Amazon PPC Strategy Guide: First Steps for your PPC Campaign

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Amazon is now much like a household name. Almost everyone knows what Amazon is all about. An e-commerce and online shopping platform to be precise. But a recent 2018 study of 1000 US shoppers revealed that a whopping 41% of the buyers start their product search on Amazon and end up buying it from amazon which is amazing in itself.

If we take a closer look into an Amazon Shopper Behaviour we find:

  • 70% of searchers never go beyond the first page of the search results
  • 35% first on the very first product that features on the first search results page
  • 64% of the clicks are upon the first 3 results on the search page

These revealing statistics indicate the power of this e-commerce giant. You can either choose to use this power to empower and propel your businesses or ignore these stats, the choice is yours.

But if you are one of those ambitious business owners who would like to take the power in your hands, you are at the right place.

Here in this article, we will uncover some aspects to use Amazon Advertising to sell your products. Towards the end, you would know how to run an Amazon pay-per-click campaign. Let’s look at these aspects one at a time:

Amazon PPC Strategy Guide: Why invest in Amazon?

Amazon is the marketplace where almost 49% of the customers start their product searches and businesses in no way can be complacent enough to let these buyers go without buying. 

As such investing in advertisements is no more an option. It is rather a business requirement and a necessary compulsion.

Amazon ads are chargeable but why? Since most of the searchers buy their products from the first page of the search results and the top 3 on the first page, it is important to remain on that page to catch their eye and attention. 

And, of course with the prevalent competition and everyone trying to feature at the top, chargeable advertisements are the only way out.

Amazon has a way of ranking your products by a generalized metric known as the sales velocity. Based on the number of units you are selling per day and the sale volumes you are generating you are ranked and placed higher than other veterans or big names in the market. And how do you increase these volumes? The obvious answer is Advertising.

Your sales rank depends on certain direct and indirect factors.

Direct Factors include some of the most important things like Stock Availability, Price Range and Text Relevance Match. If you are short on the stock to meet your customer’s demand, no advertising will help. 

That’s because that keeps you from winning the buy box that is available on an Amazon product detail page where your customers start the buying process by adding items to their carts.

Amazon has a default algorithm of choosing the best offers based on price, customer reviews and fulfillment process and you need to ensure your product breaks into this default algorithm for ranking on the top. 

Price is a key consideration in determining which products will rank and be placed towards the top. Some of these constitute the indirect factors impacting your sales velocity and volumes along with factors like promotions, use of images, etc. 

Another direct factor is Text Relevancy which refers to the relevance of your product to the text the customer has keyed in to search. Make sure your product description page has strong content that matches all possible keywords that the customer may key in to search for a particular product.

Advertising with Amazon is the key to taking care of some if not all of these factors. Let's walk you through the process of doing it on Amazon.

Amazon PPC Strategy Guide: Determine your Goals

You need to first figure out the resources at your disposal and the types of ads that you wish to run to meet your business objectives. Based on your needs you can select a type of ad which includes Sponsored, Product Display, and Headline Search Ads.

Sponsored

These ads look like regular ads on amazon with a Sponsored badge on them. They usually also are seen in carousels and Amazon usually places them at certain other pages over time. These ads can either be manual or Auto Campaigns.

Amazon PPC Headline Ads

While auto campaigns are based on the content you have placed for your product pages, manual campaigns are keyword-based and are based on the keywords you have chosen to bid on for varying match types.

You can use auto campaigns to search and gather term data that you can apply for your manual campaigns.

An important thing to consider is the conversion of the keywords you get through auto campaigns at a good ACOS (advertising cost of sale) and can be added seamlessly to your manual campaigns.

Headline Search

This is a premium feature that allows your product to show up as the first thing the customer sees whenever they perform a search. These Ads are certainly more expensive and come at an additional Cost Per Click but the volumes and the sales they drive compensates for all the cost involved.

Amazon PPC Sponsored Products


Product Display

These ads are placed in a few different placements to target the different competitors and product pages. These ads can be placed at a rival competitor's product page under similar products’ option. Alternatively, you can defend your page by putting additional placements for your own similar products in your product ads.

Set Your Goals

You should be clear about what are you looking forward to accomplishing with the help of these ads. Whether you want to maximize your sales or enhance your customer base cost-effectively, decide on what you would like to do. Once decided, you can look at a strategy that may work in accomplishing your goals.

Structuring Amazon PPC Campaigns

The default setting for Amazon PPC advertising campaigns is as follows:

Campaign

Display group 1

  • keyword
  • keyword

Display group 2

  • keyword
  • keyword

Several products and several keywords can be contained within an ad group. However, the best option is to assign only one product to each ad group.

If your product catalog is small (less than 20 products), you can create a separate campaign for each product.

If it is an independent product with several product variations, you can also create your own campaign for this product and record the product variations in the various ad groups.

This is useful if certain product variations differ and require different keywords, such as different colors or the category men or women.

If you have separate ad groups for each product, you can also assign specific offers to each product.

The more structured your campaign, the better.

Amazon PPC: A Couple of Strategies that Work

There are quite a number of Amazon PPC strategies that you may deploy to get desired results. Here we have outlined a couple of them:

Optimize Your Bids

You need to continuously adjust and optimize your bids to stay ahead in the competition and enhance sales. Your biddings naturally will be based on your goals based on which you may decide whether you want to increase, decrease or exit the bid.

Harvest the keywords

Harvesting is one essential strategy that you can deploy to ensure your customers are finding your product when they search for a product they need. That is why having strong content written for your product description page ensures the Amazon algorithms understand your products better and determines if your ad is relevant to a given product search.

Some Key Takeaways to Grow your Business using Amazon PPC

Now that you have a general view and idea of how you can use Amazon to your convenience and business growth, let’s look at the key takeaways:

1. Know about your business objectives, define them and accordingly calculate your targets. Determine the ACOS targets to create a baseline or benchmark to base all your optimizations on. 

If you are not clear on your goals, you will not know what you need to work with and what you need to do to accomplish your business goals. 

So first things first ensure you are clear on your objectives and set measurable targets based on which you can start your optimizations.

2. Know your strengths. You need to know what products will work for your business. No matter what strategies you adopt some products fail to make a mark, and you need to realize that. 

Ensure that you are not wasting your precious time and resources upon products that are not giving you any substantial conversions. 

Look at the other products that have given you good conversions and sale volumes in the past and divert your time attention and resources to get the traffic on to these products.

3. Do Not Waste your time. While working with Amazon PPC, optimizing your bids from time to time is important but no need to keep sitting with them making minor tweaks all the time.

For daily trends may not be helpful while making these optimizations and you may need to have a look at the data over a longer period. 

Short-term daily trends may not give you the picture which a long-term trend might lend. Amazon is a dynamic marketplace and what you do with your bids is only a small aspect of a bigger system that is working for you all the time.

Amazon PPC Strategy Guide: Final Verdict

We have seen how powerful Amazon has become in terms of fulfilling customer’s buying patterns and how Amazon PPC can works perfectly for businesses across the world. 

With changing times and continuous evolution of market spaces, Advertising on the marketplace itself is the need of the hour. 

And there is nothing better than using Amazon PPC to advertise your products in the right way right in the middle of a massive online market. That’s the power of the Amazing Amazon.

Advertise your Amazon Products on other Channels

Recently I read this interesting article published by bigcommerce. It's about promoting your products on other sales channels as well. Then I created this infographic. 

If you are thinking about promoting your products on other sales channels, this infographic will help you take your first steps.

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