In the sea of products, Amazon sellers have to develop a method to stand out to increase sales. One of the most effective ways to make your products stand out is Amazon PPC.
Amazon Pay-per-Click (PPC) advertising permits sellers to market their goods directly through the market. It has been a fantastic way to increase awareness of a product over the last few years. In 2016, the number of sellers who use Amazon PPC had doubled worldwide, and PPC clicks increased by more than 150%.
To help sellers begin their first campaign to help them start their first ppc campaign amazon, to give them some amazon ppc tips, we have created this complete Amazon PPC guide. This guide offers simple, low-maintenance strategies to optimize your Amazon advertising budget and keywords to maximize profit.
Table of Contents
- 1 What is Amazon PPC ? How does amazon ppc work?
- 2 Why is PPC important for Amazon sellers?
- 3 Types of Amazon PPC ads
- 4 How do you create the Amazon PPC strategies ?
- 5 How to Set Up Amazon PPC
- 6 List of top 7 Amazon PPC tools
Amazon PPC Tutorial 2022 – Step by Step Amazon Advertising Walkthrough For Beginners
What is Amazon PPC ? How does amazon ppc work?
Amazon PPC, also referred to as sponsored ads, is an incredibly popular advertising platform that helps sellers increase their sales on the internet. Through the pay-per-click (PPC) model, the advertiser pays Amazon each time you click the advertisement. So if you’re conducting Amazon PPC campaigns, you do not need the expense of paying for clicks.
If a PPC campaign is properly managed and optimized, it will significantly increase its popularity and sales. This can also increase your product’s organic rank and ensure longevity and success.
How does the Amazon PPC auction work?
Amazon PPC auction process is simple. Amazon PPC auction process is easy. Every advertiser puts in an initial bid and competes against one another for advertising spots. The bid that the highest bidder sets may not always be the price-per-click.
Suppose you put in $2.00 for keywords. The second-highest bidder is the default price of $1.50. If you are the highest bidder, you’ll win the advertisement space, but you won’t be required to spend $2.00. You’ll only need be paying $0.01 higher than the second bidder. So, you’ll are paying $1.51 rather than $2.00.
That means the cost-per-click (CPC) on a specific keyword and a targeted ASIN will be based on which bids are highest, though it’s not always the most expensive bid.
Why is PPC important for Amazon sellers?
With the shift of consumers buying increasingly online and, in most cases, towards Amazon.com, E-commerce companies and sellers have a huge opportunity to make a mark. However, the increase in online shoppers is a swell of competitors trying to get the highest profits.
A successful PPC marketing strategy can be nothing but vital for Amazon companies of any size. There are more than 350 million items on Amazon, and it is easy to get lost in the sea of ads.
In addition, while your organic rank is the location where your business’s name appears in the search results naturally crucial, ads can help you increase your visibility through the platform.
Types of Amazon PPC ads
Let’s talk about the kinds of Amazon PPC advertisements available & how much does amazon ppc cost in order of their popularity with third-party sellers.
1. Sponsored Products ads
Sponsored Products advertisements appear in listings for products and search results pages. They can also look like organic listings. It is the most commonly used kind of Amazon PPC advertisement and is used for 66% of third-party sellers.
When it comes to creating Sponsored Products advertisements, There are two strategies for focusing on keywords that sellers can employ: automatic targeting and manual targeting. Let’s look at their differences.
The automated strategy focuses on the keywords that Amazon’s algorithm decides are relevant to your listing. Then, as time passes, Amazon uses data from shoppers buying and clicking on ads. Then, it adjusts ads to match your page and boost conversions.
With automated targeting, sellers can make use of four different match types:
- “Close match” advertisements appear when consumers use search terms that are close to the product you’re promoting.
- loose match ads are displayed when customers look up keywords that are loosely connected to your product
- Substitutes focus on customers who are looking at items that are similar to yours but sold under another brand (e.g., a Cuisinart blender instead of the KitchenAid blender)
- Complements customers who are viewing detailed pages of products that complement yours (e.g., paintbrushes that be used with a set of paintbrushes)
According to what “automatic” implies, this is the most efficient method for targeting from a seller’s perspective. The drawback is that it doesn’t have the optimization options offered by other ad types.
Manual targeting involves selecting the keywords you wish to target. Manually targeted ads only appear when a buyer’s search terms align with your selected keywords. Since they are a more “hands-on” type of ad, you’ll need to be aware of any changes in costs and adjust them if necessary. However, this type of optimization usually results in more efficient ads and shorter ad duration.
