Amazon PPC Advertising Explained – Amazon Ads
Every year we compile a list of the frequently asked questions here at Runrex and this year, questions about Amazon PPC dominated our inboxes. A lot of people seem to be interested in Amazon PPC and this doesn’t come as a surprise.
Amazon has become part and parcel of our daily lives. Hardly does a day ever go by before you check out something on Amazon. Seems that service providers and product marketers have discovered our unending love for shopping on Amazon and they are looking for ways to target us even more and Amazon PPC is their preferred technique.
In this blog post, we want to take a look at what Amazon PPC is and how to get started in Amazon PPC;
Amazon PPC
Amazon Pay per click (PPC) is a marketing strategy where advertisers create ads on Amazon and pay a certain set fee every single time their displayed ad is clicked. This is one of the most effective marketing strategies which was incorporated a few years but has seen massive uptake by sellers.
The reason why a lot of sellers use the Amazon PPC to market their products is because of the flexibility that the model of advertising affords them. You ideally can work with whatever budget you have and get your products to be seen by the target audience.
So, how does one create an Amazon PPC ad campaign? Here is a step by step guide on how to create an Amazon Ad Campaign and get it up and running;
How to Set Up an Amazon PPC Advertising Campaign
#1: Create a New Campaign
To create a pay per click ad, you’ll need to navigate to the ‘Seller Central’ page and hover your mouse icon on ‘Advertising’ and then select ‘Campaign Manager’. From the ‘Campaign Manager page’ you’ll need to choose the ‘Create New Campaign’ option and voila! You have a new campaign underway.
The other options under this page are pretty much simple and easy to follow. Give your campaign a name, select the duration of the campaign and your daily budget.
#2: Select the Targeting Type
When you create an ad, you have an option of choosing between automatic target and manual targeting. A lot of professionals recommend automatic targeting because the Amazon algorithm does the targeting for you. Based on the products that people are searching for, Amazon will suggest relevant products and this increases chances of the people buying the products.
#3: Create a group name and default bid
Under a campaign, you can create a group of ads and it is wise to give each group a name for easier management and tracking of progress. After giving the ad group a name, the next step is to choose the default bid. The default bid is the amount you are willing to pay Amazon every time someone clicks on your ad.
Remember, Amazon only charges you every time someone clicks on your ad and the bidding system works in a similar fashion to the traditional bidding at auctions. Whoever bids the highest amount, gets the upper hand. This means that if your competitor’s default bid is $2 and you choose a default bid of $1.5, then their ads will be given preference in terms of popping up when consumers search for the relevant keywords.
You should however be careful not to spend too much money on bidding as this can compromise with your profit margins.
#4: Choose the product to advertise
Here you simply need to type the name of the product that you intend to advertise and you are good to go. In just 4 simple steps, you have your ad up and running.
How to check on the progress of your ad on Amazon
Once you have set up your campaign, you’ll need to come back to check on its progress. Amazon provides feedback to its customers to help them monitor the progress of their paid ads. Here is an explanation of how to check the progress of your ad and what each of the elements concerning your ad mean;
To check on the progress of your ad, you simply navigate to the advertising option and choose the name of the ad that you created and on that page, there will be information on how the ad performed over the said period of time. Here are some of the key components of an ad that you should look out for;
- Impressions
Impressions are the number of times that your ad was displayed to relevant audience.
- Clicks
This is the number of times that people who saw your ad displayed, clicked on it.
- Spend
This is the amount of money that you have spent on the ad.
- Sales
This is the number of sales that you have made as a result of the ad being displayed. This is more less the same as conversion in Search engine PPC. For a click to culminate into a sale, Amazon checks if whoever clicked on the ad ended up buying it within the next 7 days.
- ACoS
The advertising cost of sale (ACoS) is the ratio of your ad expenditure to the total product revenue and it ideally should be lower than your profit margin.
There you go, this is all the information that you need to create and monitor a pay per click ad on Amazon.
Seek professional help
If you are looking to get started on Amazon Ads and are looking for professional help, then give us a call here at Runrex. We are a professional digital marketing agency and Amazon Ads are one of our areas of specialization. We offer both marketing services and consultation and are willing to introduce you to the journey of Amazon. Give Runrex a call today and take your Bing Ads experience to the next level.
