According to Serpwatch, PPC is one of the earliest forms of digital advertising. It is also one of the most effective campaigns you can use to reach and convert more website visitors. Furthermore, with PPC campaigns, you can feature your products on the search engine result pages (SERPs). This will, in turn, allow you to reach potential customers that search for keywords relevant to your products.
Amazon is one of the places where you can run your PPC campaigns. Deciding to do so would increase your chances of selling because most people who search on Amazon are looking to buy a product instead of carrying out regular research.
That said, in this article, we will discuss the following topics:
- What Amazon PPC is
- The benefits of Amazon PPC
- How to design your PPC campaign to get the best out of it
What is Amazon PPC?
Amazon PPC is a paid advertising campaign that allows you to reach more buyers. Amazon will charge you each time someone clicks on your ads. It is a way for you to amplify your sales and improve your product ranking.
Amazon PPC comes in three categories – Sponsored Products, Headline Search Ads (Sponsored Brands), and Product Display Ads.
- Sponsored Products are keyword-targeted ads that allow sellers to promote your products on Amazon.
- Headline Search Ads (Sponsored Brands) are keyword-targeted ads that allow brand owners to promote a customized headline, a brand logo, and three products. Sponsored Brands will enable you to send potential buyers to your store or a customized landing page on Amazon.
- Products Display Ads are PPC ads for a product displayed to users visiting a similar product section. This type of ads studies customers’ behavioral segments and matches these behaviors with the ideal product related to their interest or categories.
Benefits of Amazon PPC
1. It enables you to have an edge over your competitors.
Amazon is one of the best places where people buy stuff. This makes it more ideal for PPC campaigns than Google. Amazon PPC will give you a better edge over your competitors at selling your products to potential customers. If done right, it will allow you to reach and convert more buyers. In fact, over 40% of small companies rely on PPC to boost their businesses.
2. It saves you time.
While there are other digital advertising ways to explore, most of them are time-consuming, and you will not see instant results. Amazon PPC, on the other hand, allows you to run automated campaigns that will enable you to focus on other aspects of your business.
3. It improves your campaigns.
Amazon PPC allows you to improve and get better with your marketing campaigns. You can launch one and continuously tweak it till you achieve a better ROI.
For example, you can remove underperforming keywords and increase your budget for keywords that are performing well.
4. Decreased ACoS
Another significant benefit of Amazon PPC is that it has a decreased Advertising Cost of Sale (ACoS). ACoS, in simple terms, is the calculated percentage of the sales you made through Amazon advertisement.
You can calculate your ACoS by dividing the total amount you spend on ads with the total amount you earn and then multiplying by 100%. For example, if you spend $4 on the ad and you make $20 from it, your ACoS will be 20%.
How then does ACoS benefit you? Among other things, you do not need to use a spreadsheet to calculate and determine if your campaign is working or not.
How to Design Your PPC Campaign
Now that you know the benefits of the Amazon PPC campaign, let’s check what is the best way to design successful campaigns.
Focus on Your Products First
Before you launch your Amazon PPC campaign, the first thing you should focus on is your products. To get the best out of your campaign, the details of your products should be appropriately filled.
They should have accurate and transparent product descriptions. Otherwise, you could earn yourself bad reviews, which will affect your ad and product ranking negatively. Also, you should feature clean and attractive product images.
Your next step should be setting up a competitive price for your products. Before doing so, it is a good idea to review your competitors’ prices.
Lastly, you should have good reviews of your products. Not only do reviews help ads, but they also allow you to earn your potential buyer’s trust. You can have 3-4 good reviews.
Run an Automatic Campaign
If you want to run an Amazon PPC campaign and you are not using any Amazon PPC tools, then it is advisable to start with an automatic campaign. These allow you to run ads without spending time to research keywords or using advertising tools.
The automatic campaign will provide you with likely keywords that are relevant to your products. It will also allow you to bid on them with a low amount until you discover the one that converts. When bidding on a keyword, it is advisable to begin with around 10 cents until you find out which ones deserve more investments.
It is quite easy to run an automatic Amazon PPC campaign. All you need is to create a campaign with a name and then input your budget and a start date. When you launch it, it is advisable to run automatic campaigns for 2-3 weeks.
Run a Manual Campaign
After you’ve run an automatic campaign for 2-3 weeks and collected the keywords that are converting, it is advisable to switch to manual campaigns. Unlike the automatic campaign, you will need to have a list of keywords of your own. This is why it is advisable to run an automatic campaign first.
Requirements for Running an Amazon PPC
Before launching an Amazon PPC campaign, make sure you fulfill the following criteria:
- Seller Account.
- Shipping. You will need to be able to ship the products you will be advertising anywhere.
- Buy Box. If you want to run a Sponsored Product campaign, you will need to meet the Buy Box eligibility. Before you can meet Buy Box eligibility criteria, you will need to have a professional seller account and stock availability.
- Amazon Brand Registry. This will help you protect your intellectual properties and product ideas from being duplicated by another person on Amazon. It is also required when using a headline search advertisement.
Amazon PPC is an effective way of creating awareness for your brand, products, and services. However, to get the best out of the platform, you will need to take time to study what works and what doesn’t on the platform.