Amazon’s PPC ads offer a powerful opportunity for merchants to get high targeted leads for their products without paying out a lot of money. This method can be considered as the most cost effective form of advertising in terms of the reach of the audience and the time it takes to generate a lead. Here are some important guidelines on how to make the most out of Amazon PPC ads.
Cost-Per-Click (CPC) ads from Amazon are advertisements that run automatically based on the behavior of the targeted customers. Amazon PPC is a pay-per-click advertising model, where advertisers only pay Amazon when a visitor clicks on their advertisement (pay-per-clicks). There are three Amazon ad groups available: sponsored products, sponsored brands and sponsored displays. Each of these groups has their own pricing structure, maximum impressions and bids, and placements within the search results or the top of the page.
Keywords or key phrases are used by the advertisers to target specific audiences. Amazon’s Keyword tool can help in identifying areas for promoting your products. In the past, KPI or key performance indicators would help in identifying areas for increasing profitability but not when it comes to advertising. With the use of Amazon’s Keyword tool, you can drill down into specific markets and identify areas where your advertisement could be most profitable.
Amazon also measures your ad performance based on conversions or sales generated from the advertisements. Conversions or sales generated from the Amazon PPC ads are calculated based on the click-through-rate of each of the advertisements and the total number of impressions of those ads. The higher the click-through-rate and the better the conversion rate, the more revenue you can potentially generate from the ads.
You can also evaluate your campaign performance based on how well you position the different advertising elements within your campaign. For example, did you target your ads according to audience, location, gender, or even political affiliation? As well as which of the ad types or keywords did you advertise with the most? All of these factors can help you in setting the parameters of your PPC campaign and then optimize each of these aspects in order to achieve higher sales and conversion rates.
Amazon also allows you to determine whether you should promote your products through content networks, internal pages or through sponsored ads. Promoting your product through internal pages within the e-commerce website may send shoppers directly to the product’s product detail pages, which are more attractive, enticing and user-friendly. Meanwhile, the sponsored ads may direct shoppers to the company’s website or a third-party website where they can find more information about the product. These third-party websites may send shoppers to product detail pages after they have completed purchasing the product through Amazon. On the other hand, when you advertise through content networks, you are only sent the text portion of the advertisement, which is generally less enticing than the images and links that you can see on external websites.
Amazon also lets you decide whether to display only popular keywords or to display all related keywords. Popular keywords are the most-watched and visited keywords by users, so it makes sense for an online merchant to invest in these advertisements. However, you also have the option to filter which popular keywords appear on your PPC advertisement. The result is that you only pay for the PPC advertisements that are actually reaching and sending actual buyers to your website.
A big advantage of using pay per click advertising with Amazon is that it allows you to target only the people who are most likely to be interested in your product. Through this method, you get more conversions and sales because your potential customers are only a click away. You will have a higher return on investment (ROI) if you only advertise your products to the population of buyers who are actually looking for your products. It will take some time for you to see results with this method, as it is a new model for marketing. Also, remember that using the Amazon PPC system is easy, but using this model effectively means carefully selecting the right keywords and creating the appropriate advertisements that will help you make more profit.