Getting Started: What is PPC on Amazon?

August 8, 2022
Written by Ken Zhou
Amazon PPC

If you’re an Amazon seller, you’ve likely heard of Pay-Per-Click (PPC) advertising. But what is PPC exactly? How does it function? Should you take advantage of it to advertise your products? Of course, the most crucial question is: how can you use it to grow your business and boost sales?

Like most online retail platforms, Amazon offers a variety of ways for you to market your products. For example, paid advertising is a great way to get your products in front of more customers looking to purchase similar items, and it can be a profitable endeavor.

In this article, we’ll know what is PPC on Amazon and how you can get started using it on the platform. We’ll also learn the basics of developing a PPC campaign for your products. So continue reading if you’re ready to start using Amazon PPC to drive more traffic and sales!

What Is Amazon PPC?

Amazon PPC is a form of advertising that allows you to pay for the placement of your product listings in search results and product details pages. These ads are determined by a bidding system, where sellers compete against each other to have their ads displayed. 

When a customer searches for a product on Amazon, the results are shown in order of relevance. However, paid ads are also displayed prominently on the results page. So when someone clicks on your ad, they’re taken to your listing, where they can learn more about your product. 

The term “pay-per-click” refers to the fact that Amazon PPC only charges you when a customer clicks on your advertisemen. The amount you’ll pay for your ad will depend on how much you bid and how competitive the keyword is. This means it’s a relatively low-risk since you’re not putting money up front without knowing whether your target audience will even click on your ad.

Amazon PPC ads have two types differing in the locations they are displayed: 

  • Sponsored product ads appear alongside the product listings on Amazon.
  • Sponsored brand ads are shown at the top of the search results page. 

You don’t have to be an Amazon PPC specialist to make the most of your advertising campaign. Both types of PPC ads have the potential to be highly effective in driving traffic to your product listings and boosting sales. 

You can maximize the effectiveness of your campaigns and make sure that your target customers see your advertising by following a few keeping the following things in mind:

  • Campaign structure is important because it helps you organize your keywords and ad groups in a way that makes sense for your product and business. 
  • Keyword research is critical because it allows you to find the right keywords to target that will result in conversions. 
  • Ad copy is also important because it needs to be relevant and persuasive to get shoppers to click through to your product listing. 
  • Bid management is key because it lets you decide how much you’re ready to pay for each click while ensuring a profitable return on investment (ROI). 

How to Create an Amazon PPC Campaign 

Setting up a PPC campaign on Amazon is relatively simple. First, go to the “Campaign Manager” tab and click “Create Campaign.” Then, follow these steps:

  1. Choose your campaign type. There are two options: automatic or manual.
  • Automatic campaigns are best for new sellers and those who want to test different settings.
  • Manual campaigns are best for experienced sellers who want more control over their campaign settings.
  1. Set your campaign name and budget. 
  • Your ad campaign name should be descriptive and easy to remember.
  • Your budget is the daily amount you want to spend on advertisements.
  1. Choose your targets. You can target by product, keyword, or audience. Ensure your decision is the greatest fit for your goals.
  2. Set your bid amount. This is the amount you’re willing to spend for each advertisement click. Your sponsored ad will more likely be seen by potential consumers if you place a higher bid. However, you don’t want to overspend, so set a bid in line with your budget.
  3. After providing all the necessary information, click “Submit.” 

Tips for Maximizing Your Amazon PPC Campaigns

Setting up an Amazon PPC campaign may seem difficultーif you’re not careful, it might cost you a lot of money. That’s why it’s best to first understand how these campaigns work. Here’s some helpful tips from Amazon PPC experts to help you maximize your Amazon PPC campaigns: 

  1. Start with a small budget. Raise your budget progressively as you see results. It’s important to test your ad campaigns before scaling them up.
  2. Set realistic goals. Consider your goals carefully before launching your advertising campaign. For example, do you intend to attract customers to visit your product listing? Improve sales? Once you have a clear goal in mind, you can create a focused campaign that is more likely to be successful.
  3. Do your research. Spend some time analyzing the keywords most likely to result in purchases. You can use Amazon’s Keyword Research Tool to find high-value keywords to help you reach your goal.
  4. Don’t be afraid to experiment. Try different ad copy, images, and keywords to see what works best for your product and target market. You can only find out what works by giving it a shot! 
  5. Monitor your results. Keep track of how your campaign performs so you can make any necessary adjustments to meet that goal.

What to Avoid When Creating Your Campaign

When creating a PPC campaign, it’s important to avoid common mistakes. Here are a few things you should avoid if you want to run a successful campaign: 

  1. Don’t put all your eggs in one basket. It would be best if you diversified your ad spend across multiple platforms to hedge your bets and ensure you reach the widest possible audience
  2. Don’t give in to the urge to overspend on Amazon PPC. It can be tempting to outbid your competition, but this can quickly affect your profits. Bidding too high will eat your profits, and you may not even get enough clicks to justify the cost. 
  3. Don’t choose keyword phrases that are too general. While you want your ad to be seen by as many people as possible, choosing too broad keywords will result in many wasted clicks from people who aren’t interested in your product. 
  4. Don’t forget the basics. Make sure your ads are well-written and relevant to your products, and monitor your ad campaign closely to ensure that you’re getting the results you want. 
  5. Avoid running your Amazon PPC campaign for too long. It would be best to experiment with several settings to see which are most effective for your products and budget.
Amazon advertising

Final Thoughts

Amazon PPC ad is an excellent approach to getting your products in front of potential buyers already looking for what you sell. Still, the entire procedure might seem overwhelming if you’re new to Amazon PPC advertising. However, following these tips might create campaigns that stand a better chance of succeeding.

If you’re still hesitant to start your Amazon PPC campaign, it’s understandable. Setting up and managing a successful PPC campaign can be challenging, especially if you’re new to the process. You can consider hiring an Amazon PPC consultant to help you with your Amazon ad campaign.

However, finding a reputable PPC consultant may seem like searching for a needle in a haystack. Choosing the best Amazon PPC service provider might be challenging because there are so many service providers available. You should ensure they have experience managing Amazon PPC ad campaigns and know the ins and outs of the platform. This will ensure that they know how to set up and do Amazon PPC optimization on your Amazon ads for maximum results.

Look no further! We at Seller Interactive can help to create and manage effective Amazon PPC ads that can drive traffic to your listings and boost sales. Our Amazon advertising experts also deeply understand how Amazon’s search algorithms work. They can use this knowledge to assist you in making your product listing as visible as possible. If you’d want to know more, reach us at 1-800-820-3746.

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