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If you’re a seller or vendor on Amazon, your mind is undoubtedly filled with thoughts of boosting your revenue. There are several ways to do this, and one of the most effective ones is pay-per-click or PPC advertising.
Almost everyone is familiar with Google’s PPC advertising. For those who assume they are not, search a phrase on Google, and you will see that the first results are ads.
Well, Amazon's PPC model is not that different from Google’s. Both will eventually help you reach a bigger audience that is actually interested in your products and willing to pay for them.
However, managing your account and reaching the PPC goals you set can be challenging. It requires continuous monitoring, strategic campaigns, constant optimization, time, resources, and experience. That’s why brands who want successful campaigns get help from a professional PPC agency or invest in niche platforms.
Usually, these platforms have several PPC services that all business owners can use to boost their eCommerce sales. By the end of this article, you will hopefully have learned more about these valuable Amazon PPC services, their types, and other strategies.
Before getting to what Amazon PPC services can do for your business, it’s important to familiarize yourself with the basic Amazon marketing terms, methods, and metrics. But if you're already familiar with them, skip to this part to continue reading.
Amazon PPC, or Amazon Pay-per-Click, is an advertising system designed to boost sales for Amazon sellers. As a brand owner, agency, or third-party seller, you can use it to create advertisement campaigns and target specific keywords for your products.
These campaigns can be designed and altered as needed to improve product sales and profitability.
Following that, your product will appear in Amazon’s search results and competitor product listings. If you use Amazon’s “adjust bids by placement,” you can also determine the placement of your ad.
After your ad is launched, each time a customer clicks on the ad, you will be charged.
Amazon PPC helps you meet customers who are at the point of sale. You can then measure your performance and determine which products had the most clicks. This way, you can understand what product drives the most conversions and increase your sales.
One of the best strategies to get the full potential of PPC ads is using the right type at the right time. You should know that if you want to grow, you need to use each of them differently at different stages.
As you read above, based on the type of your PPC, your ad placement will differ. In general, there are three types of Amazon PPC. If you’re going to invest in PPC advertising, it’s important to know what type will suit your eCommerce store and business goals better.
You can display your ad above, next to, or inside the Amazon search results with Sponsored Products.
Additionally, they can be displayed in mobile and desktop modes on product pages. ASIN, or Amazon Standard Identification Number, usually shows positive results when it comes to Sponsored Products Ads.
Furthermore, it affects how customers perceive your product on Amazon product listings and increase your impressions. 76% of Amazon third-party sellers use this type which makes it the most common option.
Note that when you’re creating a Sponsored Product ad, you can use two types of keyword targeting strategies.
Automatic targeting is a relatively straightforward targeting method compared to other types. However, it doesn’t provide the optimization options that the other methods do.
In manual targeting, you have optimization options that include monitoring cost changes and making adjustments as necessary. As a result of this optimization, ads tend to be more effective and economical in the long term.
Sponsored Brands ads, formerly known as Headline Search ads, are only available to brands registered by the Amazon Brand Registry. Sponsored brands are recommended for startups and developing brands since they can effectively establish brand awareness among their target audiences.
There are three formats available for Sponsored Brands, which appear either at the top of Amazon search results as headline banners or lower down as a video. You can include a logo, a custom headline, and multiple products in the Product Collection or Store Spotlight and use a 15-30 seconds video to display a single product.
If a customer clicks on these ads, they will be directed to your product detail pages or the brand’s Amazon Storefront.
Just like Amazon Sponsored Brands Ad, you will need a registered brand to utilize Display ads. With Sponsored Display ads, you can retarget customers who have visited your product detail pages, even outside of Amazon.
Amazon's affiliate sites like Google, Facebook, Netflix, and even mobile apps can display Sponsored Display ads, unlike Sponsored Products and Sponsored Brands ads.
Despite this, Sponsored Display ads are not that popular, and only 25% of Amazon’s third-party sellers use this method.
To truly increase revenue through PPC advertising, you need to learn about its performance metrics. It goes without saying that measuring these metrics allows you to understand if your ad is profitable or not and set smarter goals in the future.
Here below are the five most important Amazon PPC metrics.
Simply put, your ad impression is the number of times it has been viewed.
A low impression might mean that you’re not using relevant keywords for your products or you’re using niche-related keywords that users are not familiar with. Also, you might be using insufficient bidding, so competitors outbid you. In such cases, you have to raise the amount of your bid.
However, many impressions and a low click-through rate are not ideal either. This combination could mean that you’re not targeting the right audience, people who are actually interested in your products and willing to purchase from you.
It could also indicate that your choice of keywords is wrong and does not match user intent.
You can see the number of your impressions on your AMS or Amazon Marketing Service dashboard.
This is arguably the most important metric for Amazon PPC advertisers. Using this metric, you can see how much your advertising expenses are per sale. You can measure your ACoS using this formula:
ACoS = Total Ad Spend / Total Ad Sales
Lower ACoS is a good sign because it indicates that your ad is performing well and is profitable. Make sure you set an ACoS target tailored to your particular circumstances and stick to it, as you will be able to track ad performance and meet your marketing goals more effectively.
