How Does Amazon PPC Work?


Table of Contents

If you are a beginner at Amazon, you might be looking for ways to improve your sales with paid promotions. Ad spending on Amazon has increased drastically. But you have no idea how Amazon PPC works.

Statista reveals that Amazon’s global marketing spending has reached 22.01 billion USD. It is due to the promising results of these advertisements that can help reach success. 

In this situation, you might come across the Amazon Pay-per-click (PPC) strategies suggested by Amazon consultants, which can be used to improve your paid reach and help to boost sales.

Amazon PPC works the management has the potential to meet the right target audience with creative Amazon PPC campaigns that can kick-start sales for beginners. 

how does amazon ppc work

As per the question of how much to spend on Amazon PPC, one should spend approximately 10% of the sales revenue on PPC ads. Amazon PPC experts stress saving this amount for business success in the future. It makes it important to understand more about PPC for Amazon and its working knowledge.

What is PPC for Amazon?

There is a need to know in detail what Amazon PPC work service is providing to the business on this platform. Amazon PPC can be considered a form of advertising on Amazon that advertisers use to pay for user clicks on the ads placed by the Amazon business.

It can also apply when the user views the ad on the platform. As the process explains, this is why this form of advertising has been named Pay-per-click.

It can help increase the conversion rate of the users who view or click the ad, which is why it is considered a highly effective tool.

The businesses at Amazon can use this tool so that there can be an increase in online visits to their store and an increase in sales. It can also help generate a healthy brand image by reaching the maximum audience with a persuasive brand message. 

Amazon is the third most popular platform for advertising. It means that the PPC on Amazon can bypass the ad spending on Facebook and Google. Such amazing features allow the sellers on Amazon to grow at a faster pace. 

As per the working of Amazon, the seller tends to bid on the specific keywords they chose for their products. It happens in the auction-based system where the highest bid for a keyword can win, and the keyword can help generate sales leads.

After choosing the keyword, the ad is placed on the website of Amazon. For all the ads clicked and viewed by the user, there is a fee charged to the advertiser who had bid for the keyword. 

Amazon PPC advertising types

There are three types of ads that can be chosen for PPC. Sellers need to be familiar with these types of ads to make the right decisions based on their business goals and objectives. The three types of PPC include the following.

  1. Sponsored product ads
  2. Headline search ads
  3. Product display ads

Each ad type can have different features that need to be understood by the sellers. The description of each type of ad can be seen below

1. Sponsored product ads

Sponsored product ads, which are also known as headline search ads, are the ones that are placed for the customers at the top of the funnel.

Amazon-sponsored product ads can be three times cheaper than Google CPCs. This type of ad helps choose the keywords that can be used to advertise the product.

This way, the product will receive market awareness by getting high visibility on search engines based on what the customers demand. 

These ads can be placed above, left, or right of the search results. It also includes the product detail page, which can receive high customer clicks. Still, it is important to note that a good conversation is only received if the keywords are effective.

It means reliable tools need to be used for keyword searches in this area. There are several best keyword tools for Amazon that can help meet these objectives. 

This feature is also useful as it will help the seller display multiple complementary products to attract new customers. This type of ad is also taking the consideration of the organic results, which helps to improve the conversion rate. 

As per the process, one just needs to select the product that is to be advertised, choose the keyword and assign the budget for the PPC.

It will be done by evaluating the product type and the budget available for the business. After placing the ad, Amazon will help you reach your desired target audience with its unique algorithm. 

2. Headline search ads

There are specific product categories on which the headline search ads can be placed. These can also be known as sponsored brand ads as it helps to promote the brand rather than the product itself.

This type of ad is different as it promotes a specific product category or brand rather than merely a single product on the Amazon website.

These ads can appear with the brand logo, which is why they are also regarded as banner ads. This PPC intends to influence the buyers to target the specific product category. 

This type of Amazon PPC works to advertise multiple products at a time, thus increasing brand awareness in a better way. The ad can be customized based on the landing destination, which offers the seller more advantages compared to other PPC types.

It is because there are customized options related to the product pages, research results, brand pages, etc., which can target the customers more refinedly. 

3. Product display ads

A product display ad can be one of the most important types of amazon PPC work that the seller can use. These ads can be shown in a similar product session on the product page. 

This type of PPC is usually more complex as it is linked with the ASINs of products which helps to have a specific target audience. It can help target the consumers based on their behavior, providing a better conversation rate. 

This type of ad can also improve product impressions by re-targeting customers with a higher purchase intention.

