The largest marketplace in the world, Amazon, is the monolithic presence that dominates the eCommerce landscape. Nearly 90% of UK shoppers use Amazon with 70% visiting the online retail brand on a monthly basis. 2020 was a huge year for Amazon, earning net sales of $26.5 million in the UK. Boasting over 353 million products, it’s hard to imagine how you could ever stand out in such a vast marketplace.
So how do you set yourself apart from the pack? The tried and tested method of advertising, of course. More specifically, Amazon’s Pay-Per-Click advertising.
What is Amazon Pay-Per-Click Advertising?
Amazon PPC advertising is the advertising tool developed by Amazon to allow sellers to promote their products on the site. Sellers design an ad campaign, and for every click the ad gets, they are charged a fixed price. The theory being that more clicks should generate more sales.
Why Use Amazon Pay-Per-Click Advertising?
Amazon PPC advertising is an easy and effective tool to make your product stand out. A successful PPC advertising campaign can boost a product’s visibility and sales. While this can be achieved organically for some products, PPC can get you there much quicker.
What Are the Different Types of Amazon PPC Advertising?
Amazon PPC advertising can be split into three distinct categories:
- Sponsored Product Ads: Large ads intermixed with organic search results. Designed to impersonate organic search results. Found at the top of searches.
- Product Display Ads: Smaller ads, found in similar product pages, are customizable, can be viewed on Amazon-owned and partner sites as banner ads.
- Headline Search Ads: Banner ads that highlight multiple products. Offer the most customization, including landing destination and ad copy but are limited to one particular product page.
Automated and Manual Targeting Marketing Strategies
When running an ad campaign, there are two marketing routes that you should take when it comes to selecting the keywords you want to target. These two methods are automated and manual targeting.
- Auto Targeting: Targets keywords as determined by Amazon’s algorithm. Using the data collected from shoppers clicks and purchases, the algorithm automatically adjusts keywords to help boost conversion.
- Manual Targeting: This involves the selecting and manual entering of the keywords they wish to bid on. These ads will only appear if a shoppe’s search terms match the chosen keywords.
Each strategy has its advantages and disadvantages, with manual targeting offering more control over your keywords, while automated targeting allows Amazon to choose keywords for you through their extremely optimised databases and filters. . Ultimately it is down to you which to choose. However, it is advised that auto-targeting be used at the start of a campaign to see any trends or patterns in keyword search terms.
How to Optimise My Amazon PPC Advertising Campaign?
Running a campaign is one thing, but running an effective one is something entirely different. To make sure you are getting the most from your PPC advertising campaign, here are a few tips on how to manage Amazon PPC.
Preparation is Key
Come into every ad with a clear idea of what you want to achieve. Know your budget and your desired Advertisement Cost of Sale (ACoS). Conduct keyword research, see what your competitors are doing and get a feel for the marketplace.
Timing is Everything
As the old saying goes, timing is everything, and Amazon Pay-Per-Click advertising is no different. Knowing when to ramp up advertising or scale down is key to an effective ad campaign. If you are selling seasonal products, make sure you start your campaign a month or so out from the peak of the season and be sure to ease back once the season is over.
Do not be afraid to let your ads breathe before drastically changing them. Allowing your ads to run gathers more data, which can be used to readjust your campaign for future ads. Constantly changing the variables of your PPC will lead to unreliable data.
Constantly Evaluate and Reevaluate
There is one thing that Amazon PPC advertising will always give you, data. Analyze all the data, what keywords work, which don’t and adjust your campaign accordingly. If specific keywords are working, double down on them. If others are not, create a list of poor performing keywords and add them to the negative targeting keywords list, which will remove the ads in searches of that keyword.
Outsourcing is Always an Option
Not everyone has the time to be constantly analyzing data and readjusting PPC. Luckily enough, at World Wide Listings, managing PPC is part of what we do day in day out and we are awesome in it. Just ask some of our existing clients.
There you have it, a helpful guide to Amazon Pay-Per-Click Advertising. Follow all of our expert guidance, and you will see a boost in sales in no time.