Understand The Basics Of Amazon PPC To Skyrocket Your Sales

From kitchen cutlery to industrial products, Amazon has it all. As a global giant in sales, there is no match for the Amazon e-commerce model. It is a marketplace with immense competition to compete. Sellers across can easily list their products and they always strive hard to gain visibility and reachability of their products. So there is no doubt that advertising enhances your reach to your target audience and sets you apart from the crowd. To be suitable for every business model, Amazon offers its sellers well-thought advertising plans to earn the best possible profits for their investments.

What are Amazon ads?

Like Google search, Amazon works on a Pay-Per-Click. Sellers have to pay for clicks whenever the prospective buyer wants to see the product. For products on Amazon, we give keywords in the search box, and results are displayed. The first two pages of the search results contain ads at the top of the page, labelled as ‘Sponsored Ads.’

Why should I run Amazon ads?

The sellers who need better visibility of their products go for paid results. To pitch their product on Amazon SERP(Search Engine Result Page), they bid on specific keywords to gain recognition and acceptability among the targeted audience.

Since Amazon understands the feasibility of the products and purchasing trends and the competitors in the market, the platform provides us with the data that can be analyzed and decide on how the ads strategically run and scale the product. 

When should I run an ad on Amazon?

Start your campaign with a small amount on your top-selling ASIN(Amazon Standard Identification Number). Gradually, depending upon your revenues earned, you can add your other products to your campaign as per your choice and suitability.

How long should I run my Amazon ads?

Run as long as possible. Your Amazon ads not only give visibility to your product but also generate sales. Check your product viability, with and without ads, and steer to a conclusion. However, Amazon ads improve organic rankings for the keywords used in Amazon pay-per-click ads. Increased sales, in return, make your product the best ranking and places at the top of the search page. Thus, Amazon ads enhance your sales and even improve your organic ranking.

How much to spend on ads?

For any campaign, automatic or manual, there is no fixed budget. But you can fix the minimum spend per day as Rs.100. Generally, purchasing power increases in the evening after office hours and during weekends and holidays. So run ads to the maximum during those times to showcase your product to potential and prospective buyers to complete the process of buying and close the sale.

What are the benefits of running ads on Amazon?

Structured and flexible budgeting:

 The running of ads boosts your product visibility and provides data to analyze and decide the bid value with a flexible budget to understand your Ad’s efficiency. 

High Visibility:

The ads position your products in the most visible places on Amazon SERP based on product search.

Search term keywords:

The keywords pooled from search term reports escalate your product display, increasing the chances of conversion

Your bidding strategy:

With relevant information on customers, buying habits help to understand the target audience and scale data-driven bidding strategy to scale the business.

Reachability:

The ads help to gain recognition and create brand awareness among the targeted audience, gaining reachability and creating a loyal customer base

Customized for any business size:

The uniqueness of Amazon ads is their accessibility to any business type, fitting the budget for every level of business requirements.

What are the types of Amazon Adverts?

Amazon gives the options to select the ad formats that are best suitable and are the best fit for our budget. The types of ads are Sponsored products, Sponsored Brand, Sponsored Display ads, etc. Let us see in specific.

 

Sponsored Product Ads :

Sponsored Product ads display the products on search pages and individual product pages. As per the campaign requirements, keyword-targeted and product-targeted ads are selected and run. The campaign’s performance is measured based on clicks, impressions, sales, and Advertising Cost of Sales (ACoS).

Keyword targeting helps to display Sponsored Product ads as per the input of the keywords applicable to your product search. The Amazon keyword targeting feature puts your ads on relevant pages as per the search history of your target audience.

Product targeting, as well as ASIN targeting, are the same. The Amazon campaign lets you display your product ads on your competitor’s product page or ASIN page. Sponsored ads targeted towards your product categories and brand. That can involve your competitors too. Watch the below video to know how to steal sales from your competitors.

Sponsored Brand Ads:

Sponsored brand ads run for products with brand registries and trademarks. These ads are keyword targeted and displayed on search pages on top, down, and along with search results. These are pay-per-click ads with bid value adjustments. You can drive the traffic to your personalized product page or Amazon (SERP)Search Engine Result Page.

