Amazon PPC advertising also known as Amazon Pay-Per-Click is a form of advertising based on the use of keywords. This auction-style of advertising allows advertisers to pay the price for their Amazon ads if their ads get clicked on. It works on a click-per-click basis where a dropshipper advertising goods pays a certain fee to Amazon when their ad is clicked on. This form of advertising is done on Amazon and is available to third-party sellers; it allows dropshippers to carry out powerful cost-effective marketing tactics that help businesses measure their level of success, improve visibility, and increase sales.
Amazon PPC ads use a keyword search strategy to improve traffic to the dropshipper by employing the use of specific keywords which appears on other competitors' product listings as well as on Amazon search results. Sellers can create advertising campaigns which are displayed on Amazon; the sellers are subsequently charged each a potential buyer views the ad.
This is how the Amazon PPC works;
After a search on Amazon, Amazon complies with a list of related ads to the search made. After the compilation is made, the ad with the highest bid wins the auction and is then displayed. The shopper then clicks on the ad while the seller pays the second-highest bid. The second-highest bid is the price of the second-highest price auction for the product.
Types of Ads for Amazon PPC
Three types of ads are permitted by third-party sellers ok Amazon. They are;
- Amazon Display Ads
- Amazon Sponsored Brands
- Amazon Sponsored Products
Amazon Display Ads
Amazon display ads are ads that are visible to audience members based on the type of targeting you choose. These ads appear in product detail or product-related pages and third-party websites and apps. Amazon Display ads are suited for agencies, vendors, and professional sellers enrolled in Amazon Brand Registry but are not suited for product categories such as weapons like airsoft guns, fireworks, and pepper spray, prescription devices and drugs, alcohol, and adult products. There is no specified amount for products in Amazon Display Ads.
Amazon Sponsored Brands
Sponsored Brands are types of Ads that help to create brand awareness and generate product sales. These ads of make use of keywords to locate target shoppers and are found within, alongside, and on top of search results on Amazon. They can be used by agencies, book vendors, and other types of vendors but do not support use by refurbished, used, or adult product types. The daily minimum budget is $1 for products in sponsored brands.
Amazon Sponsored Products
Amazon-sponsored products are ads suited for agencies, Kindle Direct Publishing (KDP) authors, book vendors, vendors, and professional sellers. However, refurbished, used, adult, and products in closed categories, are rare and not suited as Amazon Sponsored Products. These kinds of products promote a single product and can be found on product pages, within search results, alongside side results, and at the top of search results. The minimum daily budget for sponsored products is $1.
Benefits of using Amazon PPC Ads
Amazon PPC ads are important for every dropshipper to improve revenue and traffic. Not only does it improve the brand awareness of the seller, it helps to measure and track business activities and also integrates well with other marketing channels. Amazon PPC agency control expenses spent on ads, launch new products, clears old stock, promote different kinds of products, and boost the visibility of your products.
Consider these benefits of the Amazon PPC strategy;
· Global Reach and Top Ranking
Amazon is a global platform and the Amazon PPC tool exposes the seller's products to a global audience. Millions of potential buyers can access a seller's product posted within seconds and thus improve your visibility globally as well as your brand awareness. Additionally, advertising your product on Amazon gives your brand a higher rank and gives you a better edge over your competitors.
· Entry is Quick
Amazon PPC guarantees a quick entry into the system; it offers equal positioning for all types of dropshippers, providing similar attention to all. It allows businesses to reach out to a new and different target audience and generate traffic to their store. Users can enjoy equal optimization and broaden their horizons to new and existing customers.
· Amazon PPC Puts You in Control
Amazon PPC is very flexible, it allows advertisers to customize and optimize their ads, make quick edits or even try out different ads. They can also control the keywords they use, regulate their reach and restrictions, and make their budget accordingly. It also allows them to take pauses or breaks at anytime
· Tracking Results
Amazon PPC tools allow users to track their ads and measure their results. Dropshippers can see the traffic their ads are generating, analyse the performance of their campaigns and compare the results with their goals.
· High Result Output
PPC campaigns help businesses to achieve set goals. It provides limitless opportunities for different kinds of businesses to grow, improve brand awareness, increase customer base, and measure business success. Businesses can see the effects of Amazon PPC ads almost immediately unlike other organic search techniques. Amazon PPC advertising also provides a platform where businesses can reach potential customers from different places.
· Cost-effective
PPC Amazon is a very cost-effective method of running ads. Dropshippers can get a good value for their money, especially as only payments are made for clicks made on their ads. They can also choose how much they can spend on ad campaigns.
· Pricing Benefits
Sellers on Amazon do not have to pay for the traffic generated by the ads. There are no activation or subscription costs which allow users to make flexible budgets for their Amazon PPC management service. Additionally, the pricing for the Amazon PPC ads is done to the very beneficial seller.
· Device Friendly
Amazon PPC supports use on tablets, android and Apple devices, and other devices as well.
