What is Amazon PPC? Tips for Running Amazon PPC Ads
In today’s competitive e-commerce landscape, Amazon Pay-Per-Click (PPC) Ads have emerged as a powerful tool for sellers to boost visibility, increase sales, and drive traffic to their products. This blog will provide a comprehensive overview of Amazon PPC ads, including different campaign types, features, costs, and key information for successful utilization.
What is Amazon PPC advertising?
PPC advertising refers to pay-as-you-go, which is a billing mode for Amazon advertising. After the advertisement is clicked, the advertisement system will deduct the fee. In Amazon PPC advertisements, the most frequently used advertisements are commodity promotion advertisements, which can be placed on the search results page or commodity details page.
How Amazon PPC advertising works
The seller first selects the product to be promoted, and then sets the bidding and budget for it during the creation of the advertisement. After potential customers click on the advertisement, Amazon will deduct the corresponding click fee from the budget. After multiple clicks, the budget is used up and the advertisement is stopped.
Keywords are the basis of Amazon’s advertising display. Only when keywords match search terms entered by potential customers can advertisements be displayed.
For example:
If you sell sunglasses and use “sunglasses men” to advertise products, and if customers input “sunglasses men” on Amazon, then your advertisements will appear (provided that there is a certain correlation between your products and keywords and reasonable bidding).
Features of Amazon PPC advertising
All setup can be done in the Amazon Seller Center.
- Automatic Targeting
Amazon PPC ads come with automatic targeting options. When using Sponsored Product campaigns, sellers can choose automatic targeting, where Amazon’s algorithm selects relevant keywords based on the product listing’s content and category. This feature is ideal for new sellers or those with limited knowledge of keyword research.
- Keyword Targeting
For greater control over ad targeting, manual campaigns enable keyword targeting. Sellers can conduct thorough keyword research to identify high-converting search terms related to their products. By using exact, phrase, or broad match types, sellers can refine their keyword strategy and maximize the ad’s effectiveness.
- Campaign Analytics
Amazon provides detailed campaign analytics to help sellers track ad performance. Metrics such as clicks, impressions, conversion rate, and cost-per-click (CPC) can be monitored in real-time. Analyzing this data allows sellers to optimize their campaigns, adjust bids, and allocate budgets more effectively.
- Ad Placement Options
Amazon PPC ads offer different ad placement options to increase product visibility. These can appear in search results, product detail pages, and even on the Amazon home page. By strategically choosing ad placements, sellers can promote their products in high-traffic areas, enhancing their chances of conversion.
Cost calculation method of Amazon PPC advertising
To run an Amazon PPC campaign, sellers need to set a budget. The primary cost involved is the amount paid per click, known as the CPC. The cost-per-click is determined through a bidding process, where sellers compete to display their ads for specific keywords. The bidding system ensures that ads are displayed based on relevance and competitiveness, allowing sellers to have control over their spending.
The actual cost of running Amazon PPC ads varies based on factors such as competitiveness of keywords, relevance of the product, and budget allocated by the seller. It is recommended to start with a conservative budget and gradually increase it based on campaign performance.
Types and descriptions of Amazon PPC advertisements
- Sponsored Product Campaigns
One of the most popular types of Amazon PPC ads is the Sponsored Product campaign. Here, sellers can promote their products within Amazon’s search results and product detail pages. These ads appear as native search results and help increase product visibility, ultimately driving more targeted traffic.
- Manual Product Campaigns
In addition to Sponsored Product campaigns, Amazon also offers Manual Product campaigns. These campaigns provide sellers with greater control over keyword targeting, allowing them to optimize their ads for specific search terms. With manual campaigns, sellers can select relevant keywords and set individual bids, thereby fine-tuning their ad strategy.
Quick Success Tips
What products are suitable for PPC advertising?
- The customer price is high, and Acos data is very good
- High-profit products: do not represent high customer unit price. For example, if the wire is 10 dollars, the profit can be controlled at about 6 dollars, plus the high conversion rate of 50%, so CPC can afford 3.5 dollars.
- Changeable products: if variant are merged, 20% of advertisements can be opened, and then 80% can use Auto mode. If there is no merger, the strategy is to open 10 advertisements with the same keywords
- Independent research and development, minimally invasive new products: minimally invasive new products in demand in the market. It will be good to open advertisements and click conversion. Micro-innovation is OK, but it is not suitable for making unique products. Amazon is not suitable, and the failure rate is very high. Because we don’t know the market demand, we need to spend a high marketing cost to educate the market. The unique product is suitable for Kickstarter and other crowdfunding platforms.
- High-tech products
What products are not suitable for PPC advertising?
- Ultra-low unit price products: After running for a week, check the total cost divided by the odd number to calculate the cost of each advertisement. If it is more than profit, it is not cost-effective to increase the ranking through advertising. It is better to reduce the price to make deals. For low-cost products, we must ensure that the conversion rate is extremely high, which is actually relatively difficult,However, high conversion rate can reduce the advertising cost of a single order.
- Competitive Products: without other resources, it is very difficult to push through advertisements. In the competition category, if the target is reduced by 5 orders and 10 orders, it is also possible to find some demand points with small differences.
