Amazon PPC: Here’s How to Use It to Increase Sales

Amazon PPCAmazon also provides important tools for online advertising. Here are some tips to properly plan a pay per click campaign and increase sales on Amazon

Amazon is an e-commerce giant on which more and more online entrepreneurs are betting to be able to increase their turnover online. An obviously palatable platform, considering that more than 300 million users gravitate to it daily and that alone collects almost half of all purchases made online in the USA and no less in other countries of the world. Being present with your products on Amazon offers truly profitable opportunities , as long as you are willing to invest commitment and budget to scale the possibilities offered by its advertising system. Advertising on the pages of the site is a potentially winning strategy: let’s find out together how to make the most of Amazon’s PPC campaigns to get satisfactory results.

  1. What is Amazon Advertising and how does it work?
  2. How Amazon PPC affects organic ranking
  3. How much does it cost to sponsor through Amazon PPC
  4. The basic rules for a winning Amazon PPC strategy
  5. Why choose Amazon Advertising?

What is Amazon Advertising and how does it work?

Amazon makes the platform called Amazon Advertising available to its sellers. It is an advanced marketing tool that allows you to create and manage PPC advertising campaigns, that is Pay Per Click : the seller who starts an advertisement on this advertising tool will have to bear costs only when the potential customer browsing the site click on a specific sponsored link. Very similar to what happens in the Google Ads advertising system, and different from what happens on the social Facebook pages where you pay not only for each click received but also for each display of the advertisement.

The services that Amazon Advertising makes available to its sellers are numerous and differentiated according to the needs of the individual advertiser. The sponsored ads , for example, allow you to make appear their advert in the top search results on Amazon, while the so-called sponsored brands are customized ads that include a title, your company logo and up to three products that the advertiser wants to know, and are used to create brand awareness and refer directly to the seller’s store on Amazon. Just the stores that can be created within the site are another great way to make your offer known and create a perfect customer experience for customers.

The display ads and those videos are used to implement retargeting campaigns out of the pages of Amazon and intercept customers who have visited the site pages as they browse such as Google or Facebook. Finally, the Amazon DSP , is an effective platform offered by Amazon to program its ads and adverts in an automated way.

How Amazon PPC affects organic ranking

The elements behind the functioning of the Amazon algorithm are, as often happens in these cases, largely secrets. Nonetheless, there are numerous direct and indirect factors capable of influencing the way in which the sellers, products and brands present in the e-commerce are positioned within the results page , after a user enters his search query .

In addition to the obvious basic conditions that allow success in online sales, such as having a valid product, having a stock always supplied and offering it at favorable price conditions, there are other parameters that substantially influence the Amazon ranking: one on all the quantity of sales made and their speed of realization.

It goes without saying that a newly launched store or a recently marketed product does not have a sales history that allows Amazon to assess its validity and relevance for the search keys with which it wishes to position itself. To get a good conversion rate, that is a good relationship between clicks and sales, and a useful quantity of buyers, the best solution is to invest in Amazon’s PPC campaigns .

Positioning yourself with a sponsored ad at the top of the search results will naturally lead to greater clicks and conversions, and will ensure not only a profit in the short term but also the structuring of a profitable sales history that Amazon will then use to push the product up organically . In short, one factor influences the other, in a vicious circle with great potential.

How much does it cost to sponsor through Amazon PPC

Defining what the budget to invest in an Amazon Pay Per Click campaign may be is not simple or unique. The most correct answer to this question would be a “depends” politician, given that the investment to be taken into consideration if you want to promote your business on Amazon depends on the sector, the type of product and contingent market situations. In addition to the intrinsic functioning of the Amazon Advertising platform , which is based on the auction system , like other digital advertising tools: advertisers interested in appearing among the search results for a given keyword compete with each other, both through the budget who are willing to spend for the campaign, both through their historical sales.

