What is Amazon PPC?

Why use Amazon Pay Per Click (PPC)?

Advertising is probably not the first thing that comes to mind when you think of Amazon. In the third quarter of 2020, Amazon’s advertising revenue reached $5.4 billion, 51% more than in 2021. Amazon won’t replace Google or Facebook, but its market share is growing rapidly.

Why are people, especially sellers, turning to Amazon PPC?

The answer is simple: ROI. Because Amazon is a retail platform, users typing in search terms want to buy products. These are active shoppers who want to make a purchase. When a customer is in the process of buying an item, the ad has the potential to increase conversions.

Types of PPC ads on Amazon

There are three types of ads on Amazon: sponsored products, sponsored brands, and sponsored ads (formerly Product Display Ads, PDAs).

Sponsored Products (keyword and ASIN ads) are similar to Google Adwords and allow you to advertise specific products in Amazon’s search results and product detail pages.

Sponsored Brands: branded ads that appear at the top of Amazon search results (and elsewhere) allow you to promote a custom title, brand logo and up to three products and direct customers to your Amazon store page or custom landing page. In addition, video ads pointing to product detail pages are available as new ads.

Sponsored Ads: ads that direct shoppers to Amazon product detail pages and show relevant ads on Amazon and external sites to shoppers who have visited or recommended Amazon products.

How does Amazon PPC work?

Before you start using Amazon PPC, it is helpful to understand how Amazon PPC works. Below is an explanation of how Amazon’s advertising auctions (pay-per-click advertising system) work. A customer searches for the term “toilet paper holder” on Amazon. Amazon collects all ads related to the keyword “toilet paper holder.” The ad with the highest bid wins a prize.

Amazon will show the winning ad. Buyer clicks on winning ad The winning advertiser pays the second-highest bid Amazon’s second-price auctions are of interest to many sellers. What is a second-price auction? In a second-price auction, the winning bidder does not pay the winning price.

How important is PPC advertising on Amazon?

If a seller’s PPC advertising campaign is effective, it will result in more sales and more products on store shelves. As mentioned above, it can also increase organic visibility. In short, it’s important.

But it’s also important to remember that PPC is a marathon (perhaps an endless run), not a short distance. It takes proper planning and time to master it. Also, there is no one-size-fits-all solution. Don’t spread your budget over hundreds of keywords,