Costs of Amazon PPC Ads
The cost of running PPC on Amazon is an important part when selling on Amazon. This helps sellers to make proper budgeting following their goals. Amazon PPC tool offers different advertising solutions to meet the needs of businesses such as to improve brand loyalty, boost sales, increase engagements, or drive brand awareness. Amazon's PPC agency uses a Pay-Per-Click method to determine the costs of running ads on the platform. However, sellers can set the maximum cost when a potential buyer clicks on their ad.
The cost of PPC on Amazon is largely dependent on the factors relating to the goals of your marketing campaign. Targeting strategy, bids per keyword, type and placement of the ad, and marketing goals are factors that affect the cost of your Amazon PPC ad. Sellers must learn to adopt effective strategies for their marketing campaigns to ensure that the goals of the advertising are achieved. While no one size fits all approach when determining the costs of Amazon ads, proper optimization of your campaigns and listings would lead to a significant increase in conversion rates.
While the actual cost or budget for an ad is important, other factors such as the proper use and targeting of keywords would help to increase traffic, and sales, and drive traffic to your business. Generally, as long as a profitable return on investment is generated from your dropshipping business, the budget for your business ads may not matter.
Amazon offers recommendations for hidden amounts that help to improve your visibility when searches are made. On Amazon, if your maximum bid is $0.60, and the next and closest bidder offers $0.50, you will be required to pay $0.51. Remember that Amazon chooses the most visible search based on the highest bid available, so choosing a lower amount as a bid may lower your chances of visibility when searches related to your products are made. The higher you bid, the higher your chances of appearing.
The amount a seller pays on Amazon for their product depends on how competitive their niche is, nonetheless, sellers are expected to pay about $0.05 to $10 per click.
How Does Amazon PPC Generate More Sales
Pay-Per-Click advertising is an effective way to scale your business and enhance the awareness and reach of your business. Amazon PPC helps businesses to generate more sales by;
· Driving Traffic
Amazon PPC tools help to drive traffic to businesses. When searches are made on Amazon and your ads are clicked on, the seller experiences an increased recognition of its brand that drives more traffic to its ad. This in turn helps businesses boost sales and grow their brand.
· Targeted and Focused Marketing
Amazon PPC management service employs a form of targeted marketing by improving the visibility of a marketing ad when the searches are made using the keywords. When the ads of your business are clicked on, dropshippers can attract new customers to their shop and also increase the chances of converting users. This method of advertising allows users to access their target audience using interests, behaviours, keywords, location, and other specifics. With this, businesses can reach their target audience, generate more sales, and expand their businesses.
· Ability To Reach Previous Site Visitors
Remarketing campaigns on Amazon allow sellers to reach potential customers who clicked on your ads and did not purchase or convert. This Amazon PPC strategy helps to remind Amazon users and your customer base of your products.
· Increased Edge Over Competitors and Increased Exposure
Amazon PPC advertising gives businesses a better edge over their competitors. Sellers can achieve this using relevant keywords on Amazon to help them boost sales while being cost-efficient. PPC on Amazon also gives businesses the exposure they need to get into new markets to promote their offerings. This increased exposure helps businesses meet new audiences and expand their business accordingly.
· Increase in Customer Attribution
Customer Attribution is the attributing success to a particular customer or brand. Amazon PPC advertising increases customer attribution which leads to more conversions and leads. With this, businesses can enjoy an increase in the number of audiences visiting their brand and thus lead to increased sales.
Best Way To Start Amazon PPC Ads
· Choose Your Products
Choose the products of your choice and determine the categories that fall into. Endeavour to choose products that would drive good sales; this should be based on their popularity, rankings, or sales. Also choose the kinds of D's either sponsored display, sponsored brands, and sponsored products
· Research and Choose Keywords
Make research to choose your keywords or adopt the recommendations provided by Amazon, with this you can enhance your visibility and improve traffic. Always ensure to choose keywords that match the product on sale. Also optimize your products listings to enhance your visibility on search results.
How To Create Your Amazon PPC Campaign
Create your campaign using the following steps;
- Log into your Amazon account, click on the advertising tab, select create a campaign, and choose the type of ad.
- Then, provide information related to your campaign name, start and end date, and daily campaign budget
- Choose your targeting by either opting for automatic or manual targeting
Upload Your Keywords
Amazon allows sellers to upload their keywords after choosing the 'manual targeting' option. Amazon also suggests keywords for you. You can choose targeting options like exact, phrase, broad, negative phrase, or a negative exact match.
Set Your Keywords Bids
Determine the cost-effective bid for your keywords and add them. Also, ensure to use data to set your bid. You can also update your default bids.
Submit Your Keywords
Submit your ads after providing your keyword bids. Amazon will review your campaign and launch your ads. However, Amazon will alert you if there are issues with your ads and offer recommendations on how to fix them.
Conclusion
Amazon PPC advertising is an effective way to sell your products, measure your business success and increase your brand awareness. This method of advertising not only helps you track your performance and offers flexible marketing strategies, but it also guarantees high results and is cost-effective.
