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Beginner’s Guide to Amazon PPC

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Beginner’s Guide to Amazon PPC

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One of the most influential marketing channels you can find on Amazon is Amazon Pay-Per-Click (PPC) advertising. This channel allows an individual to make their products visible by appearing at strategic positions after a search query on Amazon.

This strategy is being used by a lot of sellers and vendors these days which has made it a very competitive market. Therefore, a good understanding of what this marketing channel entails will help you enhance your advertising strategy. Hence, we have written this beginner’s guide to walk you through Amazon PPC fundamentals.

Pay-Per-Click: What is it?

Pay-Per-Click is a promotion model whereby sellers and vendors who advertise their products pay sites like Amazon a particular fee whenever their ads are clicked on.

Currently, we have three types of this ad which are:

Sponsored Products

This makes use of keywords as well as ASIN-targeted advertisements. It allows one to promote a particular product within the search results on Amazon and the detail pages of a product. The most frequently used PPC are these ads.

Sponsored Brands

Unlike the first type, this ad is used to build a brand. An advertiser can promote a customized headline that has a brand logo as well as 3 products. This headline will appear at the top of a search result page. Sometimes they can be located elsewhere.

This type of ad will send a buyer to the vendor or seller’s Amazon store pages or landing page. Recently, you can also create video ads that can link potential buyers to the detail pages of a product.

Sponsored Display

Once a person clicks on this ad, they are sent to the detail pages of a product. Potential buyers who have visited or are currently visiting a particular product page are offered information on Amazon as well as external websites via these ads.

Where do the Ads Appear?

Now that we know the types of PPC ads we have, the next thing we need to answer is; “where do they appear?” Knowing this will allow you to choose the type that will suit your marketing strategy and advertising goals.

Sponsored Products

They are usually located near the top of a search result page or a product detail page. When it is seen on the detail page of a product, it is usually incorporated into an advertisement carousel.

Sponsored Brands

They are found in different placements on the search result page but are more prominent at the top of the page just before the search results. Apart from this, they can also be seen on a product detail page.

Sponsored Display

You will find this type of ad on the detail pages of a product just under the “Add to Cart” CTA button. It could be either below the search results or next to it, or on other websites or apps based on their targeting method. Visit https://en.ryte.com/wiki/Targeting to read more on targeting and its methods.

Who Uses the Ads?

Sellers and vendors are those that can use these ads, although, the sellers must enroll in the Amazon Brand Registry.

Sellers are also known as “third-party sellers” because their products are sold directly to buyers on Amazon. Vendors, on the other hand, are also known as “first-party sellers” because their products are sold in bulk to Amazon, who then sells to the buyers.

The general criteria for eligibility to use these ads are you must have a good and active account, shipment to the region/country of your advertising target must be possible, and there must be a valid method of payment.

If you have a Kindle Direct Publishing account, you cannot use sponsored display ads but you have access to the other two.

Adult, refurbished, or used products cannot be put on these ads.

Are the Ads Worth It?

Given that one has to pay Amazon for PPC ads, one cannot help but wonder if it is worth it. We can say confidently that it is. Provided that your PPC advertising campaign is well organized, the potential to increase sales, create brand awareness, and enhance organic rankings is very much a possibility.

Benefits of Using PPC

1. It is more effective when compared to other marketing and advertising channel. The reason is that it is used on a platform where actual shopping is made.

2. It can be seen over multiple device platforms thereby leading to high visibility. The Amazon store can be accessed via desktop computers, mobile browsers, and the Amazon app. Hence, whichever platform one uses, these ads will maintain their placement based on the type chosen.

3. You are given options to select from. The advertisement type you decide to go for can be chosen based on your general goals. They also allow you to choose your budget. Besides, detailed reports of how well the advertisements are performing can be easily seen.

4. You can choose the most suitable targeting methods that meet your marketing goals. You can go for a keyword, category, brand, product, or external website targeting method. All this is to make sure that you reach your target audience.

Amazon PPC: What does it cost?

The advertisements displayed do not cost a seller or vendor anything. You are only charged for clicks and not impressions or views. This allows you to get your money’s worth and even more.

Interestingly, you get to determine how much you want to pay per click through what is called PPC auction.

What is PPC Auction?

This is the process through which the cost for the ads is decided. In this auction, every potential advertiser submits their default bid which is the maximum amount they want to pay for each click.

The advertiser with the highest bid gets the highest advertisement rank. This also means they pay the most for their click. However, they don’t pay exactly what they bid instead they pay just $0.01 more of the second-highest bid.

You can also rest assured that there are no hidden charges with Amazon Pay-Per-Click ads.

Conclusion

Many are taking advantage of Amazon PPC and growing their sales and brand. You too can do the same and armed with this beginner’s guide, you’re definitely off to a good start.

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