Should You Invest in Amazon PPC Advertising in 2019?
Investing in Amazon PPC advertising is no longer optional. With new businesses opening Amazon accounts every day, competition is rising.
Likewise, average CPC prices are also soaring in various categories, even making it unprofitable in certain cases.
With such tough competition, you may like to ask whether it is worth investing in Amazon PPC advertising. Definitely, it is.
Let’s dig deeper into shopper behaviour on Amazon. Interestingly, here’s what research found:
- 70% of shoppers on Amazon search only on the first page of results
- 35% of searchers click on the very first product featuring on a search result
- 64% clicks belong to the first three items featuring on the list
If you are a seller, you know your way to the top.
What is Amazon PPC?
Amazon PPC is the best thing to happen to eCommerce.
Being a seller on Amazon is the greatest way of driving traffic to your products too.
With more than 2.64 billion visitors per month searching for products on Amazon, there are many scopes.
As a result, it provides higher conversion rates than Facebook ads or Google ads.
Amazon PPC, or sponsored products, is an advertising platform. It is designed to help sellers boost their online sales.
Amazon has six divisions of advertising, and sponsored ads are the most readily available and accessible ones, which also makes them the widely used ads.
Advertising is the greatest business tool, and Amazon is utilizing it very well.
For instance, Amazon places site ads on all its web pages without ruining the user experience, unlike any other eCommerce sites.
As 56% of customers begin their online shopping sojourn with Amazon, brands are now realizing the potential of Amazon.
How does Amazon PPC advertising work?
Amazon PPC is primarily based on keywords and auctions.
As a seller, you must bid on relevant keywords for a product to appear in search results.
A seller with the highest bid gets the first position in search results. Sellers have to pay only when an ad is clicked on, similar to Google’s AdWords.
You can place Amazon PPC ads with a selling plan. PPC ads are not available for all product categories.
With an efficient Amazon PPC management team, sellers can earn great returns from Amazon PPC.
Why should you pay for Amazon PPC Ads?
Remember, 70% of your searchers stay only on the first page of the search results, while only the first three search listings are mostly clicked.
So, if you do not rank at the top of the search engines, you may not be seen.
Amazon has multiple ranking factors to decide who should rank at the top for a given search.
However, sales velocity, or the units of sales you generate, is the primary factor. Though it is not a specific metric, it accounts for the number of units sold per day.
You have to understand that Amazon does not focus on cumulative sales. Rather, it is more interested in the total units sold.
The only way to generate sales velocity is through advertising.
Determining Amazon PPC Goals
In order to determine your goals, it is important to know about the types of PPC ads you can post:
- Sponsored Ads:
Sponsored ads are mainly product ads that look like organic listings. However, they feature a ‘sponsored’ badge.
They appear in carousels. There are two campaigns associated with these ads – auto and manual. While auto campaigns are based on product page content, manual campaigns are based on keywords.
- Headline Search Ads:
These ads are visible above the sponsored product ads. This is a premium category that would be visible to searchers the first thing after they enter search keywords.
You may feature multiple categories and product, write ad copy, and mention a link to a landing page on your own website.
- Product Display Ads:
These ads can be placed in various positions and used for targeting competitors’ product pages.
What do you want to accomplish with your ads?
Generally, sellers want to acquire customers efficiently and grow sales volume as quickly as possible.
All of this is possible with proper Amazon PPC management.
Advantages of Amazon PPC
- Boost Product Sales across the Product Line:
Amazon PPC advertising is an interesting way to boost product visibility and sales.
The best way to increase sales is to run ads on keywords for which products do not have adequate visibility in search results.
When ads are placed, your products get more visibility in search results.
- Festive Campaigns:
Festive or seasonal campaigns are perfect to increase customer interest and boost sales.
According to your product line, you can run campaigns for specific keywords such as Mother’s Day, Christmas, Diwali, Valentine’s Day, Halloween, etc.
This is a good way of getting rid of your stacked up inventory too.
- Promote New Products:
New products are difficult to find in Amazon as only bestsellers are placed right on the front page.
Running PPC ads for new products boosts sales and ensures better organic ranking.
Finally, optimize your products for better online visibility on Amazon. As Amazon is a growing and ever-changing platform, this complex marketplace demands patience for better returns.