If created and managed properly, an Amazon PPC advertising campaign on Amazon can help you sell more products faster, while increasing your organic rankings.
A study about Amazon shoppers behavior showed that:
- 70% of Amazon searchers never click past the first page of search results.
- 35% of Amazon searchers click on the first product featured on a search page.
- The first three items displayed in search results account for 64% of clicks.
These statistics can show you how to make Amazon work for you, to increase your sales and customer base.
What is Amazon PPC?
Amazon PPC is the advertising platform Amazon makes available to its third-party sellers. It allows sellers to create ad campaigns for their products, and then charges them each time a potential customer clicks and views their ad.
Let’s talk, first, about the Amazon’s key PPC metrics:
- Impressions: the number of times your ads were displayed.
- Clicks: the number of times your ads were clicked.
- Attributed Sales: the total product sales generated within one week of clicks on your ads.
- Advertising Cost of Sales (ACoS): the percent of attributed sales spent on advertising. This is calculated by dividing total ad spend by attributed sales.
Why is Investing on Amazon PPC important for Amazon Sellers?
Investing in advertising is not optional anymore on Amazon. New businesses are opening accounts on Amazon every day, flooding the market and increasing competition. Average cost-per-click (CPC) prices are rising in every category, even reaching the point of unprofitability in some cases, just to fend off competitors.
Amazon’s algorithm has many ranking factors when deciding who ranks at the top for any given search, but sales velocity is the number one factor. Sales velocity is how many sales you are generating lately. It is not a specific metric Amazon gives you but more of a generalization of how many units you are selling per day. Amazon is less concerned with cumulative sales and is more interested in the quantity you have sold recently. This is how new sellers can rise up on Amazon over veteran sellers by pushing more units per day than their competitors.
How to define a high-level Amazon PPC strategy?
The sponsored products target the exact buyers who are looking for the relevant keywords. It is a totally logical and affordable plan. It is not at all a gamble because you pay only when the ad is clicked and so it is rightly called as pay per click campaigns. The click takes the buyer directly to your product. This increases your visibility, brings in fresh buyers, allows seasonal promotions and also improves product visibility.
You should check our High Level Amazon PPC Strategy Ebook where show you the high level trending tips of improving your ROI and decreasing your ACOS!
What are the types of Amazon PPC ads?
There are a few different types of Ads:
Sponsored product ads look like regular organic listings, but have a sponsored badge. They also appear in carousels and Amazon will likely add additional placements for them over time.
Sponsored product ads consist of auto and manual campaigns. Auto campaigns are based on the content on your product page. Amazon’s algorithm determines if your ad is relevant for a given search based on the search query and your product page text match relevancy. Manual campaigns are based on keywords you bid on with varying match types (broad, phrase, or exact match). Use auto campaigns to gather search term data which you can apply to your manual campaigns.
Above the sponsored product listings you will see Headline Search Ads. This is premium real estate as it is the first thing a customer will see after they search. You also get to feature multiple products, write unique ad copy, and can link to a separate landing page not on Amazon with additional products, or even an Amazon Store.
Product display ads (PDAs) have a few different placements as shown below. PDAs can be used to target competitors product pages or defend your own pages.
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