Amazon PPC Outsourcing: 8 Terms You Need to Know

November 13, 2020
Written by Jayce Broda

Competition in the Amazon marketplace is fierce. Aside from the thousands of sellers putting up their items for sale online, sellers are also studying how the Amazon algorithm works, and are now investing more in advertising. This has been such a wide practice that Amazon PPC outsourcing can already be considered as an essential part of putting up an Amazon business.

Even though Amazon PPC outsourcing services are widely available, efficacy would still hugely rely on targeting and strategic planning. If you're interested in knowing more about Amazon SEO optimization and Amazon SEO strategy, below are some of the terms that you need to be acquainted with:

1. PPC

Pay-per-click, or PPC, is Amazon's internal advertisement system wherein sellers will have to bid on keywords to be able to either rank on the search results, or be advertised on multiple areas on the website. To participate, sellers must determine the keywords that they want to rank for each listing. The seller will have to bid a certain amount, and the seller with the highest bid gets the ranking or advertisement. However, as it states in the name “pay-per-click,” the winning seller will only have to pay Amazon for each time someone clicks on the listing.

PPC comes in three forms, namely: sponsored products, sponsored brands, and sponsored display. The best Amazon PPC strategy depends on how you interchangeably use the three PPC types and how you strategically bid on the right keywords for your listing.

Sponsored Products

Amazon sponsored products PPC allows your listings to be featured on the search results. These advertisements can be seen either on the right side of the search results, the bottom side of the search results, or on the product information page. Amazon sponsored products PPC can either be automated or manually run.

Sponsored Brands

Sponsored brands are more commonly called headline ads because these advertisements appear as banners, usually on top of the search results. This allows sellers to feature their logo and three of their most popular products. These advertisements, when clicked, will lead the buyer to the brand's page.

Sponsored Display

Sponsored display allows sellers to advertise their products outside of the Amazon website. Through the use of cookies, Amazon will be able to trace which buyer visited your listing or a listing similar to yours. Amazon will then advertise your product on other websites visited by the buyer, such as Facebook, Instagram, and Netflix.

2. Keywords

Keywords are focus words or phrases that would best describe what the content is about. Keywords can also be the search terms that a person would typically type on a search engine to find what he's looking for. For example, a person is looking for a pair of shoes. He may either type "running shoes" or "best running shoes for men." In the context of Amazon SEO optimization, listings should contain the right focus keywords to appear in the search results when the search terms are input on the search bar.

3. Long-tail Keywords

Long-tail keywords are search terms that are longer and more specific than simple keywords. For example, if the keyword is "bed sheet," one of the many possible long-tail keywords could be a "3-in-1 queen-sized bed sheet." Because long-tail keywords are more specific and are less likely to be typed on the search bar, the bidding competition for these keywords is low. However, due to the fact that these keywords are particular, the few search results have a higher conversion rate.

In keyword bidding, it is also essential to focus on long-tail keywords because they are easier to rank. Buyers who take the time to make their search terms more specific by typing in more specific keywords are more likely to buy the product

Keyword Matching

4. Keyword Matching

When bidding for keywords, you want to make sure that you choose the keywords that match your product's search terms. In setting a PPC campaign, you will be asked to set a match type. These match types could be broad, phrase, or exact.

Broad Match

The broad match type is the cheapest to bid on because it is the most general. This means that you could appear in searches that may not contain the exact keywords per se, but have synonymous words. For example, if you want to bid on the keyword "tape" and set the match type to broad, you could rank in searches under the terms "labels and packaging" or "stationery supplies." Both search phrases don't contain the word "tape," but because the bid is under the broad match type, it could be considered as part of the category.

Phrase Match

The phrase match type is more specific and would require the exact keywords to be on the search terms. However, they may not necessarily be arranged in order. For example, if you bid on the keyword "MacBook 128GB" under the phrase match, you could appear on searches like "Apple MacBook Air (13-inch, 8GB RAM, 128GB Storage, 1.6GHz Intel Core i5) - Silver".

Exact Match

The exact match type is the hardest to rank for because it is the most specific. To rank for the exact match category, your product listing should contain the exact keywords, verbatim and in order.

5. Automated Campaign

An automated campaign lets Amazon do the bidding and searching for keywords. This can be fit for first-time sellers to give them more time to focus on managing the core business, and is also fit for sellers who are not that knowledgeable with how keywords work. The seller will have to set the budget, and Amazon will experiment and automatically adjust the bids as they gather insights from keyword performance. Automated campaigns also generate data and keyword performance, which you can study and apply to your future campaigns.

6. Manual Campaign

Manual campaigns give the sellers more freedom and flexibility to actively participate in the bidding process. This would require the sellers to undergo the whole process independently, including doing intensive keyword research and monitoring the performance of the entire campaign. This would be perfect for sellers with enough experience with PPC, but could be detrimental for sellers who have little to no idea as to how keywords work.

7. ACoS

Advertising Cost of Sales, or ACoS, is the price of running a PPC campaign. The ACoS is computed by dividing the total ad spend by the total number of sales. The bigger the total number of sales, the lower the ACoS would be.

8. CPC

Cost-per-click, or CPC, is computed by dividing your ad rank over your quality score, plus $0.01. Sellers will have to bid the maximum amount that they want to pay per click on a keyword of their choice. The highest bidder will get the top position and will be required to pay $0.01 more than the next highest bid. On average, the CPC could cost around $0.02 - $3, but this amount would vary depending on how competitive the bidding is.

Key Takeaways

PPC may seem like a lot to take in, but it can, fortunately, be learned by paying attention to keyword research, keyword performance, and sales history. A company focused on Amazon PPC outsourcing can definitely go through these terms and process with you so you can make the most informed decision for your business, and ensure that your investment will go back to you. To assist you on Amazon PPC, contact Jenette at [email protected] today.

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