2. Sponsored Brands ads
Sponsored brand ads, previously called “headline search ads,” enable sellers to bring attention to multiple products at a given time and grab shoppers’ attention by providing more compelling images compared to Sponsored Products.
Sellers who Sponsored Brands sponsor have the option to choose between three different formats, which are displayed in the upper right corner of Amazon search results as banners with headlines or later on a video.
“Product collection” and “store spotlight” advertisements typically feature the logo of the brand, a custom tagline as well as more than two products in”video” ads are more streamlined “video” format includes a 15-30 second video that showcases the same product.
These advertisements direct the user to the product’s detail pages or the business’s Amazon Storefront when clicked.
3. Sponsored Display ads
Sponsored Display ads enable retailers to target customers on their products details pages in and out of Amazon. In contrast to Sponsored Products and Sponsored Brands advertisements, Sponsored Display ads can appear on Amazon’s affiliate websites such as Google, Facebook, Netflix, and mobile phone applications. Similar to Sponsored Brands advertisements, sellers must be registered as a brand for them to be able to use these ads.
Sponsored Display can be described as the most recent kind of PPC but isn’t yet at the level of Sponsored Products and Sponsored Brands. Just 25 percent of third-party Amazon sellers use Sponsored Display PPC advertisements.
How do you create the Amazon PPC strategies ?
Here are the fundamental elements of constructing an effective Amazon PPC management strategy:
- Check out all kinds of PPC advertisements. Then, try out manual and automatic keyword targeting to find the best option for your business.
- Perform a thorough keyword search by using the Jungle Scout’s Keyword Scout, focusing on keywords related to each other and competitors’ products.
- As you begin, establish budgets for your day and default bids 50-100 percent higher than the amount Amazon suggests.
- The ad campaign should run for two weeks before running reports and making changes.
- Use ad report reports from your automated campaigns to identify keywords to use in the manual campaign you are running.
- Before you remove or alter any keyword in a manual campaign, ensure that the keyword receives a minimum 10 clicks.
- Keep reviewing your reports at least once per week, adding, subtracting, and changing the keywords.
How to Set Up Amazon PPC
Step 1: Choose your Amazon PPC budget.
It isn’t possible to set up an account until you know the amount you’d like to pay for your advertisements. This is crucial to the general Amazon PPC strategy. If you don’t plan your budget properly, you could be ruining the effectiveness and effectiveness of your Amazon PPC ads.
To calculate what you will consider your “default bid,” you have to be aware of three parameters:
- Your goal ACoS (Advertising Cost of Sale)
- The price of your product
- The conversion rate of your product
It shouldn’t be a problem finding your product’s price and your rate of conversion, which will be found easily via the account of your Seller Central account. The less-known measurement is your goal ACoS.
Calculating target Advertising Cost of Sale (Acos)
Your ACoS analyzes the performance on the performance of your Amazon PPC campaigns. It’s calculated in terms of a ratio of sales to ad spending.
Imagine spending $3,000 on advertisements and earning 10,000 in revenue from the product. Your ACoS is 30%.
Fortunately, you can locate the ACoS measure for all products within the section for Campaign Manager of Seller Central.
Calculating your default Amazon advertising bid
You’ll put a bid in the keywords you’d like your ads to be ranked for for each Amazon PPC ad. It’s a cost-per click bid, which means you’ll pay the amount each when a person clicks your advertisement.
In the ideal scenario, you’ll want to put up a sufficient bid to win the auction. However, it’s low enough to ensure your profit margin stays healthy. With this in mind, We’ve laid out the following formula to calculate the default bid you’ll need in Amazon PPC ads.
Our system will add 50 percent to your default bid calculation to increase the odds of winning. Our research discovered that winners’ CPC bid is typically 40-70 percent lower than the default bid. Since you won’t have to pay the same amount as your bid, it’s best to make a aggressive bid to increase the odds of winning.
Estimate your daily ad budget
Amazon will also require you to create a daily budget for every advertisement campaign. To determine this amount, you’ll need to establish an annual Amazon advertising budget suitable for your company.
By setting a budget, you can determine the daily amount you can invest in your Amazon PPC campaign.
Step 2: Optimize your Amazon product listings.
- Perform keyword analysis (see the step below for 4A) and implement keyword targeting techniques throughout the product detail pages.
