Amazon is one of the largest digital marketplaces for online retailers in the world. This platform also offers marketing and advertising services for both vendors and sellers. Amazon advertising services might be exactly the right thing that meets your brand’s needs due to its vast audience and experience.

Amazon Advertising offers the PPC (pay-per-click) model that is similar to that on Google. Sellers choose to advertise on Amazon because this is the place where shoppers are willingly ready to make a purchase. The advertiser has to pay only when a user clicks on the ad and follows the link to the seller’s page.

Estimating your PPC budget

Before getting involved in the Amazon Advertising services, it is necessary to estimate your PPC budget. There are plenty of formulas on how to do that on the web, but some are somewhat perplexing.

To estimate the needed amount to be allocated for the PPC budget, you should first look at your current traffic and conversion rates. Also, set your goal for the number of new customers you are going to attract. The ratio of the expected number of new consumers divided by the conversion rate results in the target traffic.

The number of users expected to visit the website multiplied by the CPC (cost-per-click) rate would constitute your PPC budget. You might adhere to the reverse logic instead and define the sum you are going to allocate. Then divide it by the target traffic value to see which CPC value you might offer when bidding.

When planning your PPC budget for the campaign, everything depends on various factors. For example, the promotion of each different product will be associated with a certain CPC value. The same goes for the keywords selected – more popular phrases and word combinations would require higher CPC rates to outrank the competitors.

Creating your Amazon PPC strategy

Once the PPC budget is defined, it is the right time to think of creating a PPC strategy. It should be developed in accordance with the platform’s mechanisms and algorithms.

Product promotion

Decide on which particular product you would like to promote with the Amazon Advertising services. You may also consider advertising several products under the Amazon Sponsored Brand option.

Selecting the long-tail keywords

In case you are a new seller, starting with long-tail keywords might be ideal. This strategy is more likely to bring more visitors to your website and increase conversion rates. If you select generic keywords from the very beginning, it will be rather challenging to outperform established players on the market with a good reputation.

Launching your PPC campaign

To start launching your campaign, go to the Advertising tab on your seller account. When using the advertising services on Amazon, you will be provided with the 3 available options. 

Sponsored Product Ads

This type of advertisement allows for targeting particular keywords on Amazon. The sponsored product ads appear just above the organic search results at the top of the page. Also, once a user proceeds to the detailed product page of the chosen item, sponsored product ads will appear there as well. In fact, the sponsored product ads provide an opportunity to steal potential consumers from competitors.

Sponsored Brand Ads

Once the user entered the needed keyword and tapped the Enter button, the search results page appear. At the very top of it, sponsored brand ads usually appear. However, a user may also find them at the left side and bottom of the page. The sponsored brand ads contain a brand name and several featured products.

Product Display Ads

These ads appear on the product page of the selected item under the “Add to Cart” section. Product display ads are usually shown on the related product pages. For example, the consumer viewing the wireless mouse page might see the product display ad with a wireless keyboard.

Amazon PPC management tips

Once the advertising campaign is created and launched, it should further (or constantly) be properly managed. Have a look at the tips and recommendations below to keep your strategy updated.

Use the automated campaign benefits

In case you are running the manual management of the PPC strategy on Amazon, consider switching to the automated services at least for a short period of time. The main benefits provided by the automated services are search terms that are highly relevant to your product. Using those will increase the possibility that users will find your product quickly while searching.

After you discover the most appropriate terms for your product, you can switch back to manual campaign management. See other tips for SEO Amazon master tools to increase product rankings.

Make efforts outside of Amazon

Use various SEO techniques to promote your website in search engines like Google or Bing. Amazon is smart enough to determine when the product appears high on the listing within other platforms. Using backlink SEO services to build your domain authority might also be very beneficial for your PPC management strategy.

Review and adjust your PPC strategy performance

Make a regular overview of how your products perform. For those that have the highest number of conversions, the bids should be established with higher rates to improve the position in the search. Meanwhile, the low-performing products and their bids should be also reviewed.