How To Do Amazon Ppc – Amazon advertising is the best platform for anyone trying to sell a product. Don’t believe me? Let’s take a look at the numbers.
In 2019, more than $229 billion in goods were sold on Amazon, accounting for nearly half of all e-commerce sales in the United States. What’s better than the numbers? Amazon is expected to continue to increase its market share and sellers flock to the platform every day in the thousands.
How To Do Amazon Ppc
Amazon advertising primarily uses the pay-per-click (PPC) model for its ads. This means that you pay when someone clicks on your ad, rather than when your ad appears in search (CPM model).
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When it comes to bidding, Amazon has an auction-style format to determine which ads appear for a particular search. Amazon PPC is an auction where sellers bid on specific terms. Higher bids are obviously preferable to lower bids, but there is more to the equation.
Amazon also influences your ad performance to determine how well it aligns with your competitors. This measure of performance is called Ad Rank. The exact formula Amazon uses to determine ad rank isn’t clear, but there are some obvious performance and relevance metrics.
To find your ad rank, multiply your bid by your ad score. With a high Ad Score, you’ll likely have a lower bid than your competitors and still be more highly regarded by Amazon.
When you create your first Amazon PPC campaign, you will have to decide what type of ad you want to use.
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Any ad type can be effective, but for this post, we will focus on sponsored products because this type of ad offers sellers the best return on ad spend and is easier for beginners to manage.
When someone performs a search on Amazon, the first two or three products that appear at the top of the SERP (search engine results page) will have a small “sponsored” badge above the product title. These are advertising products.
For certain searches, Amazon makes an item that matches your search criteria. In these cases, Amazon puts its AmazonBasics product at the top of the stack, followed by sponsored products.
To create your first Sponsored Products campaign, select the ad type and consider the type of targeting you want to use. Amazon has two targeting methods: automatic and manual.
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You will also need to set a daily budget, the amount of time you want the campaign to run, and organize your campaigns by adding a campaign name. You can also create a portfolio where multiple campaigns can be grouped together for organizational purposes.
You will also need to define your campaign bidding strategy. If you want to give Amazon the power to raise and lower your bids, use dynamic bidding up and down. If you’re only comfortable with Amazon lowering your bid, just select Bid. The last option is to offer fixed bids where Amazon will not change your bid.
You can also adjust your bids by position. This means that you will pay different amounts depending on where your ad appears on Amazon. Learn more about adjusting bids by placement.
Everything else on the setup page depends on the type of targeting you choose. Amazon has two types of sponsored product campaigns, automatic and manual. These two types of campaigns offer very different targeting options.
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Automated campaigns, or automated campaigns, give Amazon the ability to decide for which keywords your ad will be displayed. Amazon tries to choose keywords that match the product category, related products, and keywords in the product title and description.
Automated campaigns can be a great tool for all sellers, but they are essential for beginners because they offer:
Every beginner should start with an auto campaign. We often see sellers creating their first campaign and trying to manually select their keywords. what happened They see that their ad spending is wasted because keywords they thought were of high quality are nothing more than a waste of money.
Automated campaigns also keep beginners away from the cardinal sin of Amazon PPC: keyword flooding. Sellers who take hundreds of keywords from a keyword generator or other tool and throw them all into a campaign are considered keyword dumping.
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This strategy never works, which is why we recommend automatic campaigns to everyone, regardless of your experience level. Automated campaigns are great for data collection and research, and it makes no sense to use untested keywords when an automated campaign can take the guesswork out of the equation.
There are some downsides to automatic campaigns. For starters, you have less control over your campaign and rely on Amazon’s A9 algorithm to find relevant keywords. You are bound to end up spending on unrelated terms.
It would be great if you could tweak your automated campaigns to limit the number of irrelevant keywords. Oh wait, there!
Amazon has three targeting groups for auto campaigns. To better understand how it works, let’s say we sell Nike running shoes.
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Manual campaigns allow sellers to choose which keywords and products they want to target. This gives you complete control over your bids.
On the surface, manual keyword targeting seems pretty simple. You make your selections, place your bid and walk away. right? Well, the “off” part always surprises new sellers because it can be an inconvenience.
If you don’t have a clue when it comes to choosing keywords, use an automated campaign. Don’t dump keywords and start with the wrong ones.
When using manual campaigns, you can also target specific products. This is also known as ASIN targeting. ASIN is an Amazon standard identification number that every product on Amazon has. Product targeting allows you to track a specific product and show your ad wherever that product appears.
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Let’s say you are Puma, and you have a shirt similar to one made by Nike. Through product targeting, Puma can show a sponsored product ad for its jersey when an organic ad or search returns the specific Nike jersey.
You can also use product targeting to target products in a specific category. If you are in the natural supplement space, you can simply select this category and you will be able to keep up with your competitors.
Now that we’ve covered the basics of pro-targeting, let’s dive into passive targeting. Negative targeting allows you to block specific terms and products so that your product will not appear in searches for those words and along with those products.
Using negative keywords is an easy way to ensure that you don’t appear in irrelevant searches, and this can be done for both automatic and manual campaigns. If you’re running an automated campaign for protein supplements, you don’t want your ad to show up in searches for fish oil pills, so a negative keyword would be very helpful.
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When you first start out, identifying irrelevant keywords can be challenging. After you see the results of your first automated campaign, you can see where your ad isn’t doing well and start blocking keywords and ads. This is the foundation for our RPSB model.
Negative product targeting allows you to block individual products. This means that if you have a campaign aimed at catching your competitors’ lead, you can prevent your ad from appearing next to your own products.
To wrap it up with negative targeting, we’ve covered all the basics at the campaign level. Now, let’s take a look at ad groups.
Ad groups allow sellers to be more specific about their campaign targeting. You can group similar products together to help structure your campaign and then set targeting parameters for the ad group.
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We’ve covered the basics of sponsored product ads, but there are two more types of ads to go through. Sponsored brands and sponsored display ads can be incredibly effective, but they don’t offer the same value to a new seller that sponsored products do.
Sponsored Brands are similar to Sponsored Products, but instead of showing a single product in a specific search, they allow sellers to show multiple products or their brand in general.
Advertising brands are very effective, but they are also very competitive. This competition is the main reason we recommend to new sellers the ease of using Sponsored Brands.
Sponsored Display Ads are the “new kid on the block” in the world of Amazon advertising. These ads may appear on the Amazon site or on any site owned by Amazon. This means that you don’t just target keywords or products, you target audiences.
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The most confusing part about paid display ads is that, in certain cases, paid display ads do not follow the pay-per-click model. Sponsored display metrics are also different from other ad types. For these reasons, we caution new sellers against going straight to sponsored display ads.
Here you are. Now you are ready to start using Amazon PPC, and you will get right to business.
Keep in mind that this post only covers how to get started with Amazon PPC. If you really want to become a PPC expert, check out all our content on optimizing your campaigns. As a buyer on Amazon, you are overwhelmed with product choices. You visit the market for spoons, and fast
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