How To Set Up An Amazon PPC Campaign?

Omer Riaz December 31, 2021

Learn how to set up an Amazon PPC campaign

PPC campaigns on Amazon can play a critical role in driving traffic to your product listing, and they are especially vital if your listing has just been launched. PPC will help you operate automatic and manual campaigns effectively when you understand them. This elevates your need to understand how to set up an Amazon PPC campaign.

We will go over what PPC is, what you can do to set up a PPC campaign on Amazon in this blog.

 

how to set up an amazon ppc campaign

How do you define PPC?

Pay-per-click is an advertising term that refers to the cost per click on an advertisement. The method uses online, mobile, or TV ads that advertisers pay each time someone clicks them or views them.

In layman’s terms, what does this mean? Let’s say you are interested in advertising your new product on Amazon. When setting up an Amazon campaign, you need to include details such as keywords, budget, and other crucial information.

The Benefits of Amazon PPC

The following are some benefits of Amazon PPC:

  • You will be able to reach a wide range of people who may not have heard of your product or service otherwise if you advertise on the most popular website in the world. As soon as you have set up a good campaign, you will begin getting sales in your stores. 
  • PPC campaigns on Amazon can be set up very simply by anyone who has an Amazon account. The budget is just $10-20, so anyone can try it out.
  • Amazon PPC campaigns let you target specific customers based on their location, keyword, or product category.
  • In PPC, you can choose two types of campaigns for your store: manual and automatic. 

The two types of campaigns will be reviewed in the article soon.  

What Kind Of Ads Can You Use For Amazon PPC?

With Amazon PPC, you can choose from three types of ads:

  1. Sponsored Products 
  2. Sponsored Brands 
  3. Sponsored Display

What are Sponsored Products?

Advertisements that promote a single product are called Sponsored Products on Amazon, shoppers are targeted via keywords in these ads. To qualify as a Sponsored Product, products must also meet several requirements, they must qualify for the Buy Box and fit within the categories that are available for advertising. Products in closed categories, such as adult products, used products, and refurbished products, cannot be sponsored.

For sponsored products, $1 is the minimum budget per day. According to Amazon, a budget of $5 or more is recommended, but your bid may vary depending on various factors such as your product, your competitors, and your keyword selection. Starting small and increasing your budget as your campaign performs will yield the best results.

Who can use sponsored products?

  • Selling professionals
  • Suppliers
  • Vendors of books
  • Authors of Kindle Direct Publishing (KDP)
  • Agencies

What are Sponsored Brands?

You can promote up to three products and an Amazon store through sponsored brands. Advertising for sponsored brands uses the same keywords that advertisers use for sponsored products. In addition to generating product sales, Sponsored Brands promote brand awareness while shoppers browse potential purchases. Advertisements sponsored by sponsored brands must be for brand new products. Refurbished, used, and adult products are not permitted. Sponsored brands require a minimum budget of $1 per day.

Who Can Use Sponsored Brands?

Sponsored brands can be used by the following parties:

  • Amazon brand registry professional sellers
  • Suppliers
  • Vendors of books
  • Agencies

What is a Sponsored Display?

A Sponsored Display promotes one product only. The Amazon PPC advertisement allows advertisers to target users based on their shopping activities, such as purchases or products viewed. In Sponsored Display, your promoted products are not advertised by keywords but by machine learning and automation. Advertisers are prohibited from promoting different products through sponsored display ads, such as adult products, alcohol, prescription drugs, and devices. 

On sponsored display ads, you can spend as much as you like. You should, however, start small with your Amazon ads. Investing in a modest budget at the beginning will allow you to gauge the performance of your ads and determine if they need to be further enhanced.

What are two campaign types you see in Amazon PPC?

Amazon PPC Automatic campaign

You can choose your target keywords automatically with this type of campaign. Therefore, you cannot choose which keywords to pick for your campaign. According to the content of your product listings and customer searches, Amazon determines which keywords to include in your campaign. This depends on how to set up an Amazon PPC campaign. Bids must be made for the entire campaign or ad group, not individual keywords.

Amazon PPC Manual campaign

A manual campaign, in contrast to an automatic campaign, gives you the choice (and customization) of what keywords you want to use in your ads. If you are running an automatic advertising campaign, you can analyze the keywords and evaluate their performance by using an Amazon keyword tool. There are three types of keywords you can target: broad, phrase, and exact match.

The manual campaign also has the advantage of allowing you to bid on each keyword independently, thus giving you the option to set different amounts for each. As a result, you will have the opportunity to bid more aggressively on top performers to help you reach your sales goals faster.

How to run an Amazon PPC campaign?

When starting your PPC campaign, or overlooking an already running campaign, it becomes necessary for one to know how to set up an Amazon PPC campaign. Follow the instructions below to start your first PPC campaign

  • To access Campaign Manager, sign in to your Seller Central account, then on your homepage, hover over Advertising, and then click on Advertising:
  • Set up your campaign budget and duration” – this is the first step on the Campaign Manager page. We will briefly touch on a few points related to this section, but most of what I say here is fairly basic:
  • You will have the ability to create more than one ad group within your campaign, so name your campaign broadly. You may name it “Winter 2016” if you are running ads during January and February. The campaign can be divided into multiple ad groups with different keywords. On the next page, you will need to name your ad group. Your ad groups might be named “Winter 2016 A” and “Winter 2016 B”. This information is for your reference only. 
  • Keep in mind that your daily budget adds up quickly when setting your budget. If you budget $25 a day, you will pay $350 in two weeks. To be more specific first, determine your monthly budget, then determine your daily budget.
  • You should always choose an end date rather than a beginning date when choosing the beginning and end dates of your campaign. It’s important not to burn through your advertising budget without realizing it if you’re busy with another project. If you wish to get enough information from your report, you can simply choose one month.
  • By choosing “Automatic targeting”, Amazon creates a keyword campaign based on the item you’re advertising. Using this method can be advantageous if you just need to track customer searches. As was discussed in the automatic and manual campaign definition sections, “Manual Targeting” allows you to select which keywords you want to use for your campaign.

