Amazon’s internal advertising system includes pay-per-click (PPC) advertising. Brands, agencies, and third-party sellers can use Amazon PPC to target specific keywords and generate product adverts in Amazon’s search results and rival product listings.
Sellers can then show Amazon customers who are ready to buy relevant products at the point of sale and track the performance of their advertising to see which ones are driving conversions. Three out of four Amazon merchants of all shapes and forms use this incredibly effective marketing strategy.
Before all that, let’s first try to understand just how important Amazon PPC really is.
The Amazon PPC advertising platform is offered to Amazon’s third-party sellers. It enables merchants to establish ad campaigns for their products, which they pay for every time a potential customer clicks on and views their ad.
It’s crucial to grasp Amazon’s major PPC KPIs before diving into the nuances of PPC. Each one is described as follows by Amazon:
- The percentage of attributed sales spent on advertising is known as the advertising cost of sales (ACoS). Total ad spends divided by attributed sales yield this figure. For instance, if you spent $4 on advertising and received $20 in attributed sales, your ACoS is 20% (i.e. $4/$20 = 0.20).
- Total product sales earned inside one week of clicks on your ads attributed sales. Due to the fact that sales data can need up to 48 hours to load, sales data is not accessible in the ‘Today’ date range and may be postponed until the ‘Yesterday’ date range. In the Campaign Performance report, you can see individual sales totals for advertised and other products.
- Number of times your ads were displayed. It could take about three days to delete invalid clicks from your reports once they’ve been found. Because of click invalidation, clicks from the previous three days may be altered.
How is PPC significant for Amazon sellers?
Ecommerce firms and sellers have enormous chances to prosper as consumer shopping turns online — and overwhelmingly to Amazon.com. But with an increase in online shopping traffic comes an increase in competitors vying for the most sales.
Having a successful PPC advertising plan for Amazon businesses of all sizes is almost mandatory. After all, Amazon has over 350 million products, and postings can get lost in the shuffle.
While your organic ranking — the position in search results where your products show naturally — is crucial, adverts help you expand your exposure on the platform.
Here are some tips on how to improve your Amazon PPC campaigns consistently:
Maintain a consistent structure for your Amazon PPC advertising
Your advertising campaigns all should have the same subject. They can be broken down in a variety of ways, including:
- Product Classification
- Best-Selling Items
Because of the overlap, if you don’t stick to the same campaign structure, you can end up with repetitive advertising. Keeping your campaigns organized will make them easier to manage and less complicated for you and your staff.
Amazon PPC ranking optimization
This method was created in an effort to boost the rank and position of your product listing on Amazon’s SERP for a specific keyword. The aim here is to have three unique sets of ad campaigns, each with bids and budgets that differ dramatically.
The bids and budget allotted to a keyword are determined by the listing’s search rank in Amazon’s search results for that search query.
The first step is to keep track of all of your top keywords for your listing and check where they rank on Amazon. Analyze your listing’s page rank and position before implementing the following strategy:
Page 5 and beyond
Suppose your listing appears on Amazon’s page five or six. In that case, it’s best to concentrate on a small number of keywords that convert well rather than all of the phrases that appear there. In this manner, you may save money and focus on terms high in sales but low in search results. The bid should be modest in this case.
Similarly, you can employ a more moderate strategy that concentrates on top-performing keywords for keywords that rank on the third and fourth pages. You must bid consistently over time to determine which keywords generate the most revenue. Then, using these keywords, optimize your advertising campaigns. As these inquiries begin to create conversions, Amazon will automatically improve your listing’s organic position.
Page 1 and Page 2
Finally, you should take a more aggressive approach for terms that rank on pages one and two. Because you’re only a few spaces away from the top slots, you’ll want to be as aggressive as possible in your bids to secure those spots and boost your product’s visibility.
You should also concentrate on the variations of these queries in order to increase revenues for them. Create a separate campaign just for this, with the match type set to cover as many permutations as possible.
Bonus Tip: Pay attention to keywords that aren’t bringing in any sales but are costing ad clicks while improving the campaigns. Make them negative keywords to avoid having to pay for these adverts. Negative keywords are extremely important in Amazon PPC and should not be overlooked.
