Learn more about Amazon PPC:
You must have heard of Amazon PPC advertising if you’ve ever sold on Amazon. It is a must-read if you plan to sell on Amazon. Amazon PPC is a hot topic. Learn how it can benefit your Amazon FBA business.
What is Amazon PPC, and how does it work? These are key questions many sellers struggle to answer. It is important to understand the basics of Amazon advertising if you are new to it. You must optimize every dollar spent when you pay to play.
This complete Amazon PPC Guide will answer your questions and provide the basics.
What is Amazon PPC, and how does it work? What is the Auction?
Amazon PPC, also known as sponsored ads or pay-per-click, is a well-known platform that helps sellers increase their product sales online. The pay-per-click model (PPC) allows to pay Amazon for the clicks on an ad. A well-managed and optimized PPC campaign can greatly increase the product’s visibility as well as sales. This will increase the product’s organic rank and ensure long-term success.
What is the Amazon PPC auction?
It is easy to participate in the Amazon PPC auction. Each advertiser submits an initial bid and then competes for a spot in the auction. The bid of the highest bidder does not necessarily reflect the cost per click.
Let’s say you bid $2.00 on a keyword. The default bid for the keyword is $1.50 by the second-highest bidder. You will be the highest bidder, and you will be awarded the ad spot. However, you don’t have to spend $2.00. The other bidder will pay $0.01 less. You will pay $1.51 rather than $2.00.
This means that although the CPC for keywords or targeted ASINs will be determined by the highest bid, it doesn’t always have to be the highest.
Why Amazon Pay Per Click (PPC)?
When Amazon is mentioned, advertising isn’t the first thing that people think of. Amazon has grown to be a major player in the advertising industry over the years. Amazon’s advertising revenue grew 51% from 2021 to $5.4 billion during the third quarter of 2020. Although Amazon is not yet the dominant player in advertising, it has seen a rapid increase in its market share.
So why is Amazon PPC so popular among sellers?
Answer: Return on investment. Because Amazon is a retail platform, users who search for a term on Amazon are looking for products. These users are actively looking for a product and are ready to buy it. If the customer is in the market for the product, your ads will convert more.
It is constantly growing. This is especially true for 2020. Many retail shops had to close, and customers turned to online shopping to purchase essentials and fulfill their shopping requirements. This shift in consumer behavior is reflected in the revenue figures for 2020. In Q3 2019, Amazon’s revenues rose from $69.98 million to $96.15 billion!
Amazon seems to have a captive customer base that spends more each year. Amazon PPC allows you to target this consumer base. If a PPC campaign goes well, there is a lot of money to be made.
When is the best time to launch Amazon PPC ads?
Another question new sellers often ask is, “When is the best time to launch a PPC campaign?” When is the best time to launch a PPC marketing campaign? There is no definitive answer. As soon as you have created a new listing, we recommend that Amazon PPC ads be launched.
Data is essential to create a successful PPC campaign. You need actionable data to make your PPC campaigns successful. You must keep working on optimizing your campaigns to achieve positive results. The optimization process is iterative. It can be difficult to get visibility early in the product’s life cycle. Amazon PPC helps with that problem.
How does Amazon Paid Search work?
Here’s a quick overview of Amazon’s paid searches. It’s not as difficult as it sounds. It’s obvious that Amazon Marketplace receives millions of searches every month. These can be short phrases or long phrases, also known as long-tail keywords. These shoppers are people who want to purchase products.
It is important to understand that potential buyers will not window shop on Amazon. They’re not there to find ideas. They’re ready to buy. They simply need to go to Amazon and type in the product name.
Amazon then compiles a list that it believes will meet the customer’s requirements. This “organic” results list of products is now displayed.
However, “paid search results” is also available. These search results are displayed above all organic results, no matter what type of search you make. Although they are displayed above the organic search results, sometimes they appear between them, on the right, or below the organic search result.
Amazon’s sponsored advertising program is very simple. Amazon’s paid search advertising, and marketing options follow an enhanced, auction-based approach where sellers and vendors set their daily budget for ads. The greater the chance of an ad being displayed, the more a seller or vendor will pay.
Are there hidden fees with Amazon PPC advertising?
The simple answer is no. Pricing is straightforward and transparent. Amazon ads are only paid when someone clicks them. You can also control how much you spend by setting your daily PPC budget and bidding. The second-highest bidder in an ad auction will determine the amount you pay per click. You will be the highest bidder, and you will pay $0.01 more than the second-highest.
Can Amazon PPC increase organic rankings for FBA and FBM products I am selling?
It can. Amazon’s PPC sales can have a direct impact on a product’s organic ranking on Amazon. ‘
Amazon PPC ads can have a positive impact on your FBA and FBM products’ organic rankings.
This is especially important for new products. This is especially true for new products that lack sales history and performance data. This can negatively impact organic ranking. Amazon ads can help change this by driving traffic to FBA and FBM product listings, thereby increasing sales as well as encouraging reviews that will drive further conversions.