Effective Amazon advertising - We explain the intricacies of PPC advertising

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Someone wise once said that desire begins with knowledge. It is well-known that in order for potential customers to want to buy, they must first know that the product exists. It is your job to ensure that the interested party also knows where to purchase it. Advertising is a lever of trade! But... what kind of advertising?

One of the most effective on Amazon is PPC (pay per click) advertising. This is a type of banner ad (i.e. an online billboard) that you pay for when an interested party clicks through and is taken to a landing page, i.e. a shopping page with your product. A well-crafted PPC ad is therefore a tool to directly increase sales on Amazon. customers and... not only, but about that in a moment.

First rule: BE PROFESSIONAL AND KNOW THE CONCEPTS 

Bid- the fee you declare to pay per click on your ad and take the user to your product page

Daily Buget- the amount you will pay per day of campaigning

Keywords - keywords, after which a potential customer types in, your advertisement will be displayed

ACoS or Advertising Cost of Sales- a percentage indicator of advertising profitability; the ratio of advertising costs to product sales. ASoC = total PPC campaign spend / total sales generated by the PPC campaign x 100.

 

Second principle: QUALITY LISTING

Whether you spend €10 or €100 on Amazon Ads, you need to pay attention to the listing. This is because the purpose of PPC advertising is to attract and bring the customer to the landing page, which in this case is the listing. This is, broadly speaking, a product card that should contain information such as title, images, description and price. Remember that this is where the decision to buy is most often made. The page should therefore be designed with attention to every detail.

Please note: If you use PPC ads and thus generate poor quality listing traffic, potential customers will not make a purchase and you will be left with a low conversion rate (i.e. the ratio of expected actions to all interactions with the ad). If your conversion rate is too low, Amazon may penalise you by lowering the relevance rate of your ad, which will consequently affect its higher price.

 

Third principle: KEY WORDS

With PPC advertising, we have two options - automated and manual ads. In the first option, the platform automates the keywords by which your ad will be targeted. In the second option, you can do this manually. This allows you to match them even more precisely to the category and nature of the product. It is worth ensuring that the keywords not only generate listing traffic, but are also as closely related to the product as possible. Otherwise, the campaign may be limited to increasing the number of customers visiting your site, but who are not interested in buying the product. Such a campaign will be treated by Amazon as misguided.

Relevant tools such as Helium10, Google Trends, Google Ads, Wordstream or Answerthepublic will be helpful in selecting keywords. These are search engines that help select not only keywords, but also long tails (a 2-3 word phrase used by users to obtain precise results). It is worth remembering that you have to pay more for keywords than for long-tail words, due to their high competitiveness. By using both options, we are therefore optimising the cost, increasing the search capabilities of the ad.

Fourth principle: CREATE YOUR IDEAL CAMPAIGN

By trial and error, a lot can be achieved here. In the case of a PPC manual campaign, it is worth testing different phrases or keywords and eliminating those that are not profitable, investing more in the most relevant ones. It is also a good idea to look for the most optimal amount of money allocated to the campaign. Industry metrics such as the aforementioned ACoS will help. You also need to be careful not to throw money down the drain. A poorly prepared PPC campaign may simply not work, so it is worth preparing well for it.

 

If you think an Amazon PPC campaign is right for you but don't want to take the risk, leave it to us! Marketplace agency Commercebay optimises Amazon Ads campaigns so that they benefit you right from the start. We are guided by years of experience in the industry and our knowledge is constantly updated with new developments. Would you like secure PPC advertising on your Amazon account? Get in touch with us!

 

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