Amazon PPC Or Pay-per-Click advertising is important for Amazon’s inward promoting framework. At the point of sale, sellers can offer relevant products to Amazon customers who are ready to buy and measure the performance of their ads to determine which ads are converting the most. Three out of every four Amazon sellers of all sizes employ this highly effective marketing strategy. So, let’s know more about how to do Amazon PPC.
What is Amazon PPC?
The advertising platform that Amazon makes available to its third-party sellers is called Amazon PPC. It charges sellers each time a potential customer clicks on and views their ad, allowing sellers to create advertising campaigns for their products.
However, before discussing the specifics of PPC, it is essential to comprehend Amazon’s primary PPC metrics. This is how Amazon depicts everyone:
Advertising Cost of Sales (ACoS): The percent of credited deals spent on publicizing. This is calculated by dividing attributed sales by total ad spend. For instance, your ACoS would be 20% if you spent $4 on advertising and got $20 in attributed sales (i.e. $4/$20 = 0.20).
Impressions: The times your promotions were shown. It may take up to three days to get rid of invalid clicks from your reports once they are found. Due to click invalidation, clicks from the previous three days may need to be changed.
Attributed Sales: the total number of product sales made within a week of people clicking on your ads. Your business information can require as long as 48 hours to populate in this way, thus, deals information isn’t accessible in the ‘Today’ date range and might be deferred to the ‘Yesterday’ date range. You can see the singular deal sums for promoted items and different items in the Mission Execution report.
Clicks: the number of times people clicked on your ads. It may take up to three days to get rid of invalid clicks from your reports once they are found. Due to click invalidation, clicks from the previous three days may need to be changed.
How does Amazon PPC Work?
Your ads use a bid system, even though most of the action takes place behind the scenes in real time. For advertising slots, you are competing with others, frequently your rivals. As a result, Amazon auctions off each ad position to select advertisers.
A bid is the highest amount a potential advertiser is willing to pay for each click on their ad. The highest bidder wins the ad slot offered by Amazon. However, because Amazon charges the highest bidder $ 0.01 more than the second-highest bidder, you typically do not have to pay the amount you bid.
On a page for a search term, there is frequently room for multiple ads. In that case, Amazon treats everyone the same way. Under their bid, each successful bidder pays $0.01 more than the seller.
How to Set Up Your PPC Ad Campaign
We’ll talk about how to set up Sponsored Products ads based on the targeting method because they are a great way to get started with PPC in general.
1. Navigate to Advertising > Campaign Manager
2 after logging in to Amazon Seller Central.
3. Click the yellow button labeled “Create campaign” three after scrolling down below the graphs. Click “Proceed” under Supported Items.
4. Complete the information on the Create campaign page’s Settings section next.
- Name for the campaign Choose a name for the campaign. The name can be anything that reminds you of the campaign’s goal.
- Date Choose when your campaign will begin and end. The end date field should be left empty if you want your campaign to run forever.
- You can set the maximum amount of money you want to spend on daily ads with Amazon’s daily budget feature. Amazon says that if your ad spend falls below the limit at the end of a day, you can use the remaining money to increase ads by 10% later in the same month.
- For a sponsored product ad that uses automatic targeting, select “automatic.”
5. Pick your mission-offering technique
- There are three sorts of mission offering procedures for naturally focusing on Supported Items promotions.
- Bids that change: when you’re less likely to sell, only Amazon lowers bids in real-time. Your ad won’t appear in searches for products that aren’t relevant because of this.
- Bids that change: up and down If your automatic-targeting sponsored product is more likely to convert, Amazon will increase the price of your bid by 10%, in addition to lowering your bid as it would for a “down only” proposal.
- Fixed bids: You set your bid, and unless you change it, Amazon doesn’t change it.
6. In the same “Create campaign” page, enter the following information to create an ad group:
- Name of your ad group The name of your ad group represents the products with the same budget and bids. Again, the name can be anything, but the goal should be for it to help you remember what the ad group is for.
- Select the items that you wish to promote.
7. Make your offers.
- Bids for Sponsored Products ads with automatic targeting can be set in one of two ways:
- Set a default bid for all matches If you want to make things easier for yourself, you can set a default bid. Regardless of the product, Amazon recommends starting with $0.75.
- Set offers by focusing on a bunch
- For further developed programmed focusing, you can choose offers by focusing on gatherings and setting various sums for every procedure.
8. Start a campaign.
Make certain to twofold take a look at the entirety of your data. After that, when you are prepared, go to the bottom of the page and click the yellow “Launch campaign” button. You can likewise save your draft assuming that you want to return to the posting later.
Your advertisement will typically appear on Amazon within 30 to 60 minutes.
Advertising via Amazon PPC can be an effective method for increasing traffic and sales on the Amazon marketplace. Notwithstanding, dealing with your missions can be complicated and tedious. You can optimize your Amazon PPC campaigns and get the most out of your advertising budget if you follow these strategies and tips. Keep in mind to regularly monitor your campaigns, optimize them for performance, and think about making use of Amazon PPC management tools to simplify your workflow.