Amazon PPC advertising is an excellent method to stay ahead of the competition, get your product noticed, and improve your overall Amazon PPC strategy.
While spending your money on sponsored display ads may be tempting, it is not as simple as that.
Redberries, a top Amazon management agency in Dubai, often assists our clients in developing an Amazon PPC plan that provides a worthwhile ROI.
So, if you’re new to Amazon advertising, here are some pointers on creating effective PPC ads.
What exactly is Amazon PPC?
Amazon’s internal advertising approach includes PPC ads (Pay Per Click). In a nutshell, sellers place bids on keywords relevant to their products.
The seller is charged a fee each time a potential buyer clicks on their product because of such keywords.
It can be challenging to develop an Amazon PPC campaign as a new seller. It’s tempting to focus on keywords with a high amount of searches.
However, these are usually more expensive, and better-performing brands will almost always outbid you.
As a result, it may appear that you are wasting money.
We’re an experienced Amazon PPC firm that can walk you through the initial stages of launching your campaign.
Because you can’t do it alone, it makes sense to employ a professional to get you started.
Metrics for PPC
Do you think PPC ads are simple? Unfortunately, it is not so straightforward, as PPC advertising uses a variety of metrics to assess various parts of a PPC campaign.
Here’s a quick summary:
ACoS (Advertising Cost of Sale) is the proportion of attributed sales spent on advertising.
Assume you spend $5 on advertising and receive $20 in sales. If you divide 5 by 20, your ACoS equals 25%.
Sales with Attribution
This is the total number of products sold based on clicks over a week.
Data can take up to 48 hours to appear.
As previously stated, it is an essential component of your ACoS computations.
Impressions
This term may already be recognizable to you. The number of times your adverts were displayed when consumers searched on Amazon is impressions.
Clicks are self-explanatory: they are the number of times clients click your adverts.
Impressions and clicks combine to form the foundation of conversion calculations.
What is the Importance of an Amazon PPC Strategy?
Why should you be concerned about keywords like PPC advertisements and ACoS as an Amazon seller?
Simply, you want to generate as many sales as possible. Amazon is currently the largest online retailer, controlling nearly half of the American e-commerce market.
This means that selling in this market is challenging.
Your organic ranking (determined, among other things, by reviews and sales) is crucial.
However, even well-selling things might get lost in many other high-performing ones.
PPC advertising is a great strategy to expand your platform reach and improve product visibility.
Of course, if you need some early feedback, consider participating in Amazon Vine.
How to Create an Amazon Pay-Per-Click Strategy
To some extent, sponsored display ads are a matter of trial and error.
Even expert merchants experiment with keywords, so don’t be alarmed by this fact.
Benchmarking your progress on Amazon will assist you in selecting the optimal course and making any necessary changes; learn how here.
Then try once more!
Consider employing an Amazon PPC firm in Dubai, such as Redberries, if you want most of the legwork done for you.
However, if you believe you have what it takes to create a profitable Amazon PPC strategy, here’s a fast how-to tutorial.
Step 1: Selecting Products
Before proceeding, it is essential to note that you should only use sponsored products.
You can create automated campaigns for these, such as sponsored display ads or brand or product advertisements.
Step 2: Is it better to go automatic or manual?
We’ve already hinted at this: choose automated campaigns over manual campaigns. They’re a better option for beginners because they’re easier to set up and monitor.
On the other hand, manual campaigns allow you to bid on keywords of your choosing, including precise keywords, phrase matches, and broad keywords.
The advantage is that you may experiment with different phrases to find which ones work best for your product.
Manual and automatic PPC ads have pros and cons. It ultimately depends on your experience and willingness to analyze and track.
However, combining the two can give you some significant data to work with.
Step 3: Choosing Bids
PPC ads function on bids. In short, it’s the amount of money you’re happy to spend per click.
Your options are Dynamic Bidding (down only or up and down) and Fixed Bids.
Active bids rely on Amazon’s perception of your ad’s conversion ability. If it thinks it’s more or less likely, it’ll raise your bid up or down to suit.
Fixed bids are just that: you set a price and adjust manually. It’s best to avoid this option because you’ll almost always overspend.
Step 4: Analysis
After setting up an easy PPC campaign, you can begin getting data.
You can optimize your keywords and categories to see what works best for your products.
List good and bad keywords weekly to use as follows:
Deactivate wrong keywords for manual campaigns and set them as unfavorable in automatic.
Take good keywords from automatic campaigns to serve as manual keywords. Change them to a negative on automated campaigns after.
Don’t spend more than AED 48 on a keyword or ASIN that hasn’t converted.
It’s entirely normal for your ACoS to be 60-90% for the first 2 months of a new product’s launch.
After month 3, your ACoS should drop to 40% or further with the proper optimization.
Of course, your target depends on your overall Amazon PPC strategy, competition, and seasonality.
Conclusion
PPC ads can be confusing in the early stages, as there’s quite a lot of information.
You can create a profitable Amazon PPC strategy in a few months with some experimenting.
As an Amazon marketing agency, we have the knowledge to create PPC campaigns that work every time.