How to set Amazon Pay Per Click (PPC)
Google Ads might be something you are already using, so why not use Amazon Ads instead? Both platforms are based on the same model, and PPC is essential for ecommerce businesses. Amazon PPC can be a cost-effective, easy way to get your products noticed by the right people at just the right time. We've compiled everything you need about getting started with Amazon Ads and how to run PPC campaigns.
What's Amazon PPC? Amazon pay-per-click (PPC), is an advertising method on Amazon's site. Third-party brands and companies can open Amazon Advertising accounts to place ads for their products in search results that match relevant keywords. This is a great way to get your products in front of potential customers who are in the market to purchase and thus highly likely to convert. You can also measure the effectiveness of your ads and use it to guide future campaigns.
Amazon PPC measures success using a few key metrics. If you are a good PPC expert, you will be familiar with most of these metrics. These are the top metrics to help you understand how your ads are performing.
Conversion rate CVR is the conversion rate. This refers to the number of people who clicked on your ad, and then purchased a product. Amazon refers to CVR as Order Session Percentage. It is calculated by multiplying the number order by the number of people who have visited your listing (including return visits). These calculations will not be your responsibility. The Amazon Ads platform will take care of all the work. This is an interesting metric that you should keep an eye on. It will give you a lot of information about the effectiveness of your ads. It could indicate that the product page isn’t as they expected or isn’t quite good. Amazon also considers your CRV in determining your ad ranking. Your CRV will determine how likely you are to have your ads served to potential customers.
Impressions The impression metric tells you how often your ad was seen. Low impression rates could indicate that you are not spending enough or being outbid by brands. If you are a start-up, or if your market is saturated, this will likely be true. Low impression rates could indicate that you are bidding on the wrong keywords. If this happens, you should take the time to look at your keywords and determine if they are too specific.
Average cost of sales (ACoS). The ACoS is a metric that many consider the most important in Amazon PPC. This metric tells you how much a sale costs. One of those weird metrics that works in reverse is the ACoS. The better your ACoS metric is, the more you will get. This formula can be done on paper or pen, but it is calculated by subtracting your total ad spend from attributed sales.
Cost Per Click (CPC). PPC's cost-effectiveness is one of its greatest assets. Campaigns can be started without spending anything. Only when an ad is clicked on, will you have to pay money. Cost-Per-Click is therefore a measure that shows you how much each click costs you. If you sell a product at 99p, then you cannot afford a high CPC. If you don't, you will be spending too much money on advertising to make any sales. When creating your ad campaigns be realistic about how much you expect to earn from each sale. Then, work backwards to determine your ad budget.
Amazon PPC structure Amazon Ads has a PPC structure that relies on auctions. These aren't real auctions so you don't need to buy a bidding pad. These auctions are completely online and lightning fast. When someone searches for a keyword, an auction is held. Amazon uses a second-price auction, where each advertiser's maximum bid will be taken into account by clever algorithms. The #1 ad spot is awarded to the highest bidder. They will also pay the highest CPC. They won't always get what they bid for. The highest bidder will pay $0.01 less than the second-highest. This handy visualization will help you understand this better.
How do I set up PPC in Amazon This might sound confusing. Let's get back to basics. This is a step-by-step guide to setting up PPC on Amazon. 1. Calculate default bid using this formula: target (ACoS price x product price) x (organic CCR) = default bidding. You can bid aggressively by adding 40-50% to this. You will pay $0.01 less than the second-highest bidding bid so it is unlikely that you will ever reach your maximum default bid. 2. Calculate your daily advertising budget using this formula : Amazon monthly ad Budget / # days in the month / # Amazon ad campaign = daily ad spend 3. Optimize your Amazon product pages. To optimize your pages, titles and descriptions, conduct thorough keyword research. 4. The Campaign Manager drop-down on your Amazon Seller Central dashboard allows you to create a campaign. 5. The next step is to enter a name, a daily budget, time frame and target type. 6. You can choose whether you want your campaign automated or manual. Automated saves time and allows you to keep everything running smoothly in the background. Manual campaign management will allow you to have complete control, but it can be very time-consuming.
Amazon PPC management software Amazon Ads has a great dashboard but it doesn't offer as much information as other platforms. You can dig deeper into data with third-party Amazon PPC tools.
What is the cost of PPC on Amazon? Amazon Ads is free. Amazon Ads can be used to promote sponsored products, brands, and ads that display sponsored content. You don't have to pay anything if someone clicks on your advertisement.
Your budget will determine the amount you pay. You can set your daily budget, and the automation process will stop once it's reached. This means that you have complete control over how much you spend.