This is the number of clicks divided by the number of impressions. For example, if you have 600 clicks and 6000 impressions, your CTR will be 10%.
A low CTR indicates that your product does not appeal to customers because of its pricing, reviews, ad placement, content, etc. You can also change your keywords to improve your CTR and make them more relevant.
RoAS measures the effectiveness of Amazon PPC campaigns. For example, if you spent $1,000 on advertising and received $2,000, your RoAS will be 200%, giving you a ratio of 2:1.
Return on Assets (RoAS) is similar to Return on Investment (RoI). You can easily gauge the effectiveness of your campaigns with this metric. A ROAS of 3 or higher is generally considered good.
This is the percentage of conversions, in this case, purchases, by the total number of clicks. For example, if you get five orders and 50 clicks, your conversion rate will be 10%.
The average conversion rate of Amazon PPC advertising is 9.89% which shows the effectiveness of Amazon PPC ads.
Amazon PPC Services are platforms with the required features to optimize your Amazon eCommerce store. Generally, the PPC services these agencies offer usually include:
Each agency possesses its own unique advantages and offers one or more of the above services to improve your PPC ads. It is important to work with a marketing agency that is experienced in providing Amazon PPC services, one of which is Joshmeah.
Joshmeah professionals have led many great companies to success and have the experience you need to manage and improve your PPC campaign. With our innovative approach, you can stand out from the competition and increase conversions more than ever.
No matter what size or type of business you have, we can provide you with the services you need.
Our services include:
Working with JM&Co’s experienced AMZ team will enhance your brand's performance while enabling you to monitor and optimize the budgets of your advertising campaigns. Our greatest satisfaction comes from helping you maximize the effectiveness of your advertising, so let’s talk.
Amazon is the biggest eCommerce platform by revenue in the world. Also, as we mentioned, it has the highest PPC ad conversion rate compared to other eCommerce platforms. So, it’s no wonder that more vendors and sellers are joining Amazon each day. However, this makes Amazon a highly competitive platform.
Investing in Amazon PPC advertising makes you stand out from the crowd and gain more revenue. PPC advertising on Amazon offers highly visible placements for your products. What’s good about it is that the ads appear on both mobile and desktop browsers and Amazon’s app.
Depending on your goals, Amazon PPC offers a variety of Amazon ad types. With the numerous detailed reports available, you or your marketing partner can easily monitor your progress and control, set flexibility, and scale your budget as you see fit.
However, only signing up for PPC ads is not enough to leverage their full potential. Monitoring and measuring their performance, using Amazon PPC services, and implementing tested strategies can greatly contribute to PPC ads' success.
PPC advertising is, without a doubt, one of the best tools for helping brands succeed on Amazon. Campaigns that succeed, however, don't come easily to everyone. Amazon PPC agencies use different strategies to maximize the profits of Amazon PPC advertising. We're going to explain some of the most important ones here.
At this stage, it takes time and effort to achieve the desired results. The more you learn about search phrases (keywords), audience insights, product targeting, trends, news, and other topics, the more likely you are to succeed with your Amazon PPC-sponsored ad campaigns.
Finding the right set of keywords for your campaign is one of the key objectives of thorough research. Agencies know that it’s best for new sellers to go for long-tail keywords because they will enable them to match user queries and reach their target audience more efficiently.
These key phrases are also more specific and have a higher search volume compared to short-tail keywords.
It's a well-known fact that business owners can’t succeed without having clear goals in mind, regardless of the business type.
Using PPC advertising effectively requires defining your reasons for doing so and aligning those reasons with your business goals and objectives.
The primary goal of most PPC campaigns is to increase sales. However, if you want to stay ahead of the competition, you should think about more fundamental goals, and that’s exactly what Amazon PPC service providers do after conducting thorough research.
We recommend aligning your PPC goals with your business goals. With that in mind, you might want to focus on one or several of the items below.
Did you know that your chances of selling more will increase the more you sell on Amazon? In fact, Amazon's A9 ranking algorithm states that sales velocity clearly determines your rankings.
As a result, agencies place better PPC bids, your sales continue to rise, and you build momentum.
Building momentum within your PPC campaigns also enables you to gain more placements and increase organic traffic.
You can gain great insights from Amazon's data into customer behavior and buyer’s journey. To generate that information, you need to build momentum within your PPC campaigns and across your entire Amazon sales process.
Amazon PPC service providers are well-versed in analyzing Amazon's reporting functions and converting insights into action.
Amazon PPC ads are one of the best marketing strategies employed for boosting eCommerce sales.
There are three kinds of PPC ads, and you need to know when you have to invest in each. You also need to monitor and measure the success rate of your PPC campaigns by tracking specific metrics.
Another useful strategy to get the full potential of your PPC campaigns is using the PPC services different platforms and agencies offer. Agencies like JM&Co can help you build your campaigns from the very beginning until you achieve your goals.
PPC can be confusing, but our Amazon PPC services take the guesswork out of it, so you can save the money you’d otherwise spend on people who don't convert.
Best of luck to you!
The art is building the right growth campaign. The science is in the results.