In today’s blog post, we will be basically going through a full guide on Amazon concepts for those getting started in this marketplace.

You have probably got stressed by the tons of Amazon abbreviations such as PPC, like CPC/CPM, ACOS, NTB, and CVR . But don’t be afraid! We are here to help you kick off your Amazon Advertising.

So let’s get started !

What Is Amazon PPC?

Amazon PPC is an auction-based system in which Amazon users bid on keywords. When an Amazon customer performs a search for a product, the sellers with the highest bids on relevant keywords win the auction, and their product ads turn into “Sponsored Products” in the search results. Advertisers only pay the bid price when their sponsored product ad gets clicked . Since Amazon PPC campaigns are auctions, you will only have to pay one cent more than your competitor for the ad placement in the search results. 

As an example, if you bid $2.5 for a keyword, but your competitor only bids $1, Amazon would only charge you $1.01 for the ad placement. But as we mentioned, Amazon sellers only pay when their ad gets clicked, not every time it appears in the search.

An Overview Of PPC Advertising

Paid traffic has been around since 2000 and it actually takes both some science and some art for many online businesses. It all started with Google AdWords (now called Google Ads). If you’ve done a Google search in the past 20 years, chances are you’ve seen some ads in your search results. In 2012, Amazon PPC Advertising joined the ride by allowing vendors and sellers to show off their products on Amazon’s site.

While Amazon Ads and Google Ads have different goals they are in fact cousins. 

Amazon wants to showcase customers ads which they’re most likely to buy from. Google wants to present searchers with ads they’re most likely to click on. Amazon focuses its ad rank on profit, and Google does it on CTR.

Is Amazon Advertising Worth It?

Of course it is, since it is the number one way to increase traffic to your product.

What’s special about Amazon is they already have the visitors. It would be senseless to start with another marketplace and try to generate traffic to a brand new site when Amazon is where the customers are purchasing.

On top of that, Amazon visitors have already made the decision to purchase when they visit this marketplace.In fact, reports say 55 percent of consumers begin their search on Amazon when they are looking to buy something. Amazon gets over 2.3 billion visitors a month, so you just need to get their attention.

Shockingly, advertisers are just now starting to see the power of Amazon Advertising. Many are shifting part of their budget to this platform due to the success of their fellow PPC platforms like Facebook and Google. Marketing experts are predicting Amazon will quadruple its revenue from advertising by 2020.

Organic Sales Vs. Amazon PPC Sales

Like any search engine marketing, there are organic search sales and paid search sales. Organic sales on Amazon happen when a customer finds out and purchases your product without you having to sponsor that product for better placement on Amazon’s search results. So, to optimize your organic sales, you want to focus on Amazon Search Engine Optimization (SEO).

Paid Search or Amazon PPC sales happen when a customer finds out your product through an advertisement on search results. Sponsoring your products with Amazon Ads is the fastest way to get your product to the top of Amazon’s Search Results Page so that you can generate more traffic.

Seller Central Vs. Vendor Central

There are two selling platforms for Amazon sellers: Seller Central and Vendor Central. 

Seller Central is for third-party sellers. Think of third-party sellers as small company owners who sell their products directly to customers on Amazon’s website. These sellers can also choose to personally ship products to their customers, or else, let Amazon fulfill their shipping method, earning their product the Amazon Prime badge. 

Vendor Central is for first-party sellers, usually larger businesses that sell directly to Amazon, and then Amazon sells to its customers. Because vendors are selling directly to Amazon, their product automatically receives the Fulfilled by Amazon (FBA) Prime Identification.

Automatic Vs. Manual Amazon Campaigns

When you log into Amazon’s Advertising Campaign Manager in Seller or Vendor Central, you will see the ability to “Create New Amazon PPC Campaign.” When you do, you’ll be asked to start either a manual or an automatic PPC campaign.

Also, whenever you are getting started with your campaign, you might ask yourself which ad campaign type is better.

Truth is, you need to be running both. Here is a short recap of all types of Ads that can be run:

The Three Amazon Ad Types

Sponsored Brand Ads

Also known as headline search ads, sponsored brand ads are primarily for top-of-the-funnel customers, giving your product the chance to grab a customer’s attention before they precisely know what they want.

Headline search ads are shown in the following locations on desktop devices:

  • Above search results (hence “headline search”)
  • To the left of search results
  • Below search results

Sponsored Display Ads 

Display ads appear on product detail pages and only available in Amazon Marketing Services (AMS).

Sponsored display ads are used to sway customers away from a competitor page or appear on related product pages. They are mainly for bottom-of-the-funnel customers.

Sponsored Product Ads 

Sponsored product ads promote your products on product details pages and search results. Businesses have increased their budgets for sponsored product ads since it has an incredible consumer attraction and conversion rates. 

Just like any other Amazon PPC advertising options, Amazon only charges you for your Sponsored Product Ads when a buyer clicks on them, which gives businesses control over their advertising budget and bids for keywords.

Sponsored Product Ads are shown in the following locations:

  • On the right side of search results
  • On the bottom of search results
  • On product detail pages

Sponsored product ad type is by far the most popular on Amazon PPC and is shown in every step of the customer journey.

Amazon PPC Keywords & Match Type

When creating an ad campaign, you will need to choose the keywords you want to bid on. Then, if a customer’s search term matches up with your keyword, your ad qualifies to display in front of the customer in the search results.

For every keyword you choose, you will also need to select a match type. Match type refers to the way your keyword matches the user’s actual search on Amazon. There are three types:

  1. Exact Match: Your ads, Amazon will only show in front of the customer if their search terms are an exact match to your keyword (with the exception of plurals and slight misspellings).
  2. Phrase Match: As long as the customer’s search terms contain your keyword phrase (without being broken up by other words), your ad will qualify. 
  3. Broad Match: The customer’s search terms just need to contain all the words from your keyword (but they can be in any order).

Keyword research is one of the main pillars of successful advertising campaigns and search ads so don’t abandon keywords research.

Negative Keywords

If keywords are the search terms you want to show up for, negative keywords are the terms you don’t want to show up for Negative Keywords can help you avoid spending ad budget on irrelevant or unprofitable search queries. Amazon’s algorithm will only let your product show for relevant terms, so don’t worry about adding every keyword you can think of as a negative keyword.

So this is it for today’s blog post!

We hope you liked it and as always, write any question on the comments section below and we will be happy to answer you!

Related Posts

    Leave a Comment

    "High Level Amazon PPC Strategy" Ebook

    The sponsored products target the exact buyers who are looking for the relevant keywords.

    This increases your visibility, brings in fresh buyers, allows seasonal promotions and also improves product visibility.