Amazon pay-per-click campaigns are probably one of the most successful advertising platforms on the world wide web, I mean just look at how stinky rich Jeff Bezos is (too stinky if you ask me).
Amazon’s PPC campaigns help boost sales, amplify organic rankings and really get your brand out there. It all sounds like black magic but in reality is essential to any Amazon entrepreneur. According to research, many businesses found Amazon Sponsored Product ads more beneficial than Google AdWords since it generated more sales. And since pretty much everyone is using Amazon now, we decided to lay it all out for you today.
Amazon PPC is often the go-to for advertising as it’s three times cheaper than Google’s CPCs. This is great news for enterprises on tight budgets which is essentially all of us. Sure we need to factor in expenses such as fees, shipping costs and fees when it comes to estimating profits but often there is one thing overlooked — the price to run PPC ads.
So just how much does it cost on Amazon’s PPC?
The cost of Amazon’s PPC can vary a lot, it could be as cheap as something like $0.05 or could be as incredibly expensive as $10. The reason the cost can vary is dependent on the product category, ad type and marketplace. The average cost for PPC, which relates to the amount that the vendor spends when someone clicks on the ad, is usually around $0.77. But as more and more people shop online instead of going in-store, that cost is likely to change.
You could try spending $5-$10 a day on a PPC campaign but if it’s not profitable, you just end up losing more money than earning. Using relevant keywords can ensure your campaign isn’t rubbish but also factor in the following for ad conversion-
- The type of product you sell
- Product price
- Listing images
- Kinds of reviews you got
But before you start spending like a teenager with their first credit card, it’s vital that you estimate the costs per click for the main keywords needed. The great thing about Amazon is that it will recommend a specific bid amount for each keyword for your campaign. The amount you pay depends a lot on how competitive your target niche is. If the CPC per keyword is high then it means it will be harder to get impressions on your listings since your chosen niche is competitive.
It is important to understand what it will cost per click for the main keywords in your niche before you invest in a product. If the average PPC per keyword is very high, that may tell you that the niche is very competitive and it will be harder to gain impressions on your ads and listing.
So, if you follow Amazon’s recommended bids for the keywords, you can end up with higher ad placement in search results. One important thing to remember is if you set your maximum bid at $0.60 or any other amount, it doesn’t actually mean that’s the amount you will also pay. Your PPC could be much lower based on the next highest bidder. But if your closest competitor made a bid for $0.40 per click, you only have to pay $0.41 per click instead. Now you could bid lower than what Amazon recommends you but when you bid so low, especially to save some coin, there are some disadvantages too. By bidding low, there is a chance that your ads won’t show in prime spots during search results. Basically, the lower the bid, the harder it is for potential customers to find you but if you decide to bid the recommended amount or even higher, then there’s a greater chance your ad appears at the top of searches.