Amazon PPC as a digital platform for advertising allows brands and sellers to run ads on Amazon for their products. These ads run on Amazon’s search pages, product detail pages, Amazon’s home page, and all other pages.
How does Amazon PPC Work?
It operates on the principles of an auction-based system. Sellers bid on keywords and products for an ad placement on Amazon’s website. Once the ad is placed on Amazon, the advertiser has to pay a certain fee for every click on the ad.
Despite its cost, Amazon PPC is one of the biggest marketing channels on Amazon. It enables sellers and vendors to drive visibility for their products. It enhances the product visibility by showing them at the top of the Amazon’s search results pages. This enhancement in visibility boosts the conversion rate, thus driving sales.
Amazon's PPC potential is increasing with each passing year, and so are the strategies to gain desired results. Thus, if you want to get leverage from this, you need to have effective strategies in place.
Significance of PPC for Amazon Sellers
You need to understand the significance of Amazon ads to decide how you can use them to help your Amazon business grow.
Amazon’s organic traffic increased by 10.79% with each passing month in 2024. As more and more consumers are turning to online markets for shopping activities, Amazon and other e-commerce giants have experienced immense opportunities to grow their revenue. However, as the growth increases, competition increases.
With millions of consumers, Amazon is a haven for sellers to showcase their products. But, among thousands of sellers offering the same products, making your product visible is a real challenge. This is where Amazon PPC comes into the picture.
To land on the first page of Amazon, organically or through advertisements is important. 45% of buyers admitted that they don’t bother checking other pages. So, if you are serious about conversion rates and sales, Amazon PPC could be your solution.
Amazon PPC places sellers' products on the top of Amazon's first result page. This keeps the products from getting lost in the sea of competitors. Moreover, this increases the sales potential which in turn increases the organic ranking of the products on Amazon.
Key Concepts and Terms of Amazon PPC Campaign
There is a plethora of terms you need to know if you are new to the PPC world. However, the top 8 are:
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Impressions
It refers to how many time a buyers saw your ad.
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Clicks
It refers to the number of times the buyer clicks on your ad. It is generally 0.3% to 1% of impressions.
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CPC (Cost Per Click)
It is the amount you have to pay to Amazon per click. This amount varies according to the sponsored product niche, marketplace, and competition. It generally is $0.5 to $3.
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CTR (Click Through Rate)
It’s the percentage of buyers who click your ad when they see it. It should be 0.5% to 1% for sponsored products. You can divide clicks by impressions to get the CTR figure.
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CVR (Conversion Rate)
It’s the percentage of buyers who click on the ad and purchase your product. It should be 10% or higher. You can divide orders by clicks to know your CVR.
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Search Terms
As the name suggests, these are the phrases or words for which your ads show up.
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ACoS (Advertising Cost of Sales)
You can determine this by dividing ad spend from ad sales. It’s usually in percentage. It should be set based on your goal and category average. The ideal starting point for sellers is 40%.
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Bid
It’s the amount you are willing to pay to Amazon. There is a strategic balance in the bid amount you offer. It should be high enough for you to win the bid, and low enough to remain profitable.
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Keywords
These are the words and phrases you bid on. Ideal keywords should be relevant with high CVR, high search volume (500+), and low competition.
How Amazon Agency Can Help in Optimizing Your Bids
Amazon PPC bidding is a mind game where you have to be strategic with every move. Too high a bid will dry your budget quickly while too low will not get your products visible. A good Amazon PPC agency will constantly monitor your bids and ensure the spending is efficient.
Moreover, Amazon agency uses automated bidding strategies to keep your campaign competitive in real life. This bid management is your key to have improved Amazon advertising ROI.
How SwiftStart can help you?
After knowing all about PPC, you may want a good agency that can maximize the benefits you get from PPC. In this regard, SwiftStart can help you maximize the Amazon PPC campaigns as they are the best in business. With a strong track record of helping businesses and years of experience, SwiftStart can help you boost your product visibility and sales. In short, SwiftStart can take your Amazon advertising to new heights.
Wondering how they are the best? Here are the reasons:
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Expert Keyword Research
Their keen experts have the knack for identifying the terms and phrases that reflect your products. They will ensure that all the keywords will target the right audience and optimize your ads to increase the conversion rate.
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Advanced Bid Management
SwiftStart will help you improve your ROI and maintain Amaozn ACoS by using automated bidding strategies. These strategies will ensure that you get the most value from every click.
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Comprehensive Reporting
The best thing you get from SwiftStart is their free Amazon Oddit reports. These reports will give you a detailed view of analytics and regular updates. Their experts monitor all the metrics to ensure you hit your goals for Amazon advertising ROI.
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Proven Strategies
With the implementation of advanced strategies, they ensure your campaigns are always optimized, and ready to compete.
Final say
Amazon PPC is a great tool to boost your product visibility and sales. However, it is not easy. From managing the campaign to optimizing bids, you have to be on top of everything. Without experience, this is not possible. So, working with an Amazon PPC agency like SwiftStart can be your best choice to benefit from the full potential of a PPC campaign.
Become A Part of The SwiftStart Community
SwiftStart can help optimize your Amazon listings and supercharge your sales in a jiffy. Swift offers FREE 1 ASIN report (Amazon Listing audit), affordable Image stacking, A+ recharge, SEO Listing, and PPC services to enhance your product listing, visibility, and sales. Moreover, our Amazon Catalogue Course will help you become an experienced Amazon seller.
Also, if you want to streamline your brand's operations without hiring an agency, our 450+ Amazon SOP Library is your solution. So, don't miss out on the opportunity. Contact our Amazon agency experts today and take the first step toward elevating your Amazon brand.
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