We all know the value of advertising – you need to connect with potential customers and showcase your products in a way that will convert those sales. If you’re an Amazon seller, Amazon Pay-Per-Click (PPC) allows you to design your advertising strategy to maximize your budget by targeting just the right pool of potential buyers.
Amazon PPC can help you take your store to the next level, but if you’re feeling a little lost as to how to begin, don’t worry!
What is Amazon Pay-Per-Click:
Amazon Pay-per-Click (PPC) is Amazon’s advertising system that allows sellers to reach shoppers “at every stage,” according to Amazon. Ads appear in place such as the first page of search results or product detail pages. Sellers place bids on keywords or products, and if your ad is relevant and your bid wins, your ad gets displayed to shoppers. It’s similar to Google AdWords, in that you choose the keywords that best describe your product.
Amazon has two PPC solutions for sellers – sponsored products, which are ads for individual product listings on Amazon, and sponsored brands, which allows you to showcase your brand and product portfolio. Under sponsored brands, Amazon allows you to feature your brand logo, a custom headline and up to three of your products.
Why should I bother with Amazon PPC?
Because your competitors are already doing it! According to this article, in 2019, Amazon’s annual advertising was around $14.1 billion, up 39% from $10.1 billion in 2018. This is not a peer pressure argument – this is just business reality. If you’re not creating your own tailored PPC campaigns, it’s likely that your competitors are.
Why is PPC effective?
Well, as the name suggests, you only pay when people click on your advertisements! That allows you to design a strategy that gives you maximum return on investment. PPC is also built on SEO strategy, so if you have a SEO strategy in place, you can leverage that information to construct your PPC auction strategy.
Amazon PPC also empowers you to be precise in keywords, interests and demographics, which means you can test different combinations to discover maximum impact, which, again, allows you to be smart with your advertising budget.
How much can it cost and how does it impact on conversion?
Amazon PPC is run as an auction, which means that keywords and products will cost you one cent more than the next highest bidder. As of July 2019, the average cost per click (CPC) was $0.97. It pays to be precise in your targeted keywords and make sure you’re not bidding on broad, generic and popular terms.
Amazon PPC can be highly effective – as of July 2019, the average Amazon CPC conversion rate was 9.47%, which of course is a broad representation of all categories and niches. But by comparison, the average eCommerce conversion rate for websites other than Amazon is around 1.33%
What are your next steps?
As a registered Amazon Seller, you can jump right in and start a PPC campaign from your account. But as always, it can pay to have a professional in your corner. After all, you’re the expert in your product and business, but it can be cost effective and efficient to seek out a marketing manager who can help you get maximum bang for your buck.
Seller investigators is not an Amazon marketing business, but if you need help and want to start a conversation, talking to our partners at PPC Winner would be a great place to start. They are an effective agency for managing PPC campaigns on Amazon.
