In the fast-changing world of online shopping, Amazon is a major player, giving businesses a huge customer base to reach. One powerful way to boost your visibility and increase sales on Amazon is through Pay-Per-Click (PPC) advertising. Amazon PPC campaigns can significantly impact your business, but they also have their benefits and drawbacks. This article will explore the pros and cons of Amazon PPC campaigns, helping you to decide if they’re right for you and give you more idea on if it’s worth doing PPC in 2024
1. What does Amazon PPC mean?
Sponsored Products are cost-per-click (CPC) ads that promote individual product listings on Amazon and select premium apps and websites. You can create a campaign in just a few minutes, even if you’ve never advertised.
Amazon PPC is the advertising platform Amazon makes available to its third-party sellers. It allows sellers to create ad campaigns for their products and charges them each time a potential customer clicks and views their ad. Before we get into the details of PPC though, it’s important to understand Amazon’s key PPC metrics.
- Advertising Cost of Sales (ACoS): The percent of attributed sales spent on advertising. This is calculated by dividing total ad spend by attributed sales.
- Attributed Sales: On Amazon, a sale is attributed to a campaign whenever a shopper who clicks on an ad purchases your brand’s products at Amazon. For first-party sellers, Sponsored Products attributed sales will only count sales of these products when Amazon was the seller, and not third-party merchants.
- Impressions: The number of times your ads were displayed. Once identified, it may take up to three days to remove invalid clicks from your reports. Clicks from the last three days may be adjusted due to click invalidation.
- Clicks: The number of times your ads were clicked. Once identified, it may take up to 3 days to remove invalid clicks from your reports. Clicks from the last three days may be adjusted due to click invalidation.
2. How many types of PPC are on Amazon ?
To start, there are four types of campaigns or ads you can create on Amazon: Sponsored Product ads, Sponsored Brands ads, and Product Display ads, Sponsored TV ads. The first of these, Sponsored Product ads, are the most common.
- Sponsored Products : Sponsored Products ads appear on Amazon and help promote specific products in shopping results and relevant product pages. When a customer clicks an ad, they are directed to the corresponding product page.
- Sponsored Brands : Sponsored Brands ads appear on Amazon and allow you to create ads that include multiple products, along with your brand logo and a custom headline. Shoppers can be directed from your Sponsored Brands ad to a selection of products or to the brand’s Store
- Sponsored Display : Sponsored Display ads help you engage audiences who either showed interest in categories related to your promoted product or viewed your product’s detail page but did not purchase. You can also target specific products or categories that are similar or complementary to your promoted product.
- sponsored TV Ads :Amazon Ads Sponsored TV is a self-service advertising solution designed for brands of any size to reach audiences on streaming TV services and apps. Businesses selling on Amazon can run advertisements on platforms like Amazon Freevee, Twitch, and other third-party streaming services through Fire TV apps r12. It’s a way for advertisers to connect with viewers as they watch their favorite content, and it offers flexibility without minimum spending requirements.
3. Where does Amazon show ads ?
As we have different match types likes Sponsored products ,Sponsored Display and Sponsored Brands, so it shows in different places on amazon search bar, here are the details
a) Sponsored Products:
Sponsored Product Ads stand as the preferred choice among Amazon sellers, dominating the platform’s advertising landscape. These ads enjoy prime placements, appearing prominently on the top of organic search results, sprinkled throughout search pages, and nestled within product listings. Comprising 70% of third-party sellers’ ad preferences, Sponsored Product Ads seamlessly blend with organic search results, preserving the shopping experience.
b) Sponsored Brands :
Sponsored Brand ads, previously known as ‘Headline Creative ads,’ are an exclusive advertising feature accessible solely to brand-registered sellers and vendors. These ads serve as a potent tool for boosting brand visibility and driving sales, presenting products through captivating advertisements on pertinent Amazon shopping results
Typically positioned at the top, side, and bottom of Amazon search results, these ads prominently feature the brand’s logo, tagline, and select products, offering a compelling showcase of the brand’s offerings.
c) Sponsored Display
Amazon sponsored display campaign is their type of advertising campaign. This type of campaign is specialized in the case of Amazon off-site advertising, showing PPC advertisements beyond Amazon websites such as Amazon affiliate websites. Not only does this type of advertising campaign allow you to reach outside Amazon but also it allows you to use creative options such as brand logos, Customized images & headlines. Amazon sponsored display campaign not only allows you to reach new potential customers with customization but also it helps to complete the Amazon purchase funnel.