It means that the targeted customer with the help of this ad has already shown the behaviors of interest involved with the product. Therefore, placing this ad can generate high sales for the seller.

This ad usually appears on the product description page, product listing page, and customer review page when the customer is browsing a product on the company page.

It is the reason why it is considered to re-target the customers. This ad is also beneficial as it can help to increase product visibility outside of Amazon. 

Each type of ad by Amazon offers the following products. 

amazon ppc work

Knowledge of How Amazon PPC Works

The steps which can be taken under consideration for getting started at Amazon PPC are the following.

Step 1: Choosing product or brand category to advertise

To get started with the Amazon PPC, it is important to consider the type of PPC ad which needs to be chosen. As discussed previously, there are three types of PPC ads which include sponsored product ads, headline search ads, and product display ads. Depending on the business need, the type of PPC ad needs to be chosen so that the ad can be placed. 

amazon ppc work

Step 2: Select keywords

After deciding which PPC ad to be placed on Amazon, there is a need to select the suitable keywords which are searched by the customers to find suitable products.

Finding the right keyword for the product is important as it can help to improve search engine visibility. One needs to select the keyword which can reduce the bidding cost and still manage to have high search visibility at Amazon. 

This can be quite challenging for beginners at Amazon, which is why the PPC ad services can be used for better results with the right keywords. Likely, the poor keyword selection might not help gain visibility even with the high cost paid for PPC. 

Step 3: Optimize product listing

SEO-friendly product listing is the key to success in digital marketing. It includes optimizing the title, product description, meta-tags, and other aspects of the product listing.

It is important to improve the organic search results as well, which is why all the sellers at Amazon need to focus on optimizing their product listings to improve their organic reach. Even in the case of PPC, the lack of SEO cannot produce effective results, which is why this step can be considered very important. 

Step 4: Allocate budget

Deciding the budget aligned with the company’s financial conditions is important. The PPC can also be risky, so the budget allocation needs to be smart. It is important to evaluate the total cost of PPC and the expected return from this PPC.

One is likely to set the budget daily based on the customer’s response, which is why this step needs to be done in any case. While placing the ad, the budget is asked from the seller, which helps Amazon to set the PPC based on the amount set by the seller to promote their product or brand. 

amazon ppc work

Step 5: Select the target audience

One needs to know their targeting strategy before placing the ad on Amazon. It includes manual targeting, which allows you to have the custom setting, or it can also include automatic targeting, which allows Amazon to find the target audience.

Manual targeting can avoid any type of uncertainty or risk involved with reaching the target audience, which is why it is also an important step that must be considered. 

Both types of targeting can have different algorithms, as explained by Sellics

amazon ppc work

Step 6: Launch the ad campaign

After deciding the keyword, budget, and target audience, one can be set to place the PPC ad on Amazon to reach their desired customers and increase sales.

However, after putting the keyword, budget, and target audience details, the advertiser needs to evaluate the bidding war and the effectiveness of the ad strategy that is being placed. If the bidding costs are higher than expected, then it is important to reconsider the keywords which have been chosen.

After the selection of the right keyword, the advertiser can approve the ad and wait for the results. Once the ad is placed, it can be easy to monitor the results.

One can also have the Amazon mobile PPC for easy management and review of the ad that has been placed for the product. It will help in making quick strategic decisions. If there are any issues with the current strategy, then changes can be made to the technique so that the future results can be improved. 

All these steps can help achieve a high success rate in PPC as it covers the important considerations that need to be made by the seller to improve the product ranking and search visibility. Thus, all these steps should be followed. 

Is it worth it?

Amazon PPC always provides promising results to advertisers. It can help in improving brand awareness and product visibility which will support in becoming the top seller in your chosen product category. It is simply done by placing your product at the top of the search results when the desired keyword is inserted. 

This process can require high investment, but there have been an increased number of sellers using this service to foster growth. However, there will be a need to have a defined plan.

Sometimes one may require the PPC agency or PPC advertising services to help improve the PPC advertising management. It will help reduce the Amazon PPC cost so that this service can be used effectively to boost sales. 

For Amazon PPC management services, click here.

Picture of Zeeshan Riaz

Zeeshan Riaz

With education and experience in IT. Law and E-commerce industry, I have successfully helped more than 250 E-commerce businesses worldwide to reduce their operational cost with cutting edge eCommerce Marketing Services. I do manage a team of more than 250 people team which includes Amazon, eBay, Shopify, website development, SEO and SMM experts.

Copyright © 2024 Urtasker Inc. All Rights Reserved.