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The complete guide to Amazon advertising (Amazon PPC)

by | Aug 17, 2022 | Web Marketing

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Amazon is currently a market leader in e-commerce worldwide. In fact, over 40% of Internet users go directly to the platform to search for products. Like Google and Facebook, this site offers advertising solutions to help users optimize the visibility of their products or brands. Among them, Amazon PPC (Pay-Per-Click) is the most widely used. Find out more about this Amazon version of Google Ads.

Amazon PPC: How does it work?

Amazon PPC lets you create self-service advertising campaigns that you can configure yourself via the Amazon Advertising portal. It’s then up to you to define the various targeting options, such as keywords and campaign duration. You must also indicate the amount of your bids and your budget.

Amazon PPC is also based on a keyword bidding system. In other words, the top spots in Amazon’s search results will be awarded to the brands or individuals offering the highest bids. As the name suggests, you’re only charged when a user clicks on your ad using this system.

Amazon PPC: what types of advertising are available?

You can choose between 3 types of advertising if you choose to use Amazon PPC:

  • Sponsored Products ;
  • Sponsored Brands;
  • Sponsored Display Ads.

Sponsored Products

The aim here is to boost the visibility of a product on Amazon through sponsorship. The article will then appear among the first results and will be marked “Sponsored” when a user enters the corresponding keywords. This advertising solution is particularly effective if you are a new Seller or Vendor on the platform.

Sponsored Brands

In this case, the brand is sponsored. As a result, it appears in a banner, above the results, when a user performs a related search on Amazon. You are then redirected to a Brand Store if you click on the logo. Finally, you can access the details page by clicking on the title of the article that caught your attention.

Sponsored Display Ads

This type of advertising gives you the opportunity to promote your product on Amazon and its partner sites. Ads are generated automatically on the basis of your main image and can appear at any time depending on their relevance. For example, your article may appear on the details page of a similar product from one of your competitors.

What are the advantages of advertising on Amazon?

In the past, only the most daring brands advertised on Amazon. However, things have changed since the platform became a true search engine in the e-commerce sector. Amazon PPC offers many advantages.

1- An appearance on the first page of search results

According to statistics, over 60% of Internet users who search on Amazon don’t go beyond the first page of results. So it’s essential that you appear there to increase your chances of selling. Competition is fierce, so sponsoring via Amazon PPC is one of the best ways to get on page 1, especially if you’re a new brand.

2- An appearance at the top of the search results list

Over 30% of users click on the first result that appears, and the top 3 products get over 60% of clicks. As a result, ranking at the top of Amazon’s first page of search results is even more advantageous for your business. This usually requires sponsorship and a willingness to pay high bids. What’s more, the more sales you make, the better you’ll be referenced on the platform.

3- A more attractive conversion rate

In general, Internet users who search on Amazon really intend to buy if they find an item that matches their needs. So advertising appears at just the right moment. The conversion rate is therefore more interesting if the product you offer is of good quality and meets the demands of most users.

4- A more attractive return on investment

The Pay-Per-Click system is more advantageous because you’re only billed when someone clicks on your ad, i.e. when your ad has had an impact. For example, if the cost per click is $2 and your product details page has received 5 visits, you only pay $10.

What’s more, there’s a greater chance that the web user will buy, since he’s done the research himself. That’s why the return on investment is more attractive than with TV advertising, where you have to pay a fixed amount periodically, whether viewers are interested in your ad or not.

Tips for successful Amazon PPC advertising

Here are a few tips to help you maximize the return on your investment in Amazon PPC advertising:

  • Come up with a compelling headline and write a detailed product sheet, thoroughly explaining the item’s features, usefulness and benefits. The aim is to convince the customer that the product you’re offering is the one that will meet their needs and expectations.
  • Add as many images as possible so the consumer can see what the product looks like.
  • Adjust your prices to match those of your competitors.

Conclusion

Amazon PPC is an interesting way to increase your visibility on Amazon and its partner sites, and thus optimize your sales. If you’re just starting out, we advise you to opt for the automatic bidding strategy. An algorithm then defines parameters such as keywords and bid amounts for you once you’ve specified your budget.

Among other things, this helps you find the most effective keywords. Later, when you’ve gained more experience, you can switch to the manual bidding strategy for total control over your campaign.

 

About the author

Cédric Pharand – Co-founder of Web Tonic and travel enthusiast

A seasoned traveler with more than 120 flights to his credit, Cédric created his first incorporated company at the age of 19, which he sold a few years later in a bid to work around the world (laptop lifestyle 😉 ). When he’s not talking about himself in the third person, you’ll find Cedric in a café a little too hipster, refreshing his Google Ads dashboard far too often.

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