What is Amazon PPC? How Does it Work?
Here's a fact: Most companies (79%) say that using PPC (Pay-Per-Click) ads is the main thing that helps their business grow.
Did you know that over 300 million people are shopping on Amazon right now? That's a lot of potential customers! And if you want to sell your product, advertising on Amazon is a great idea.
If you've been selling things on Amazon, you've probably heard about something called Amazon PPC advertising. It's an effective and affordable way to show your products to customers and make sales.
But if you're new to this, you might be wondering, what exactly is Amazon PPC and how does it work?
Don't worry!
In this guide, we'll explain everything you need about PPC in simple terms. We'll also help you correctly set up your first PPC campaign, so you don't waste your money on advertising.
Let's get started!
What is Amazon PPC?
Amazon PPC is a type of advertising that helps sellers and brands sell more of their products online. Sellers can create ads for their products, and when someone clicks on these ads, Amazon charges the seller a small fee.
How does Amazon PPC Work?
A person searches for something on Amazon, like a 'water bottle.'
Amazon finds all the ads related to 'water bottles.' Sellers bid on the keyword 'water bottle,' and the seller who bids the highest wins.
Amazon shows the winning ad at the top of the search results or on product pages.
When someone clicks on the ad, the seller pays a small fee to Amazon.
Why is PPC important for Amazon sellers?
Sure, here's a simplified version:
Understanding why Amazon ads are important for your business: Amazon had a whopping 2.4 billion visitors in May 2022.
More and more people are shopping online, and platforms like Amazon offer big opportunities for sellers to make money. But there's a challenge: standing out.
When people come to Amazon, they're ready to buy something. But if your product isn't on the first page of search results, 45% of shoppers won't bother looking at other pages. This means your product needs to be easily visible, and that's where Amazon ads come in.
Amazon PPC: Key Terms and Features
One important metric in Amazon advertising is ACoS.
ACoS stands for Advertising Cost of Sales. It helps you see how well your Amazon PPC campaign is working.
To find ACoS, you divide how much you spent on ads by how much money you made from those ads. Then you multiply the result by 100 to get a percentage.
For example, if you spent $5 on ads and they brought in $20 in sales, your ACoS would be 25%.
So, the lower your ACoS, the better. It means you're spending less on ads compared to what you're making in sales.
Impressions: This is how many times your ad is shown to people, even if they don't click on it.
Clicks: This is how many times people actually click on your ad.
Click-Through Rate (CTR): CTR is the percentage of people who clicked on your ad compared to how many times it was shown. For instance, if your ad was shown 100 times and got one click, your CTR would be 1%.
Amazon PPC Ad Types
While creating your first PPC campaign, you’ll see three ad types Amazon offers.
- Sponsored Products
- Sponsored Brands
- Sponsored Display
Each ad type has a different purpose depending on your goals.
We hope this Amazon PPC guide has been helpful for you in understanding different types of Amazon advertising and how to set up a PPC campaign.
There's a lot of useful information here, so don't forget to save it for reference when you're creating your first PPC campaign.
If you need help creating a successful PPC campaign, check out SellerApp PPC Managed Services. Our team of experts has helped over 20,000 brands like yours manage PPC campaigns worth $1.8 billion. We're here to help you too!
Got more questions about Amazon PPC? Schedule a call with us, and our experts will be happy to assist you.
https://services.amzonics.com/
Happy selling!