Click “Continue to next step” after entering your information and making the appropriate selections.

You will be asked to name the next group of ads on the next page. You can add more than one ad group to a campaign, so you need a name that distinguishes the group from others.

Choosing which product to advertise is the next step. Each campaign has to advertise only one product.

  1. Your next step is to decide how much each keyword is worth to you. Setting your daily budget and bid per keyword will determine how many clicks you receive per day. Your ad will only receive 10 clicks per day if you have set your daily budget at $10 and your keyword bid at $1.
  2. In your campaign, the most important and most difficult part is choosing the right keywords. You don’t need to know everything about keywords right now, most of what you’ll learn will come from experimentation.
  3. As you can see from the screenshot, Amazon suggests some keywords. If you do not have a list already created, you may simply opt to select one or more of the recommendations. You will see the keywords below after you choose the suggestions. You can also provide your keyword by clicking on “provide your keyword”, and then entering one word per line. The matching will also be based on a “Broad” match, a “phrase” match, or an “exact match”
  4. At the bottom of the screen, click on “Save and Finish” once you have finished entering your keywords. If your campaign information was successfully filled out, the page will automatically take you back to your Campaign Manager where you should see a “Success!” message. You can expect the ads to appear in search results about an hour after the campaign starts.

How to set your Amazon PPC campaign structure?

After learning the basics of Amazon PPC, let’s move on to how you should start your first campaign.

  • Choosing your products to advertise

Choosing which products to promote is the first step. A person who knows how to set up an Amazon PPC campaign will know exactly how to set up an Amazon PPC campaign and therefore efficiently choose which products to choose. There are probably a variety of products you will choose to advertise regardless of whether it’s Sponsored Products, Sponsored Brands, or Sponsored Display. Consider how your Sponsored Brands ads will drive clicks, conversions, and sales if you’re launching one. The following are a few factors to consider when selecting your products: Product sales, ranking, and popularity

In Sponsored Brand ads, you could promote a high-selling product for maximum brand recognition. In addition, you can use Sponsored Products to market a low-ranking new product from your organization.

  • Research your keywords

When creating a manual campaign, research keywords after selecting your products. A manual campaign and an automatic campaign will be created for each product (ASIN). Let your automatic campaign run for a minimum of two weeks before adding a manual campaign. Take a look at the Search Term Report after you’ve compiled an appropriate amount of data and select your highest-converting keywords for the new manual campaign.

You will need to create three different Ad Groups for your manual campaign (for each keyword match type): one for Broad Match, one for Phrase Match, and one for Exact Match. You will need to determine a budget for your manual and automatic campaigns alike. You’ll need to set a daily bid for your manual campaign as well. Start with the estimated bid that Amazon provides and adjust accordingly. 

  • Your product listings should be optimized

You should optimize your product listings regardless of whether you use automatic or manual campaigns. The best way to make the most of your ad campaign budget is to optimize your product listings for search engine optimization (SEO). Here, you need to combine your knowledge of how to set up an Amazon PPC campaign and your keyword research capabilities. Also, it will help your chances of ranking higher in organic search results on Amazon, so don’t skip this step. When you compiled keywords for your product in step one, include them in the following ways:

  • Title
  • Description
  • Features

Create your PPC campaign on Amazon and start advertising 

The keyword data and the optimized product listings are now in your hands. Follow the instructions above to set up your campaign, once the campaign runs, see the results. If you aren’t getting good sales from your current products, monitor your campaign and change products. Consider sponsoring products first and then sponsoring brands later. 

How to optimize PPC campaigns on Amazon?

In this section, we will discuss some useful tips to help you maximize your PPC campaign and improve your conversion rate. 

  • If customers buy through Amazon PPC using their email address, offer them a discount
  • When the order is purchased through Amazon PPC, provide additional services to the customer (such as free shipping).
  • If Amazon PPC isn’t your only option, provide alternative purchase methods on your site
  • If you created a keyword list for this campaign, include keywords relevant to your product or service description
  • Provide high-quality, attractive product or service images whenever possible. When it comes to buying something, people want to see what they are getting.
  • Whenever you have the time or the budget, include a video on your product pages. Videos can boost conversions by as much as 80%.
  • Give Amazon PPC customers free shipping when they spend $25 or more.

Common mistakes to avoid when running PPC campaign on Amazon

We will list a few mistakes that sellers commonly make on Amazon, and you should try to avoid these mistakes. 

  • An ad group with too many keywords is sometimes created by sellers. Make sure to use only relevant keywords for your campaign. If you use too many keywords, you will waste a lot of your budget without ever getting any conversions. You should always include long-tail keywords, which have the highest conversion rates. 
  • The sellers set their bid cap at $0 and do not change it as the auction goes on. To see results from Amazon’s PPC campaigns, one must be patient and invest some time and money.
  • Using the wrong product or service to create a campaign. It is advisable to avoid advertising a product that has low sales or conversion rate at the time of your campaign. Only promote products that your target audience is interested in. 

Conclusion

Selling on Amazon can be intimidating when it comes to Amazon PPC. You must understand how to set up an Amazon PPC campaign and how it can be managed. The first time you run an automated campaign, learn the ropes before you move on to manual campaigns. Your journey to successful Amazon marketing begins with setting up a PPC campaign. 

If your first campaign fails to meet your expectations, don’t get discouraged. Your advertising spending will decrease, and your sales will increase as you become more efficient in setting your advertising budget and choosing effective keywords.

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