It can be really overwhelming starting out with Amazon PPC.
A few years ago, I felt clueless – I didn’t understand how anything worked, and I was worried about wasting money. I had to learn everything the hard way!
To save you the time and frustration, I put together this guide to Amazon PPC (also called Amazon Sponsored Products Ads). It has everything you need to know to get started.
Amazon FBA PPC Explained
Amazon PPC is a simple advertising model where you only pay when someone clicks on your ad. It’s like pay-per-click (PPC), which has been around for a long time. In fact, goto.com introduced the first PPC system in 1998, but Google AdWords (now Google Ads) really popularized it in 2000.
Unlike CPI (cost-per-impression) advertising used on platforms like Facebook, where you pay for how many times your ad is seen, PPC only charges you when someone interacts with your ad by clicking on it. This is a big difference because you’re only spending money when someone is genuinely interested in your product.
The best part? Amazon is the biggest online retailer in the US, with over 310 million active users. And with Amazon FBA (Fulfillment by Amazon), Amazon stores and ships your products, giving you more time to focus on growing your business.
Amazon PPC Ads: A Quick Overview
Amazon offers three main types of ads to boost your product visibility:
- Headline Search Ads: These eye-catching ads appear at the very top of Amazon’s search results, above all other listings. They’re the first thing shoppers see, making them highly effective for grabbing attention. To maximize their impact, use relevant keywords in your headline and write compelling ad copy.
- Product Display Ads: Think of these as “persuasion ads.” They show up on product pages for similar items, encouraging shoppers to choose your product instead or add it to their cart as a related purchase.
- Amazon Sponsored Ads: These are the most versatile and appear throughout Amazon – on search results pages, product pages, and even on external websites! They can appear alongside search results, beneath Headline Search Ads, and even on websites outside of Amazon. This broad reach makes them a powerful tool for increasing your product’s visibility.
Understanding Amazon PPC Costs
Unlike traditional advertising with fixed prices, Amazon PPC uses a bidding system. You choose keywords related to your product and set a maximum bid – the most you’re willing to pay when someone clicks your ad.
How Bidding Works
Let’s say you bid $4 for a keyword. You won’t necessarily pay that much per click. Your actual cost depends on your competitors’ bids. If the next highest bid is $0.90, you’ll only pay $0.91.
Factors Affecting Cost
Popular keywords generally cost more. While you don’t always have to be the highest bidder to get your ad shown, a lower bid might mean less visibility.
Finding the Right Balance
Start with a reasonable daily budget and adjust it as needed. The key is to find the sweet spot that maximizes your visibility without overspending.
- Bidding too high? Your ad gets seen more, but your costs rise, potentially reducing your profits.
- Bidding too low? You save money, but your ad might not get seen as often, leading to fewer sales.
Launching Your Amazon Advertising Campaign
Amazon PPC revolves around keywords – the search terms shoppers use to find products. Choosing the right keywords is crucial, and how you do it depends on your campaign type.
Let’s explore the two main types of Amazon PPC campaigns:
Automatic Campaigns: A Beginner-Friendly Option
Perfect for those new to Amazon advertising, automatic campaigns are simple to set up. You set your budget, and Amazon handles the rest, automatically selecting relevant keywords for your product.
Pros:
- Easy to use: Ideal for beginners.
- Minimal effort: Amazon does the heavy lifting.
- Time-saving: No need to research keywords manually.
- Valuable data: Gain insights into campaign performance to improve future strategies.
- Long-tail keyword discovery: Amazon’s algorithm can identify these niche keywords for you.
Cons:
- Potential for irrelevant clicks: Amazon’s automated system might not always choose the most accurate keywords.
- Uncertainty about keyword relevance: While related, the selected keywords might not be the perfect fit for your product.
- Risk of wasted spend: Irrelevant keywords can lead to clicks that don’t convert into sales.
Manual Campaigns: Taking Control of Your Ads
For those comfortable with keyword research and seeking maximum control, manual campaigns are the way to go. You hand-pick the keywords you want to target, ensuring your ads appear for the most relevant searches.
Pros:
- Flexibility: Easily adjust bids or remove keywords that aren’t performing well.
- Strategic targeting: Focus on niche keywords your competitors might miss.
- Keyword suggestions: Amazon provides recommended bid amounts to guide your strategy.
- Complete control: You’re in the driver’s seat when it comes to spending and keyword selection.
Cons:
- Time investment: Requires more effort to research and manage keywords.
- Potential for inefficiency: Poor keyword choices or high bids can lead to wasted spend.
Choosing the Right Keywords for Your Ads
Effective keyword selection is essential for successful Amazon PPC. Here’s a breakdown of the different keyword match types:
- Broad Match: Most affordable but least precise. Your ad appears for your chosen keyword and related variations. (e.g., “beach towel” might trigger your ad for searches like “large towel”).
- Phrase Match: More specific than broad match. Your ad appears when the search includes all the words in your keyword phrase, in the same order, with potential additions before or after. (e.g., “beach towel” could trigger your ad for “best beach towel”).
- Exact Match: Most expensive and precise. Your ad only appears when someone searches for the exact keyword phrase. (e.g., only “beach towel” will trigger your ad).
The Power of Long-Tail Keywords
While short, popular keywords can generate many impressions, long-tail keywords (longer, more specific phrases) often lead to higher conversions.
- Why? They’re less competitive and cheaper, and they precisely match what the buyer is looking for. (e.g., “quick dry beach towel with hood” is more specific than just “beach towel”).
Ready to Launch Your Amazon Ads?
Getting started with Amazon PPC might seem daunting, but it’s simpler than you think. Begin with an automatic campaign to learn the ropes, then gradually transition to manual campaigns for more control and better results.
Here’s to your success on Amazon!