What is Amazon PPC? – Hidden Gem for Explosive Growth

What Is Amazon PPC?

Amazon PPC is a type of advertisement that involves the selling of products once the sellers pay for each click made by the users on the Amazon platform. These evolved ads are shown right in the middle of each product in the Amazon web site in addition to the search results.

The main objectives of Amazon PPC are merely to boost traffic to product listings, make them seen, and sell them.
For sellers it is the right time to execute the PPC advertising on Amazon, which is a highly competitive marketplace.

Since Amazon has the largest market share and will comprise approximately 40% of the US e-Commerce in 2023, market research is crucial for the company.

PPC helps to ensure that all those potential customers can see your product even if you are just starting or if you are offering something in a rather crowded niche.

Amazon PPC Statistics

• By 2023, Amazon’s overall advertising was expected to be more than $40 billion with PPC ads contributing to it.
• 63% of Amazon sellers use PPC to generate sales and gain visibility, with 54% of them reporting an increase in sales as a direct result of PPC campaigns (Source: Statista).

Why Does Amazon PPC Matters for Your Business?

Amazon PPC isn’t just a marketing tool—it’s a crucial aspect of any Amazon selling strategy. Here’s why it matters:

1. Increased Product Visibility

   With millions of products available on Amazon, it can be difficult to stand out if you’re a seller. Amazon PPC makes this easy by ensuring that your products are placed at the top, increasing visibility.

   Therefore, there is a good chance that customers will click on your listing when your products are rated top.

2. Boosting Sales and Conversions

   The first advantage of Amazon PPC is that it can be used to promote products. It means that only ads are shown to the shoppers who are interested in the products that your business and your competitors sell and therefore you are likely to sell to them.

   A survey of Amazon users established that 65% of the users click on a sponsored ad because they want a particular product and this is what PPC ads are all about.

3. Building Brand Awareness

   Amazon PPC is not only converting product sales but also helping in other important brand promotional activities.

   And the more people go to product pages with your products through search and begin to see them as something familiar, the more they remember the brand.

   This makes it easier to grow a business within this type of market as the buyers will be more inclined to the seller.

4. Cost-Effective Advertising

   One of the perfect things with Amazon PPC is that you can control the amount you are willing to spend.

   This means that you have so much control when it comes to deciding how much you want to spend per click, and hence you can always adjust your campaigns to your advantage.

   If you will manage your pay per click advertising well then you can actually gain a lot of sales, which means lots of profit in your business.

5. Competitive Advantage

   Analyzing the market, it is still possible to conclude that sellers who strive to overtake competitors cannot exclude Amazon PPC. Without PPC, your products can be somewhere out of sight in the ocean where thousands of other products are.

   When used properly to advertise your product, you enjoy the right of placing your product at the top to give your competitors a good run for their money. This is especially the case, as once the market is fully saturated, it becomes important to differentiate.

Learn how to find profitable wholesale products and sell them effectively with Eclete’s comprehensive guide.

 

Types of Amazon PPC Campaigns Explained

Pay per click advertising is now available on Amazon, and it contains several campaign types that allow sellers to meet various objectives. Both have their value proposition based on market approach: one is a pursuit of volume, the other is a focus on integrating supplemental value.

1. Sponsored Products Ads

   Amazon PPC is mostly used in Sponsored Products advertising and that is why PPC campaigns on Amazon are mostly represented by Sponsored Products advertising. These are the advertisements that appear on product detail pages and search result pages and are advertisements for a certain specific product listing.

   • Automatic Targeting: You do not have to select keywords as Amazon automatically selects them based on your product title and description. This option is also easier to set up but is not very accurate.
   • Manual Targeting: You have more control over your adverts since you decide on the keywords to use in the process. You may refine this targeting over time and, though more strenuous, you can likely achieve better results.

2. Sponsored Brands Ads

   Sponsored Brands Commercial is designed to promote your firm and a number of products. These are typically displayed at the highest position of search results and include many goods, and your logo along with a specific headline.

   • Best for: Building brand awareness, promoting product lines, and launching new products.
   • Benefits: These ads give shoppers a clear picture of your brand, driving them to your store and increasing brand visibility.

3. Sponsored Display Ads

   Because of their flexibility, sponsored display adverts can be found on or off Amazon. Even when customers aren’t actively purchasing on Amazon, these advertisements still target them based on their browsing habits and interests.

   • Best for: Retargeting customers who have already shown interest in your products or promoting complementary products.
   • Benefits: These ads can increase brand reach by targeting potential buyers outside of Amazon, giving you a larger audience.

4. Amazon DSP (Demand Side Platform)

   The Amazon DSP is the fourth type of advertising that targets more advanced sellers who can programmatically buy the display, video, and audio ads on Amazon and other websites. This is for businesses that require advertising off Amazon using display and video ads for reaching customers on Amazon and beyond.