- Make sure that your product’s titles and descriptions are as effective as possible by using targeted keywords and following the character count.
- Select the product category most suitable for your audience and product(s)
- Make sure your product’s images are appealing to boost your click-through rate
Step 3: Start a campaign
After that, you’ll get directed to your Campaign Settings page, where you define your
- Name of the campaign
- Budget for the day(see Step 1 for how to calculate)
- Campaign Time Frame
- The type of targeting: Automatic or Manual
The rest of the campaign set-up will depend on the targeting type you select, either manually or automatically. Each has different advantages:
- Automated time saving: Amazon targets your ads based on your product information without entering keywords.
- Manual provides you with more control by allowing you to enter the keywords you wish your ad to appear.
There’s no way to make one better than one type of targeting — choosing either automatic or manual targeting is contingent on your company’s marketing strategy and the resources available. We’ll guide you through what you need to do to configure each one to ensure you’re prepared for either method of targeting.
Step 4: Creating a manual Amazon advertisement campaign
The process of setting up a manual PPC campaign will take longer and requires more effort than an automated one; however, the benefit is huge. You have greater precision in ad targeting by selecting the keywords you would like your ad to appear.
Selecting your ad name, products, and bid
To begin, choose Manual as the option for targeting in the Campaign Settings page that you will see in Step 2. select “Continue to next step.”
On the page, you’re required to input your personal name to be included in this set of advertisements for the campaign. Then, select the products you’d like to promote.
After you have selected your ad-group name and products, pick the standard bid.
Apply the formula used in step 1 for calculating your default Bid amount. It is important to note that you do not need to select the Amazon Bid+ option when using our formula because it already adds 50% to your default bid.
Choose the keywords you want to use.
If you are looking for keywords, you may make use of Amazon’s suggestions or add yourself with your own keyword. If you are adding yourself keywords, you need select a type of match:
- Broad Match: Your ad can appear in the event that a customer searches keywords in any order, along with other similar variants of your keywords.
- Phrase: Your ad can appear when a potential buyer seeks your phrase, and other keywords are used before as well after.
- Exact: Your ad only appears when a user searches for the exact keyword you have specified, with no other search terms.
Setting up an exact keyword group.
If you use an Exact keyword, your advertisement will only be displayed when the keyword is found exactly, without the addition of any other words. Therefore, you must choose your keywords with care. It is important to only advertise on keywords that are relevant and are able to convert reliably for your products.
Here are some tips for building your Exact Keyword Group:
- The process of setting up a large keyword group
If you select Broad keywords, Amazon will match your advertisement with the keyword you have chosen (in every order) and variations of your keywords.
Broad keywords for ads are effective in linking your ad with more obscure searches you might have missed using Exact. But, Broad comes with the danger of bidding on less relevant terms that lead to lower conversions.
Step 4.1: Creating an automated PPC campaign
Automated campaigns can be executed in a shorter time than manual campaigns and also requires only keywords to research. Instead of adding keywords that you would like Amazon to align your advertisement using, Amazon matches your ad with search results by pulling data from the product information.
To start, select Automatic as the option for targeting in the Campaign Settings page mentioned in Step 2 and then press “Continue to next step.”
The process is straightforward — simply select your ad group name to choose the products you’d like to advertise, and then input a bid amount.
Step 5: Keep track of the performance of your Amazon PPC ads
The process of setting up the Manual and Automatic Amazon PPC campaign is only the first step. Then, you’ll want to monitor the effectiveness of your campaigns in order to make sure that you’re getting the most out of spending on advertising.
To track your PPC ads, go to your “All Sponsored Products Campaigns” page within the section for advertising in Seller Central. From there, you’ll be able to evaluate the effectiveness of your ads by analyzing the Sales, Spend as well as ACoS stats. You can also change the date of start, the end date, and the daily budget of your ads after the campaigns have been launched.
It is also important to evaluate the effectiveness of your keywords in your ads for the purpose of determining which keywords lead to the highest amount of sales and clicks and which are best used to create future campaigns. You can review the performance of your keywords by going to your “All Sponsored Products Campaign” page, choosing a campaign, choosing an ad group, then looking at the Keywords section.
List of top 7 Amazon PPC tools
- 1. Adtomic By Helium 10
- 2. Sellics
- 3. Zon.Tools
- 4. Teikametrics
- 5. Kinetic PPC By Viral Launch
- 6. Ignite By SellerLabs
- 7. SellerApp