Why Is Ppc Important For Amazon Sellers
As consumer shopping increasingly shifts online and, ecommerce brands and sellers have immense opportunity to succeed. But with that influx of online retail traffic comes more competitors looking to capture the most sales.
In 2021, having an effective PPC advertising strategy is all but essential for Amazon businesses of all sizes. After all, there are over 350 million products on Amazon, and listings can easily get lost in the noise.
Amazon Keyword Match Types Differences:
- Broad Keyword Match
Pros and cons of Broad Keyword Match:
Broad match targets an extensive range of search terms including abbreviations, acronyms, and synonyms:
- This usually means higher visibility and sessions for these keywords, as shoppers can use a broader combination of search terms to trigger your ad.
- Broad match can turn out to be extremely expensive and can drain your money inviting clicks from irrelevant ads and search terms, like the example illustrated above.
- Broad match is a great way to target more people and get more visibility for your listing.
You could run a broad keyword campaign for a specific period, analyze the data, and then fine-tune the keywords according to the search terms.
- Phrase Match
The phrase match is where you specify a phrase and the keywords are matched with terms before or after. The critical feature of phrase match is that it allows you to control the word order. Variations may include misspellings, singulars & plurals, stemming, etc.
Example: skiing gloves, ski gloves, abbreviations, and acronyms.
Pros and Cons of Amazon Phrase MatchType:
Phrase match displays the ad only when the search term is the same as the keyword, but additional words can be added before or after the keyword.
- Exact Match
Pros and Cons of Amazon Exact Match:
Amazon PPC Ad Campaign Strategy
We recommend a robust 3 step process to make the most of your Amazon PPC campaigns.
Step 1: Activate Auto Campaign High Bid
Use Negative Keyword Match To Boost Advertising Roas
Negative matching irrelevant keywords is essential to maximizing your return on ad spend .
If youre not using negative keywords, youre likely paying for clicks that have no chance of converting into a sale.
Negative keywords tell Amazon to exclude your ads from showing on product searches with those terms or keywords. For example, if youre a shoe company that sells only mens shoes, youd want to add womens shoes as a negative keyword so you dont waste ad spend on searches that arent relevant to your product.
Negative keyword matching is one of the most useful tools in the Amazon advertising toolbelt, and an experienced advertising agency can help you thoroughly examine your campaign data to uncover the keywords that are costing you money.
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How To Get Started With Your First Amazon Ppc Campaign
Now that you have a background in Amazon PPC, are you ready to launch your first campaign?
1. Choose your products to advertise
First, you want to decide which products to promote.
Whether youre creating a Sponsored Products, Sponsored Brands, or Sponsored Display, you will probably select a few different products to advertise. If youre launching a Sponsored Brands ad, think about how your products will work together to drive clicks and sales.
A few factors you can use to choose your products include:
- Product sales, Ranking, and Popularity
For example, you could advertise a high-selling product in a Sponsored Brand ad to maximize brand awareness. Or, you could use Sponsored Products to promote a brand-new, low-ranking product from your company.
2. Research your keywords
Once you select your products, research keywords if youre creating a manual campaign.
When you advertise on Amazon, you have the option to create manual or automatic campaigns. With automatic campaigns, Amazon compiles keywords for your ad to target automatically. In comparison, manual campaigns rely on you to supply keywords.
Amazon recommends beginning with automatic campaigns and then moving onto manual ones.
These tools will provide you with the monthly search volume, average CPC, and competition for searches on Amazon.
3. Optimize your product listings
How Can You Structure Your First Campaign
To be able to choose the best structure for your first Amazon PPC campaign, you must first determine which type of ad is right for you . From there, you can continue with determining your mode of targeting, etc.
If youre planning to create a Sponsored Products campaign, you may check out our article entitled for a detailed, step by step guide.
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Waterfall Campaigns To Find The Sweet Spot Of The Bid
Automatic campaigns are great tools for identifying new search phrases you can then put into your manual campaigns, and often they can be running profitably as well.
But most Amazon sellers only have 1 automatic campaign, missing out on an opportunity to find the sweet spot of the bid.
To do this we create 5 automatic campaigns with a range of different bids to see which one performs best, then we can use that data to set the right bids for our other campaigns.
Dont make the mistake of setting your bids and forgetting about it you might be bidding far too high or low to get the best results!
