Modern Retail

Amazon PPC 101

Amazon PPC

A recent Forbes article posed this simple question: Is Amazon about to take over online advertising? 

It’s a distinct possibility. The same article stated that spending on Amazon advertising could reach $10 billion this year and is likely to quadruple by 2023, outpacing digital advertising giants Google and Facebook in terms of annual growth and arguably platform effectiveness. With this in mind, it’s crucial that online sellers consider Amazon advertising as part of their seller strategy. 

To help you learn a bit more about the process and potential benefits of Amazon advertising, we asked Activ8 PPC Specialist Oliver Stannard to respond to some PPC FAQs.

Here are a few of the key takeaways from our interview with Ollie.

Amazon PPC is not the same as search engine marketing (SEM) or social media advertising, and should therefore be approached differently.

In a nutshell, Amazon PPC has some of the same components as SEM, but there are many aspects that make PPC campaigns distinct to the Amazon platform. Like traditional SEM, advertisers bid on the search terms (keywords), and businesses are then charged per click. Unlike SEM, there are many different types of ads specific to Amazon, such as Sponsored Brands, Video Ads and Sponsored Products. These various options give advertisers more control over how prospective customers find and engage with their ads.

Your Amazon PPC strategy should be highly-tailored to suit your goals.

Whether you’re looking to drive brand awareness, increase sales, lower your ACOS (advertising cost of sale), or increase your ROAS (return on ad spend), the rules you set for each campaign should look different based on your campaign goal.

Keyword discovery is one of the most important stages in running an Amazon PPC campaign.

Activ8’s PPC specialists use a four-step process to determine the best keywords for each campaign. First, the client provides a list of keywords they feel will be most used by their target audience when searching for their product or brand. Next, the Activ8 specialists analyse the client’s competitors to find the best converting keywords for their product category. After this large list has been compiled, it is filtered down to the most promising keywords, then the keywords are grouped into individual ad groups. This process allows brands to convert without over-bidding or spending on under-performing keywords.

Finding the budget sweet spot requires some testing.

For optimal results at the lowest cost point, PPC specialists continually analyse and tweak their bidding and keyword strategies based on conversions, impressions and competition. With some experimentation at the early implementation stage, PPC specialists like Ollie can fine-tune their campaigns to provide optimum control for brands.

An Amazon PPC Funnel and AI Rule Setting should be used to achieve the best results.

Amazon PPC

Keywords start at the top of this funnel, which serves as the discovery or awareness stage for prospective customers. Successful keywords are then moved down the network of funnels, offering more control and exposure on keywords that offer the highest returns and creating a continuous feed of new targets. 

All online sellers can benefit from Amazon PPC.

Whether you’re a start-up selling on Amazon for the first time or you’re an established brand selling across multiple online marketplaces and e-commerce channels, Amazon offers an array of PPC tools to scale. Running Amazon PPC campaigns will not only help boost your sales during the campaign period, but it will also improve your product or brand’s organic ranking for the future, allowing you to generate more organic sales.

As a member of Amazon’s Service Provider Network, all Activ8 specialists are trained and certified on Amazon Advertising. To learn more about how Amazon PPC campaigns can help you achieve your business goals, get in touch.

By Stuart Conroy, Founder and CEO of Activ8