Best Practices for Amazon PPC Optimization You Should Know

amazon ppc optimization

Last updated on May 17th, 2022

Written by Ken Zhou

Advertising is essential in any business, whether you have a brick-and-mortar store or an eCommerce shop. It is the best method to introduce your brand and products to the public, especially if you are just new in the business. As this strategy involves spending money, you must be more cautious in making every move and decision to avoid costly mistakes

While other people think that advertising has to be expensive to pay off, you can try other ways to advertise your brand and products without shelling out a huge amount. Fortunately, Amazon has provided that opportunity to its third-party sellers, new or not. It is through their Pay-Per-Click (PPC) advertising, which is typically used in search engines and websites.

As a seller, you should grab and maximize this feature as Amazon continuously grows and reaches more buyers. In this article, you will learn about Amazon PPC types and benefits to sellers and some best practices you can try for your eCommerce business.

What are the Amazon PPC types?

As mentioned above, Pay-Per-Click or PPC is a kind of online advertising used to increase the traffic to a website. Meanwhile, Amazon PPC is used to help Amazon sellers market their products within the Amazon marketplace. In this advertising campaign, advertisers or sellers pay a fee every time users or buyers click on an ad. Below are three types of PPC ads available on Amazon.

1. Sponsored Products

Sponsored Products ads are the most commonly used and seen PPC ads on the Amazon marketplace. They appear on the first page of the search results and are usually found on the top or among other product listings. However, you can also see them on product detail pages while browsing a listing. Moreover, they are used to advertise individual product listings, depending on the keyword the shopper used.

2. Sponsored Brands

Another kind of Amazon PPC ad is Sponsored Brands, formerly called Headline Search ads. They appear on top of or within the search results with their brand logo. Besides, the seller can also add a custom headline and three or more products to be displayed as an ad. These can be used to promote a brand and line of products. However, only sellers under the Professional selling plan enrolled in the Amazon Brand Registry can use this ad.

3. Sponsored Display

Lastly, Sponsored Display ads appear on product detail pages below the Buy Box or within the search results. They are intended for consumers who have already visited the brand’s page. But what makes this kind of ad different from the other two is that it can also appear on Amazon affiliate sites, such as Netflix, Facebook, Google, and other apps, attracting a bigger audience outside of Amazon. However, this is also limited to brand registered sellers like the Sponsored Brand ads.

What are the benefits of Amazon PPC Optimization?

Even though PPC campaigns would cost you money at first, they will benefit your business as long as you strategize well. Here are some of the benefits you can gain from running PPC ads to help you gain more perspective about this advertising method:

1. Increase Product Sales

Like any other kind of advertisement, Amazon PPC ads are also meant to help you boost your product sales. This method is more effective than advertising outside of Amazon as they might not purchase from you. For the reason that the buyers are already on the Amazon platform, they are already certain of buying what they need. It’s just a matter of what they see first.

It is crucial to rank high on the search engine results page (SERP) by optimizing your product through SEO. However, running a PPC ad can get you to the first page. Moreover in Amazon, the more visible your listings are, the more likely buyers are to purchase from you, increasing your product sales.

2. Improve Organic Ranking

Product listings with high sales usually rank high on the SERP because their sales history shows how customers patronize their products. However, achieving this feat can be challenging for new sellers because they still don’t have enough sales records to back them up.

Therefore, doing PPC campaigns can help you get the visibility you need to get more customers. In turn, they can leave ratings and reviews after purchasing and add to your sales history, which would help improve your organic ranking as well.

3. Have Full Control Over Your Budget for Amazon Ads

From the name itself, Pay-Per-Click advertising means that you only pay the fees whenever someone clicks on your sponsored ad. Amazon does not base on impressions or the number of times your ads were displayed across the website. Moreover, your ad will be stopped when your payment for it has already been consumed or reached the limit. 

Because of these factors, it would be easier and more effective for you to budget your monthly expenses on running PPC campaigns. Moreover, you must consult with a PPC manager to compute the most effective bid amounts and projected Attributed Cost of Sales (ACoS), which considers your total product sales or attributed sales. 

4. Create Brand Awareness

As of 2021, Amazon has nearly 2 million active third-party sellers on its marketplace. With this number, it is becoming more difficult for new entrepreneurs and brands to stand out on Amazon and be known to its customers. However, you can make this happen by running sponsored campaigns on Amazon.

Whether you use Amazon Sponsored Products or Brands, you can maximize these strategies to expose your brand to the shoppers. But ensure that you will also meet their expectations once they purchase your product. PPC ads will all be pointless if you don’t fulfill your responsibilities to your buyers by giving them quality items and efficient services.

amazon ppc management

What are the best PPC optimization practices?

Since PPC was introduced in Amazon, many sellers have already benefited from this, resulting in increased sales and business growth. In this section, you will know some of the best PPC optimization practices you can do in Amazon to achieve great heights for your business.

1. Research for top converting keywords

Keywords are not only crucial in SEO but also in PPC. Because they are your key to the customers’ needs, you must know which ones to bid on for your PPC ads. Even though you will receive important keyword data once you have started advertising on Amazon, it would still be best to do your keyword research. Ensure that you will gather the highest converting keywords to get the most out of your ad spend.

Doing this will help you get more insights about what customers are searching for and trends you should watch out for before implementing your next campaigns. Besides, you can also use that information for your SEO, so your efforts will not be wasted.

You can use online keyword generator tools to help you find the right keywords. But if you need professional help for this task, you can reach out to Amazon SEO or PPC managers instead.

2. Identify your budget for the Amazon PPC campaign

As mentioned above, Amazon’s PPC ads are convenient even for small and medium-sized enterprises (SME) because they are affordable but effective. But as an Amazon seller, you must also be wise about how much you must spend on running your PPC campaigns.

So, calculate your ACoS first because it will influence your budget. Also, avoid putting all your resources immediately. Also, study consumer behavior and trends and consider your overall budget. By doing these, you can run your Amazon ads longer, leading to more visibility. 

3. Adjust and review consistently

Once you start running your PPC campaigns on Amazon, you have control over which keywords to bid on, how much you want to spend, and how long you want the ads running. And, of course, you will encounter changes in the weekly data you will gather. 

Therefore, review the ad reports and use them to modify your strategies on keyword selection and bidding amount. If possible, try to mix and match all possible options and check which ones would work best.

4. Create an eye-catching yet compelling ad

Whichever PPC type you use, people can already judge your brand based on what they see in the ad. If they like what they see, texts or photos, they are more likely to click your ad and look at your product listing. So, ensure that your ad is accurate, creative, and eye-catching.

Furthermore, your product listing copy should be compelling to persuade your target customers to buy your items. Even if they click your ad, it’s not guaranteed that they will purchase from you unless you convince them through product descriptions and pictures. So while PPC strategies are necessary, you should also craft a compelling product listing.

Final Thoughts

Amazon Pay-Per-Click or PPC advertising method is a helpful strategy you can use whether you have just started selling on Amazon or not. Whatever type of Sponsored Ads you choose will benefit you in increasing sales, improving organic ranking, having control over budget, and building brand awareness. 

However, you need to strategize to run your PPC campaigns effectively without wasting money. If you need professional help for this matter, you can rely on Amazon PPC management services, like what we offer at Seller Interactive. We maximize our team members’ advertising expertise and skills to help sellers like you grow and even scale your business.

Send us an email at [email protected] or call 1-800-820-3746 today to get started.

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