A market saturated with hard sellers will therefore be not only more competitive but also more expensive, while an ecosystem where competitors are few or have little opportunity in economic terms to dedicate to Amazon advertising, will on the contrary be more affordable.

When creating an Amazon PPC campaign, each advertiser will be able to set, within the personal control panel of Amazon Advertising, both the product to be sponsored and their daily budget. You can also decide on the offer per click that you are willing to make for each campaign, taking into consideration, however, that the minimum amount suggested by Amazon itself is at least € 0.50. He will also be able to select the keywords for which he wishes to position himself in the search.

Once an Amazon PPC ad is created, it will start appearing in the results when a user searches for that particular product or keywords entered, and once the potential customer clicks on the sponsored link he is directed to the product page or the store , depending on of the choice made by the advertiser.

The basic rules for a winning Amazon PPC strategy

In order to start successful Amazon PPC campaigns, you need to know the tool and its features in depth first . Amazon’s dashboard may be destabilizing at first glance, but in the end there are few and simple data to keep under control to monitor the progress of a campaign.

First of all, it is good to check two fundamental amounts, namely that of the sales made, or Sales , and the one indicating the total spent in PPC campaigns , defined as Spend or Spend : obviously the first, should be higher than the second, to be a signal of a promotion which is bearing fruit. The Acos, that is Advertising Cost Of Sales , must also always be clear in mind , that is the relationship between spending and sales made, which must remain low to be excellent and indicate that the advertising cost is having little effect and giving excellent results in terms of conversions. Other useful indicators are also the CPC, i.e. the average cost for each click on the ad, and the CTR or Click Through Rate , the ratio between who clicked on the ad and who only viewed it.

The moment you start launching Amazon PPC campaigns, you can choose between automatic targeting and manual targeting: while in automatic targeting the system decides for which keywords to make the ad appear, based on internal algorithms and factors of relevance and relevance, in manual targeting it is the advertiser who decides for which keywords to target their product. Which system to choose depends on experience, but it is generally recommended to start a campaign by setting an automatic target and then move on to a manual one after some evaluations and analyzes.

In particular, at first and without available statistical data it is complicated to have a clear idea of ​​which products could give the best results and for which keywords, therefore it is better to let Amazon make its assessments, using its analysis tools to show the ad among the searches it deems most relevant. Having generated sufficient analytical data to study, it is possible to download the detailed report that Amazon makes available to its sellers, which contains a lot of information such as the keywords they most often called the ad, their CPC or CTR .

A good practice is to download the Search Term Report from your Seller Central account and to use in parallel tools such as Amz Scout and Merchant Words , specific software for sale through Amazon thanks to which to search for the keywords most used by users of the site . Thanks to the precise parameters collected by the automatically targeting campaigns and the new information collected, it will therefore be possible to plan a campaign with manual targeting , and perform the appropriate optimization regarding the budget invested, checking the offer per click and any other element of sponsorship.

 

Keeping your Acos monitored is a daily activity, a necessary step to know the maximum amount that you can afford to spend to generate a sale, and an indispensable parameter to know how to optimize your bids , that is, your offers per click, which they need to be updated often to maintain their efficiency.

Why choose Amazon Advertising?

Although the advertising systems offered by Google and Facebook are excellent marketing tools, the advertising campaigns offered respectively by the world’s first search engine and by the social network with multiple active accounts are not comparable in terms of effectiveness with the power of sponsorships offered by Amazon Advertising . The reason lies simply in the purchase intent of those who browse the Amazon pages: when a customer still in power opens the e-commerce giant’s website from a desktop or mobile, he is already looking for a product to buy.

While those who surf the pages of Google or Facebook are on the hunt for useful information or entertainment, those who do it on Amazon are already oriented to buy an object they need and are extremely more inclined to finalize the purchase. The conversion rates of Amazon campaigns demonstrate this and make the Amazon Advertising tool among the most efficient and optimized for achieving high business objectives.

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