8 Amazon PPC tips for beginners you should know

Use PPC to monitor ad performance

8 Amazon PPC tips for beginners you should know

It can be challenging for new vendors entering the Amazon market to compete at first. As a result, many sellers employ Amazon PPC (Pay-Per-Click) ads to help promote their products on the platform. PPC on Amazon is difficult to manage, but it's critical for any Amazon seller.

When it comes to online buying, Amazon is a household name. Amazon is the go-to place for practically anything and everything. SMBs all across the world are thriving on Amazon, not just the largest corporations. SMBs were responsible for over half of all products sold on Amazon in 2019.

The ever-increasing popularity of Amazon among buyers throughout the world has pushed Amazon seller competition to unprecedented heights. Being a top seller on Amazon in any category is a difficult undertaking.

The most common Amazon advertisement approach, Amazon PPC Campaign, assists sellers all over the world in effectively advertising their products on Amazon. Sellers are not only getting more hits and impressions on their ads, but their sales are also increasing.

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Why Should I go for Amazon PPC?

Amazon PPC campaigns assist sellers in efficiently increasing their sales on Amazon. Regardless of a product's niche, a well-planned and efficiently managed Amazon PPC campaign allows it to easily reach its ideal buyer.

Additionally, PPC campaigns are used by many high-end and emerging brands to get to the top of Amazon's SERPs. Amazon PPC ads quickly improve a product's inorganic search ranking.

New items face stiff competition from top performers in any area, resulting in lower sales. Even though the competition in their individual categories is fierce, sellers employ Amazon PPC Campaigns to increase product awareness and exposure.

Beginner Guide to Amazon PPC

Using PPC might be a double-edged sword. On the one hand, it has the potential to help you rapidly scale your products. On the other hand, it can cost you a lot of money if not properly handled. For this reason, this blog will provide you these amazing tactics that only top sellers utilize to help you succeed with Amazon PPC!

Consider Automation

Top Amazon sellers all over the world are automating their Amazon PPC ads. Both automated and manual ad campaigns are available on Amazon.

Easy keyword research is one of the most productive elements of automated Amazon PPC campaigns. It enables you to collect all relevant search terms and keywords that may be useful for your products.

This isn't to say that manual keyword research and PPC campaigns aren't valuable. They can help you find phrases that an automated Amazon PPC campaign might overlook.

Optimize Bids

You have greater control over where your ads show and how much you're ready to spend for them if you optimize for placements. Top of Search, Rest of Search, and Product Pages are all places where you can put bids. You can boost your products' visibility by setting bid adjustments for Top of Search and Product Pages once you've established your basic bid on Amazon Advertising.

Every campaign you conduct on Amazon has a product placement report available. Based on your findings, you can check which placements worked best for you and adjust the placement bid multiplier.

Search Term Isolation

Now, you may be tempted to put multiple keywords in all match types. This can work, but it gives you absolutely no control over your bids and causes a lot of problems. 

The goal of search term isolation is to provide you more control over your bids in exchange for not being able to bid on every conceivable variant. Unless you use Enhanced CPC, Amazon does not disclose data for specific keywords in different match types by default.

You can generate a separate bid for each of your keywords by splitting them into distinct match types. You can easily adjust your bids for each type of user and save money by dividing them into various campaigns with separate budgets.

Compare Ad Expenses to Ad Performance

You can compare products based on their success and growth after running a PPC campaign. To optimize sales, you'll need to focus your investments on the products that pay off the most.

If the profit you make off of sales goes to ad costs, then you're barely breaking even. As such, you'll also have to keep an eye on ad expenditures. 

Your Advertising Cost of Sales (ACoS) is the metric by which Amazon Advertising success is measured. It is a metric for determining the efficiency of a campaign based on the number of sales generated and the amount of money spent on advertising.

ACoS tells you how much money you can spend on ads and assists you in planning your campaign budgets. If your ACoS is good, you don't want to budget too little and miss out on the exposure needed to promote the product. On the other hand, if your ACoS is bad, it can tell you to drop bids to avoid spending too much and reducing your profit margin.

Segmentation for Future-proof Ad Campaigns

Putting all of your products into a single campaign makes it difficult to read the data later. Yes, it may do well for others, but you won't know which phrase was used to trigger a specific product. In other words, you won't be able to expand your ads at the product level in the future.

Build ads that are relevant to a product category or segment. Amazon will have a simpler time indexing your listing. When you combine it with a good campaign naming structure, you'll have no trouble finding potential keywords.

Never Stop Optimizing

Make sure you're constantly monitoring your campaigns. This applies to both manual and automated marketing. Check which keywords brought in the most traffic and resulted in the most conversions at the end of each week. Adjust your bids to suit the performance of your keywords. Only data should be used to guide your selections.

Keep Negative Matches in Mind

When scaling your campaigns, you're not limited to only increasing bids and budgets. Negative targeting with a term or ASIN can sometimes help your advertising succeed!

Look for keywords or ASINs that have been bleeding your campaigns during your weekly optimizations. While many sellers utilize negative keywords to prevent irrelevant terms from appearing in auto campaigns, most merchants emphasize too much on exact match negatives.

Negative phrase match targets are significantly more efficient, but they can prevent potentially valuable search phrases if done incorrectly.

In phrase match, negative keywords will cancel any search term that includes that phrase.

Adding single irrelevant keywords as a phrase match negative is the most efficient technique to employ negative keywords. As a result, any search phrase including that irrelevant word will be considered a negative keyword. For this to happen, you'd have to enter hundreds of negative exacts.

If negative targeting is proving too time-consuming, look at your keyword optimization to see if Amazon's algorithm is getting confused about what your product is.

Take Advantage of Amazon Marketing Tools

Running and optimizing an Amazon PPC campaign on your own will be time-consuming and costly. Furthermore, monitoring competitors and tracking each of your keywords will keep you on your toes 24 hours a day, 7 days a week.

You can use Amazon marketing tools to boost your sales, awareness, and profits on Amazon in the same way that top sellers do.

How Much You Can Expect to Spend

The cost of Amazon PPC ads varies considerably based on your objectives. However, the average cost per thousand impressions (CPM) is $0.75. Sponsored Brands should anticipate spending between $0.80 and $15 per click, with a CPC of roughly $0.40.

Product Display Ads range in price from $0.30 to upwards of $12. The average CPC will be in the $0.50 range.

The average cost of a headline search ad is $0.60 per click. Although this can vary significantly based on the match type used and the competitiveness of your keywords/product.

Summary

The most accessible alternative for sellers who wish to generate awareness for their Amazon listings is to use Amazon advertising. This takes a lot of time and effort. However, the return on investment in terms of new customers is well worth it.

It can be a scary investment, and it's natural for new sellers to feel apprehensive. Yes, it's a risk to invest time and resources in ad campaigns that aren't guaranteed to succeed. However, following the tips listed in this blog can give you a fighting chance you need to get started. As mentioned before, campaigns and ads that are done correctly can work wonders for your business.

Naturally, you won't see effects straight soon. Don't be concerned! Before making any adjustments to your campaign, be patient and wait for some results.

While you wait for some initial results, you can employ advertising settings such as budget caps to ensure that you don't overspend. Keep in mind that impressions and keyword bid prices are two of the most crucial metrics to monitor. By keeping an eye on these, you may change your bid price to achieve an optimal amount of sales.

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