What is Amazon PPC?: Amazon PPC(or Amazon pay per click) is a type of advertising that allows you to target keywords, categories or even other listings while only requiring payment when your ad is clicked. It is the primary way of traffic redistribution within Amazon.
Why is Amazon PPC essential for your business to grow?
There are two primary means of driving customers to your listings on Amazon: organically or via PPC advertising. PPC is an essential part of the equation here since it is an investment in the future of your business. It redirects the buyers towards your listings, causing a short-term boost to your sales. Furthermore, Amazon PPC can foster brand loyalty in your customers and tip Amazon’s algorithms in your favor, boosting your organic sales and giving you the opportunity to receive an even larger share of your competitors’ customer base. These are the primary reasons why Amazon PPC is paramount when you want to grow your business.
What type of Amazon PPC is best for you?
There are three types of Amazon PPC campaigns: Sponsored Product, Sponsored Brand and Sponsored Display. They, however, are not equal in their performance.
Sponsored Products is the first ad type that promotes products in question to Amazon shoppers using search terms containing specific keywords. This type can be used by every user and provides the highest ROI.
Sponsored Brands is an ad type highlighting the brand logo, featuring the custom headline, and up to three products of a single brand. You can also feature a video ad with Sponsored Brands. Sellers use this type to predominantly form brand awareness. Only registered sellers can use Sponsored Brands.
Sponsored Display is an ad type that allows sellers to show the display to shoppers browsing for similar products to the one advertised. Like Sponsored Brands, only registered sellers can use this ad type.
Sponsored Product ads are the most widely used of the three, as they’re useable by both new and experienced Amazon sellers. This type is also the most universal of them. As such, it is recommended that you use Sponsored Product ads, whatever your skill level or registration status.
Four key parts of successful Amazon advertising
The first step to successfully launching a PPC campaign on Amazon is to structure it optimally. According to Sponsored, the preferable campaign structure consists of four parts: Control Part, Growth Part, Negative Part, and PAT Part.
Control Part encompasses campaigns attracting up to 70% of your traffic. These campaigns only use the Exact Match targeting type, giving you more control over them. It is also easily optimized as turning off irrelevant keywords will yield the expected results due to the Exact Match type utilized in this part.
Growth Part uses Automatic campaigns to discover new keywords for your campaigns. The keywords used in other parts will be put into the Negative Match type to avoid competition.
Negative Part strives to increase the CVR of your campaigns and save your financial resources by determining the apparently irrelevant keywords and labeling them as negative.
PAT Part focuses on categories and your competitors to redirect traffic to your listings. This part also utilizes Automatic campaigns, like the Growth part (i.e., the campaign discovers new ASINs for use in the PAT Part).
Best Amazon PPC strategies
The strategies you can use may differ depending on the campaign’s goals. To this end, the Sponsoreds team has created eight strategies aimed at optimizing a PPC campaign while using the Amazon PPC management and optimization software.
ACOS Targeting. This strategy is relatively straightforward. You calculate the target ACoS and adjust the campaigns, bids, and budgets the way you can get to the desired ACOS.
Overall Profit Growth. This strategy affects organic sales with Amazon Advertising. You should maximize ads to get as much organic ranking as possible while not going beyond break-even ACoS.
PPC Profit Growth. Once 70% of keywords rank at the Top of Search, or you are a Best Seller far beyond the nearest competitor, you should move the traffic from the Top of Search placement to the Rest of Search and Product Pages preventing cannibalization of organic sales. This strategy is about keeping ACOS as low as possible but ensuring you get sufficient sales to keep the high result.
Product Launch. This strategy starts with extensive keyword research to prevent money and time losses by harvesting keywords from Automatic campaigns. It is recommended that you have at least 150 reviews to start running advertising in such a manner. Coupons and discounts are also advisable.
New Keywords Ranking. This strategy aims at gaining more market share. Three campaigns are designed specifically for harvesting new keywords. Auto CTA, Auto Negative, and Broad Negative campaigns are like a “black box”. These campaigns are pushed aggressively to gain ranking juice using Top of Search placement.
Low Inventory HPLS. When the product risks being stocked out, you should move to a more profitable strategy by significantly decreasing bids for all keywords and Product Targetings and turning off high-frequency keywords.
Get the Best Seller Tag. To get the Best Seller Tag for your product, you should redirect all the traffic to the Top of Search placement for all campaigns. Failing that, you should strive to receive more traffic from the product page or the rest of the search placements.
Defend Best Seller Tag. This aggressive strategy uses unique PAT campaigns in all available types to defend your Best Seller status. This is achieved by showing ads on your competitor’s listings (thus, diverting customers to your listings). You should pursue this strategy only when the gap between you and your competitors narrows significantly.
PPC automation software
Today, it is suboptimal not to use various third-party Amazon PPC optimization and automation tools. They free up your time, can compensate for the lack of expertise in certain areas, and downright share the best practices and strategies when it comes to Amazon PPC. For instance, Sponsored Amazon software masterfully utilizes the above campaign structure and strategies, as they are at the core of the Zero to Hero and Automation tools. Moreover, the state-of-the-art AI that controls the tools notices even slight changes in market conditions and modifies your campaigns appropriately. Try out the Amazon PPC Audit tool for free, or sign up for 14-days free access to the PPC Amazon software right now!
Amazon PPC strategies vary with respect to your goals or market conditions. Correctly identifying them and acting accordingly and swiftly is vital for the success of your Amazon business. Have a safe journey during your voyage through the vastness of Amazon!