All You Need to Know About Amazon PPC (Pay-Per-Click). PPC (Pay Per Click) can be an exceptionally complex concept to understand completely. You will find numerous guides explaining the same basic approach but very few with a definitive solution for how to do so successfully.
In explaining an Amazon PPC, we will do our best to simplify the terminology, define the acronyms, and break down the approach so that it makes more sense allowing the potential for a successful campaign. Check out Canopy Management to see a prime example of what this can look like. Their system is organized and seamless. Let’s get started to see how you can get there too.
What Is an Amazon PPC?
Amazon’s PPC (Pay Per Click) follows an auction format that depends on chosen keywords representing goods and ads placed showing the products. A vendor or the seller needs to make a bid for a specific fee for the designated keywords they choose to have displayed in order for the ad to show up as a result on the search page.
When the bid is received, that amount represents the maximum they will pay for someone to “click” on that ad. Amazon will then base the ad’s rank for the auction on the bid amounts and assign spaces accordingly. Of course, those with the highest bids get the ideal spots.
But the person who bids the highest amount will only be responsible for paying the second quoted bid.
Advantages for Running PPC Ads on Amazon
You will find many advantages for using an Amazon PPC campaign, such as increasing awareness of your goods and optimum visibility, particularly if you are launching something new for your target audience. The more visible your product, the greater the potential for sales. The more products your demographic buys, the higher your organic ranking goes with your listing moving up in the search results more so than is possible without PPC.
The campaigns are not only beneficial when putting out new goods, but these are ideal for maintaining the rank for products already doing well or as a way to bring extra attention to a short-term item or a special promotion.
If you want to simplify it into layman’s terms, Amazon PPC or PPC as a platform can boil down to what is a brilliant variety marketing scheme for the modern age. In this day and age, there is fierce competition in every industry for companies responsible for promoting the same goods and services with so many in the same business.
If leaders don’t find a way to outshine the competition and make themselves seen in a unique light, the target consumers will find a business that does. With ads like these, you have an authentic way to stand out as exclusive from everyone in your same industry based on the investment, you are willing to make, the ads you create, and where you ultimately rank.
Are You A Seller Or A Vendor?
The person who uses the ads can be either a first-party vendor or a third-party seller, but the ad depends on which one you use.
- Vendor (First Party): These have the capacity to use any type of advertising to promote goods with Amazon, such as PDA (Product Display Ads), SBA (Sponsored Brand Ads), or SPA (Sponsored Product Ads).
- Sellers (Third-Party): These have limitations with their options through the seller program capable of using only SPA (Sponsored Product Ads). You need to be brand-registered for the brand ads, and display ads are unavailable in this group.
The indication is the highest bidder in a second-price auction claims the first slot but will pay only the second quoted bid. Click here for the types of Pay-Per-Click and paid search advertising.
The Types of Ads for Amazon PPC
Amazon Pay Per Click has three varieties of ads available for a seller or vendor to represent the products. Each is effective in its own way for reaching your target group, making it essential to use careful forethought as to which you feel will better present your goods to that audience. As a vendor, there’s no decision; you can use all of them. A seller can use merely product ads unless registering the brand.
- SPA (Sponsored Product Ads): An SPA has the reference “sponsored.” Consumers will see these in varied spots throughout the website. These can show up anywhere from the middle, bottom or top, potentially on a competing list and on searched results.
- SBA (Sponsored Brand Ads): You’ll see this right under the search bar but above results. These ads exhibit the logo, as many as three goods from the brand, and a customized headline.
- PDA (Product Display Ads): Most commonly placed on the detail pages for the goods, usually under the “buy box” and also the “attributes.” The display ads have prevalent placement near the consumer reviews, on searched results near the left column, close to the top, and at the bottom.
A key difference with these compared to the other ads is the displays do not depend on searched terms but rather are interest-based, looking for a certain product or category.
Amazon gives the privilege with these particular displays to have prominent placement on other goods’ detail pages. You need to merely distinguish an ASIN where you would like your product ad to show on the detail page. Someone searching based on their interest will pull these up no matter the location.
The other types use keywords and need specific placement in order for the appropriate demographic to access them more readily. Displays are the preference, but these are only available for vendors, not third-party sellers.
Self Promotion vs. A Professional Agency
The Pay Per Click concept is genuinely straightforward. It can seem complex, and it might prove overwhelming when you become involved in the process. The idea is to begin slowly and gradually until you grasp the methodology. In that way, you can hopefully prevent costly mistakes for your business.
It’s a challenging decision whether you believe it’s a concept you can effectively handle as a business owner. Perhaps it would be better to invest in an agency for a better setup and campaign management.
Amazon PPC is a time-intensive venture, one that someone running a business will have difficulty maneuvering along with the priorities of company operations. If you are not versed in keywords, ad placement, why the ads aren’t working, or what to do to make corrections, an agency has the knowledge / experience to merely look and instantly understand what’s happening.
Whether you are a small business or a large corporation, a significant portion of the investment you put into your company ultimately has to go towards marketing. Becoming visible to your consumer is essential in order to get off the ground in the beginning and then grow from that point.
It’s essential to be picky about which marketing schemes you choose to become involved with to reach that audience because the competition is also investing in their own advertising so they can stand apart from you. You do not want to take such a portion from your business that you can’t stock your product, but if you can outsource specific things such as campaigns, you’ll be better able to concentrate on further development.
Suppose you cannot work with an agency initially because you’re a start-up on a tight budget, unable to afford the investment. In that case, perhaps taking a meeting with a consultant to get some tips and ideas on maneuvering through the process is the option. This option should not be as costly and can provide enough education to get things started.
You might not be able to create something on the same level as an agency, but you can become visible to the consumers you want to reach. Hopefully, the conversions start, the company progressively grows, and the switch to an agency specializing in Amazon PPC will become possible.
Amazon PPC is a tool that requires persistence, time, and money. It’s powerful when used adequately as a means to elevate your rank and bring conversions.
For the ambitious who are confident in their endeavor, learning to work Pay Per Click in your favor is just a matter of understanding the many acronyms and finding a guide where the approach is broken down in layman’s terms. Hence, it makes sense enough to develop a campaign with which you can create success for your company.
It’s not unlike a marketing scheme meant to bring your business visibility to the audience whom you recognize as your target over that of your competition through the use of ads.
Competition is incredible today in every industry, with it being more of a requirement than a suggestion to do all you can to outshine the others selling the same goods. If you blend, the demographic won’t see you, won’t buy from you, leaving you to fade away. That is why when you can, it’s worth the investment to have a professional PPC agency push you into the front so that the competition is the one standing in the background.