Understanding Amazon PPC Metrics and Analytics

In order to get the most out of your PPC campaigns on Amazon it is necessary to monitor key metrics. Certain of these metrics give insights on how your ads are performing and where a change might be necessary. Let’s look at the most important Amazon PPC metrics you need to monitor:

1. Advertising Cost of Sales (ACoS)

   With ACoS, the firm is able to determine the amount being spent on the advertising, in relation to the actual amount of sales being made. It is computed with the help of the formula ad spend divided by attributed sales. If you get a lower ACoS, you are spending less on ads and generating revenue, and this is perfect for the business.
   Formula:
   ACoS = (Ad Spend / Attributed Sales) * 100

2. Cost Per Click (CPC)

   CPC is how much you will pay per click on your ad. This metric assists you in evaluating the efficiency of costs linked to the campaigns and preventing a situation of spending too much on the clicks.
   Formula:
   CPC = Total Ad Spend / Total Clicks

3. Click-Through Rate (CTR)

   CTR shows how often people click on your ad after seeing it. A high CTR indicates that your ad is compelling and relevant to shoppers. Aim for a CTR above 2%-3% for optimal performance.
   Formula:
   CTR = (Clicks / Impressions) * 100

4. Impressions

   Impressions tell you how often your ad is displayed. Although impressions provide an overall understanding of the visibility reached during a particular campaign, they are by themselves insufficient to guarantee success. With them, clicks, and conversions to complete the set view of the advertisement performance you should pair them.

5. Attributed Sales

   Attributed Sales can be defined as the link of the sale coming from the click on your ads. This metric is important when measuring business value or Return on Investment of the PPC campaigns. If you see the attributed sales go high then it simply means that PPC campaigning is yielding results at your end.

6. Return on Ad Spend (ROAS)

   ROAS evaluates how much revenue businesses are gaining on each dollar spent on advertisement. Meaningful ROAS means that your campaigns will make money, and are contributing to your overall sales.
   Formula:
   ROAS = Revenue from Ads / Ad Spend
   By tracking these metrics, you can fine-tune your PPC campaigns, adjust bids, and optimize your product listings for better performance.

Key Strategies for Optimizing Amazon PPC Ads

Optimizing Amazon PPC ads is essential for maximizing the return on your ad spend. There are several strategies to keep in mind when setting up and running Amazon PPC campaigns. Here are the key ones:

• Start with the Right Keywords: It all begins with keywords. Keyword choices – or the lack of them – can determine the success or failure of your Amazon PPC strategy. The keyword research process has to begin with identifying keywords that reflect your product and user’s search queries. Never guess, you can use Amazon’s internal keyword tools such as the Amazon Keyword Tool or go for external tools such as Helium 10 or Jungle Scout.
• Use Negative Keywords: Negative keywords prevent the user from spending money on those keywords that have no value for their website. If specific keywords are not commercializing then add them into the negative keywords list. However, this will make sure that your ads do not appear to searches that do not result in income and therefore conserved expenses.
• Split Campaigns by Match: Type Amazon PPC allows you to use three match types: broad, phrase, and exact. Broad match will cover a large number of searches, while exact match will cover only a very specific search. It is advisable to split your campaigns by match types in order to have the most effective results. This allows for more direct control over your bidding and guarantees that you are bidding on the right search terms.
• Refine Your Bids: The appropriate bid amount is very important in ensuring that your ad gets placement without breaking the bank. If the bid awarded is low, the ads may not get the top positions displayed. If it is too high then it quickly becomes too much for the budget you have set aside. Okay, it means keep fixing the bid price levels and even think about increasing bid prices in case of high converting keywords.
  

  Read More about Backend Keywords

7 Common Amazon PPC Mistakes to Avoid

Running a successful Amazon PPC campaign requires careful planning and attention. Many sellers make common mistakes that hurt their advertising efforts. Here are ten mistakes you should avoid:

1. Not Using Negative Keywords: Failing to add negative keywords can lead to irrelevant clicks. This wastes your ad spend and results in low conversion rates.
2. Ignoring Campaign Structure: A poorly organized campaign structure makes it hard to track and optimize your ads. Group similar products together and separate campaigns by match type to keep things organized.
3. Overbidding or Underbidding: Bidding too high can drain your budget quickly, while bidding too low might prevent your ads from being shown. Experiment with your bids to find the optimal level.
4. Not Analyzing Data: Simply running ads without analyzing data won’t help you improve. Always monitor your campaigns’ performance and make adjustments accordingly.
5. Not Using Automatic Campaigns Effectively: Automatic campaigns can help you discover new keywords, but they shouldn’t be relied on entirely. You must review and fine-tune them to maximize their effectiveness.
6. Failing to Optimize Product Listings: Your PPC efforts will be wasted if your product listings aren’t optimized. Ensure that your title, description, images, and reviews are top-notch.
   

