Amazon PPC (Pay Per Click) is one of the most crucial aspects of advertising on the platform. It’s an integral internal advertising system that helps the seller in reaching out to maximum buyers. Through this guide, you are going to find authentic ways to enhance your Amazon PPC campaigns.
Amazon is one of the largest e-commerce platforms across the globe, where hundred million products are being sold and bought. Undoubtedly, Amazon is a highly saturated marketplace, and therefore, sellers need a way to be highlighted. To drive conversions and sales, Amazon PPC is the most effective solution for all.
Pay Per Click is a phenomenal tool to advertise your brand or product on Amazon. It’s a click-based model to drive traffic on the platform. The PPC campaign creates a unique marketing channel that promotes your brand, making it ‘visible’ for every potential buyer. Wisely used PPC campaigns on Amazon promise boost in overall profit, creates brand awareness, and drive traffic for conversions.
You need to devise a right and profit-yielding Amazon PPC campaign to get highlighted on the platform. Pay Per Click advertising strategy should be tailored-made for each of your products, promoting a unique image for the brand. Select the appropriate type of Amazon PPC campaign and start with thoroughly researched keywords.
Understanding Amazon PPC
Pay Per Click advertisement on Amazon is different from that of Google and Facebook ads. The algorithm is unique and easy to understand. However, Google and Facebook PPC have some similarities with Amazon PPC.
Amazon Pay Per Click is an auction-type system of the paid traffic. As per the Amazon PPC system, the bid is made on the keyword the seller plans to advertise. When a buyer search for a specific item on Amazon to purchase, the algorithm starts working. Any seller who placed the highest bid on the relevant keyword wins and that’s how their ad gets highlighted instantly.
How the Mechanism of PPC Works on Amazon?
On the Amazon platform, for the PPC the advertiser bids on the keyword. They pay for the words that can lead them to potential customers and clicks. Facebook and Google ads are not like this. Their whole science is different. That’s why Amazon PPC is a bit tricky but interesting.
When a potential customer clicks on the advertisement highlighted, the seller would be charged. Same as Google and Facebook ads. What makes it different here is that the seller will be paying for the ads that reach the buyer only. If the keyword does not win, the seller is not supposed to be paying for it.
Always remember that the principles of PPC advertising are different from that of PPM (Pay Per Mail). In PPM, the advertiser pays for every 1000 potential customers who have seen the advertisement.
Since the Amazon PPC is based directly on the bidding principle, the seller is bound to pay for the ad a cent extra than the competitor. For instance, you placed a bid of $2 for the “funky shoes” keyword. The other competitor bided for the same keyword for $1.50, so here Amazon will charge you $1.51 only. The payment is deducted when the buyer clicks on the ad only.
Is Amazon PPC Crucial for your Brand?
Amazon is one of the most popular platforms where millions of buyers shop online every day. Therefore, the competition is fiercely high. With organic ranking, reaching potential buyers for every product becomes difficult.
However, a strategically planned Amazon PPC campaign can promise a boost in sales, maximized conversions, and enhanced ranking. Amazon PPC also allows potential buyers to find the item they are looking for conveniently. This also increases the visibility of your product and brand and helps the product get optimized on the search engine platforms.
Never forget that PPC campaigns are always beneficial when you launch a new product or are interested in clearing the stock. That’s why Amazon PPC is crucial for your brand, allowing your products to get highlighted and reach genuine buyers only.
SEO Sales Compared to PPC Sales on Amazon
Amazon entertains two types of search sales; one is organic while the other is ad sales.
In Organic Sales on Amazon, the buyer searches for and then buys a product without the need for advertisement. All you need to do is put maximum effort into organic means of advertisement and reach out to a higher chunk of the audience. This means you need to solely focus on Amazon SEO (Search Engine Optimization).
On the other hand, Amazon PPC sales or Ad sales happen when the buyer searches for and purchases your product through advertisements. If you meticulously run a PPC campaign, there are higher chances of ranking your product on Amazon’s first search result page.
Types of Amazon Sponsored Ads
There are three types of sponsored advertisements you can find on Amazon.
Sponsored Product Advertisements
These types of sponsored ads promote individual items on the product detail pages of your brand. They are more popular due to their phenomenal tactics of attracting potential customers and converting visits to sales.
Sponsored product advertisement is considered to be best for those sellers who are new to the platform. It covers almost the whole advertising budget and proves worthy for new sellers. However, don’t underestimate the power of keyword research as nothing can be achieved if it is ignored.
To launch this type of sponsored ad, simply select any product, choose your targeted keyword, and assign a budget to it. Once complete, Amazon will automatically launch your ad for an appropriate audience.
Sponsored Brand Advertisements
Also popularly known as headline search ads that provide an edge to the sellers to place their customer logos, headlines, and landing pages in the advertisement. Through this type of sponsored ad, a seller can promote multiple items at the same time. Through this ad, the seller can get on top of Amazon search results like a headline banner or become a video at the bottom.
Through sponsored brand ads, the seller can advertise a variety of items and also showcase complementary products. Through these ads, you can easily attract potential customer’s attention even when they aren’t looking for the exact same item. Sponsored brand ads promote impulsive buying as well.
This type of advertisement is a great option to attract multiple buyers at the same time and introduce yourself through a dedicated video.
Sponsored Display Advertisements
Sponsored Display Ads are often displayed next to the “Add to Cart” button.
These ads drive impressions and emphasis retargeting a customer who has recently looked up at your product page. It also targets those buyers who recently searched for terms relevant to your product listing.
The biggest plus of sponsored display ads is that they can be seen both inside and outside the Amazon platform. Such type of advertisements drives phenomenal conversions and help in launching a new product or reintroducing an old item.
With these types of sponsored ads, a seller can target different audiences, engage behavioral targeting tactics, use demographic targeting tools, etc.
Where do Amazon PPC Advertisements Appear on the Platform?
Not sure where your brand’s advertisement is going to be displayed? Let us help you!
For Sponsored Product Advertisements, your ad is going to be displayed on the following locations:
- Within the search results,
- The right side of every search result,
- At the bottom of the search result page,
- On every product detail page.
For Sponsored Display Advertisements, the ads will appear of different locations such as:
- On the product detail pages,
- On the customer review pages,
- Over the top of the offer listing pages.
For Sponsored Brand Advertisements, your ads are going to be live on locations like:
- Above the search result page,
- On the left side of the search result,
- At the bottom of the search result.
The Bottom Line
The concept of Pay Per Click on Amazon is different from those we already know about Facebook and Google. It’s interesting and challenging at the same time. However, with the knowledge, power of research, and commitment, any seller can boost their sales and conversion.
Get professional training on Amazon PPC from E-Commerce Galaxy and become champion on the platform. Contact us today to discuss your Amazon strategy and plan your perfect PPC campaign.
