Looking to enhance your product’s visibility on Amazon? Then, you should consider using PPC ads. However, optimizing your PPC campaigns for the best results can be daunting. Without the right strategies, you might end up wasting your advertising budget.
To help you out, we have compiled a list of the 18 most effective Amazon PPC strategies. These techniques have proven to be game-changers for brands, agencies, and third-party sellers looking to boost their products’ visibility through targeted keyword ads.
With this comprehensive guide, you’ll learn everything you need to know to create successful PPC campaigns on Amazon. If you’re ready to transform your Amazon advertising game, keep reading!
Table of Contents
What Exactly is Amazon PPC?
Amazon PPC is a powerful advertising tool available to third-party sellers on the Amazon platform. With this tool, sellers can create and manage ad campaigns targeting potential customers and driving product sales.
At its core, Amazon PPC operates on a pay-per-click model, meaning sellers are charged each time a potential customer clicks on one of their ads. This makes it a cost-effective way to reach a wider audience and drive more traffic to your product listings.
In short, Amazon PPC is an essential tool for any seller looking to boost their visibility on the platform and drive more sales. By designing effective ad campaigns and leveraging the power of targeted advertising, sellers can increase their reach and connect with new customers like never before.
The Importance of Good PPC Strategy for Amazon Sellers
In this digital age, shopping predominantly occurs online—with Amazon.com being the go-to website for many consumers.
This shift presents a wealth of opportunities for e-commerce brands and sellers to profit from increased online retail traffic; however, it also brings an influx of competitors vying for those same sales.
PPC advertising is essential for Amazon businesses of all sizes. With over 350 million products listed on the platform, it’s easy to become drowned out by the competition. So, having the best Amazon PPC strategy in place can make a big difference.
What is ACOS in PPC Advertising?
Advertising Cost of Sales (ACOS) is a phrase used to describe how much it costs to generate sales using Amazon PPC.
To compute ACOS, you must divide Total Ad Spend by Total Sales; this figure will reveal if your advertising expenses surpass the income that you produce. If such is the case, then something must be wrong with your current strategy.
What are the Costs of Amazon Advertising?
Generally, advertising comprised 25-35% of the total Amazon sales for sellers. However, newly established brands were likely to have a larger percentage of their revenue from ads.
Guide to Setting Up an Amazon Seller Central Account
With your plan for success on Amazon set, complete the easy-to-follow seller registration process to start taking advantage of all the platform offers.
1. Go to https://sell.amazon.com
2. Click on the “Pricing” tab
To compare individual and professional seller accounts, go to the Pricing tab and select “Compare selling plans.” You will be taken to a page outlining the differences between these two types of accounts.
3. Select either an individual or professional seller account
Sign up for the professional account, and you’ll be charged $39.99/month only when you have active listings on sale—otherwise, there is no charge! Once your product is live again, you’re back to paying this monthly fee.
4. Enter your email and select ‘Create a New Account
After selecting your best-seller plan, a window will appear, prompting you to enter your email address and password of choice. Once done, click ‘Next’ to continue.After you reach the second screen, Amazon will prompt a verification code to be sent to your email address. This is their way of verifying that it’s valid.
5. Choose your ‘Business location’ and ‘Business type’
To move forward in the Amazon seller registration process, you must provide the following details:
- Your business location
- Your business type
Not yet established a business? Go ahead and select “None, I am an individual.” Doing so will prompt Amazon to request your full name in the following step.
6. Enter Your Personal Information
After submitting your details, Amazon will require proof of identification through either a passport or driver’s license. To verify your phone number and finalize the process, you’ll receive a PIN code via text message or call; simply enter it when prompted to confirm verification.
7. Enter Your Billing Information
To continue, provide Amazon with your billing information. This includes a valid bank account and credit card number to complete the process.
8. Add the Information for your Product(s) and Amazon store
Once your credit card details are validated, you’ll be asked the following questions about your Amazon storefront and the products. To move on to the next step of registering as an Amazon seller, ensure to answer these things accurately:
- Name of your Amazon store
- If you have UPCs for your products
- If you have any diversity certifications
- If you are the manufacturer or brand owner of the product you’re selling
9. Confirm Your Identity
Afterwards, you must confirm your identity by uploading photos of your ID (license or passport) and a bank statement. Once the documents have been uploaded, click Submit to complete the process!
Once you have sent in your documents, you must finish an Identity Verification by video call with an Amazon partner to guarantee that all the information and paperwork provided are accurate. This step will ensure a successful registration process.
18 Advanced Amazon PPC Strategies to Boost Your Sale
Maximize your Amazon sales potential with these expert-level Amazon PPC strategies:
1. Start at the Bottom, Move Up with Keywords
Start your SEO journey by targeting long-tail keywords immediately; you will experience minimal competition, enabling rapid ranking and high chances of generating sales.As customers become more familiar with your brand and your product climbs to the top of Amazon’s SERP rankings, you can focus on advanced keywords that will help you ascend even higher in search engine results.
2. Maximize Amazon Rankings Through PPC
The strategy here is to create three distinct ad campaigns with customized PPC bids and budgets. When establishing the price of a keyword, consider the ranking of your listing in Amazon’s search results for that specific query. That way, you can assign an appropriate cost depending on where your product appears in relation to competitors’.
3. Adjust Bids by Ad Placement
Amazon offers two main types of ad placements: those that appear on top of the search results page and those displayed at the bottom.For the former, you should assign a higher bid than for the latter. This adjustment will guarantee that Amazon’s algorithm displays your ad in prime spots on the page, increasing its visibility and potential for generating sales.