How Can I Optimize Amazon Ppc Campaigns
How to optimize Amazon Sponsored Products campaigns
If you would like to improve the performance of your campaigns, you have some key tools at hand:1. Optimize product informationTo successfully place PPC Ads on Amazon, an optimized product page is a must! Like in Google Ads, product information constitutes the foundation of your Sponsored Products campaign. Establish a solid foundation to minimize the bounce rate and attract conversions at every opportunity. Check out the article If you have already optimized your product page and got your products into the BuyBox, you can think about the detailed campaign setup.2. Product categories:Organize your product inventory based on Bestsellers, brands or categories. This will help you to keep an eye on your products and identify the right products for your Amazon PPC campaign.
Organize product inventory
3. Campaign structureCreate your campaign structure that focuses on the requirements of your business. Here you can differentiate whether you would like to advertise Bestsellers or niche products in your campaign, and whether you would prefer to optimize manually or automatically. You should ask yourself if a granular structure is the right one in your case. Creating a separate campaign for each product is particularly worthwhile for top sellers. Learn more in our
Amazon Advertising campaigns dilemma – effort vs. controllability
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When Should I Launch Amazon Ppc Ads
This is another question that new sellers usually have. What is the perfect time to launch a PPC campaign? Unfortunately, there isnt a conclusive answer. We recommend launching Amazon PPC ads as soon as you create a new listing.
To create an effective PPC campaign, you need data. To get actionable data, you need to launch your campaigns as soon as possible. The optimization process is iterative, so you need to keep at it to get positive results. Early on in the product life cycle, it is also difficult to gain visibility, and Amazon PPC helps solve that problem.
What If Your Ppc Ads Are Not Yielding Much Data
It’s been 14 days. You’re sure your data is accurate. But you don’t have sales, clicks, or impressions. If you don’t have enough data, that means you have one of two errors:
1) Your bids were not high enough,which results in your ads not being visible enough. This is often indicated by low impressions.
2) Your daily budget is too low. Raise your budget.
Make sure your keywords are relevant. Sometimes an adâeven if you’re bidding high on a large budgetâwill not show up if your listing is not relevant to that keyword.
Once you have raised your bid and your budget , you need to run your ads for another 14 days in order to collect the data you need.
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A Final Word On Amazon Ppc
If youre an Amazon store owner, and youre not running Amazon PPC ads, youll want to look into this ASAP.
At the end of the day, you cant just set up a store, then sit back and expect your customer to magically stumble upon your store. You need to drive traffic to your store and running PPC ads is the best way of doing this.
Now, we get that running Amazon ads is pretty intimidating but all you have to do is follow our step-by-step guide , and take it from there.
How Does Amazon Ppc Work
Before you start using Amazon PPC, its helpful to know how PPC on Amazon works.
Here is a breakdown of how the Amazon ad auction works for pay-per-click ads:
The fact that Amazon operates on a second-price auction catches the attention of many sellers.
What is a second-price auction, and what does it mean?
With a second price auction, the winning bidder doesnt pay their winning bid. Instead, they pay the bid of the second-highest bidder. For example, if you bid $5, your friend bids $4, and your cousin bids $3, you would win the auction and pay $4 because that was the second-highest bid.
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Creating Headline Search Ads
Step 1 Log in to Amazon Seller Central and select Advertising > Campaign Manager.
Step 2 Scroll below the graphs and click on the yellow Create campaign button.
Step 3 Choose the gray sponsored brand ad Create button.
Step 4 – Fill in the information on the Settings section of the Create campaign page.
Step 5- Select three or more products and edit the appearance of your ad.
After you edited your sponsored brand ad campaign settings, you can select targeting keywords or products.
Step 7 Launch campaign
Amazon Ppc Advertising: What Is It & How It Works
If created and managed properly, an Amazon PPC advertising campaign on Amazon can help you sell more products faster, while increasing your organic rankings.
A study about Amazon shoppers behavior showed that:
- 70% of Amazon searchers never click past the first page of search results.
- 35% of Amazon searchers click on the first product featured on a search page.
- The first three items displayed in search results account for 64% of clicks.
These statistics can show you how to make Amazon work for you, to increase your sales and customer base.
What is Amazon PPC?
Amazon PPC is the advertising platform Amazon makes available to its third-party sellers. It allows sellers to create ad campaigns for their products, and then charges them each time a potential customer clicks and views their ad.
Lets talk, first, about the Amazons key PPC metrics:
- Impressions: the number of times your ads were displayed.
- the number of times your ads were clicked.
- Attributed Sales: the total product sales generated within one week of clicks on your ads.
- Advertising Cost of Sales : the percent of attributed sales spent on advertising. This is calculated by dividing total ad spend by attributed sales.
Why is Investing on Amazon PPC important for Amazon Sellers?
How to define a high-level Amazon PPC strategy?
You should check our where show you the high level trending tips of improving your ROI and decreasing your ACOS!