You can feature banner-like product images with details redirecting to the landing page. To understand the performance of the ad campaign, a detailed report will help you to test and run the campaign based on clicks, impressions, sales, and Advertising Cost of Sales (ACoS).

Sponsored Display Ads:

Sponsored Display Ads are cost-per-click ads to promote upselling and cross-selling. These sellers maintain related stocks to cater to the requirements of the customers. These ads generally get displayed on search pages on top or below the search results.

The ad campaign analytics like clicks, sales, spending, and sales metrics is comprehended to understand the efficiency.

What are Keywords, and how to Strategize them?

Keywords are words used in the search bar of amazon by a prospective buyer. The keyword strategy focuses on the visibility of the product to potential buyers.

The following are the types of keywords used for running your ad campaign. They are Broad Match, Phrase Match, and Exact Match.

Broad Match:

These keywords are for promoting brand awareness. The keywords are Broad with more than two words and are cheaper per click. But, they may lead to irrelevant clicks. Due to its lengthiness, they don’t call for conversions.

Phrase Match:

These keywords are more specific than broad words and target the potential buyer. These words generally match what a customer is searching for in the search bar.

Exact Match:

These keywords are more specific and Exact copies of the phrase of what the customer is searching for. For Example: If a keyword is Blue Gel Pen, the search word should be an exact copy of Blue Gel Pen to show in the search results.

What are Negative Keywords?

In Amazon advertising, the usage of Negative Keywords is very significant to avoid irrelevant clicks. It helps to remove irrelevant search terms through analyzing data from targeted ads and thus helps in optimizing the ad campaign.

What are Amazon Advertising Strategies?

Amazon supports your advertising campaign through Manual ad campaigns and Automatic ad campaigns to create the visibility of your product among the targeted audience.

Manual targeting lets the ad campaign with multiple ad groups run according to your inputs with a modified proposal value. You will be capable of achieving a controlled cost of clicks and can target keywords with higher conversion.

With Automatic targeting, Amazon runs the ad campaign as per the automatic format. If you are a beginner and new to amazon selling, use Automatic ads. You can pool the keywords that are working well in Automatic ad campaigns. And use them for your manual ads. It has to be done at a steady pace once a week. This way, you can optimize your ads at a higher conversion. 

What is ACoS – Advertising Cost of Sale? 

ACoS is the Advertisement Cost of Sales used to calculate sponsored ads with the sales generated.

Lower the ACOS and better is the sales margin. It indicates the cost incurred on an ad per income generated. It is a significant metric to be followed for successfully running the campaign.

The formula for calculating ACOS 

ACoS = 100 * ([total ad spend] ÷ [total sales])

Your ACOS will help you appreciate how efficient your ad campaign is running and whether you can continue or pause or remove the ad campaign. It is upon your advertisement costs to revenue earned on an investment.

Regulate your Amazon advertising

Controlled ACOS and gaining visibility are two opposite ends. Both of them cannot be achieved simultaneously. If we want to have lesser ACOS, we will have limited keywords and bid values resulting in limited sales. You can gain good visibility by maintaining a decent level of ACOS. For a beginner on Amazon selling, 10-20% is ideal ACOS.

Lastly, the workable ad campaigns Amazon offers help optimize the advertising campaigns. Optimization of Ads should be regular. After running the Ads, wait for at least 7 -days and start optimizing. You can always test between various ad campaigns and select the best suitable one for your business to sustain and develop further. 

It is always advisable to seek expert guidance and expertise in running and optimizing your ad campaigns. If you are looking for account management services, please contact Newgen.

You can be on the path of growth manifold with a proven and structured approach to the running of ads is advisable. You can not gain an organic ranking without possible sales history. To do the justice to the product you believe in, gain more acceptance, and create brand identification, it is always appropriate to run your ad campaign on Amazon selling. To master the Amazon advertising and increase your sales, check out our advanced Amazon PPC course and use coupon code PPC50 to get the course at 50% off.