Amazon’s Pay-Per-Click (PPC) advertising, facilitated through Amazon Advertising, is a cost-effective method where advertisers pay only when a user clicks on their ad, rather than for ad views. This platform empowers sellers to enhance brand visibility, drive sales, increase Amazon Store visits, and more.Advertising on Amazon is a highly effective strategy for rapid sales growth and brand recognition, contributing to Amazon’s status as the third most popular advertising platform globally, following Facebook and Google.For those seeking to advertise on Amazon, common questions include: What is Amazon PPC? How much does it cost? What types of ads can be created? How do you set up a campaign? How does PPC work on Amazon? This blog post aims to serve as an all-encompassing guide to Amazon PPC, addressing these queries and more. Continue reading to discover everything you need to know about PPC on Amazon and how to launch a successful ad campaign.Stay informed about online advertising and marketing trends by subscribing to our weekly newsletter, Revenue Weekly, today!Amazon advertising costs can vary significantly, with the average Cost Per Click (CPC) approximately $0.77, though individual costs may differ. Understanding the mechanics of Amazon PPC is crucial before beginning your advertising journey.Here’s an overview of how the Amazon ad auction functions for PPC ads:
A shopper searches for “toilet paper holder” on Amazon.
Amazon displays all relevant ads targeting the keyword “toilet paper holder”.
The ad with the highest bid wins the auction.
The winning ad is displayed to the shopper.
The shopper clicks on the ad.
The winning advertiser pays the second-highest bid.
The second-price auction model, unique to Amazon, is a notable feature for many sellers. In this model, the winning bidder does not pay their bid amount but rather the bid of the second-highest bidder.For instance, if you bid $5, and the second-highest bid is $4, you would win the auction but pay $4, not $5.Amazon PPC offers three types of ads for advertisers to choose from:Sponsored Products
What are Sponsored Products?Sponsored Products are single-product promotions on Amazon, targeting shoppers through keywords. For example, a seller might target “toilet paper holder” and “metal toilet paper holder” to reach shoppers interested in new holders.Who can use Sponsored Products?Sponsored Products are available to:
Professional sellers
Vendors
Book vendors
Kindle Direct Publishing (KDP) authors
Agencies
Eligible products must be Buy Box-qualified and belong to an available advertising category. Categories that cannot use Sponsored Products include adult, used, refurbished, and closed products.Where do Sponsored Products appear?Sponsored Products can be found at the top, alongside, and within search results, as well as on product pages, both on desktop and mobile devices.How much do Sponsored Products cost?The minimum daily budget for Sponsored Products is $1, with Amazon recommending a budget of $5 or more. Start small and adjust based on performance.Sponsored Brands
What are Sponsored Brands?Sponsored Brands promote up to three products and an Amazon Store, targeting shoppers with keywords. These ads can drive sales and increase brand awareness.Who can use Sponsored Brands?Sponsored Brands are available to:
Professional sellers in the Amazon Brand Registry program
Vendors
Book vendors
Agencies
Products must be new and cannot be adult, used, refurbished, or in closed categories.Where do Sponsored Brands appear?Sponsored Brands can be found at the top, alongside, and within search results, on both mobile and desktop devices.How much do Sponsored Brands cost?The minimum daily budget for Sponsored Brands is $1.Sponsored Display
What is Sponsored Display?Sponsored Display promotes a single product, targeting shoppers based on their shopping activities without using keywords. This approach utilizes machine learning and automation to increase sales.Who can use Sponsored Display?Sponsored Display is available to:
Professional sellers enrolled in Amazon Brand Registry
Vendors
Agencies
Prohibited products for Sponsored Display ads include adult, alcohol, prescription drugs, weapons, and more. Check the full list of prohibited and restricted products to ensure your goods qualify.Where does Sponsored Display appear?Sponsored Display ads can appear on third-party websites, apps, and product detail pages, depending on your chosen targeting.How much does Sponsored Display cost?There is no limit to how much you can spend on Sponsored Display ads, but it’s recommended to start with a small budget to gauge performance.Now that you have a foundation in Amazon PPC, are you ready to launch your first campaign?1. Select your products for advertisingFirstly, decide which products to promote, whether for Sponsored Products, Brands, or Display. Consider how your products can work together to increase clicks and sales, especially when launching a Sponsored Brands campaign.When choosing products, consider factors like sales, ranking, and popularity.2. Conduct keyword researchOnce you’ve selected your products, research keywords if you’re creating a manual campaign. Amazon offers the option for automatic or manual campaigns. While automatic campaigns rely on Amazon to compile keywords, manual campaigns require you to supply them.Use tools like Keywords Everywhere or Sonar to research keywords, focusing on those that align with your product and search intent.3. Optimize your product listingsOptimize your product listings for SEO to maximize your ad campaign budget and improve organic search rankings on Amazon. Incorporate keywords into your product’s title, description, and features.Ensure your product images and copy are professional and highlight your product’s benefits and uses.4. Create your campaignStart by logging into your Amazon account, clicking the “Advertising” tab, and selecting “Create campaign”. Choose from Sponsored Products, Brands, or Display ads.Set your campaign name, start and end dates, and daily budget.5. Choose your targetingSelect between manual or automatic targeting. Amazon recommends automatic targeting when starting out, as it provides keyword data over time, which can be used for manual campaigns.Define ad groups, select products, and set default bids.6. Upload your keywordsWith manual targeting, you can use up to 1000 keywords per ad group. Add keywords manually or upload a .csv file. Choose from broad, phrase, exact, negative phrase, and negative exact match keyword targeting options.7. Set your keyword bidsUpdate your default bids based on keyword research. Monitor your ads regularly and adjust bids as needed.8. Submit your adsAfter setting your keyword bids, submit your ads to Amazon. Amazon will review and launch your campaign, and you can start monitoring its performance.Regularly check your ads and make adjustments as needed to improve your strategy.Amazon PPC provides an effective way to sell products on the world’s largest e-commerce platform. However, building and managing a PPC campaign requires time, especially for businesses with a large product catalog. An advertising agency like WebFX can help.With a team of over 500 specialists and a proven track record in e-commerce, WebFX is a trusted choice for sellers and vendors looking to advertise on Amazon without hassle.Contact us online or call us at 888-601-5359 to learn more about our Amazon PPC services today!
