In the world of e-commerce, it’s hard to stand out and get noticed. For online shoppers who are bombarded with new options every day, it can be hard for any one company to catch their attention. To help businesses succeed in this environment, Amazon has made their services accessible to third-party sellers. If you’re thinking about becoming an Amazon vendor and selling your products on their marketplace, you should know that they also offer a platform for third-party sellers to advertise their goods through Amazon PPC.
Adding Amazon PPC to your marketing strategy is essential if you want to increase your visibility, generate more sales and gain a competitive edge among other sellers in your niche. In this article, we will explain everything you need to know about how Amazon PPC works and how it can help expand your reach as a business by taking the help of an amazon consulting agency.
What is Amazon PPC?
Amazon PPC is a type of advertising that appears on search engine results pages (SERPs) above organic search results. The ads are placed there based on a number of factors, including bid amount and relevancy to the keyword searched. If a shopper clicks on one of these ads and makes a purchase from that seller’s product listing, that seller will pay a fee to Amazon for having the ad appear next to the organic result.
The key to success with Amazon PPC services is to always keep your eye on the two main goals of all PPC campaigns: getting more traffic and converting more of that traffic into sales. PPC helps with both of these goals through two main mechanisms: improving your click-through rate (CTR) and increasing your conversion rate. Getting more visitors is great, but if they don’t click on your ad to get to your listing, they’re not going to buy anything.
How does Amazon PPC work?
Before you can implement a successful Amazon PPC strategy, you need to understand how the advertising platform works. The first thing you need to know is that Amazon organizes their advertising program into two distinct types of campaigns: ‘Sponsored Products’ and ‘Ad Campaigns’.
Sponsored Products: This type of Amazon PPC campaign is for individual product listings. You choose which particular product listing to promote, set your budget and start seeing results within 24 hours. You can pause or cancel a Sponsored Product campaign at any time.
Ad Campaigns: This type of campaign is designed to help you promote a brand or product line with multiple products. This gives you the ability to create a PPC campaign that promotes your entire brand instead of just one product at a time. You can choose to show your ads to shoppers in the Amazon marketplace, on the Amazon Mobile App, or both. Shoppers can also click on your ad to take them directly to your landing page or website.
Why is Amazon PPC important?
With more than 300 million people shopping on Amazon every month, it’s essential to make sure you’re maximizing your presence on the platform. Amazon PPC is one of the single most important tools in a seller’s marketing arsenal. And don’t take it from us: even Amazon recognizes the importance of its own advertising platform, with Jeff Wilke, Amazon’s CEO, claiming that “advertising is a huge growth area for us.”
The Amazon CEO also expects the company to double its advertising revenue in the next couple of years. With these facts in mind, it’s not hard to see why Amazon PPC is an essential part of any successful brand’s marketing strategy.
The benefits of Amazon PPC for e-commerce vendors
If you’re still not convinced that Amazon PPC is worth your time and effort, consider these five major benefits that come with using the platform:
Amazon PPC is affordable
The Amazon marketplace is a massive place to do business. And since you’re not paying for real estate on company-owned websites, the cost of advertising on Amazon is a lot less than it would be for offline channels. Amazon Ads offers a $10 option for new sellers, which is great for small brands and startups with a limited budget.
Amazon PPC is accessible to sellers of all sizes
With Amazon PPC, you don’t need to be a major brand or have a large marketing budget to see results. Since the platform uses an auction-style bidding system to determine which ads appear on top of search results, you can set a budget that works for your business and still have a chance to rank highly against other brands.
Amazon PPC makes it easy to scale up
There are automated bidding and optimization features available to help you scale up your business as it grows. This can help you avoid hiring a full-time marketing employee who will require benefits and other expenses.
Amazon PPC provides valuable data
Using Amazon PPC also allows you to track your ads’ performance. You can also track your organic listings for product pages to see how your listing optimization efforts are paying off.
Amazon PPC provides access to Amazon’s massive customer base
The e-commerce giant has an estimated 330 million customers, which is a huge audience for your brand. These customers are also relatively easy to reach since they’re all on one platform.
Amazon PPC Strategies: What You Need to Know
Now that you understand the basic ins and outs of Amazon PPC, it’s time to dive into the nitty-gritty details of this marketing channel. To ensure you’re getting the most out of your Amazon PPC campaign, you should follow these five strategies:
Be clear on your business’s goals
Before you get too deep into the weeds of creating an Amazon PPC campaign, make sure you know what you want to get out of it. What are your top marketing goals for the coming year? What do you want to accomplish with this campaign in particular?
Start with the right keyword research
Poor keyword research can sink your entire Amazon PPC campaign before it even gets off the ground. By investing a bit of time upfront to select the best keywords possible, you can save a ton of time and money down the road.
Optimize your Amazon listing
Your Amazon PPC campaign may be bringing in tons of traffic, but if those shoppers aren’t clicking your listing because it’s not optimized for the keywords you’re targeting, you’ll never convert them.
Test out multiple Amazon PPC ad variations
You never know which ad variation will work best for your business until you test them out. By using split testing, you can determine which ad copy, images, and calls to action work best for your business.
Amazon PPC is a powerful tool, but only if it’s used correctly. If you want to make the most of your Amazon PPC campaign, you need to make sure your strategy is optimized for success. Otherwise, you could end up wasting time, money and energy on a campaign that isn’t bringing you any real returns. With these tips in mind, you’re well on your way to an effective Amazon PPC strategy.
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