Last updated on December 14th, 2022
Written by Ken Zhou
When a young Jeff Bezos decided to establish Amazon in the summer of 1994, his only goal was to sell books. He was in his garage in Seattle and was solely focused on creating an online library where people could buy, sell, and rent books.
Fast forward to today, and Amazon has transformed itself into the world's most popular e-commerce platform. Some people would even go as far as calling Amazon synonymous with online shopping since almost any product you can think of is probably on the platform. This access to a large customer base is also the exact reason why Amazon's third-pàrty sellers are continuously aggressive with their marketing efforts: some would simply promote discounts and coupons, including freebies in their products. However, what remains to be the most effective way to reach customers on the Amazon Marketplace is by launching an Amazon PPC Campaign.
Amazon PPC Optimization is a dedicated process involving planning, budgeting, monitoring, and adjusting. However, some businesses do not have the luxury to spend too much on an Amazon PPC Campaign. With limited financial resources, some have to be extra smart with each spend that they make on the platform and maximize each campaign that they launch. This article talks about tips on how you can create the best Amazon PPC Strategy to optimize your PPC experience.
An Amazon Pay-Per-Click (PPC) Campaign is an advertising feature introduced in 2012 to help e-commerce merchants drive substantial traffic to their product listings and increase organic sales margins. These campaigns launch products straight into the Amazon platform, either through its search results page or through a product page that lets an Amazon business rapidly increase its visibility and reach multiple customers.
Amazon sellers are allowed to place ads through an "ad-bidding system" for keywords with other businesses— the higher your bid is for a particular keyword, the higher your chances will be to get it. As soon as a seller successfully obtains keywords, Amazon immediately his/her products on the search results page of its platform. This page is where 70% of Amazon customers are usually found, and as such, businesses have increasingly invested in optimized campaigns.
In other words, the Amazon sponsored products PPC formula works when done efficiently.
The Best Amazon PPC Strategy should be able to fulfill three things: (1) profitability, (2) customer reach and exposure, and (3) sustainability. A PPC Campaign is optimized only if it reaches your desired number of customers for an extended period and converts it into sales. Every time you create a checklist for your strategy, make sure to include these three essential factors in mind.
While creating the best Amazon PPC strategy varies depending on your business goals, most e-commerce businesses still follow basic concepts to optimize their campaigns. These first steps may be simple, but they lay down the foundations for an Amazon PPC Campaign to succeed upon launch. Some sellers forget to ensure that the necessary steps are out of the way and launch mediocre campaigns.
A fleshed-out Amazon PPC Strategy always begins with a good product listing. After all, why decide to convince sellers to go to your product pages if they aren't pleasing to look at? Below are some tips to help get you started:
As a seller, you should ascertain that all your product listings follow consistent themes to avoid overlapping/repeating ads. It is vital to keep your product pages organized to ensure your campaign structure will be built properly.
Now that you have an idea of how to get your Amazon PPC Campaign on the right track, we have compiled some useful recommendations to optimize your campaigns without going over your budget.
We have mentioned previously in this article that a solid PPC Campaign Strategy is crucial to reach more shoppers and make conversion rates higher. If you can maintain excellent performance for an extended period, you know your strategy worked.
To start, make sure you do your calculations ahead of time. Analyze and calculate your keyword bids, determine how much you are willing to spend for your campaign, and adjust/change your keywords based on their profitability. There are three primary spending factors that you should be aware of:
Once you have all these things written down, take the time to assess how much your default bids and ACoS will be. Overall, keeping an organized campaign structure will help you make fewer adjustments after launch and increase your campaign's chances of being successful.
Let's face it. Some Amazon entrepreneurs can afford to make mistakes because they have money to waste. On the other hand, others have limited financial resources, so they need to get it right the first time.
One strategic approach that smart businesses take is investing proper time and effort into SEO keyword research. They carefully choose which keywords are most suitable for their product listings or are most likely to get their product ads to customers. Other businesses also know that investing in expensive, high-volume keywords only is a recipe for disaster— after all, expensive options aren't always the most effective keyword options for your PPC Campaign.
If you start educating yourself about the ins and outs of keyword research, you will know which keywords to invest in.
Along with the Amazon PPC Campaign feature, the platform also introduced the option for sellers to launch automatic campaigns. This type of campaign lets Amazon select and bid for your keywords and place your product ads on their search results pages on your behalf. This feature is especially suitable for beginners, but it may also decrease your PPC Campaign's potential if you only rely on them.
Smart entrepreneurs know that utilizing automatic and manual campaigns is the systematic way to go with Amazon PPC Campaigns. They know that manual campaigns take more time to launch, but allow their ads to target a specific audience group on Amazon.
There is no magic pill to build the best Amazon PPC Strategy, but there are specific tips to maximize your value for money. If you plan, educate yourself about keyword algorithms, and use both manual and automatic campaigns to your advantage, you will be able to build a solid Amazon PPC Campaign.
If you're looking into placing product ads on Amazon and seeking assistance from a team of reputable Amazon PPC specialists, we at Seller Interactive can help you with Amazon PPC Optimization. You may schedule a call with us by sending an email to [email protected]. Book an appointment today!
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