Digital Markiting

Amazon PPC: How to Optimize Amazon Advertising Campaigns

Marketing on Amazon is one of the best ways to increase sales and reach consumers directly. As an eCommerce platform, it provides sellers with access to consumers across the globe. While listing optimization remains the primary tool to get noticed by that user base, Amazon PPC is the most powerful paid advertising tool that eCommerce website owners can use to market their products and services.

However, a few common queries arise: What are the main aspects concerning Amazon PPC advertising? How should you utilize PPC to drive fast sales and build brand awareness? Should you outsource Amazon PPC services?

This article will list everything about Amazon PPC to answer these questions.

What is Amazon PPC?

Amazon PPC is an advertising platform that allows advertisers to reach consumers based on their browsing history and interest. Amazon PPC ads appear on the website and mobile app of Amazon to showcase your products to prospect shoppers.

For example, if a customer is looking for a specific product but doesn’t know where it can be found, you might blast out your advertising message to that person. This helps advertisers increase their brand awareness and conversion rate.

Why should you start using Amazon PPC to advertise your product?

Amazon PPC advertisements are a critical aspect of Amazon’s marketing and strategy. With the help of effective management, you can optimize your campaigns to reach more customers and get more sales. For instance, if you are looking to raise brand awareness, there are different options for you to choose from. If you want to scale the business, Amazon PPC is a great way to meet your business goals.

Amazon PPC management tools are becoming more popular as they allow you to achieve high conversion rates, higher ROAS (Return on ad Spend), more sales and get more profits.

Types of Amazon PPC ads

When it comes to Amazon PPC, you need to keep in mind that there are different kinds of campaigns (all called “campaign types”) designed for different purposes. Each campaign type has its own unique set of options and restrictions, but they also share some similarities.

  • Sponsored Products
  • Sponsored Brands
  • Sponsored Display
  • Amazon Display 
  • Video Ads
  • Audio Ads 
  • Custom Ad Solutions 

The three main types of campaigns that you can create are Sponsored Products, Sponsored Brands, and Sponsored Display. 

Sponsored products

A sponsored product is the most common type of campaign you’ll create because it’s easy to use and costs very little. The types of products eligible for sponsorship vary based on the audience type (e.g., direct response, catalog listings, or email list).

Sponsored products are similar to Google ads in that you can choose the products you want to advertise, as well as add relevant keywords. Ensure you add the right product attributes to target your audience with a set CPC amount. Your ad will be eligible to display when shoppers search for one or more of these keywords or products.

Sponsored brands

Promoting your brand on Amazon can be a very rewarding experience. Once you have a well-known and trusted product, the sky’s the limit. However, creating brand awareness is essential before jumping straight into seeking customers via advertisements. And that is exactly where sponsored brand advertising comes in handy.

Sponsored brands are also known as paid search advertising, and it works by letting you display ads alongside your own site’s content. These campaigns can be easy to set up, but they do require considerable investment from both sides – you need a professional account at Google Adwords to manage them and vice versa. 

Sponsored display

Sponsored display ads are an extremely useful tool for Amazon sellers, but may not be well-known. They’re a system of programmatic advertising which allows your sponsored ad to appear on relevant search results on and off the Amazon platform. Although considered a self-service solution, you still need to provide certain information like campaign type (product or service) and targeted customer audience criteria.

With Amazon Sponsored Brands Ads, you can instantly expand your product’s reach to your customers. These ads are much cheaper than other display ad campaigns, yet they produce excellent results. You can easily enter an ad campaign and get started with no hassle.

What is a Good Amazon PPC Conversion Rate?

The average conversion rate of a PPC campaign is 2.35%, but the number varies according to certain factors. Thus, if you’re running a campaign on a travel-based website you’d probably get a lower conversion rate than the average. But if it’s for B2B websites, you would get better results than the average since it’s not that competitive of a market.

Finding a good PPC conversion rate for Amazon totally depends on the nature of your product. To calculate a good PPC, a good place to start is to set a goal, such as acquiring 20 leads per month. Direct your efforts and budget toward reaching that goal. As with any goal-setting process, be sure you know where you stand before setting a PPC conversion rate because the first step to success is knowing what success looks like.

Amazing tips to boost your Amazon PPC conversion rate

1) Long-tail keywords

Keywords help your audience find your product but on platforms like Amazon, people often search for products using a long-tail keyword. For instance, instead of searching for women’s shoes, people tend to use more specific keywords. According to their needs, they put down search keywords such as, “black kids shoe size 3”.
You can optimize your listing by researching long keywords according to your brand and products. To save time, it’s recommended to reach out to a reliable Amazon SEO company to help you set up PPC campaigns. Expert marketers identify long-tail keywords to reach specific audiences. A long-tail keyword may be more specific, but it often has a lower search volume and a lower cost per click than a general keyword. 

2) Track your Campaigns

It is imperative that you evaluate the performance of campaigns in order to ensure that your marketing expenses are being properly allocated. Even if you conduct intensive keyword research and notice that consumers don’t search in a manner corresponding to your expectations, it may be highly beneficial to monitor results.

Your PPC campaign might be losing customers. Campaigns will often get more and more competitive over time, which means that your offer may start to perform worse. Using Amazon PPC management services can help you keep up with the market so visitors continue responding to your ad campaigns.

3) Automate things

Just like Amazon itself, the Pay-Per-Click (PPC) advertising platform has grown up over the years and is mature enough that you don’t need to worry about it as much. Unlike other PPC platforms, Amazon is constantly testing its toolset to make sure it’s still effective for advertisers.

By using Amazon’s automation, you’ll ensure your campaigns are running at peak performance. Never worry about daily management tasks and free up time to focus on creative strategies and growing your business.

Final Thoughts

The Amazon advertising platform is competitive and complicated, but it can be well worth the buck. The key to effective advertisement is making sure that your ads have solved your customer’s needs, or at least putting them in the right direction so they can solve it themselves; therefore making them click on your ad.

If you are just now starting to implement a PPC campaign, we hope that this guide has helped clarify some of the basics of Amazon PPC. At the end of the day, if you are thinking about advertising on Amazon’s PPC platform, be sure to follow these guidelines. 

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