Amazon PPC – Your quick guide!

Amazon advertising is quite similar to traditional advertising with familiar principles – keep advertising costs minimum and achieve maximum outcomes. Amazon PPC is Amazon’s internal advertising system that brands, third-party sellers, and companies use to create adverts for their products via keywords. These adverts appear in Amazon’s search results and product listings. It allows sellers to show Amazon customers their products at the point of sale. The sellers can then measure the ads’ performance to understand which ad drives conversion and which does not.

Here is a quick guide to lower your ACOS with professional PPC management.

What is Amazon PPC?

Amazon PPC (Pay-Per-Click) is like traditional advertising that involves advertisers paying Amazon a small fee when a shopper clicks on their ad. Currently, Amazon offers three ad types: Sponsored Brands, Sponsored Products, and Sponsored Display Ads.

Sponsored Brands: Those brands who want to build their brand image use ‘sponsored brands’ to promote a brand logo, custom headlines, and up to three products in the ad. These ads can direct shoppers to the brand’s Amazon Stores page or a custom landing page.

Sponsored Products: These ads are ASIN-targeted with keywords and work similarly to Google Adwords. Advertisers use these ads to promote single products in Amazon search results and on product detail pages.

Sponsored Display ads: These ads direct shoppers to Amazon’s product detail pages. Advertisers post relevant product ads on Amazon and external websites for shoppers who have visited or visiting certain products on Amazon.

What is the importance of PPC for Amazon sellers?

During the last two years (2020 specifically), consumers have shifted considerable focus to online shopping, and Amazon has gained huge profits from this shift. It has created enough opportunities for sellers but has also increased market competition.

Hence, as a brand and seller, you need a PPC advertising strategy to sell well on Amazon since, with +350 million products on Amazon, it’s easy for your listing to get lost in the crowd. Even if your organic ranking is vital and does well, Amazon adverts will help you reach a bigger audience.

What do I need to run an Amazon PPC Ad?

To create and run a successful Amazon PPC ad strategy, you need the following things:

Seller Account: Any advertiser who wants to run an Amazon PPC ad campaign must have a seller account.

Shipping: An advertiser must be able to ship their products across their country of origin.

Amazon Brand Registry: An advertiser would need Amazon Brand Registry to use a headline search ad.

What affects Amazon PPC placements?

Sometimes, there are numerable products for a single search term. It means that an advertiser will have to compete for ad placement. If such a situation arrives, these are the deciding factors:

Amazon CPC: The highest bid wins.

Quality: The Amazon ad’s quality is based on the likelihood of a buyer clicking on it.

Concluding note

Amazon PPC advert is an excellent way for brands to grow brand recognition on Amazon while increasing revenue. Once enrolled, you can set the daily ad budget and decide on how much to bid on keywords, ASINs. Using different ad types, you can select how far you want your ads to reach.

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