   Read more about Reviews How to Remove Negative Review/Feedback from Amazon
   and Best Ways to Get Reviews on Amazon – Proven Methods

7. Ignoring ACoS Targets: The Advertising Cost of Sale (ACoS) is a key metric to measure the profitability of your campaigns. If ACoS is too high, you need to adjust your bids or improve your conversion rate.

The Role of Keywords in Amazon PPC Success

Keywords are the backbone of any successful Amazon PPC campaign. They determine when and where your ads will appear. Here’s why keywords play such a vital role:

1. Relevance is Key:

   The viability of the keywords determines the totality of the targets that will be reached, and this means that very careful consideration must be made. Make sure your keywords actually have something to do with your product so that your ad will only be seen when someone searches for it.

2. Long-Tail Keywords:

   Long-tail keyword phrases are longer and often less frequently used than normal keywords, however, contain higher buying intent. They often convert at a higher rate because people using these phrases already know what they want. It is also useful to target long-tail keywords in an attempt to attract a higher volume of better-qualified traffic at better value.

3. Broad vs. Exact Match:

   Amazon offers three match types: broad, phrase, and exact. Broad match will display your ads right when someone types your keyword anywhere in the search string while the exact match will only show your ad if the consumer searched for the keyword. When using various match types, it becomes possible to target more people but remain relevant to them at the same time.

4. Keyword Optimization:

   Indeed, when you are in the process of data gathering, make sure to add to or modify your list of keywords. People have to quit bidding on ineffective keywords and select the keywords that actually work and deliver the stock. Best practices in keyword optimization can also be made on a more frequent basis in order to maintain profitability for all PPC campaigns.

5. Using Amazon’s Tools:

   Amazon provides many aids to the sellers which will help them to search for their keywords and make necessary changes. Take note of Amazon Keyword Planner, Automatic Targeting, and Search Term Reports to get information to enhance your advertisements.

Master the basics of Profit and Loss (P&L) statements with Eclete’s easy-to-understand guide. Gain insights to make informed decisions for your Amazon business!

Advanced Amazon PPC Optimization Techniques

Now that you understand what Amazon PPC is, let’s talk about how to optimize it. Here are some advanced techniques that can help you take your PPC campaigns to the next level.

1. Identify the Right Keywords

   In any Amazon PPC campaign, the biggest element to finding success is the targeting of the right keywords. Marketplace categories are the terms that shoppers type into the search bar to search for products on Amazon.

   First of all, imagine what terms a potential buyer will use when entering in a search engine the request to find your product.

   For instance, if your business is in selling of organic skincare products, your keywords could be, “organic moisturizer ‘‘natural face cream.”

   Further, to this list use Ahrefs or Helium 10 to search for more keywords. It reveals which keywords your competition is using and which keywords trigger the highest search volume.

   Further, long-tail keywords are relevant for the acquisition of very specific traffic. For instance, do not put your bid on a general word such as ‘moisturizer,’ but rather, use a more specific word such as ‘organic moisturizer for sensitive skin.’

   Another important tactic is to use negative keywords. These prevent your ads from showing up for irrelevant searches. For example, if you sell luxury skincare products, you might exclude terms like “cheap skincare” to avoid wasting your budget.

2. Monitor Competitor Keywords

   Being aware of what your competitors are using as keywords puts you in a very strategic position. The ads that appear when you enter the search terms for your product are great examples. If you notice that there are always your competitors present on the same keywords, then they are heavily investing on such keywords.

   Others include Jungle Scout or Helium 10 through which you can find out the keywords that rivals are targeting. It also can reveal which keywords get more traffic and leads for your competitors. By identifying which keywords are popular with them you stand to benefit from the information so as to improve your own campaigns.

3. Use Automatic Targeting

   Amazon automated targeting is specifically very useful when you want to manage your PPC campaign easily. In retailing, automatic targeting occurs when Amazon selects the keywords and products to market on your behalf, depending on the details of your product. This is helpful since it saves your time and guarantees your ads appear before the right clients.
   There are two main types of automatic targeting’s

   Close Match – Targets shoppers who use search terms closely related to your product.
   Loose Match – Targets shoppers using search terms loosely related to your product.

   Automatic targeting can also include substitute products and complementary products. This means your ads will show up on the pages of similar or related products, increasing your chances of being seen by potential buyers.

4. Test Different Ad Variations with A/B Testing

   A/B testing is regarded as one of the most effective methods of optimization of your advertisement. In A/B testing you will develop two versions of an ad but with certain distinctions in headlines, images, and descriptions. Then one can run both the ads simultaneously and see which of the two got higher click through rates.

