What is Amazon PPC?

The root domain of Amazon advertising, Amazon Pay-per-click is driven out.

Marketers target the keywords in a way that increases the visibility of the product on Amazon  when the user is searching on the platform. It appears at the top of Amazon’s search results and competitor product listings.

The users will get to know about Amazon seller’s who are looking for a particular product at the sale. Different advertisement campaigns are run to achieve a goal. Their advertisement performances are measured to know about the conversions. It is an effective technique commonly used by marketers these days.

Let’s dive into an extensive discussion to create an Amazon PPC strategy, different types of Amazon PPC ads and establish their set up.

How to create Amazon PPC Strategy?

If you aim to create Amazon PPC strategy, keep in mind these steps before beginning the process:

Keyword Research

Keyword research is the process from which you can extract related keywords of your brand and your competitor products.

Amount Spent

Make a budget for the amount spent. When planning out daily budgets it is recommended to go almost 50-100% higher from the recommendation of Amazon to create more visibility.

Time Duration

Minimum time duration for ad campaigns to run should be for at least two weeks. Notice the progress and performance of the campaign and make adjustments accordingly.

Experimentation

Set goals to achieve your targets. You can also experiment with different strategies. Run out different kinds of PPC ads in your campaign. Play with automatic and manual keyword targeting to know what works out for your brand.

Review

Review your ad reports every week. Make adjustments in the keywords as per performance.

Campaign Reports

Make use of ad reports from your automatic campaigns. It helps to find keywords for your manual campaigns. Before adjusting or removing a keyword from a manual campaign, try that your keyword gets maximum clicks.

Metrics of Amazon PPC Strategies

Before we get into the details of PPC though, it’s important to understand the metrics of Amazon PPC strategy. Amazon explains each one as:

Advertising Cost of Sales (ACoS)

Advertising cost of sales (ACOS) is a metric that determines the ad spend and ad revenue. The success of a brand’s ad campaigns is based on ACoS.  It is calculated by dividing total ad spend by attributed sales.

Attributed Sales

Sales attribution gives you a clear ideation of which specific ads are driving sales. When a user clicks on an ad purchase of your brand product it is considered as attributed sales.

Impressions

Impressions are measured with the number of times your ads were displayed. Clicks from the previous three days are adjusted due to click invalidation.

Clicks

The number of times your ads were clicked. Once identified, it may take up to 3 days to remove invalid clicks from your reports. Clicks from the last three days may be adjusted due to click invalidation.

Types of Amazon PPC Advertisement

If you are creating Amazon PPC strategy, you need to know it is categorized into following types:

• Sponsored Products ads
• Sponsored Brand ads
• Sponsored Display ads

Sponsored Products Ads

These are the most common Amazon ads, you will find in search results and on product pages. They are usually keywords and product category-targeted. These are ideal for promoting individual items directly to potential buyers.

Sponsored Brand Ads

These ads enable sellers to display their brand and multiple products. They appear on product detail pages and on top of search results. They effectively enhance brand visibility and lead customers to the brand’s storefront.

Sponsored Display Ads

These are ideal for broad audience reach as these ads appear on and off on Amazon. They are based to target a product on the base of demographics and retargeting purpose. This helps in fostering brand loyalty.

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Takeaway

If you are an Amazon seller, the PPC strategy can be a wonderful addition to incorporate in your marketing tactics. By crafting a well-rounded and robust PPC ad strategy and multi-faceted approach, you will enjoy the cost-effective perks that this advertising model offers. 

It is trusted by recognized Amazon sellers to accelerate the growth. It is best to know the basics of Amazon PPC strategy before making one.

Frequently Asked Question

How does PPC work on Amazon?

Amazon’s advertising platform is rooted in Amazon PPC.  It is a platform that helps sellers to promote their products on the Amazon marketplace. In this  PPC model, the seller has to pay a certain fee when the customer clicks on the desired product.

Is it worth it to spend on Amazon PPC?

Totally yes! By incorporating Amazon PPC strategy in your business model, the visibility of your products enhances that leads to more sales.

What is the Amazon PPC Campaign?

By Amazon PPC campaign we mean

• Sponsored Products ads.
• Sponsored Brand ads.
• Sponsored Display ads.