One of the best ways to boost yours sales on Amazon is by running an ad campaign on the platform. Running a paid campaign on Amazon will not only increase the visibility of your products, it will increase the chances of you making profits since more people will be interacting with the products you have on offer.
One of the most effective marketing techniques on Amazon is the pay per click advertising. Pay per click (PPC) is a marketing strategy where advertisers pay a certain fee every time their ads get clicked on the Amazon marketplace and it is one of the most efficient marketing techniques on the platform.
To help you understand how PPC works, here is a guide on how to create pay per click ads and other advertising campaigns on Amazon. The guide will also include quick tips on how to boost your sales and make the most out of your campaigns on Amazon. So, how do you create Amazon pay per click ads?
How to create pay per click ads on Amazon
Step 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.
Step 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.
Step 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.
Step 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.
Talk to the experts
Do you need help starting a PPC campaign on Amazon, talk to us here at PPCHire and we will gladly be of help to you. We are professional PPC service providers who have been in the industry for years and have all it takes to elevate your Amazon business.
Equally if you need professional product photos for your Amazon merchandise, then give Bitgale photography a shout for high quality photos at a competitive rate. Check out their Bitgale website and hire them today.