   For example, if you sell a product called “DeLight Scented Candles,” you might test two different headlines:
   
   Ad Version A: “Fill Your Home with Fragrance with DeLight Scented Candles”
   Ad Version B: “Relax and Unwind with DeLight Scented Candles”

   By testing these two versions, you can find out which headline gets more clicks and sales. You can then apply the winning elements to your future ads, improving your overall performance.

5. Optimize Product Listings for PPC

   A proper PPC campaign on the Amazon platform doesn’t only include the ads themselves. The manner in which your product listing appears particularly performs a significant task. If your listing is highly optimized, it will attract more visitors turning to buyers resulting in an even better performance of the ad.

   Here are some tips to optimize your product listings:

   • High-Quality Images: Use clear, high-resolution images that show your product from multiple angles. Consider adding lifestyle shots to help customers visualize how the product will fit into their lives.
   • Effective Titles: Your product title should clearly describe what your product is while also including important keywords. Keep it concise but informative.
   • Compelling Descriptions: Focus on the benefits of your product. Describe how it solves problems and improves the customer’s life. Make sure to include relevant keywords naturally.
   • Bullet Points: Use bullet points to quickly highlight key features and benefits. This helps customers understand what makes your product stand out.Optimizing your product listings makes your ads more effective by improving your conversion rates.

6. Bid Strategically

   Strategic bidding is key to managing a successful Amazon PPC campaign. Instead of just bidding the same amount for every keyword, consider adjusting your bids based on performance.

   • Increase Bids for High-Performing Keywords: If you notice certain keywords are driving lots of sales, increase your bids to ensure your ad stays visible for those terms.
   • Lower Bids for Low-Performing Keywords: If certain keywords aren’t generating sales, reduce your bids or pause those keywords to avoid wasting money.
   • Bid More for Prime Positioning: Bidding higher can help your ads appear in prime positions at the top of search results. This can increase visibility and drive more clicks.

7. Use Sponsored Brands Video Ads

   Sponsored Brands Video Ads are a great opportunity to attract the consumer’s attention. It is something that cannot be compared to plain images, where you cannot demonstrate the use of your product.

   It becomes easier to capture the audience’s attention and sell them your product through a story that will make them feel the features you are advertising.

   Most of the time, it is useful for products that require a display of an explanatory video to help the consumer understand how they are going to use the product.

   If you sell a product that may need explanations or one that has dramatic changes when used, a video ad enables the users to know why they should purchase the product.

   It gives you the option to target these ads to certain keywords, which means the ad will appear in front of the right audience.

8. Leverage Amazon’s Advanced Features

   Amazon offers a variety of advanced features that can help optimize your PPC campaigns:

   • Automated Bidding: This feature adjusts your bids automatically to ensure you meet your campaign goals.
   • A+ Content: Use enhanced content like images, videos, and text to improve your product listing and make it more attractive to customers. This can help increase conversions.
   • Brand Registry: Registering your brand on Amazon allows you to access exclusive tools and data that help improve your marketing efforts. These advanced features can save you time and help you create more effective PPC campaigns.

Amazon PPC vs. Google Ads: A Comparison

Amazon PPC and Google Ads are both powerful advertising platforms, but they serve different purposes and audiences

Feature	Amazon PPC	Google Ads
Target Audience	Shoppers ready to buy on Amazon	Broad audience, varying stages of purchase intent
Ad Placement	Amazon product search results and product pages	Google search results, YouTube, partner websites
Campaign Goal	Drive direct sales	Brand awareness, lead generation, sales
Bidding System	CPC (Cost Per Click)	CPC, CPM (Cost Per Mille), CPA (Cost Per Acquisition)
Keyword Targeting	Product-specific, intent-driven keywords	Broad keywords, interest, behavior targeting
Conversion Rate	Higher, due to purchase intent	Lower, varies depending on targeting strategy
Ad Formats	Sponsored Products, Sponsored Brands, Sponsored Display	Text ads, Display ads, Video ads, Shopping ads
Cost	Typically higher cost per click	Lower cost per click, but may vary greatly

Read about: How to Find Amazon Storefront

FAQs

2. How does Amazon PPC work?

You create ads targeting specific keywords or products. When someone searches for those keywords, your ad may appear. You bid on keywords and only pay when someone clicks on your ad.

3. Why should I use Amazon PPC?

Amazon PPC increases product visibility, drives traffic to your listings, and helps you grow your sales. It’s a great way to compete on a crowded platform.

4. How much does Amazon PPC cost?

You set your own budget and bids. The cost depends on the keywords you target and how competitive they are. You only pay when someone clicks on your ad.

5. What are the different types of Amazon PPC ads?

There are three main types: Sponsored Products, Sponsored Brands, and Sponsored Display. Each has its own benefits, depending on your advertising goals.

6. How can I optimize my Amazon PPC campaigns?

You can optimize your campaigns by conducting keyword research, using negative keywords, testing ad variations, and regularly monitoring your results.