Amazon PPC Management – The Ultimate Guide (2020)

We all see Amazon ads daily and do not have much of an idea oh how the whole thing is being managed. Amazons PPC management is the next trending thing for sellers. It is highly recommended for all who want to build a reputable product with an excellent customer base.

We have created an excellent guide for you, which will take you through all the aspects of Amazons PPC management.

What is Amazon PPC?

Amazon PPC is a growing platform for sellers to advertise their products. Amazon PPC is also known as Sponsored Ads. We came across numerous such Ads from Google and Amazon but had no idea what they are all about. They have three types of Ads, Sponsored products, Sponsored brands, and product display Ads.

The sponsored product is a keyword related Ad that you place. Amazon PPC ads follow an auction method to get advertisers. They simply let you auction for particular keywords, and then the highest bidder gets to place their product for that keyword.

This is an excellent methodology followed by Amazon; the advertiser gets to sell his products where he wants to as well as the readers get to see similar products to the keyword they are reading about.

The sponsored brands let you advertise 3 of your products, which will then lead the customer to your store or page and the product display Ads are the ones that will give you an Ad for a particular product and direct you towards the Amazon page where the products are being sold. The payment is made to Amazon only when a particular user clicks on the Ad and views it.

Best Things to You Know About Amazon PPC Before you Start:

For you to get started with Amazon PPC, there are some very familiar terms that you must know about.

  • Targeting – Targeting is basically eyeing on a particular keyword or product ASIN or products you want to associate with for your Ads.
  • Keywords vs. Search terms -Keyword is the main word you want your product to associate an Ad with, whereas the search terms are the terms a user will use to look for a particular product.
  • Keyword Match types– The keyword match types determine if your keyword matches what the user has searched for; this will then accordingly display ad results for users.
  • Negative Targeting– Negative targeting is what benefits the sellers; they can avoid some unwanted search terms from the users to be connected with their ad campaigns; this way, they can save up some costs.
  • Campaign types– Campaign types could be of two ways, manual or automatic. The manual campaigns tend to give you highly accurate results since you run them all by yourself, whereas the automated campaign keeps you entirely dependent on Amazon to run your Ads.
  • Dynamic Bidding– with Amazon, you can bid for the keyword you would want to place an Ad for; this way, there will be healthy competition for advertising, and you can get the Ads at a competitive price.

What is PPC Advertising?

Paid advertising starting from back in 2000, it has grown a long way to be a great advertising technique. It all started with Google Adwords, and now you will see a lot of other players in the industry. Google and Amazon Ads are the most well-known ones, making PPC advertising very common for everyone.

PPC advertising is very simple; the Ads are based on the users that click on your Ads. The more the people clicking on your Ads, the more the money you pay for them. These are much better than the display ads since you only pay for the users that click on your Ad.

Since you know that Amazon is one of the big-time sellers, using PPC ads with them is much helpful as the people on their platforms are the ones who are willing to buy.

Creation and Optimization of an Amazon PPC Campaign:

The best recommendation for any PPC campaign would be to have a mix of an automatic and a manual campaign; this way, neither will Amazon have complete control over your Ads nor be entirely dependent on Amazon for your Advertising needs.

The usual technique is to use the automatic campaign mainly for keywords, and the manual campaign is for your well-performing search terms. Creating an Amazon campaign is a very easy task; you have to keep three crucial points in mind.

First, you need to name your campaign, then you create a budget for yourself, and the last step is to place a CPC bid. It’s that simple. As soon as you do that, your campaign will be ready to be kick-started, and Amazon will display your Ads with regard to the keywords and search terms that match your product.

Optimizing your campaign is very important; it is the best way for you to keep growing. Merely creating an automatic campaign and letting it run would not help. You have to keep optimizing your campaign for improved results from time to time.

Our recommendation to you is that you wait for at least two weeks to analyze and keep all the necessary metrics in mind to optimize. You must look to convert your highest selling search terms from an automatic campaign to the manual one; this way, you have greater control over it.

You may also avoid the negative terms such as the negative search terms you have that do not generate anything, the unprofitable keywords, and things like that. Optimizing and removing them is essential.

You can also adjust your CPC ads and their bids; you could go for new bids or cancel the current bid if you feel it’s not worth it for you.

What are Amazon PPC Strategies that Beginners can Use?

It is not very easy for beginners to get a hold of Ads, especially when they are new. Many new users will bid higher to earn higher returns from it, but this strategy has proven to be a complete failure.

We highly recommend you start your PPC campaign with Amazon Sponsored Product. 

What is an Amazon sponsored product?