4. Group Variations Together
If your product has several variations, it will likely be listed as child ASINs. However, running an ad campaign for every single one can significantly affect your budget and the competition among those variations. This would not be a feasible solution in this case.To prevent product cannibalization in PPC campaigns, it’s wise to group and package variations together, creating a single item sold on Amazon with its unique ASIN. This approach is sure to be an effective strategy for tackling the problem.
5. Launch Promotional Efforts for Your Most Profitable Child ASINs.
When maximizing your ad campaigns, running separate ones for each child, ASIN is the best approach. By doing so, you can customize bids to target the most relevant and highest-converting search terms for that particular product variation. This strategy should generate the most sales out of the entire range.
6. Target Alternate Keywords for Variety
An often-overlooked way to excel in Amazon product presentation is through carefully crafted descriptions that emphasize the features and advantages of your item.By writing compelling, creative copy that captures readers’ attention, you can dramatically increase traffic to your product page—giving yourself an edge over competitors.
7. Combine Similarly-Priced Products in Campaigns
Prioritize your highest-priced variation when running advertisements, as it will help you maintain an optimal ACOS. Doing so not only increases the chance of generating more sales for this product but will also increase demand and subsequent sales for other variations.Create a distinct campaign dedicated to the higher-priced item and ensure all advertising efforts are focused on that particular item.
8. Structure Campaigns Based on Product Performance
To ensure that your ad campaigns are optimized, analyze keyword performance; if a particular keyword is particularly successful in an automated campaign, it’s moved to manual mode with matched types for a more comprehensive budget and bid control. This method of increasing your product’s ranking on Amazon is highly effective.
Yet, it may be tricky to maintain a consistent ACOS as some items require more clicks than others for successful sales. Instead of formulating ad campaigns according to keywords, devise them around the performance of each item.
9. Target Self Products via Product Targeting
Start by running two ads with just one or two products for a few weeks. Once the ad performance reports have been analyzed and you are satisfied with your return on investment, it may be time to consider expanding your campaigns to reach even more potential customers.
10. Target Google Ads Featured Products
Building on the last approach, you should strive to secure prime placements in your top rivals’ listings through product targeting. This strategy becomes especially relevant when attempting to gain placement with Google Ads, Facebook ads, and influential Instagram or YouTube users presenting your products.
11. Analyze Buyer Behavior to Gauge Success
Knowing the behavior of your target audience, what they like to purchase, and their interests can be extremely beneficial. Say you’re selling a product catering to 18-34-year-olds.It would make sense for you to run advertisements during evenings or nights as this is when most young adults have time on their hands for browsing Amazon. Make use of this knowledge and see your profits soar.
12. Experiment with Bid Amounts and Match Types
To monitor your ACOS, sales, keyword performance, ad performance, CTR, and other metrics closely while adjusting your campaign parameters is essential. This will enable you to determine what works best for you and what doesn’t. There may be some trial-and-error involved; however, if you have a comprehensive list of keywords relevant to your business objectives, the job becomes much easier.
13. Increase Sales through New-to-Brand Metrics
Understanding the new-to-brand metric is essential as it can help segment your traffic into new and returning groups. These statistics are easy to find with a glance at the percentage of new-to-brand or new-to-sale orders. If you have many recurring customers, curate advertisements for them through Sponsored Products. You could also consider product targeting ads and product display features, among other options.
14. A/B Test Various Ads
Through A/B testing your ads, you can quickly identify which parts of the page capture the most attention from your desired audience, which posts generate the strongest response rates and precisely determine what content is successful. This invaluable knowledge will help streamline future PPC campaigns and save significant money in the long run.
15. Explore Brand Video Ads
Video ads are an excellent way to capture prospects’ attention and provide engaging visuals detailing your product. With video advertisements during festive seasons, you can increase conversion chances by a whopping 21%.
16. Utilize Automated Features
Optimize search terms with an automated campaign to get the most out of your product group’s marketing. Keep it running for a few days to uncover what works best, and then incorporate that into a manual campaign. If you’re using the automatic one just for research purposes only, be sure to turn it off when you’re done so there is no unnecessary expenditure.
17. Increase Bids with New Keywords
Up the bidding price first to get your new keywords to appear in an Amazon PPC campaign. This should be around $0.75, depending on your niche; this amount can also vary due to different categories of products and services. Since newly added search terms don’t have any data stored with them, it’s difficult for Amazon to recognize when they ought to show up – but increasing the bid rate will make a difference.
18. Allow Time for Amazon PPC Optimization and Success
Patience is key! It may be hard to wait for results, but remember that they will come with consistency and dedication. Utilize advertising options such as budget caps to ensure you don’t exceed your allocated funds while waiting for initial outcomes. Don’t give up before seeing the effects of all your efforts – success won’t happen overnight, so stay determined and let the rewards manifest themselves gradually over time.
Choosing the Best Type of Amazon PPC Ad for Your Business Needs
When advertising on Amazon, you have the option to choose from various PPC ad types and target customization settings.
To optimize results for your business, it is recommended that you try out all options, especially automatic-targeting ads, and manually targeting Sponsored Products ads, to gain a comprehensive understanding of effective keywords and search terms.
Refine Your Amazon PPC Strategy with BrandLume’s Expertise
You’re likely already familiar with Amazon’s PPC advertising platform if you’re an Amazon seller. PPC, or pay-per-click advertising, is a powerful way to drive traffic and sales to your products on Amazon.
However, creating a successful PPC campaign can be tough and time-consuming, especially for those new to the platform. You’ll need an expert PPC team to help you optimize your campaigns and maximize your return on investment.
At BrandLume, we offer expert Amazon PPC services to help you refine and optimize your campaigns. Our team of experts will create a comprehensive Amazon PPC strategy to maximize your ROI, lower your ACOS, and increase sales and visibility for your products on Amazon.
Reach out to us now to benefit from our expertise.