Everything You Need To Know About Amazon PPC

Table of Contents

• How PPC works?
• How much you should spend on PPC?
• Negative Keywords

Amazon pay-per-click (PPC) campaigns have been proven to be an effective method for boosting sales on the platform. These campaigns work by allowing sellers to place ads for their products on Amazon’s search results page. When a user clicks on the ad, they are directed to the product page, and the seller is charged for the click. The benefit of this type of advertising is that it can help you rank organically on Amazon, leading to even more sales in the long run.

To ensure that your Amazon PPC campaigns are successful, there are several factors you’ll need to manage. One key metric to keep an eye on is the ACoS, or Advertising Cost of Sales. This is the ratio of ad spend to sales, and it’s an important measure of how efficiently your campaigns are performing. You’ll want to keep your ACoS as low as possible while still generating a good return on investment.

Another important factor is impressions, which refers to the number of times your ad is displayed to users. A high number of impressions is a good sign that your ad is being seen by potential customers, but it’s important to balance this with a good click-through rate (CTR). This is the percentage of users who click on your ad after seeing it, and a high CTR is a strong indicator of ad relevance and effectiveness.

Choosing the right keywords for your campaigns is also critical. This involves selecting the search terms that users are most likely to use when looking for products like yours. You can use both manual and automatic targeting to refine your keyword strategy and ensure that your ads are reaching the right audience.

Overall, Amazon PPC campaigns can be a powerful tool for driving sales and boosting your organic rankings on the platform. By managing key metrics like ACoS, impressions, and keywords, you can create effective campaigns that drive results for your business.

How PPC works?

Boosting your private label product sales on Amazon is a crucial aspect of becoming a successful seller. One of the most effective ways to increase your sales is through Amazon Pay Per Click (PPC) Campaigns. These campaigns work by displaying your ad to potential buyers based on relevant keywords and your product category. To participate, sellers bid on keywords and pay per click, and the higher the bid, the more impressions your listing gets, which leads to more sales.

If you bid lower than the suggested amount by Amazon, your ad may not show up on the front page of the search term, but all ads have a sponsored sign below the title of the listing. There are two types of campaigns: automatic and manual.

In an automatic campaign, Amazon chooses keywords from your listing and advertises those keywords. Amazon may even display your ad on your competitor’s listing. To create an automatic campaign, follow these simple steps:

1. Click on the Advertising from the home page tab.
2. Click on Campaign Manager.
3. Click on Create Campaign.
4. Choose a campaign name, set a daily budget, select start and end dates, select the automatic campaign, and click on continue to the next step.
5. Select the product you want to advertise.
6. Choose a default bid and click save and finish.

On the other hand, in a manual campaign, you provide Amazon with all the keywords you want to advertise on. It is essential to make sure the keywords you provide are relevant to your product, or you may not get any impressions on that keyword. To create a manual campaign, follow these simple steps:

1. Click on the Advertising from the home page tab.
2. Click on Campaign Manager.
3. Click on Create Campaign.
4. Choose a campaign name, set a daily budget, select start and end dates, select the manual campaign, and click on continue to the next step.
5. Select the product you want to advertise.
6. Choose a default bid and select the keywords you want to advertise on. You can choose keywords suggested by Amazon or provide your own. Click save and finish.

As a seller, you may have mixed opinions on which campaign is more effective. We recommend starting both campaigns and analyzing which one is providing better results. This way, you can proceed with the campaign that is more suitable for your product and business goals.

How much you should spend on PPC?

The PPC campaign strategy you choose should align with your goals. Here are three possible goals you may have:

1. Brand Awareness: If your goal is to make your brand more recognizable, you will need to allocate a larger budget for your campaign. This strategy involves running ads consistently to increase brand exposure, regardless of whether you make immediate sales or not. To achieve this goal, you should consider spending between $100 to $500 per day.
2. Low-Cost Sales: To drive sales while keeping your costs low, optimize your listing and monitor your keywords’ performance weekly. It’s crucial to keep your ACoS below 20%. Follow the PPC optimization steps mentioned earlier in this article, and you will likely achieve significant sales at a reasonable cost. A daily budget of $20 to $50 should suffice for this campaign.
3. Product Ranking: If you want to rank your product on the first page of Amazon search results, you need to optimize your listing and invest a higher budget into your campaign. A budget of approximately $80 to $100 per day should be enough for a competitive niche.

Please note that these budget estimates are based on a competitive niche, and your actual spending may differ.

Negative Keywords

Negative keywords are an essential component of any successful PPC campaign. These keywords ensure that your ad does not appear in search results when certain keywords are used. This saves you money and helps you target your ideal audience more effectively.

When should you start your PPC campaign? It’s best to start as soon as your listing is optimized. However, to achieve better ACoS results, it’s recommended that you start after obtaining a few reviews.

When should you stop your PPC campaign? In my opinion, you should never stop your PPC campaign completely. Instead, you can reduce your budget and bids to suit your needs.

How many keywords should you include in your PPC campaign? Include as many relevant keywords as possible. Avoid adding irrelevant keywords, as they can result in a waste of money or higher ACoS.

If you found this article helpful, please consider sharing it with at least one of your fellow sellers.