Amazon PPC Meaning
Amazon PPC is short for Pay Per Click and without this, it’s impossible to run an effective PPC campaign. This is a paid advertising program offered by Amazon whereby merchants bid on keywords related to their product. You bid on a keyword, and if someone clicks on your advertisement, you pay a predetermined amount. If someone else clicks on your advertisement, you pay nothing.
It’s an excellent way to advertise as there are many advertisers who place their paid advertisements on your website and pay you every time a visitor clicks on them. There are two types of Amazon PPC namely Display Ads and Sponsored Ads. With Display Ads, you can display ads of merchants who have affiliate programs with Amazon and select specific products which are relevant to your site content and your visitors. As with other Pay Per Click networks, you only pay when someone actually clicks on your ad. With Sponsored Ads, you pay only when your targeted audience makes a purchase from the advertisers through your website or an affiliated website.
Amazon has two main models of pay per click including the standard version which is known as the Standard Paid Ads along with the customized version which is called the contextual option. With the standard version you are paid on every thousand impressions, with the contextual option you are paid on the basis of the number of times your ad was displayed. The drawback of both the models is that the standard version takes up more memory and also needs more work on the part of the advertiser as it requires creating relevant display ads according to the context of your website.
The second model is known as the latest pay per click model and is much more efficient in terms of costs, as it has an advanced mathematical algorithm to calculate the optimum number of impressions necessary for conversion. On this model you only pay for the actual number of clicks your advertisement has generated and not on the basis of the old stock or any old information like previous purchase price. With this model, the advertiser need not worry about generating new products as this is not a problem with the Amazon PPC system. There is a minimum amount of work that needs to be done for displaying new products and therefore it ensures a cost benefit for the advertiser.
The first impression of a customer is more important than any other impression and therefore if you want to generate sales then you need to give top billing to your product. There is only one chance to make a first impression so you must take full advantage of it. Choose a product that is highly searched for and that is very appealing to the eye. Amazon has a great database that helps you analyze trending of keywords and identify good products. Choose an attractive title and a compelling sales message and make sure your product page is well optimised for those keywords.
With Amazon PPC you pay based on the number of clicks. Each visitor that comes to your website is counted and you are paid for each click. The higher the number of clicks, the more sales you will generate. It is recommended to have ads that are focused on a single subject because then the visitors will make an instant decision and you will receive better conversions. Make sure that the subject of your ads closely reflects the real estate site subject line.
When placing your Amazon PPC ads, you need to ensure that they are placed on high traffic websites that receive regular traffic. When potential customers search for your services through these search engines such as Google, MSN and Yahoo they will see your ads and this will result in clicks. Click through rate is the percentage of users who clicked on your ad when they visited the website.
To determine the cost per click, multiply the number of clicks by the average cost per click on different keywords to get the potential cost per click. Amazon offers a free tool that allows the users to find the right product, niche and amount of money to bid for the PPC campaign. This way you can find out the profitability of your product. If you bid low, it means that you are selling a less useful product or service and if you bid too high, then you may be overpaying for the clicks.