Everything You Need To Know About Amazon PPC
Updated: May 31, 2019
Did you know the average conversion rate of Amazon PPC campaigns is at 10%?
This has a significant advantage over Google Ads’ average conversion rate of 3.75%. This is why Amazon sellers are choosing to focus instead of PPC campaigns on the platform.
However, PPC ads on Amazon is no different than Google Ads in many areas. In both, you need to have good knowledge of how it works to be able to maximize it and profit from it. If you’re looking for more information in this area, keep on reading to learn what it is and how it works.
What Is Amazon PPC?
The Amazon pay per click platform allows advertisers to pay only for clicks on their ads. The user won’t have to pay for ad space on Amazon’s website. This means if no one clicks the ad, they won’t have to pay a cent no matter how long their ad was up or how many had seen it.
How Does Amazon PPC Work?
This works through bidding on keywords. The advertisers will decide which keyword they want their ad to appear in.
This is the same method used by Google Ads. Other platforms like Facebook charge according to the impressions on the ad. Their placement would then depend on the amount they bid and other several factors.
PPC Placements Factors
The advertiser with the highest bid gets the keyword. When a user searches for that keyword, the advertiser’s product will appear as the top Sponsored Ad. In general, the higher the bid, the greater your chances of appearing in that keyword.
The quality of the ad factors into your chances of placement, as well. Amazon measures this using different factors with the ad click history as a major determinant.
If you have a high-quality ad, you might not have to bid as much. If you increase your bid, though, on top of having a good quality ad, you further increase your chances of getting top placement.
PPC Ad Types
Keep in mind that Sponsored Ads is only 1 of the 3 ad types in Amazon. One is the Product Display Ad, which displays your product below the “Add to Cart” button in a product page.
Unlike Sponsored Ads, this operates based on PPM. This is the one that Facebook Ad uses, which charges users on the impressions.
Another ad type is the Headline Search Ad, also called banner ads, which is similar to Sponsored Ads.
The mechanics are similar. However, Headline Search Ads allow advertisers to display multiple products at once.
PPC Ad Requirements
The requirements to run a PPC ad campaign are pretty basic. You only need a seller account and you must be able to ship anywhere in the United States.
You must also eligible for the Buy Box; otherwise, your Sponsored Products Ad will not appear to shoppers. You must have enough inventory for the product and have competitive pricing.
Show that you deserve it via your metrics. You should be quick to respond, have fast shipping, have minimal cancellation rates, and so on.
That’s all you need for Sponsored Ads. If you also want to advertise using the Headline Search Ads campaign, though, you must also enroll in the Amazon Brand Registry. This allows you to have complete control of your brand and protect your registered trademark, among other benefits.
Why Should You Use Amazon PPC?
You can choose to focus on the organic rankings of your products; is there any need for ads you have to pay for at all? If you do it right, you’ll get to make bigger profits with every click and the cost it entails. Here are the reasons why you need to consider setting up a PPC campaign on Amazon now.
The biggest advantage of Amazon PPC campaigns is that it boosts your product to the top, which means users will see it first before the products of your competitors. As the clicks on the first 4 product listings take up almost half of all clicks, it’s important that your product is there.
The good thing about it is that users won’t mind the ad; after all, Amazon only displays relevant ads. They’re still useful to consumers, and some might not even notice that it’s an ad.
Increasing sales is the end objective of all campaigns, and this one does it right. Although many buyers make sure to look through all the product offerings to compare each one and find the best, there’s still a sizable portion of consumers who buy what they first see.
Furthermore, running PPC ads on keywords you don’t rank high in will give you the needed boost in visibility. This could be all you need to rake in customers.
Brand and Product Awareness
New brands and products find it hard to rank high in an already crowded platform. Using PPC ads, however, they get a higher chance to be visible to customers. Even if users don’t click on the ad, they’ll at least get to know the brand the product.
This is also a good way to advertise a new product and make it rank higher. The ads will generate clicks and sales, and as we’ve mentioned above, these are key factors in the ranking algorithm of Amazon.
Does It Affect the Rankings?
Your PPC ads don’t affect the organic ranking of the product in a direct way. Still, it has some sort of effect coming from the sales the ad generated. Since the sales history is a major factor determining the ranking of the product listing, having it enhanced with the ad will then help with increasing your organic ranking.
How to Make an Effective Campaign
You can make your own Amazon PPC campaign if you can set aside time for research and setting it up. An alternative is to hire a PPC agency to do all the grunt work for you. This includes researching keywords and keeping up with the latest trends.
If you’re interested, contact us today and let us help you boost your products.