Amazon Advertising, how to build an Amazon PPC campaign.
Successfully taking on the duopoly of Google and Facebook, Amazon has risen to become one of the behemoths of digital advertising in recent years.
Amazon PPC boasts an inordinately high average conversion rate (ranging from about 10-15%) compared with an industry average of less than 5%. As such, Amazon is becoming an increasingly ‘pay-to-play’ platform. However, if you’re considering advertising on Amazon, research tells us that 42% of shoppers never scroll past the first page of search results, and 76% of them use the search bar to find an item, so it is critical to be part of the search results (and as near to the top as possible).
As building ad strategies on Amazon gains momentum, let’s explore how Amazon PPC works, and how you can use it to power your ad campaigns.
Amazon PPC enables sellers to run ad campaigns which achieve a high visibility for their products on Amazon. Each time a shopper clicks on an ad, Amazon collects a fee from the seller – hence it’s ‘pay-per-click’.
There are three different types of Amazon PPC ads:
Sponsored Products. These display an individual product alongside related goods at both the top and bottom of search results, as well as on product details pages. Sponsored product ads can target either keywords or ASINs (Amazon Standard Identification Numbers).
Sponsored Brands. These display a banner at the top of search results showing a brand logo, custom headline, and up to three products. If a shopper clicks on a product, they’ll be taken to the product details page. But if they click on the brand, they’ll be taken to the brand’s Amazon Stores page, or a custom landing page.
Sponsored Display. These ads show a promoted product both below the Add to cart button on Amazon, and on external websites. They are particularly useful in retargeting to users with potential purchase intent.
Over the last decade, Amazon PPC has grown into a sophisticated advertising channel and as visibility on Amazon has become increasingly important to sales, the number of advertisers has grown substantially. If you plan and optimise your campaign well, it can provide a significant boost – both in terms of sales, and the organic ranking of your products on Amazon.
Amazon PPC has a straightforward auction process. Each advertiser submits a maximum amount they’re willing to bid for an ad placement. The highest bidder then wins the top ad position, but only pays $0.01 more than the second-highest bid, rather than their maximum amount.
Sellers can set their daily budget for ads, with greater budgets naturally leading to a higher probability of their ads being displayed. Therefore, the CPC (cost-per-click) of a keyword or ASIN depends on the highest-value bid.
Thankfully, setting up a basic Amazon PPC ad campaign is also quite straightforward
Simply follow these steps:
It’s also important to remember that ads with relevant content vs standard product ads achieve a 23%+ lift in purchase rates, so make sure your ad creative is as relevant as possible to your audience.
While it’s fairly easy to get up and running with Amazon PPC, there is something of a paradox here: to create an effective Amazon PPC campaign, you need actionable data. But to obtain that data, you need to run a campaign. Therefore, you may want to expedite your campaign strategy by tapping into expertise (either an Amazon advertising agency, or even better, a fully integrated ecommerce solution) to gain an understanding of Amazon in the context of your other sales channels.
The Commerce People offers data-driven strategies for your brand. Our Ignite platform is purpose-built to include Amazon within an all-in-one solution for deeper, more valuable insights. So, if you’re looking to supercharge your Amazon ad campaign, sign up for a demo today.
Paid digital eCommerce (PPC) advertising reporting and management service.
eCommerce Ad Creative, Amazon A+ Content and Brand Stores, Shoppable Ad Format solutions and more
Real-time, integrated and trend-able reporting for seamless sales, product, and inventory management.
Visible, trend-able, and measurable performance improvements for eCommerce sellers and marketers