Advertising your brand and business idea on Amazon is one of the best ways to drive sales and improve brand awareness. Amazon is the world’s largest E-commerce platform, and there are millions of sellers competing with one another to take the top spot. For the same reason, Amazon is the third largest advertising platform as well, just behind Google and Facebook.
Advertising is the most popular and easy method to gain the attention of your target audience and generate revenues. The PPC method is used for advertising products on Amazon just like any other platform.
In this article, we will discuss what amazon ppc management is and how it works. Let’s get started
What is PPC (Pay-per-Click)
PPC is an advertising model used on the internet to boost traffic to a website. In PPC, a business owner who is an advertiser pays a publisher, who is usually a website owner, a search engine or any other online platform. Whenever a user clicks an ad and visits the advertisers’ website, the publishers get the payment for this click. It was first adopted by Google to advertise businesses and now this technique is being adopted by Facebook, Amazon, Yahoo and many other internet giants.
What Amazon PPC?
Pay-per-click advertising is a feature provided by Amazon Advertising. Sellers pay PPC only when a user clicks the ad, as opposed to seeing the ad before clicking. Amazon Advertising provides a range of benefits to sellers including brand awareness, sales, store visits, and more.
How does Amazon PPC work?
Amazon PPC is only applicable when there is a click on the ad shown, instead of just impressions. Some other platforms also charge for impressions as well, but that is not the case for Amazon. There is an auction bid involved in Amazon PPC services where several sellers submit a bid for an ad spot and the highest bid usually wins, however the winner of the bid submits the second-highest bid by another seller instead of what they offered.
Let’s explain it in simple words. Suppose you put the highest bid of $5 and the second-highest bid by another seller was $3. As the highest bidder, you win the auction, but you will pay $3 for the second bid offered, not the $5 you offered.
What ads can you use for Amazon PPC?
There are three types of ads you can choose for Amazon PPC, which are as follows:
- Sponsored products ads
Sponsored products ads promote only one type of product through their ads. Sellers use keywords to target an audience who search for that specific product. For example a seller may use keywords like“ Gaming laptop” or “Best gaming laptop under $500” to reach their target audience.
Sponsored products ads usually appear at the top of search results, sometimes within search results or product pages. You should keep in mind that the minimum daily budget for sponsored products ads is $1.
- Sponsored brands ads
Sponsored brands ads promote up to 3 products at a time, as opposed to sponsored products ads Sellers use targeted keywords to promote their products and create brand awareness.
There are some rules for sponsored brands PPC, such as products advertised should be new and cannot be related to adult content or already used products. Also, sponsored products cannot be of a closed category, they must be of a different category of the same brand. Daily minimum budget for sponsored brands ads is around $1.
- Sponsored display ads
Sponsored display ads promote a single product but unlike the previous two PPC methods, this method uses customer’s search history and products reviewed instead of keywords. It relies on machine learning and automation to generate traffic and revenue.
There are some rules for Amazon sponsored display ads. You cannot promote adult products, alcohol, drugs, weapons or fireworks. Sponsored products ads appear on your choice of place, it may be third-party websites or product details and product related pages.
What is Amazon PPC management?
Amazon PPC management involves managing a brand’s PPC campaign strategy and an advertising campaign budget to increase sales and achieve business goals. Urtasker, a leading Amazon marketing agency, offers additional Amazon marketing services that go beyond managing ad spend. Ad and campaign optimizations are done by using proven strategies designed to boost sales.
Some services offered by Urtasker related to “PPC management” include:
- Build Customized PPC Strategies
- Fix Existing Campaigns
- Maximize ROAS
- Improve Organic Ranking
- Analyze and Monitor Campaigns
- Manage All Amazon Ads
- Identify Incremental Sales Opportunities
5 reasons why you should use PPC management services
Many people don’t realize how difficult it is to advertise on Amazon. Hundreds of thousands of competing sellers compete to promote their products and get their name in front of shoppers. It is unlikely that you will increase sales or reach more shoppers even if you spend millions on advertising. You won’t see the results you expect from your advertising efforts if Amazon PPC isn’t incorporated into your strategy.
Besides lacklustre results, you may end up wasting money and time on an investment that yields low return on investment (ROI). Below are the following advantages of using PPC management services.
- A thorough keyword analysis and research will eliminate wasted ad spend
Your ads should appear in front of shoppers who are already looking for products similar to the one you offer. It is important to utilize the right keywords in the right way, otherwise you’re wasting money on clicks that do not result in any sales. The best way to improve the delivery of Amazon sponsored ads is to include relevant keywords and optimize with the best keyword match type.
- Negative keyword matching boosts return on advertising investment
To maximize your return on ad spend (RoAS), negative matching irrelevant keywords is essential. When you use negative keywords, Amazon excludes your ads from showing when they are searched with the terms or keywords you specify.
- Increase Amazon PPC profitability by developing an effective bidding strategy
Your bidding strategy needs to be tuned up like your car. Making sure things are running smoothly requires time, expertise, and frequent checks. In addition, if you do not do it, you will have problems. You can think of Amazon ad specialists as your mechanics, they can help you analyze your bid strategy with a critical eye because they understand PPC advertising inside out.
- Competitive analysis keeps you ahead of the game
The purpose of competitive analysis is to determine what your competitors are doing right and to find out how to improve upon them. In order to stay ahead of the competition, many brands hire an Amazon PPC manager. Your results will be better for ranking for high-volume keywords that your competitors don’t use. You’ll also spend less on ads, and you’ll earn more in sales.
- Continuously improve Amazon advertising campaigns by analyzing their results
Spreadsheets aren’t very appealing to most people. Though studying your Amazon PPC performance and product is time-consuming, it is a critical step toward improving your results.
Amazon PPC managers analyze their clients’ keyword, product, ad group, and campaign reports on a regular basis, but they also uncover critical insights relating to each of these aspects.
If you’re looking to get more from your Amazon PPC efforts, hiring an expert is your best bet. An Amazon PPC optimization service will work with you to optimize your ad campaigns, decrease your advertising cost of sales (ACoS), and increase your ROI, all while taking advantage of Amazon’s highly-effective advertising services.
Checkout Urtasker Amazon PPC management services. They have more than 200 experts who can help and guide you on your journey to become a distinguished seller on Amazon. They have already helped more than 1000 small business owners through their Amazon PPC services in setting up and getting sales to their stores, you can be one of them as well.