Let’s find the answers to “What is PPC?”, “What ads can you use for Amazon PPC?”, and more. Keep reading to find out!
Running PPC campaigns is the best way for you to drive sales quickly. If you want to start a PPC campaign, you need to answer a few essential questions, such as “What is Amazon (PPC) advertising?”, “How much does Amazon PPC cost?” or “What ads can you use for Amazon PPC?”
Through this article, we’ll help you answer those questions and more. So, ensure to read to the end of this article to learn all Amazon PPC and what ads you can use for it. Then, if you want expert advice on Amazon advertising, visit olifantdigital.com now!
What Is Amazon PPC?
PPC stands for pay-per-click. It allows sellers to only pay for ads when a user clicks on their ad link. That means you do not need to pay for ad impressions. Through PPC campaigns, it is possible to boost sales, attract potential customers, save on advertising costs, and more.
How Much Does PPC On Amazon Cost?
Overall, the average cost-per-click is around $0.77. However, your Amazon PPC cost may be higher or lower than this number, depending on your campaign.
How Does Amazon PPC Work?
Amazon bidding is considered the most important factor that determines the success or failure of your advertising efforts. If your bids are too low, you are likely to miss valuable placements. On the contrary, if your bids are too high, you are likely to get too much traffic at too high a cost.
In most cases, CPC auctions comply with the second-price auction rules.
For example, a customer visits Amazon to look for a “Hair Dryer.” You bid $1.5 of a keyword while the second-highest bidder has a default bid of $1. After Amazon aggregates all the ads relevant to a customer’s keyword, you win the ad spot because you are the highest bidder.
However, you will not have to pay $1,5 per click. Instead, you only have to pay $0.01 more than the second-highest bidder. In other words, you have to pay $1,01 instead of $1.5.
Is Amazon PPC Worth It?
There are many good reasons to consider running PPC campaigns even though your products are generating pretty decent sales. Here are a few popular reasons to try Amazon PPC:
Boost Sales
Increasing sales is the long-term goal of all sellers, right? It is true to say that running PPC campaigns is one of the most effective ways to drive sales.
Improve Organic Rankings Of Highly Competitive Keywords
You may have keywords that are too competitive to rank for an organic search. So, applying PPC campaigns to such keywords can increase visibility, which helps drive sales and increase your product’s organic rankings over a certain period.
Create Brand Awareness For Your New Product Launches
As we all know, the products with the most sales are automatically ranked at the top of the search results. As a rule, new products have a hard time ranking high for keywords. Running PPC campaigns is an ideal way to help new products rank high and increase sales potential.
Prevent Competitors From Taking the Top Positions
Even if your product ranks high in organic searches, you can still easily fall behind your competitors. That’s the reason why most top-ranking brands run PPC campaigns to maintain their top rankings & positions in Amazon searches.
Improve The Visibility Of Products For Seasonal Trends
The fact of the matter is that many products hit their biggest and maximum sales during seasonal trends like New Year, Christmas, Halloween, Mother’s Day, etc. So, PPC campaigns can help you increase sales by increasing customer interest because of seasonality.
Amazon PPC Ad Types
PPC ads are classified into three types:
- Sponsored Products
- Sponsored Brands
- Sponsored Display
Let’s take a look at each type in detail!
1. Sponsored Products
What are Sponsored Products?
Sponsored Products are used by sellers to advertise a single product. For these ads, you need to use keywords to target customers. For instance, it is possible to target the keywords “toothbrush” and “bamboo toothbrush” to reach customers looking for new brushes.
Where do Sponsored Products appear?
Sponsored Products shows up in the following locations:
- Top of search results
- Within search results
- Alongside search results
- Product pages
Who can use Sponsored Products?
- Vendors
- Agencies
- Professional sellers
- Book vendors
- KDP (Kindle Direct Publishing ) authors
How much do you need to pay for Sponsored Products?
The minimum daily budget to maintain Sponsored Products is $1. In general, the Sponsored Products cost depends on several factors such as your competitors, products, and keyword selection. It’s best to start small and increase your budget over time.
2. Sponsored Brands
What are Sponsored Brands?
Sponsored Brands allow you to advertise up to three products per store. These ads also rely on keywords to target buyers.
Where do Sponsored Brands appear?
It is possible to find Sponsored Brands in the following spots:
- On top of search results
- Within search results
- Alongside search results
Who can use Sponsored Brands?
- Vendors
- Agencies
- Book vendors
- Professional sellers in the Amazon Brand Registry program
You can only use Sponsored Brands to promote new products. Specifically, Sponsored Brands is not available to advertise the following products:
- Adult
- Refurbished
- Used
How much do you need to pay for Sponsored Brands?
The minimum daily budget for these ads is $1.
3. Sponsored Display
What is Sponsored Display?
Sponsored Display is used for advertising a single product. This ad type allows you to target customers based on their shopping activities, such as products purchased or products viewed. Instead of using keywords, sponsored products rely on machine learning & automation to drive sales.
Where does Sponsored Display appear?
Sponsored Display ads can be displayed on third-party websites & apps, product detail, and product-related pages.
Who can use Sponsored Display?
- Agencies
- Vendors
- Professional sellers
You cannot use Sponsored Display to advertise alcohol, adult products, prescription drugs & devices, weapons (such as fireworks, pepper spray, airsoft guns, etc.).
How much do you need to pay for Sponsored Display?
There is no specific figure for Sponsored Display cost. However, like the ads above, you should start with a small budget and increase it over time.
Conclusion
Overall, Amazon PPC is one of the most effective solutions to drive sales and increase conversion rates. However, building and managing an Amazon PPC campaign is not easy. Therefore, if you are inexperienced, it is wise to get the help of a trusted PPC agency.
