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What is Amazon PPC | Amazon PPC management & Optimization

 

Amazon PPC



Amazon PPC is a paid process of advertising your products on amazon. This advertising model helps sellers to increase their product visibility & sales. With PPC, an advertiser pay amazon when customer click on the product. Pay per click as the name suggests charges the seller when a consumer click on the product ad. Amazon will charge you when customer click, whether he buy the product or not.

There are three types of ads through which you can advertise your products
  1. Sponsored Products
  2. Sponsored Brands
  3. Sponsored Display Ads

Sponsored Products ads appear on amazon and helps in promoting specific products. When a customer clicks on the ad they are directed towards the specific product page.  Sponsored product ads are most popular because you can use them without brand registry.

Sponsored Brand ads allows you to advertise your brand with multiple products in form of headline on the top of amazon search results. Customer can be directed towards your amazon store through sponsored brand ads. You can use this ad feature if you are brand registered. 

Sponsored display ads also known as product display ads allows you to show your ads to customers who have previously viewed your product or purchased from you. Sponsored display ads are available to sellers with brand registry. 




amazon PPC optimization

How does Amazon PPC works?


Let me explain with an example

A shopper search a keyword ice cream scoop. Now amazon will show products having keyword "ice cream scoop" in their content and appear as sponsored products. In this way the product with highest bid will appear as first then second and then third.  When shopper clicks on the ad the advertiser will pay the amount of CPC to amazon. 

Two types of products are appeared on search results when buyer search specific keywords, organic products or sponsored products. As I said earlier, sponsored products appeared through PPC advertising and organic products are already stable brand products.

For showing sponsored ads sellers are required to bid on keywords that buyers will likely to search. Day to day budget is set for every keyword.


Key Features of Amazon PPC


ACOS:  Advertising cost of sales is  how much you spend on amazon ads in order to generate revenue. You can simply calculate the Acos of your product with taking your ad spend divided by the number of sales. For example, if a product generates $300 sales with a spend of $84, your Acos will be 28% ($84/$300)

CPC: Cost per click is the cost amazon will take when buyer click on your product ad. It does not include whether the buyer purchase your product or not.

CTR: Click through rate is the ratio of how many times a buyer clicks on your product. CTR can be calculated through number of clicks divided by number of impression multiply by 100.

Impressions: It is the number of times your ads are viewed by customers.

ROAS: Return on ad spend is opposite to ACOS. It helps you to identify whether your PPC campaigns are profitable or not.


Difference Between Automatic and Manual Campaigns


There are two type of campaigns you can set to sponsor your products. One is automatic and the other is manual.

When you go for automatic campaign amazon will show your product if its relevant to the keywords used in your products. Amazon will display your ad by getting the keywords from your product listing content. You can then see the search term report and analyze which keywords are performing well in terms of impressions, clicks and sales.


When you go for manual campaign you can manually select the keywords which you want to display ads. For manual campaign it is necessary to perform deep keyword research so you will know which keywords are highly searched on amazon. In manual campaign you control everything regarding the ads.


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Amazon Keywords Match Types


There are three keyword match types in PPC for targeting campaigns 

1. Broad Match: 

In broad match types your product will show up broadly when buyer perform a search. For example if your product is "Pizza peel" if and customer search pizza peel your product will show up, if customer search "wooden pizza peel" your product will show up, if buyer search "large metal pizza peel" your product will show up in the search results. It is a great way to optimize your ads visibility through different search terms.

2. Phrase Match:

With phrase match your product will show up when someone searches for your exact keywords along with suffixes or prefixes.  For example if your keyword is coffee mug, then your will also show up when someone searches coffee mug for women, green coffee mug etc. Phrase match is between broad match and exact match.

3. Exact Match:

In exact match type your product keyword should be exactly the same as buyers are searching without any word or phrases. For example, if your keyword is "Large wooden pizza peel"  and customer search "large pizza peel" your product will not show up in the search results.



amazon ppc optimization strategy
How to create amazon PPC strategy?

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How to create Amazon PPC Strategy?


Here are some points about how to create amazon PPC strategy

  • In the start we create PPC campaigns as a test to see which keywords are performing well. Then we add those keywords in the next campaigns.
  • Before starting PPC perform detailed keyword research and find out both related and relevant keywords.
  • Start PPC with automatic campaigns and see which keywords are getting good impressions and click. Add them to use later in manual campaigns
  • When starting ad campaigns set daily budget 50-100% higher than what amazon suggest and give campaigns at least two weeks to work better.



Benefits of Amazon PPC Optimization Campaigns


Higher Ranking:

Using amazon PPC will give your product higher rank in amazon search engines. This will increase your product visibility to thousands of sellers and helps in brand building. The best part of PPC is that you will only be charged for clicks not for impressions.

Buyers Friendly Ads:

The best part of using PPC ads is that you pay amazon to show your products to the buyers who are interested in buying your product. Amazon customer explores the website for buying products and whenever they want they can buy your product.

Price Benefits:

You can set the price of your ads according to your benefit. The more you pay for your ads the more your products will reach to the buyers. The buyer creates his own budget and pays for the maximum bidding amount only.

Keep an eye on ads performance:

There is a backend system of amazon PPC from where you can track the performance of your ads. You can create and delete campaigns according to the performance of ads.


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