4. What are the advantages of Amazon PPC
The first step in determining whether Amazon ad campaigns are worthwhile for your business is understanding the benefits
- The Ranking Factor :The primary benefit of Amazon PPC – by a clear margin – is the impact that it has on a product’s organic ranking. Amazon’s search results algorithm understandably promotes products that perform well. However, when you first launch a new product it has zero sales history and minimal visibility in order to be able to generate those all-important sales. This is where Amazon PPC becomes vital.
- Strong ROAS : Despite rising costs Amazon advertising still delivers a strong return on ad spend when compared to other advertising channels.
- Unique Visibility : Amazon PPC campaigns allow you to promote your products in locations otherwise unreachable with organic placements. Sponsored Brand Ads also allow you to run video ads and headline search ads with custom lifestyle imagery and Sponsored Display Ads give even more unique, eye-catching placements on competitor’s product detail pages: The reality is simple: if you aren’t running Amazon PPC ads, you miss out on these placements and miss out on sales.
- Pay-Per-Click Efficiency :In comparison to a CPM model used by Facebook Ads, for example, the Amazon PPC model is very efficient. It means that Amazon sellers can quickly see what ad campaigns and keyword targeting options are working and adjust accordingly to improve performance.
5. Statics on necessity of Amazon PPC:
When it comes to statistics and trends, one aspect grabs attention like no other – top-line revenue. Amazon now generates in excess of $500 billion of revenue as a whole, but what are some of the standout stats when it comes to PPC and advertising? Amazon generated $37.7 billion of its 2022 revenue from advertising
Amazon’s advertising services helped add over $37 billion to their top-line figures, and this is up 21% on 2021’s numbers. It’s a small fraction of the half-trillion total revenue, but it continues to show significant growth. Given this is one of Amazon’s most profitable lines of income, you can expect continued focus on more advertising expansion. This means more ad placements, fewer organic spots in search results, but on a more positive note – perhaps some new advertising formats sellers can take advantage of in the years ahead.
Amazon’s advertising business is growing faster than Google or Facebook .Amazon’s advertising business has been growing at a significantly faster rate than Google and Facebook’s, seeing a 25% increase in the third quarter of 2022 to $9.5 billion. In comparison, Google’s ad revenue rose by only 2.5% to $54.4 billion, and Facebook’s advertising saw a decrease of 3.7% to $27.2 billion
Insights!
Amazon PPC can be worth it in 2024, but its success depends on strategic planning, continuous optimization, and a keen understanding of the competitive landscape. Sellers should regularly review their campaigns, adapt to market changes, and leverage Amazon’s evolving tools and features to maximize their advertising ROI.
Here, at Ecomclips, we have been helping many Amazon sellers boost their sales and capture the market share with both PPC and organic SEO. If you need any help boosting your Amazon sales or making growth on your brand, please don’t hesitate to mail us at our email address info@ecomclips.com. Also, if you need an Amazon store or account audit for both PPC Ads and listings SEO, you can let us know via our email address, and we will provide you with a free account audit.
As an Amazon advertising agency, we have a dedicated Amazon Ads Certified expert team who can build an Amazon advertising strategy for your account whether it’s a newly launched or a running Amazon brand to build traffic and conversion.
Additionally, if you need any assistance, please reach out to us through the comment box. We are here to assist you in managing PPC advertisements to improve your profit, so we offer a personalized approach to our service.
