When you search for a product online, you’ll come across both organic and paid results. The organic results that show up on the first couple of pages are typically the most popular, verified, and trusted sources. Sellers can also pay to promote their products, increasing their visibility by having their listings show up near the top of the list. But how exactly do these promotions work?
Amazon PPC, or pay per click, is a marketing option that allows sellers to pay to promote their goods. By paying a fee, you can have your product listing show up on one of the earlier pages of search results, so more customers will come across what you have to offer. This helps you make more impressions, which means you get more clicks, and many of those clicks should turn into sales. Read ahead and find out what you should know to make the most of your Amazon PPC campaigns.
Basics of the Platform
PPC stands for pay per click, which means the cost of your advertisement depends on how many people click on the link to your listing. Keep in mind that it matters how many people click on your listing, not the number of people who actually make a purchase. If you’re throwing a lot of money at a listing that doesn’t seem to be able to convert, you might find yourself in financial trouble.
Your PPC ads might show up on the top, bottom, or sides of the search engine results page, or they might be mixed in with organic results. The locations may vary depending on the type of technology you’re using; they could be at the bottom of the page on a desktop or laptop but mixed in with other results on a mobile device.
Advertising on Amazon
The point of advertising on Amazon is to get as many people as possible to notice your products. Actually, that’s the point of advertising in general. There are countless products out there, and millions of options on Amazon, and some of them are going to be similar to what you have to offer. Amazon PPC helps your listings stand out from the crowd.
When you’re looking for a particular product, you’re probably not going to search through a dozen pages to find what you need. Instead, you’ll look at the top results, which show up on the first couple of pages. Through Amazon PPC, you can ensure that your products show up within that sweet spot.
Understanding Advertising Cost of Sale
The advertising cost of sales, or ACoS, represents the relationship between how much money you’re spending on advertisements and how much money you’re making on the product. The higher your ACoS, the smaller your profit will be. Try to find a balance where you’re not putting too much money into promoting an inexpensive item.
What It Means for Organic Rankings
Don’t make the mistake of thinking organic rankings and paid promotions are unrelated because they are very much intertwined. If your PPC ad campaign goes well, a ton of people who may have never heard about your business will now know about your product. They might tell their friends or post online about how satisfied they are with their purchase, and then you’ll get traffic coming in directly from these newly inspired customers. This boosts your organic ratings thanks to the effort of your PPC ads. Running a PPC campaign may cost you in the short term, but it could have long-term benefits for your company.
If you’re looking to improve your organic ratings and make the most of your potential as a business, Amazon PPC campaigns can help. Keep in mind that running a pay per click campaign isn’t necessarily a guarantee that your organic rankings will improve; you need to run the campaign properly and make a strong impact for the success to carry over.
The more sales you generate with your Amazon PPC campaign, the better history your products will have. This makes them more attractive to the Amazon algorithm, which means they’ll be placed higher up in the search results.
Running Your Campaign
- Automatic Versus Manual — When you first start a campaign, you’ll choose whether you want to target search queries automatically or manually. The difference is that an automatic targeting campaign will have Amazon choose your keywords and automatically target your ads, whereas with manual targeting you’ll input your own keywords. It’s often helpful for beginners to use the automatic option, while the sellers who have been through the routine before might prefer manual.
- Latency — You have to check on how your campaign is doing in order to make adjustments, but keep in mind that sales probably won’t show up for a couple of days. You always want to work with the most accurate data possible, so remember this latency when you’re going through your analytics.
- Budgeting — You decide how aggressively you’ll be running your campaign, and part of the decision-making process is determining a budget. You’ll set a daily budget, and Amazon will work with what you have to promote your products. However, it’s important to note that Amazon customers typically shop at night, so you may want to configure your budget so you spend most of your advertising money towards the end of the day.
- Keywords and Negative Keywords — Understanding keywords (as well as negative keywords) is crucial to your campaign and marketing strategy. Keywords are the words that are associated with your product that your customers will use to find your listing. Negative keywords are misleading search terms that might send people to your page, even though your product is not quite what they’re looking for. Since every click costs you money, you should optimize your keywords and negative keywords for a better conversion ratio.
- Timing — Know when the best time is to run your campaign. Items related to the winter holidays will probably only sell throughout that time period, and broad keywords like “Christmas” or “Hannukah” might help your visibility during that stretch. You can also use Amazon PPC ads to move more of your inventory as the season comes to an end.
Analyzing Your Strategy
Your first Amazon PPC campaign may be a raging success, or it might not go as planned. What’s important is that you learn what you’re doing right and what you’re doing wrong so you can knock it out of the park next time around.
The most crucial part of running a pay per click campaign on Amazon is choosing the right keywords. If you don’t nail your selection the first time, change the keywords you’re optimizing for and get rid of the ones that don’t bring you any traffic. Also, take note of the keywords that are helping your conversions, and hike up your bids for them. Your choices in keywords can make or break your campaign, so it helps to know which ones are actually working.
Amazon’s pay per click campaigns can be extremely helpful for moving through inventory and understanding which keywords your customers use to find you. If you’re going to put money into an advertising campaign, follow the above guidelines to make sure you get it right. Jumping into a paid campaign without any forethought of your strategy tends to turn out as a waste, but doing your keyword research and understanding how the process works can make a significant difference.