What are the types of Amazon PPC ads?
There are a few different types of Ads:
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Some Amazon Ppc Terms You May Not Know
When I described that method above, I threw out a bunch of PPC terms. Here is a glossary to catch you up to speed.
ACoS: ACoS stands for advertising cost of sale, and it is the percentage of how much you spend on ads compared to a sale. It is calculated by ad spend/sale. The average ACoS for our users is 30.1%
TACoS: Target ACoS is where you want your ACoS to be at a campaign level. Low ACoS means high profitability and low visibility and high ACoS is higher visibility and lower profitability. High ACoS isnt a bad thing as some sellers think. I often compare it to buying an ad spot in the Superbowl. The price will be higher, but the brand awareness and sales potential are infinite. Before deciding your TACoS, figure out your breakeven ACoS.
Keyword Match Types:
Broad: The most general type of match type. We want to put our first auto campaign in broad match to cast a wide net of possible search terms we can show up for. As an online advertiser, we have no idea what our products can show up before because we cant predict most user behavior. Broad match terms are also the cheapest.
Phrase: This match type is a little more specific and little more expensive. Phrase match encompasses phrases your search term might appear in.
Exact: This match type is exactly what it sounds like exact match is the most expensive and specific match type.
Impressions: How many times customers have viewed your ad.
: How many times customers have clicked on your ad.
How Do I Know If A Product Is Too Competitive Using The 25 Rule
Another benefit of using Keyword Scout and the 2.5 Rule is knowing whether or not a product is too competitive. You may have noticed from our list of keywords under 2.5% of our target sales price, those keywords have relatively low search volumes. This is probably a signal that garlic presses are far too competitive on Amazon. Extension confirms this giving it an Opportunity Score of 4 High Demand with High Competition.
As a rule of thumb, you might try to get the sum of the search volume for each of your 2.5 Rule keywords to be 3,000+ monthly searches. Any less than that, and you might find it difficult to move inventory. Furthermore, try not to leverage the monthly searches on only one keyword, especially if its something obvious or short tail.
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How Does Amazon Ppc Work For Amazon Sponsored Products
Amazon Sponsored Products is a pay-per-click ad format that works through a second price auction based on keyword bids. In order to place Sponsored Products ads, sellers and vendors have to win an auction for the available ad space.
Plus, sellers and vendors can only place Sponsored Products ads if their respective product is offered in the so-called Amazon Buy Box. The big advantage of the Buy Box criterion is that as a seller, you have a very good chance that customers will buy the product from you. The other way around: if dealers could advertise products without being in the Buy Box, it is very likely that the purchase would go to the dealer who is currently in the Buy Box. Your ad would increase their conversion rate, but probably not yours.
Since Sponsored Product ads are linked to the Amazon product inventory, they are not displayed for unavailable products.
Get Professional Help With Online Advertising
PPC on Amazon offers your business an effective way to sell your products on the worlds biggest ecommerce platforms. Building and managing an Amazon PPC campaign, however, requires time, especially for companies with an extensive product catalog.
Thats where an like WebFX can help.
With a team of more than 200 specialists, as well as a proven ecommerce track record , were a trusted choice for sellers and vendors looking to advertise their products on Amazon with zero hassle.
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Which Keyword Tools Can I Use For Amazon Ppc
To master this balancing act between expenses and accuracy more effectively, a variety of small tools offer support in manual keyword optimization. Keyword management is a central element in campaign optimization that requires a lot of maintenance. Therefore, we take a closer look at various keyword tools:
Amazon Ppc Is A Specialized Skill
Digital marketing is already hard as it is, what with the different ways to advertise your store on the Internet. It can get confusing. Amazon PPC is a specialization that most marketers don’t have the proper skill set for. Much like how a doctor hones his discipline to treat patients better, so do digital marketers.
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What Are The Different Match Types
When targeting keywords, Amazon will ask you to choose a specific match type to determine the degree of match between your chosen keywords versus the customer search terms. You can find three match types on Amazon. These three come with various degrees of monitoring and ad targeting precision requirements.
This match type includes search terms that are related to your keywords. For example, if your keyword is modern home furniture, the broad match would include search terms that contain this keyword . Although this type would have the poorest performance of all the 3 types, it gives you a lot of potential customer search query data based on your keyword.
This match type includes search terms that also contain the words in your chosen keyword, but in the exact order. For example, if your keyword is modern home furniture, the match phrases can be modern home furniture for sale, discounted modern home furniture, buy modern home furniture, and the like.
This match type includes search terms that mirrors the words in your chosen keyword word per word. For example, if your keyword is modern home furniture, the exact match keyword would also be modern home furniture.