC advertising platform, you may choose up to one thousand keywords or search queries to show advertisements for. Start your advertising campaign with a reasonable goal of aiming for between 20 and 40 keywords. Simply add the keywords via an a.csv file to speed up the process.
When establishing a PPC ad group, be careful to adhere to Amazon’s requirements for that group.
4. Start Placing Ad Bids
You must now establish bids for each of your desired keywords. Know that your bids are not fixed in stone and that you may return at any time to make changes. When doing your search, keep in mind the keyword costs and strategies.
If you want to increase your chances of winning the keyword and obtaining the ad that goes along with it, it is recommended that you bid on many keywords relating to your product and increase your bid for the keywords with lower competitive rates.
5. Advertise in Google AdWords and Have It Reviewed Here
You’ll need to present your work and sit tight for Amazon’s approval, just as you would when opening your first shop. This may take a few hours or perhaps a day or two.
If you’re running a pay-per-click advertising campaign, for example, the moment you release the ads is the moment you can start tracking their effectiveness.
In order to make paid advertising campaigns profitable, it is crucial to limit PPC spending.
CPCs on Amazon is over the roof because of COVID, and the market is becoming more pay-to-play. Moreover, Amazon regularly rolls out upgrades to its advertising platform, which entices firms to use Amazon advertisements to make their content available.
Sponsored Products now has an expanded search term hit report, Sponsored Brands ads may be formatted with a personalized headline and logo, and Sponsored Display ads can be shown on streaming video sites like Twitch.
In the face of rising costs per click (CPC) and intensifying competition, it is essential to establish an advertising budget that will guide your efforts. Your advertising spending plan has to be flexible so that it may grow and change as your company does. Although an Amazon marketing consultant may be helpful, it is ultimately up to you to decide how much you want to invest in Amazon PPC. Always remember these rules of thumb when determining your PPC spending.
Q1. What is the Average Cost per Click (CPC) on Amazon?
A. Competition among vendors and the rising number of clients the platform serves to seem to be driving up the average CPC year over year. The median CPC increased from $0.71 in 2020 to $0.89 in 2021. The trend seems to be continuing, as new forms of innovation, such as improved creatives and visual features, are being introduced into Amazon’s advertising.
Q2. When shopping on Amazon, what is the typical conversion rate?
A. Currently, Amazon advertising has an average conversion rate of roughly 9.87% and may even reach 10-15%.
Q3. Does anybody know how many people typically see Amazon’s PPC ads every day?
A. You should expect between 40,000 and 60,000 daily impressions from Amazon in 2021. This is a 50% decrease from the previous year, probably due to the growing number of Amazon vendors using the marketplace.
The number of occasions your ad is “viewed” by a shopper counts as an “impression,” whether or not the consumer actually clicks on the ad.
Q4. What are Amazon’s Average Daily Conversions?
A. Clicks might arise from exposure. Also, some of those clicks might turn into sales.
The term “conversion” refers to the rate at which an online visitor becomes a paying customer after clicking on an ad. However, it isn’t the same as sales since sales refer to how many products were sold and not how many were really sold.
The average total number of purchases made by a customer per day via Amazon PPC is 36.67.