- Products with extremely low conversion rate: advertising with low conversion rate will get worse and worse, and the quality score will get worse and worse.
- The number of favorable comments is small, and the whole page optimization is very poor: listing the performance is not good, then you can’t advertise. Basically, it is to send traffic to others, because there are other people’s links under your page, and others are much better than you. Then the traffic goes to others.
- Low-profit products: for example, 1,000 orders are issued every day, but the monthly profit is only a few thousand dollars. If there is a bad review or being spoiled at this time, the funds are easy to go wrong. If there is no profit, don’t rely too much on advertising. Some sellers have low prices and are still advertising, while others aim to go public for sales,Not selling goods to make money. We need to select the appropriate seller as the reference object.
- Self-shipped products: if the entire category is self-shipped products, you can consider opening.
- Search results below 100 or unpopular products: using the keyword hyperlink to send the test can also quickly promote the ranking, there is no need to waste this money.
Understand the ranking factors of PPC display
- Bid: New products adopt high price strategy (listing optimized) or low price leak detection strategy
- Keyword competition size: the history of other sellers is very good, and our chances of ranking ahead will be very small. How to judge the historical data accumulation of competitors? ABA counterchecks opponents. We can download the data for each month. Let’s see if there is any change in the top three of the word every month. See if the three of them have made deliberate card positions for this word,Are the three of them constantly accumulating the historical weight of the word.
- Click-through rate: if the click-through rate is very low, it will affect the display of keywords. Amazon thinks that our words are not highly correlated.
- Conversion rate: the click-through rate will be revised after two months, and the score of advertising quality will be gradually affected. Some campaign the data is very poor. Turn it off and reopen. The data is good for a while and then it fails again. In fact, this is to solve the problem of advertising quality score, but it does not solve the root cause. The new Campaign will be recalculated,However, it will be difficult to surpass other competitors, because the data accumulated by others is gradually increasing.
- Relevance: generally, the conversion rate of long tail words is relatively good, because the purpose of searching such a long word is generally clear and highly correlated. We also need to increase brand relevance through brand + big words.
- User Satisfaction: If the score is poor, it is very tiring for such listing to advertise. If there is no evaluation, we need to urge the evaluation in time. Let Amazon know that our products are okay on the indicator of user satisfaction.
- always keep the advertisement on and always on. It will be found that after the goods are out of stock, it will not be able to catch up with the original effect. Because the advertisement divergence is based on the shopping cart. In addition, some students did not add the new SKU to the advertising group in time when selling, and the advertising effect would not be good.
PPC is not the key, accurate matching is the key
Amazon has three keyword matching methods: extensive matching, phrase matching, and exact matching.
- Extensive matching: matches your selected keywords to various types of search keywords. For example, if your keyword is flashlight, the matching type is extensive matching, the bid is $1.00, and the daily budget is $10, then your advertisement may appear anywhere the search keyword flashlight.For example, if someone searches for LED Flashlight, your widely matched advertisement may be displayed at this time. Of
- Phrase matching: as long as your phrase keywords appear in the middle of the search term, your advertisement may be displayed. For example, someone searches for Black in Amazon
LED Flashlight, at the same time, your phrase matches the keyword of the advertisement as LED Flashlight or cree led flashlight, then your advertisement may be displayed on the buyer page searched by cree led flashlight. - Accurate matching. For example, if the keyword you set is cree led flashlight, your advertisement may only appear when the buyer uses the search keyword cree led flashlight.
The purpose of advertising is to put all the keywords into a funnel to screen out the golden words that can bring us more profits.
- Step 1: tell Amazon that your product should match the target audience of search keywords. First, create a group of automatic advertisements, set an advertisement budget that you can afford to run for one day, and gradually increase the bidding of advertisements as the advertisements proceed until you see the display of advertisements. Then create a group of advertisements that match the recommended phrases of Amazon system. You must select the words that match the advertising products,From the lowest price to the advertisement display.
- Step 2: alternate validation and optimization to find the best matching word. Create a set of manual keyword widely matched advertisements to study and discover the words that match your product most closely. Then copy the first three groups of advertisements into six groups. Then open the first three groups of advertisements and find the bidding price for the products to be displayed, so that our products can be verified by Amazon system.Pause the first three groups, open the last three groups, and directly bid according to the displayed price of the first group. Every three weeks, the first three groups and the last three groups are opened alternately, and spam keywords (more than 20 clicks, but no sales) are removed alternately each time, adding a wide range of matching phrases.
- Step 3: launch accurate keyword advertisements. In the above repeated work, find keywords/phrases with 50% profit and 20% ACOS profit. Use it as a precise keyword to expand budget delivery.
Summary
Amazon PPC ads offer sellers a powerful and targeted advertising solution to reach millions of potential customers. Through Sponsored and Manual Product campaigns, sellers can optimize their ads for specific search terms and boost visibility. With features like automatic and keyword targeting, sellers have control over ad placement and optimization. While the cost of PPC ads depends on various factors, careful budgeting and continuous optimization can maximize return on investment.
By leveraging Amazon PPC ads effectively, sellers can significantly increase their product visibility, engage with a wider audience, and achieve higher sales and profits on the platform.