Use the same ad group for similar products
When you create ad groups for your Amazon PPC campaign, you’ll have a list of items and keywords that you’ll use to target your advertising. Because all of the items in that category should appear for the keywords you’ve chosen, having products that don’t correspond to the keywords won’t result in conversions. If your ad group is focused on the product category of keyboards, for example, including a monitor in that part is unlikely to result in conversion because the consumer is looking for a keyboard, not a monitor.
The same method applies to ASINs that are priced differently for children. If you have numerous varieties, concentrate on the one with the highest price, and sales will eventually trickle down to the others. It will also maintain control over your ACoS. Place the most expensive variety in a separate campaign and focus on running adverts for that product solely, just as the approach above.
Consider using some automatic features
You can create either automated or manual ad campaigns on Amazon. While manual campaigns provide the most control, automated features might be handy. Keyword research is the most important automated function that can be advantageous.
After running an automated campaign for a product group for a few days, you can construct a list of the best search phrases for your product, which you can subsequently use in a manual campaign. If you’re running an automatic campaign for research, make sure to halt it, so you don’t waste money. This technique does not rule out manual keyword research, as it can uncover terms that Amazon may overlook.
Check that your selected keywords correspond to your product listings
Whether it’s paid or organic traffic, search engines want to give the most relevant results. Amazon will not display product advertising that does not match the keywords in a user’s search. This is why, whenever possible, you should incorporate your keywords in your product listings.
However, you should never go overboard when it comes to Amazon PPC ads. This can have negative implications and make it difficult for potential buyers to understand your product.
The way you showcase your products to the audience is one of the lesser-known strategies to position it properly on Amazon. You stand to gain a lot if you can vividly showcase the characteristics and benefits of your product in your description in a way that is intriguing, innovative, and engaging.
But, more importantly, targeting the less obvious, alternate keywords in your PPC ads will provide you with an advantage. This is because consumers sometimes come to Amazon looking for solutions rather than stuff. To put it another way, they won’t know what they need unless they see it for themselves.
As a result, as a vendor, you may identify the problems that your products solve and target them using Amazon Sponsored Products.
Keep in mind that the ad campaigns you run in this stage should be in addition to the ads you already have running. The goal here is to complement rather than replace existing initiatives. You can start small and work your way up. Simply toggle the campaign type to manual phrase and adjust it after a few weeks to boost its effectiveness.
Long-tail keywords allow you to be more particular and focused
Long-tail keywords are more specialized phrases that are inherently lengthier and more descriptive. You can benefit since your goods will be more likely to appear because there will be less competition for those keywords. Not only that, but consumers who are more particular in their searches are more likely to convert because they know exactly what they want to buy.
However, make sure that these keywords are relevant to your goods, or else this method would be useless.
Use negative keywords and keyword match types
Match types decide how closely your product advertising will match the keywords you’ve selected for each ad group. There are three different types of matches:
- Broad: If all of the words in a search query match the keywords in an ad group, the product ad appears. In this example, the sequence of the words is irrelevant. Misspellings, spelling variations, and synonyms are also possible matches.
- Phrase: When a search query uses the term or keywords specified in the order given, the ad appears. This is a precise order. Keyword variations in the singular and plural are also considered matches.
- Exact: The ad will only appear if a search query contains the exact keyword. Here, both singular and plural versions are considered matches.
Negative keywords, in addition to match types, are useful. These allow you to specify terms that should not be used to generate product advertising. This might be used, for example, to improve your Amazon PPC campaign by entering keyword terms that haven’t converted well, if at all.
Negative keywords have their own match types, which include:
- Negative phrases: Ads will not appear if the negative term appears in the search query as part of the phrase or in its whole.
- Negative exact: If the search query perfectly matches the negative keyword you entered, your product ad will not appear. Here, both singular and plural variants will be used.
Keep track of your spending and make adjustments based on product performance
Many products will usually be in the same ad group and have the same keywords. You’ll be able to see which products perform well in an ad group over time, as well as which ones don’t. Remove the products that do not perform well in an ad group over time to achieve the greatest sales for an ad group — and the best return for your Amazon PPC campaign.
This directs your impressions and clicks to the top-performing products that are most likely to convert. You can also manage where your ad appears on a page and how many clicks you get by modifying your bid price. You can make adjustments until your expenditure and sales are at their best.
As you may be aware, your Amazon PPC advertising will appear in one of three locations.
- On page one of the search results,
- The remainder of the search results (middle, bottom, and on the second page of Amazon SERP and beyond)
- Also, on the product information page and other pages outside of search results, such as the add-to-cart page.
