What is Amazon PPC?
Also known as sponsored ads, Amazon PPC refers to Amazon’s self-serve pay-per-click advertising platform and allows Amazon merchants to setup and manage ads for their products across the Amazon platform. In a crowded marketplace with millions of brands and retailers selling globally, Sponsored products can help gain a competitive edge through increased product visibility and customer targeting.
We recommend running Amazon PPC campaigns at all times, reviewing and optimizing regularly. Amazon PPC campaign reporting can also be a ‘gold mine’ for insights and trends to optimize your listings. 5-10% of monthly sales should be allocated to PPC budget.
There are three primary Amazon PPC campaign format
- Sponsored product ads: Most commonly used sponsored ads campaign type, product ads appear in search results and product listing pages. Product ad campaigns can be created as:
- Automatic-targeting ads: Automatic-targeting ads will refer to Amazon’s A9 Algorithm to determine search queries related to your product. Using your listings’ CTR and conversions, Amazon will then optimize your ad campaign to increase conversions. This method is recommended when starting out, as you’ll be able to gather valuable keyword data that you can use to optimize your listings.
- Manual-targeting ads: Manual-targeting ads give you greater control of your PPC campaigns by focusing on keywords or like-products defined by you (for example, you could use the keyword data gathered from your automatic-targeted campaigns to create and manage your own manual-targeted campaigns).
- This approach requires more engagement and regular optimization.
- Utilize negative keywords - which are essential to reducing your ad spend
- increase bid values for phrases and exact match
- Campaigns should (ideally) run for at least 30 days to gather valuable insights
Sponsored display ads: Sponsored ads re-target buyers that have already engaged with you on Amazon through external affiliate websites such as Google and Facebook. Sponsored display ads require the seller to be brand registered.
Sponsored brand ads: Also known as ‘headline search ads’, brand ads are reserved for Amazon brand registered sellers and allow you to include additional content in your sponsored ad, such as logo, headline text, and 3+ products
A major benefit of Amazon PPC over Facebook or Google advertising is that ads are only shown to buyers already in the process of shopping on Amazon. Users on Facebook and Google are often doing something other than shopping, to engage your ad and make a purchase would require the buyer to stop what they’re doing. Amazon engages the buyer when they’re already searching for products like yours.
Sponsored product ads - campaign use cases
Amazon Sponsored Products are one of the most effective advertising solutions available, however, it is up to you as a retailer to determine the appropriate PPC strategy for your business.
For further information on PPC/Sponsored Ads please reach out to Amazon directly