Categories: PPC

Everything You Need To Know About Amazon PPC

Amazon Pay per Click (PPC) Campaigns: Everything you need to know!

Amazon pay per click campaigns are the most effective way to get more sales. Amazon PPC Campaign generates more sales and that helps you rank organically on Amazon. There are a few things you need to manage in your campaigns like ACoS, impressions, keywords, manual/automatic targeting, etc.

How PPC works?

When you advertise your private label product, Amazon shows your ad to potential buyers depending on keywords and your product category. Sellers bid on keywords and pay per click. The higher the bid more impressions your listing gets. More impressions lead to more sales.

If you are bidding lower than the suggested amount by Amazon then your ad may not show up on the front page of the search term. All ads have a sponsored sign below the title of the listing.

Automatic Campaign means when amazon chooses keywords from your listing and advertises those keywords. Amazon also shows your ad on your competitor’s listing as well.

Step: 1 – Click on the Advertising from home page tab.
Step: 2 – Click on Campaign Manager.
Step: 3 – Click on Create Campaign
Step: 4 – Choose campaign name, set a daily budget, select start and end date, select the automatic campaign and click on continue to next step.
Step: 5 – Select the product you want to advertise.
Step: 6 – Select default bid and click save and finish.

A manual Campaign means you provide Amazon with all keywords you want to advertise on. Make sure the keywords you are providing are relevant otherwise you will not get impressions on that keyword.

Step: 1 – Click on the Advertising from home page tab.
Step: 2 – Click on Campaign Manager.
Step: 3 – Click on Create Campaign
Step: 4 – Choose campaign name, set a daily budget, select start, and end date, select the manual campaign and click on continue to next step.
Step: 5 – Select the product you want to advertise.
Step: 6 – Select default bid and choose keywords you want to advertise on. You can choose keywords suggested by Amazon or provide your own keywords. Click save and finish.

I have mixed opinions on both campaigns and I recommend starting both campaigns and proceeding with the one you are getting better results.

Some important metrics you should know:

Advertising cost of sales (ACoS): The advertising cost of sales can be calculated by dividing total ad spent by sales generated. For example, you spend $1 on ads and generate $5 of sales, your ACoS would be 20%. The lower the ACoS percentage the better it is.

Impressions: The number of times your ad was displayed is called impressions and it may take up to 3 days to remove invalid clicks from your reports.

Clicks: The number of times your ad was clicked by any buyer is called clicks. For accurate data, it may take up to 3 days.

Attributed Sales: Sales generated by your campaign are called attribute sales. If your sales amount exceeds attributes sales that means your remaining sales are organic. It may take up to two days to collect sales data.

How to optimize your PPC campaign?

Running a PPC campaign is very simple and easy but optimizing your campaign and getting more sales with less ad amount is a little bit tricky. Here are the few things you need to do for better results.

1. Find your Keywords: Whether it is a manual or automatic campaign, you should research and find all keywords related to your product. Enter all those keywords in your manual campaign and in your listing as well.

2. Understanding Budget and bids: Amazon suggests how much you should bid in order to get more impressions. For the beginning stages, I recommend bidding on the higher end and after you have successfully ranked your product on page one then you can bid on the lower side. Set your budget to at least 20 times more than your high bid and watch that for the next few days. Adjust if you need to.

3. Cutting down non-performing keywords: After a week of your PPC campaign, you can check data on your spending and sales. Raise your bid on keywords that are making you more sales and remove keywords from campaigns that are not giving you sales if you are not sure what to do then watch your campaign performance.
4. Reduce bids after Ranking: Amazon suggests the range of bids you should enter. A high bid means more impressions, if you have ranked your product on the first page then you should reduce bids because you are already getting enough impressions. Reducing bids will still help you get more impressions and works like fuel on the gas because you have ranked your product and organic sales are also coming.
5. Optimize your Listing: For the best PPC results, clicks will convert into sales only if your listing is optimized. Let’s say you have a visitor on your listing through PPC, you already spent money on that visit and you cannot afford to let that visitor go without a sale. So optimizing your listing is absolutely crucial when starting PPC.
Optimize your listing now.

How much you should spend on PPC?

It really depends on what your goal is. Here are three goals you can achieve PPC
1. Brand awareness.
2. More sales with low cost.
3. Product ranking.
Brand awareness may need a lot of budgets because you want to ensure that people recognize your brand and they may buy your products in the future. In this campaign strategy, you will be running advertisements whether you are making sales or not. You should spend anywhere between $100-$500 per day.
If you are looking to get more sales out of your campaign then optimize your listing and watch all your keywords performance every week. Try to keep your ACoS below 20%. Follow PPC optimizing steps mentioned above and I am sure you will get good sales at a low cost. $20-$50 per day is enough for this campaign.
If your goal is to rank product on the top page then optimize your listing and optimize your listing and spend near about $80-$100 a day.

These numbers are estimated for a competitive niche. You may not spend this much on your campaigns.