An amazon sponsored Ad is what you get to see at every point of your journey on Amazon. There are the highly occurring Ads on the page. Using sponsored Ads is highly beneficial as they give you the best returns on your investments.

You will find these sponsored Ads everywhere, from headline searches to your SERPS, these are favorably seen, and everyone prefers them. You must also know about Advertising cost of sales; these are nothing but how much it will cost to make a sale using Amazon PPC.

You must ensure that you have a very low ACOS so that you can gain more in revenue.

TOP 5 Reasons to go for Amazons PPC Management:

You may have a product that is making you decent money, and you may feel that you do not need any assistance when it comes to advertising, but those who want to survive in the long run and create an impact on the customers must go for advertising.

There are many benefits to advertising; however, we will be explicitly telling you about the benefits that come with PPC Ads. 

  • Promote product sales

PPC ads are the best way for you to increase your product sales; they are very useful and cheap and pay for the clicks or views you get. This is an awesome and the easiest way for anyone, including a new seller, to start selling their product. 

  • Avoiding highly competitive keywords 

There will be many keywords that have high competition; you must always look to reduce these highly competitive keywords as they do not generate much for you since there will be numerous products ranking for the same competitive keyword.

Instead, you can go for organic keywords; these are free and do not charge you at all. They help you rank higher in your PPC ad campaigns. 

  • Boost your brand

Increasing your brand awareness is highly essential; a lot of the sellers will be happy if their products earn them decently, but due to increasing change in the trend, it might not be sure that you will survive in the long run.

Therefore you must focus on building your brand, creating a strong user base so that your product can aim at surviving longer in the market. 

  • Ad Competition 

Though you use organic keywords and other necessities, you will still fall behind your competitors if they are using PPC ads, and you are not. Therefore, PPC ads give you the boost you need to rank higher and be a leader in your product’s niche. 

  • Increase in Product visibility

It is necessary that your product have some visibility in the market; you cannot affect the third or fourth page of the search and expect it to sell. With PPC ads, your product gets increased visibility resulting in increased sales.

What are the Essential Requirements for a Seller to Run a PPC Ad?

It is vital that you know there are some requirements for you to run a PPC campaign; they are as follows

  • Seller Account – Every user should have a seller account, without which they will be unable to sell. 
  • Shipping– As a seller on Amazon, you must ship your products to where your customers are demanding it. 
  • Buy Box– If you want to be eligible for PPC ads and sell on a larger scale, you must ensure that you fulfill the essential buy box criteria.
  • Amazon Brand Registry– The main of an amazon brand registry is to give protection to sellers; you get great insights on intellectual property with this registry’s help. 

Types of Amazon Ads:

1. Sponsored Brand Ads

 

These are the top ads that come up based on brands. These usually come up at a stage where the customer does not have a particular idea of what he is looking for. 

 

2. Sponsored Display Ads

 

Display Ads appear only on the page where you get the product details and are available only with the Amazon Marketing Services. Made for the bottom of the funnel customers, they intend to distract the customers from what they were doing and attracting them towards your product.

3. Sponsored Product Ads

Sponsored product ads are the ads related directly to your product; it has increased attractions and high conversion abilities. Like the PPC ads, your sponsored product ads are only charged when a user clicks on them.

What’s the Difference Between Organic sales and PPC sales?

Like how the Search Engines function, on Amazon also exists the Organic and PPC method of sales.

The organic method is when a customer comes to your product without viewing any ad and ends up purchasing it; it is more natural. This would not cost you like the Ads, but you need an Amazon SEO for that.

The PPC sales are the sales you make with the help of PPC Ads. You get a customer who has come to your product through the ad you have given for display on Amazon.

How much would it cost to run a PPC Campaign on Amazon?

The Amazon PPC ads are allotted on a bidding basis. Whoever bids the highest gets the slot. Your vid must be at least 0.1 $ more than that of your competitors.

Your average cost per click may, however, vary based on your product category or subcategory. It can range from 0.2$ to 3$ as well. 

Is it Worth to Advertise with Amazon?

Amazon advertising is worth it. It is one of the best advertising platforms, along with google. It is a must for you to try their advertising if you want your product to grow and survive in the long run.  

Amazon advertising is relatively cheap when it comes to selling to your product; you must try and look at the benefits you get, the increased customer base and growing clients, and so on.  

Final Words:

Amazon PPC management has become essential for anyone who is selling on amazon. With these PPC ads’ help, you can easily climb up and become one of the leading sellers in your category. We hope we could walk you through the various aspects of Amazon PPC management, You can ask about all your doubts in our chatbox below. We will consider your honest opinions and feedback as well.

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