You may look at the placement report for each Amazon campaign to discover which of the three places got you the most exposure and conversions. Based on this information, you may maximize your chances of landing conversions and brand recognition by setting the placement bidding multiplier for each placement between 0% and 900%.
Keep an eye on the keywords your competitors utilize
You can open up new prospects for your products if you can uncover the keywords that perform best for your competition. These can then be included in your efforts with the intention of achieving comparable outcomes. “How do I do this?” you might wonder. You can accomplish it manually, with a firm, or with the help of online tools.
Doing it without the help of a program can be highly time-consuming and tiresome. Therefore you’ll be better off using an online tool or partnering with a service like GrowAMZ. Many programs, such as Keywords Everywhere and Sonar, can assist you in identifying keywords worth targeting. More online tools can be found by searching for them on Google.
The goal of these tools is to provide you with more information about your competitors’ keywords in a shorter amount of time.
Products that appear in Google Ads can be targeted
This technique builds upon the preceding one. You should utilize product targeting not only to target your products but also to get top in your top competitors’ listings; listings that appear on Google Ads, Facebook ads and are promoted by influencers on Instagram, YouTube, and other platforms.
What you’re doing here is taking advantage of your competitors’ visibility. They’ve already put in the effort to get their listings a lot of attention. People are aware of their company’s brand. All you have to do now is add adverts for your products on those pages and profit from their purchases.
Increase your bid as you add new keywords
When adding new keywords to an existing Amazon PPC campaign, you should start with a higher bid price (about $0.75, but it varies by category). Because new keywords have no history, Amazon has nothing to evaluate when calculating ad placement. In this situation, you can get your new keyword off to a good start by having a higher bid price at first to acquire some impressions and clicks.
You can drop your bid price to try to find an appropriate level once you have some data with this keyword.
Whether you’re releasing a new product on Amazon or just getting started as a seller, long-tail keywords are the best place to start. Only once you’ve mastered and succeeded with these long-tail keywords should you move up in the pecking order and go for the generic, most-searched keywords. This statement also applies to Amazon Sponsored Products.
Because you will have difficulty competing with well-established businesses in the market as a new supplier, this PPC technique works. Suppose you start with the most popular keywords, which usually have a high level of competition and CPC. In that case, you will pay a lot of money without obtaining any brand awareness, let alone traffic and conversions.
Even if your listings receive ad impressions, your chances of obtaining sales are slim because your competitors have a much stronger market position and reputation for those generic keywords.
As a result, the strategy is straightforward: go for the long-tail keywords first, as ranking for those terms would be quite easy. You can quickly land sales and increase your sales history with less competition and high intent to purchase. You can start targeting the next-level keywords and progressively work your way up after consumers become more aware of your brand and the product achieves a higher rank in the Amazon SERP.
Allow time for your Amazon PPC campaign to succeed and be optimized
It’s natural that you won’t see effects straight away. Don’t be concerned! Before making any adjustments to your campaign, be patient and wait for some results.
While you wait for some initial results, you can employ advertising settings like budget caps to ensure that you don’t overspend. Remember that impressions and keyword bid prices are two of the most crucial metrics to monitor. By keeping an eye on these, you may alter your bid price to get the best balance of sales and expenses.
Understanding your target audience is one of the most important aspects of making ad campaigns work. It gets easier to create ad campaigns that convert once you understand the audience you’re pursuing.
You will tremendously benefit if you can figure out their internet activities, shopping habits, general hobbies, and so on. Suppose you’re offering a product that appeals to 18-34-year-olds, for example. In that case, you might run ad campaigns in the evenings or nights when they’re most likely to have free time to explore Amazon. Similarly, if you’re selling a product that’s excellent for stay-at-home moms and dads, running marketing campaigns in the afternoon may make more sense.
Bonus Tip: Run campaigns at different times of the day to figure out what the best time is to obtain the most conversions. You can then bid aggressively on your advertising during that period once you have it. You can also complement this effort with customized Headline Search Ads and Product Display Ads for your target audience.
You now have a comprehensive guide to assist you with your 2022 Amazon PPC strategy and beyond. It’s a lot to take on, and there’s a lot of trial and error involved here, but with some serious effort, you’ll be well on your way to dominating Amazon search results and earning sales like never before.