Amazon PPC campaigns

On Amazon, we have the opportunity to advertise on our products through the PPC (Pay Per Click) principle. You offer an amount for a certain keyword and if the customer clicks on your sponsored ad during the search, you pay the offered amount. This allows you to make your product visible to a wider mass of potential customers.

You can set the click prices individually and are played out like an auction on Amazon. The seller who offers the most for a keyword will appear furthest ahead in the search.

The sponsored product ads are always marked as such by Amazon. Either they appear in normal searches on Amazon or below other competition listings.

In this article, we want to help you to make your Amazon PPC campaigns optimal and sales-enhancing. Read on and you will learn everything you need to know for good product ads.

Optimized product listing

Before you start advertising Amazon PPC, your product listing must be optimally designed. Otherwise, Amazon PPC campaigns won’t do you much good and it will cost you a lot of money and nerves. Because through the advertising, many users will click on your product listing and therefore your listing must convince immediately!

The conversion rate of your listing must be as high as possible. At a low conversion rate, you have more visitors on your listing through PPC, but you convert very few of them into buyers. Nevertheless, you pay for every visitor who has clicked on your listing, even if he has not bought anything from you.

So the higher your conversion rate, the more profitable your sponsored ads will become.

As an example:

You sell a product for £20 and have a conversion rate of only 5%. With this listing you switch PPC and get 100 people on your listing in a short time. You pay £1 per click. Then you spent 100 pounds. However, of these 100 people “only” 5%, so 5 people also bought your product. This then results in a turnover of £100.

That is, you spent £100 and made a turnover of £100. Here it is immediately apparent that this PPC display is very unprofitable.

However, if you manage to increase your conversion rate, for example to 20%, the bill and your profit will look much better.

The point of an Amazon PPC campaign

Amazon PPC is a powerful tool. No matter what goal you are pursuing, a good Amazon PPC campaign will increase your visibility as well as your sales. The campaigns must be constantly improved and optimized so that they also increase your profit. More sales also means a better ranking on Amazon, so you will also sell much more organically.

How do I launch a product on Amazon?

If you have just listed a new product on Amazon, it still has a very bad ranking at the beginning. It is far behind in organic search and cannot be seen by potential customers. That’s why it’s important to make your product visible. The fastest way to achieve this is through Amazon PPC ads. If you place your listings high enough in the auction, your product will be displayed on the first page of the search results.

Only through PPC it is possible to pick up the first sales. Because only if a product is seen can it be bought.

Thus, you initially tend to set the bids higher. You also need to be aware that your sponsored ads are unlikely to be profitable the first time. Gradually, however, your campaigns should be optimized and increase your sales and profit.

We recommend this “launch phase” to go through the first 30 days. Because new products will be slightly preferred for about 30 days and you will gain ranking faster.

Larger sales also means a higher organic ranking. The more sales your product makes among the individual Amazon PPC keywords, the higher your listing will be ranked by Amazon. The whole thing is a positive spiral.

Amazon PPC Keywords Search 

In order to start a profitable Amazon PPC campaign, you need many and above all relevant keywords. Please take enough time with the Amazon keyword research and make it very detailed. Because for the long-term adaptation and optimization of your campaign, you need a good basis of many keywords. Also make sure you cover long tail keywords in your campaign.

These long tail keywords do not have much search volume, but 1-2 sales per month per keyword can also add up.

The main keywords usually have a lot of competition. Because every seller naturally wants to appear as high up as possible under his main keyword as a sponsored ad. That’s why we recommend you to do a top keyword research, because large keywords that are not 100% relevant can cause high costs.

Different types of campaigns

Now that you’ve found your Amazon keywords, you can start posting your PPC campaign. There are 2 big differences in how you can align your campaign.

1. Automatic Amazon PPC campaign

With the automatic campaign, Amazon does the work for you. You don’t have to search for keywords. Amazon scans your listing and assembles the keywords and ASINs for the campaign independently. This means less work for you. But you also have the disadvantage of not being able to adapt the campaign well.

We always recommend setting up this type of campaign. If you have done a good job with the listing, it usually works. Over time, you can also insert keywords that work well into a manual campaign.

2. Manual Amazon PPC Campaign

In the manual campaign, you can switch to keyword or product orientation. With the keyword alignment, you can use all your found keywords manually and adjust them individually. When it come to product orientation, you can also switch to ASINs or categories. 

Match Types on Amazon

You can set your manual campaign in the keyword alignment in 3 different match types. There is no worse or better match type. Depending on which Amazon PPC strategy you’re pursuing, one is better suited and the other not so good.  

1. Broad Match

In the Broad Match, your Amazon keywords are displayed in any order. The words that are included in your keyword must occur, but they can be swapped by Amazon in order and words are also added.

As the name suggests, this match type is the widest. Your advantage is that you cover a lot of customer search terms. Your disadvantage is that you will also be shown for many search terms that are less suitable for your product.

 2. Phrase Match

Phrase Match tends to be closer to the Broad Match than to the Exact Match. In this match type, the Amazon keywords are specified in the same order. The words contained in the keyword must not be swapped. However, words are added by Amazon.

Even with this match type, you cover many search terms of your customers. Of course, you will also be shown here for terms that are less suitable for your product. 

3. Exact Match

Exact Match is the most accurate. The search term matches the keyword word by word. It has the same order and the same ingredients.

The advantage of the Exact Match is that you really only appear under the search terms you entered in the campaign. You can calculate better and adjust your bids better.

The disadvantage is that you are not displayed at all for many customer search terms. With this match type, many customer search queries remain hidden from you. It will only be switched to the exact keyword as you entered it.  

summary

For us as Amazon retailers, there is, in our opinion, not only one solution. You can never cover all factors 100% perfectly. Therefore, it is very important to fulfill every ranking factor for Amazon SEO in the best possible way. Then you set up good Amazon PPC campaigns and optimize this week after week. If you have this under control, you will rank and sell better than other sellers.