Amazon PPC: A Comprehensive Guide for Beginners

October 23, 2020
Written by Ken Zhou

The truth is, if you want to stay relevant and grow your business on Amazon, you need to promote your products correctly. Sure, optimizing your product listing can help you rank high on the Amazon search results, but if you genuinely want to attract people to visit your listing, you need to think bigger. The answer to this dilemma is Amazon PPC

Based on Hanapin Marketing’s State of PPC survey conducted in 2018, 79% of brands stated that Amazon PPC has helped boost their sales. 27% of them run their ads on Amazon, while 52% run them on Google ads. As more businesses recognize the importance of PPC ads, 62% of marketers decided to increase their PPC budgets for the following year.  

Applying the best Amazon PPC strategy can help you grow your business. However, new Amazon sellers have a hard time navigating Amazon PPC. So, if you want to find out more about how to use it for your Amazon product ads, read below. 

What is Amazon PPC?

Amazon PPC is a platform that helps Amazon sellers market their products online. Pay-per-click (PPC) advertising is a method where advertisers pay a fee for every time a potential buyer clicks on the ads. If created and executed properly, an Amazon PPC campaign can increase sales and improve ranking.

Before we get into the details of PPC, you should first understand Amazon’s key PPC metrics.

  • Clicks - The number of times your ads were clicked. 
  • Impressions - The number of times your ads were displayed. 
  • Attributed Sales - The total product sales generated within one week of running the ads. 
  • Advertising Cost of Sales (ACoS) - The percent of return on investment for the campaign. This is calculated by dividing the total ad spend by attributed sales. For example, you spent $10 to generate $100 in sales, that would be a 10% ACOS.

Importance of Amazon PPC

Marketing is the backbone of any business because it allows sellers like you to increase your revenue and enhance your brand value. The easiest way for your products to get noticed on Amazon is through Amazon PPC ads. After all, there are over 120 million products on Amazon, and staying relevant is difficult when many items are being sold in the marketplace. 

Although your ranking on the search results is essential, advertising your products helps you get the right exposure to enhance your sales. Whether you are selling clothes or baby products, the way you make your products visible to consumers determines your listing's conversion rate. Aside from generating profit, Amazon PPC lets you test which of your keywords are able to convert better than the rest. 

Targeting your audience is also made easier with Amazon PPC. You can perform an automatic or manual targeting of the audience you want to reach based on the product information you provided. Instead stressing out thinking if you targeted the right market for your product, Amazon does it for you with their automatic targeting. 

Types of Amazon Ads

PPC ads can be classified into three types:

  • Sponsored product ads
  • Product display ads
  • Headline search ads

Let’s look at each PPC ad type in detail.

  1. Sponsored Product Ads

Sponsored product ads are the most common type of Amazon PPC ad. This type of ad appears in search results and product listing pages. Also, you advertise products based on keywords. There are two types of ads that you can create using sponsored product ads.

  • Automatic-targeting ads

An automatic-targeting ad uses keywords that Amazon’s algorithm determines using the information on the product listing. The data collected from clicks and purchases will be used to adjust the keywords to better suit the product listing.  

  • Manual-targeting ads

A manual-targeting ad lets you set the keywords for the campaign. Since you are the one who specified the keywords, it is often more effective. However, you have to monitor changes on the clicks and purchases and make the necessary adjustments. 

  • Product Display Ads

Product display ads are another type of PPC ads that are shown on a product page. These ads target shoppers who have already visited the brand’s page and use affiliate sites like Google, Facebook, and Netflix to attract a broader audience range. 

  • Headline search ads

Headline search ads or sponsored brand ads are ads that appear on the top of the search results with the brand logo. It allows a seller to display the brand logo, headline, and three or more products on the top of the Amazon search results. The goal for this type of ad is to get customers to click from a group of products. 

For you to use sponsored brand ads, you must have a minimum of three products on Amazon. It also offers you a wide range of customization. You can customize the landing page, text, and image shown in the ad. 

Requirements to Run a PPC Ad

Before running a PPC ad campaign, you must satisfy the following requirements first:

  • Seller Account: Of course, you can’t sell on Amazon without a seller account. Make sure you are using an active account. 
  • Shipping: Every advertiser should be able to ship the products anywhere in the United States.
  • Amazon Brand Registry: This only applies to accounts who will be using the headline search ad.

How to Create an Amazon PPC Ad?

We’re giving you a detailed guide on creating a PPC ad. 

Creating a manual targeting sponsored product ad

Step 1 - Log in to Amazon Seller Central and select Advertising > Campaign Manager.

Step 2 - Click on the yellow “Create campaign” button. Next, click the “Create” button.

Step 3 - Fill in the information on the Settings section of the Create campaign page.

Step 4 – Choose ‘Manual’ in the Targeting section instead of ‘Automatic.’

Step 5 – Create an ad group and select the type of targeting strategy: keyword targeting or product targeting. For keyword targeting, you bid on a keyword to stay relevant in the Amazon search results while product targeting is when you bid on categories or related individual products. For this type of ad, select keyword targeting.

Step 6 - Add keywords to the campaign.

Step 7 - Bid on your keywords

Step 8- Launch campaign

Creating product display ads

Step 1 - Log in to Amazon Seller Central and select Advertising > Campaign Manager.

Step 2- Click on the yellow “Create campaign” button and choose the gray product display ad “Create” button.

Step 3 - Fill in the information on the Settings section of the Create campaign page.

Step 4 - Create an ad group.

The audience is automatically set to views, which creates re-marketing ads for customers who’ve already viewed detailed pages of your advertised products or similar products.

Step 5 – Choose the products for your campaign.

Step 6 – Set your cost-per-click bid.

Step 7 – Launch your campaign.

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.

Sep 6 -Target keywords or products

After you edited your sponsored brand ad campaign settings, you can select targeting keywords or products. 

Step 7 – Launch campaign

Conclusion

Amazon Pay-Per-Click (PPC) advertising is a powerful marketing channel on Amazon that sellers should use. However, the number of sellers using Amazon PPC continues to grow every year. Some sellers even experience account suspension. Hence, sellers need to create a defined marketing strategy and learn how to create an Amazon appeal letter. 

It’s a good thing that here at Seller Interactive, we have a group of experts that can help you run ads and review your listing to avoid account suspension. If you want to know more about our services, you can email [email protected] today.

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