Why you Should Reassess your PPC Optimization for 2020

Amazon PPC

Pay Per Click, also known as Sponsored Products is an advertising platform that was created in 2000, to allow vendors and sellers to advertise their products on site. When created and managed properly, PPC can amplify your sales exponentially. Your product listings will appear naturally on SERPs (Search Engine Page Results), thus improving your organic ratings on Amazon. As opposed to PPM (Pay Per Mail), where you pay for a large number of consumers who see the ad (say every 500), PPC means you only pay for everyone who clicks on your ad. 


Advertising on Amazon is the best way to bring traffic to your product. And with Amazon claiming a mind-boggling 5% of all retail spend across the US, and the leading foot traffic out of all e-commerce sites, if you’re a serious seller on Amazon, you really cannot afford to ignore PPC. 


There are other PPC platforms

such as Facebook ads and Google ads, which sellers have been mindful of for a while now. But it’s interesting to note that sellers are only really beginning to warm up to PPC on their Amazon listings: shifting their budget away from Google and Facebook to PPC on Amazon. 


So in 2020, make sure you stay ahead of the crowd, doubling down on your Amazon PPC optimization for greater financial gains. PPC visualisation

Concentrate on Sponsored Products


Concentrating your Ads on creating sponsored products can lead to the best return on your investment. The reason for this is that sponsored ads show up at every point of the user journey through Amazon: so to get your ads seen, the most logical investment is in a Sponsored Product ad campaign. 


Sponsored Product ad campaigns reach the most customers, and have the highest conversion rates. With them, you even have the option to retarget customers on third-party sites. 



Make Sure You’re Ahead of the Crowd by Winning the Best Keywords 


Detailed research into the keywords  you use in your campaign is a necessary part of PPC optimization. It can increase your seller ranking, generate more traffic, increase conversions, and most importantly improve your product search visibility.


To determine which PPC ads get shown, Amazon uses a bidding algorithm, which decides which sponsored products are shown to shoppers. The auction itself is what is known as a second price auction: meaning that the seller with the highest bid wins the auction, but only pays the amount of the second place bid. 


Your sponsored product will only be shown if you win a place in the auction, so selecting the right bid price is of utmost importance. However, you can’t just choose a bid price, and then sit back and relax. The bid price must be changed and adapted regularly, taking into account your performance data, to fully optimize your PPC. If one of your products is not performing well in a certain period, for example, and your conversion rates have gone then your bid price should be adjusted to reflect this. It’s important that you’re not throwing money away on products which, for a time, have a lower likelihood of a sale. "In 2020, make sure you stay ahead of the crowd, doubling down on your Amazon  PPC optimization for greater financial gains"  "  -Click to Tweet-


Monitoring and constantly adjusting bidding prices is an arduous task to complete manually. We would suggest you invest in some sort of bidding technology, such as Teikametrics Flywheel to maximize your profit from Amazon advertising. With this technology you can react better to the constantly changing data on Amazon keyword bidding, automating your bids hourly. 


Choosing the right amount to bid, to ensure you’re the seller with the most effective keywords, can be a difficult task. There are some tailored solutions online to help you manage these decisions, or you could choose to use software to help you choose the right amount to bid. 


It’s vital to get the right bid amount to avoid any wasted expenditure. However, this needs to be balanced with your daily budget: it’s important to win the keyword without going out of pocket. Find software that helps you to win your keywords, and stay in your budget at the same time. 

Choose the Right Amazon PPC Software and Tools 


To help you analyze your ad spend and profit, it’s important to think about which software and tools you are using. The one you choose should: cut down on any wasted expenditure, meaning more bang for your buck, and offer you peace of mind by providing in-depth and expert advice along the process. 


It is important to your brand to choose a tailor-made solution that satisfies the specific PPC needs of your brand. This includes customized keywords strategy, consistent internal audits to help manage Sponsored Products, Sponsored Brand, and Product Display Ads.Keywords visualization


Don’t Just Rely on Sponsored Product Ads


Competition for Amazon Sponsored Product Ads and keywords is fierce. Once you have created a Sponsored Product Ad, unless you win a spot at the keyword auction. 


However, if you are a vendor on Vendor Central or a 3P brand-registered seller on Seller Central, you have the option to explore Sponsored Brand Ads. With Sponsored Brand Ads there is less competition than there is with Sponsored Product Ads, meaning you could be more likely to have your advertisement featured on the page. Sponsored Brand Ads can also lead to increased brand trust and identity, which in turn leads to greater conversion rates because these ads take the shopper directly to your entire Amazon Store or brand page. 


We would recommend you trying both ad approaches consecutively, and seeing what brings the most returns, reacting to the data organically. 

Pay Attention to CTR


The click through rate (CTR) shows how often people who see your ad actually click on it. This can help you to assess the effectiveness of your campaign. For example, to find out whether Sponsored Products or Sponsored Brands ads are most effective for selling your products, so it’s important to keep close attention to it. Always keep close attention to your CTR as you’re running your campaigns, and change things up if your campaign isn’t performing as expected. You could consider experimenting with different keywords, changing up the content of your ad campaign or even try a new price. 


To track these changes, and plan to account for them, you can choose to use an automated accounting service to deliver financial data you can rely on for Amazon PPC Optimisation. 

Final Thoughts


If you’re a serious, established Amazon seller, you really cannot afford to ignore PPC.  In 2020 Amazon PPC optimization could be the way that you take your business to the next level, experimenting with both Sponsored Product ads and Sponsored brand ads to see what works best for your business and leads to the highest conversion rates. 


In 2020, stay abreast of new trends in design, images, and layout for your products: but most importantly, keep researching your seller stats, staying flexible and adjusting each element until you produce your required financial gains. e-commerce tech stack ebook



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