Effective marketing is important when it comes to creating a flourishing business. If you’re selling on Amazon, a primary tool you can use to form your marketing strategy is Amazon’s pay-per-click advertising program, known as PPC.

Amazon’s PPC ads can help you reach your goals, so your business thrives in the world of e-commerce. Good ad campaigns can push sales straight to your Amazon store.

This means that you can reach and increase your target audience, so your business becomes more popular.

You’ll learn more about Amazon PPC in this post, including what the program involves, examples of ads, and whether Amazon PPC ads are worth the cost.

What Is Amazon PPC?

Amazon PPC advertising increases click-through sales to your Amazon digital store. Traders on Amazon can establish a bid to have their advertisement displayed when another shopper looks for a product. 

The merchant will then only pay when the buyer clicks on your particular ad. The advertisement will later go to the highest bidder for the pertinent search keywords.

Pay Per Click As Second Price Auction

After the ad is displayed and clicked on by a possible buyer, the ‘winner’ will be the only one paying for the advertisement.

The expense will vary depending on how much the bidder placed on the particular keywords, as well as how much the second-highest offer was.

The highest bidder won’t need to pay the entire bid, just a cent over the second-highest offer. For example, if you bid $3.00 for the keywords ‘video game’, but the second largest offer was $2.20, you’ll only need to pay $2.21 for the ad click.

Remember that your advertising cost of sales (ACos) doesn’t need to be huge, provided that you achieve your return on investment (ROI) targets. 

Cost For Amazon PPC

If you want to know how much Amazon pay per click costs, you’ll need to consider your seller cost per click (CPC). This is the expense a seller pays for a possible customer to click on their item.

When you generate an ad campaign with Amazon, the platform lets you set a time frame and budget. Overall, your PPC expenses can cost as little as $0.10 to as much as $6.00 US dollars per click. 

You can work out how much your budget for Amazon PPC ads should be by considering the average cost per click. 

It can be difficult to work out the precise value of a PPC ad as it performs as a bid system. Still, there are lots of factors that affect what you’ll spend on Amazon PPC advertising. 

These include: 

• Keyword choice: If you bid on particularly competitive keywords, the price per click will increase.
• Competition: What are your competing Amazon merchants’ bidding?
• Sort of ad: Video, Sponsored Product, Sponsored Brand, Sponsored Display
• Automatic or manual targeting: The system you use for item keywords
• Creation expenses: Product optimization, keyword research, and potential expenses of generating a video equate to money and time spent on your ad campaign.

After you get your initial PPC ad campaign underway, you can assess your ROI, then amend the budget based on how successful the ad was.

PPC Advertising Examples

Amazon merchants can employ three main kinds of PPC ads.

Sponsored Products

Sponsored product advertisements involve a merchant’s paid-for sponsor items being displayed on appropriate product pages and the search results page. 

Sellers can use Sponsored Product advertisements by establishing custom bids. They will manually target the keywords they believe will help increase sales to their Amazon store.

These can also be established with automatic targeting, which involves Amazon selecting the keywords related to your item listing.

• Minimal Budget Per Day: $1

Sponsored Brands

Once you’ve searched for an item on Amazon, sponsored brands emerge on the left side or top of the results page.

These can display a maximum of three items connected with your Amazon brand, along with your logo and a personalized headline.

The advertising can also appear as PPC video ads and mainly target appropriate keywords. 

Despite this, the only sellers that can establish Sponsored Brand ads are ones from the Brand Registry Program.

•  Minimal Budget Per Day: $1

Sponsored Display

This is a newer kind of Amazon PPC advertisement. Instead of relating to keywords, it aims to locate buyers based on their buying practices and interests.

For example, if an Amazon customer has ever previously looked at one of your product’s item details, an ad for the item will appear on a different page as they look for more items on Amazon.

The ad will also appear on another app or website that they use daily.

Like sponsored brands, Sponsored Display PPC ads are only available to sellers signed to the Brand Registry Program.

• Sponsored Display ads have no minimum budget per day. 

Steps To Carry Out A Amazon PPC Plan

Follow these steps to carry out your first Amazon PPC ad campaign.

Select Your Items

Select the items in your store that you want to see success for your initial PPC ad campaign. 

Remember that may take some time, as many sellers have to attempt several ad campaigns before they come up with a working plan. 

Choose Your Keywords

Next, you need to research the best keywords. Amazon can do the job for you if you use automatic targeting, but if you opt for manual targeting, you’ll need to do the keyword research yourself.

If you do choose automatic targeting, you still need to optimize the Amazon store. Ensure that the item listings, particularly the ones you want to advertise, are well-optimized.

Images, titles, and product descriptions have to be in order, or you’ll be wasting your time.

Generate The Ad Campaign

Head to your Seller Central account, log in, then prepare to form your ad campaign. Find the Advertising tab, then select ‘Create Campaign’. Select the kind of pay-per-click advertisement you want to use.

After you choose the PPC advertisement, you’ll be prompted to fill out your campaign details. These are the beginning and end dates, daily budget, and the name of the campaign.

You’ll then need to choose if you’re automatically or manually targeting, then choose the items that you want to promote, along with your base bid.

If you went with manual targeting, you’ll need to transfer your chosen keywords next. Amazon PPC ads let you target a maximum of 1,000 search terms or keywords per ad type. 

A realistic aim is to begin targeting 20 to 40 keywords as you generate the ad campaign. You can upload the keywords through a .csv file to make the process simpler.

Establish Ad Bids

Next, you’ll need to establish your bids for every target keyword. 

The bids aren’t fixed, so you can update them if necessary. Ensure that you’re considering the cost strategy of every keyword as you carry out the research. 

It’s a good idea to bid on several keywords associated with your product, then place a greater bid on keywords with a reduced competitive rate. This increases your chances of winning the keyword and obtaining the advertisement.

Send PPC Ad For Approval

You’ll need to send your work and wait until Amazon sanctions the ad campaign. This may take as little as several hours or as many as two days.

You can then start assessing the PPC ad campaign’s performance after it’s launched. 

Final Thoughts

No matter what your marketing plan involves when you’re working with Amazon PPC ads, make sure that you plan for an ROI.

An advantage of Amazon’s PPC ads is being able to establish a budget, so you won’t need to be concerned with spending too much.

Still, it’s important to develop a plan before arranging everything to prevent wasting money later on. 

If you do want to try an Amazon PPC ad campaign, try a blend of different kinds of ads and see which ones are more successful.