Last updated on June 5th, 2023
Written by Mohamed Aden
The Amazon Marketplace continues to expand its horizons not only for enthusiastic shoppers but also for sellers trying to earn a profit on the platform. Amazon currently has 2.5 million active sellers on the Marketplace, a majority of which are small and medium-sized businesses that sell at least 4,000 items per minute. The sheer number of sellers proves that the Amazon formula works, but the competition can be intense.
Amazon merchants go head-to-head with each other and try to get customers to buy their products. Some sellers provide steep discounts and promotions or give additional freebies for their products. Others attempt to analyze the market and plan a marketing strategy, which will eventually turn into the launch of an Amazon PPC Campaign.
A PPC campaign is considered by Amazon experts to be one of the most efficient ways to be ahead of competitors and eventually generate sales. After all, Amazon PPC Campaigns help sellers gain traction to reach more customers and, if done correctly, make their brands more visible on the platform. Some businesses do a good job formulating their Amazon PPC Marketing on their own, but others prefer hiring an Amazon PPC Company to manage their campaigns on their behalf.
In this article, we will talk about five things to look out for when hiring an Amazon PPC Company. As a seller, you want to make sure that you outsource your campaigns to a reputable agency that would bring optimal results every time you launch a product.
An Amazon Pay-Per-Click (PPC) Campaign is a popular platform feature that allows sellers to reinforce their sales margins and effectively target an audience on the Marketplace. Under the basic concept of the pay-per-click advertising model, Amazon sellers only pay for each time a potential buyer clicks on their product listings. Each click costs between $0.80 to $0.97.
The PPC Advertising structure on Amazon essentially lets sellers bid for keywords that would best get their product noticed by customers. Each time a shopper tries to search for a specific product, the seller with the highest bid for a particular keyword would have his/her product on Amazon's "Sponsored Products" section.
The Amazon PPC Campaign also works as a self-service feature, and as such, these types of campaigns can be risky for sellers who have no idea how the PPC process works. It's a no-brainer that poor PPC Campaigns generate little to no sales and may even cause a seller to lose money. While it is reasonable to try out launching a campaign on your own, there are also underlying consequences if you do it incorrectly. For example, a failed PPC campaign can result in a competitor stealing your product's ideas and marketing them to the customers better than you did. You lost time, money, and your potential customer base to another brand.
Most Amazon professionals recommend launching an Amazon PPC Campaign as soon as a product goes live online. As PPC campaigns only work best with efficient planning and execution, it can be daunting to think about what a failed campaign can do to damage your brand. This is where Amazon PPC outsourcing comes into the picture.
An Amazon PPC Company is an external service that provides multiple advantages for sellers, from taking care of keyword research and analysis to supplying monthly budget adjustments and feedback monitoring reports. They essentially act as a seller's middleman to up the chances of ad campaigns being successful, but for a price. Most sellers ask, is it worth it? The answer is yes, but only if you know that you hired the right company.
You should know that there are more than 100 Amazon PPC Companies out there today, and not all of them are suitable investments. Amazon Sponsored Ads management is not an easy task to do. As an Amazon merchant, you should adequately do some due diligence and look for an Amazon PPC Company who truly knows how to build a PPC Campaign on Amazon. Below are some useful tips to get you started.
As an e-commerce merchant trying to make a profit in a competitive platform, how to know who makes PPC on Amazon won't cut it.
The first thing that should be on your checklist is to make sure that you are hiring a company with experienced strategists who know precisely how to launch a winning campaign. Since paid advertising has been around since as early as 2000, some Amazon PPC Companies end up creating subpar campaigns because their "strategists" turn into mere account managers that treat PPC advertising as a mere commodity.
An efficient account strategist knows how to curate a sustainable PPC campaign and is flexible enough to make adjustments along the way. He/she should follow a logical approach to make sure your campaign is optimized to your customer base's preferences, which then leads to better conversion rates for your brand.
More importantly, an Amazon PPC Company should have a proven track record with Amazon PPC Marketing. If it produced results with other clients in the past and built the backbone of its business from Amazon Sponsored Ads management, you should know that it's the right agency for your PPC campaign.
Amazon PPC Companies tend to lock up their clients for more than a year. They invest a considerable amount of money and resources into their clients' campaigns, and their returns don't materialize until after a few months into a PPC campaign's launch.
As a precautionary measure, however, we recommend signing short-term contracts to provide a little breathing room for your business. This method is beneficial for you since some agencies work well at the start, then begin to fall off somewhere in the middle of your campaign. If you don't want to be trapped with a subpar Amazon PPC Company, insist on signing a short-term contract to assess their performance.
Any e-commerce merchant is entitled to outsource his/her ad campaigns to an Amazon PPC Company. It's common knowledge for the merchant's business name to appear on all accounts.
When Amazon businesses end their contracts and are out on the hunt for another Amazon PPC Company, some service providers suddenly say that they don't own any of the accounts. Neither the landing pages nor any of the creative resources involved in the campaigns go to the sellers, and they should start from scratch. The next thing you know, your Amazon PPC Company has already sold your data to your competitors.
To prevent this problem from occurring in the future, you must ascertain that any accounts and assets are under your name. You cannot risk having another company take control of your campaigns and eventually own all rights.
A systematic Amazon PPC Company never tells its clients that its PPC strategy is only focused on driving a substantial amount of clicks. This mindset in itself contradicts the word "strategy" (which is what most Amazon PPC Companies are hired for), but the sad reality is that these agencies continue to exist.
The fundamental concept of PPC advertising is that a seller pays for every customer click, but it's not where your business makes a profit. Therefore, the Amazon PPC Company of your choice should be proposing a strategy driven by your increased chances of profitability and added exposure on the Marketplace. They should be giving you top-notch services by getting the right customers, sending the right message to make conversions, and providing analysis on how to make your campaigns better.
In the end, your ultimate goal as a seller is to convert clicks into actual purchases. It's essential to make sure your Amazon PPC Company thinks the same way.
Our final tip may be simple, but it's equally important.
All Amazon specialists would agree that managing PPC campaigns is a 24/7 job— issues may occur at any time, and adjustments have to be made once in a while. Thus, the Amazon PPC Company you choose to partner with must be in constant communication with you. They should be able to provide daily, weekly, and monthly updates to give you an idea about your campaign's status and supply some insight into what can be made better. If you have any questions, they should also be available for you to contact.
Sellers can indeed verify the performance of their campaigns by themselves, but it's always a bonus when the agency already has the data available.
Launching an Amazon PPC Campaign may be a complicated process for new Amazon sellers, so the smartest move is outsourcing the job to people who know what to do. However, you also have to make sure that you find the right agency to make sure you invest your resources in the most effective manner possible.
Whenever you try to look for an Amazon PPC Company, and you see that it's a driven team with experience, communication skills, and a well-planned PPC strategy, odds are you found the right agency.
Want to a product campaign soon? We at Seller Interactive consist of systematic account strategists willing to take on your next Amazon venture. You may schedule a call with us by sending an email to [email protected]. Book an appointment today!
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