05/31/2022

What’s Amazon PPC and How Does It Work?

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What exactly is Amazon PPC?

Amazon Ad is used to conduct Amazon PPC (pay-per-click) advertising. Amazon Ad is Amazon’s advertising platform. This allows advertisers to pay only for clicks and not for the time that users see the ads.

Amazon Advertising is a way for sellers to raise brand awareness, sales, Amazon Store visits, and other things.

Amazon advertising can be a great way to increase sales and brand awareness. 

You should be aware of a few things if you wish to promote your products on Amazon.

  • What is Amazon’s pay-per-click (PPC) advertising?
  • How much does Amazon PPC cost?
  • Which ads can you create on Amazon?
  • What are the steps to create an Amazon advertising campaign?
  • What is Amazon PPC? 

Good news! This blog post will be your Amazon PPC guide. This blog post will answer all of your questions.

What’s the price of PPC on Amazon?

Amazon advertising prices vary greatly. An average cost per click (CPC) is around $0.77.

This is an average price, so prices may vary on Amazon.

What’s Amazon PPC?

Before you start using Amazon PPC, it is important to understand the basics.

This is the way Amazon’s ad auction works with pay-per-click ads.

  1. Amazon was searched by a customer looking for “toilet paper holders”.
  2. Amazon compiles all ads that target the keyword “toilet paper holder”
  3. The Auction winner will be the ad that has received the highest bid 
  4. Amazon’s winning ad
  5. A shopper clicks on the winning advertisement and opens it.
  6. The highest-bidding advertiser wins.

Amazon’s second-price auction attracts many sellers. The second-price sale is when the winning bidder doesn’t pay their winning bid.

They pay the second highest bidder So if you bid $5 and your friend bids 4 and your cousin bids 3, and you bid $5, then you win the auction. You will get $4 because your bid was the highest.

Amazon PPC lets you choose from three types of ads

Sponsored Products

What is a sponsored product?

Amazon ads that promote one product are called sponsored products Advertisers who use keywords target shoppers with these ads.

Sellers might use keywords such as “toilet paper holder” and “metal toilet paper holder” to reach customers searching for toilet paper holders.

Sponsored products: Who can they serve?

Sponsored products can be used by these parties:

  • Professionals
  • Vendors
  • Book vendors
  • Authors for Kindle Direct Publishing (KDP).
  • Agencies

Sponsored products can only be used Adult products, closed products, and refurbished products cannot be used.

Where can Sponsored Products Be Found?

Amazon offers the following locations for Sponsored Products: 

  • Search results at the top
  • Search results should not be the only thing that you are looking for
  • Search results
  • Product pages

Sponsored products are available on both desktop and mobile devices.

What’s the cost for sponsored products?

Amazon recommends that sponsored products have a minimum budget per day of $1. Your bid and budget depend on many factors, such as the product you are selling and your competitors. You can increase your budget as you get better results.

Sponsored Brands

What is a sponsored brand?

Sponsored brands may promote up to three products in addition to an Amazon Store. Sponsored brands allow advertisers to target customers using keywords.

Sponsored brands are a great way to increase product sales and brand awareness among shoppers who are looking at their options.

Sponsored brands can be accessed by anyone.

Sponsored Brands can be used by these parties:

  • Professional sellers can use the Amazon Brand Registry Program.
  • Vendors
  • Book vendors
  • Agencies

Sponsored brand products must not be the following:

  • Adult
  • Use
  • Refurbished

Sponsored brands cannot also promote products within closed categories.

Where can sponsored brands be found?

Amazon allows sponsors to appear in these spots:

  • Search results at the top
  • Search results should not be the only thing that you are looking for
  • Search results

These ads can be viewed on desktop and mobile devices.

What’s the cost for sponsored brands?

Sponsored brands must have a minimum daily budget of $1.

Sponsored Display

What’s a sponsored display?

Sponsored Display is a way for advertisers to promote one product. This is done based on your shopping habits such as the products you have viewed and purchased.

The sponsored display doesn’t use keywords. It uses machine learning and automated sales to promote your product.

Sponsored display: Who can it be used for?

The sponsored display is available for the following:

  • Amazon Brand Registry- Professional sellers can enroll
  • Vendors
  • Agencies

Advertisers cannot promote products that Amazon prohibits from Sponsored Display Ads.

  • Products for Adults
  • Alcohol
  • Prescription drugs
  • Weapons like pepper spray, fireworks, and airsoft guns

Check here to see if your products are on the complete list of prohibited and restricted products.

Where can I find Sponsored Display?

Sponsored Display Advertisements can be found at these locations:

  • Websites and Apps from Third Parties
  • Detail pages, pages about products

Targeting will affect where your Sponsored Advertising Display ads appear. People who are interested in products that match your targeted product will see your ads on Amazon. 

What’s the cost of Sponsored Display?

Sponsored display ads can be spent however little you wish. This will allow you to evaluate the effectiveness of your ads and determine how much money you should spend on your campaign.

How can you get started with your Amazon PPC Campaign

Are you confident in launching your first campaign now you are familiar with Amazon PPC?

1. Promote your products

First, you must decide which products you want to promote. Consider how your products could work together to drive clicks and sales when you launch a Sponsored Products Ad.

These are some considerations to consider when selecting your products:

  • Product Sales, Ranking, and Popularity 

You might use a sponsored brand ad to increase brand awareness. A sponsored product can also be used by your company to promote a lower-ranking product.

2. Find your keywords

Once you’ve selected your products, enter keywords if creating an automatic campaign. Amazon compiles keywords for you based on the product you want to target with its automatic campaigns.

Manual campaigns, however, depend on you providing keywords. Amazon suggests that you first start with automated campaigns and then move to manual campaigns.

These tools provide information about the monthly search volume and the average cost per click as well as competition for searches at Amazon.

Use keywords that are related to your product and search intent when you search for keywords 

3. Optimize product listings

No matter whether you use automatic or manual campaigns, optimize your product listings for search engine optimization (SEO). This will help you rank higher on Amazon’s organic search results. This step is crucial.

Keywords you’ve compiled in step 1 can be incorporated into the product’s design.

  • Title
  • Description
  • Features

Review your product images, copy, components, and images should be reviewed. These images should be taken of your product in action.

Once you have optimized your product listing, you can begin your Amazon PPC campaign.

4. Your campaign is ready

These steps will get you started on your campaign.

  • Log in to your Amazon account
  • Click the “Advertising” tab
  • Choose “Create campaign”

Next, choose from three ads:

  • Sponsored Products and Brands, or Display

Let’s focus on creating a sponsored product campaign for this walkthrough.

Once you’ve selected an ad type, Amazon will ask you to enter the following information.

  • Your campaign name
  • The date at which began.
  • Optional: Your end date
  • Your daily campaign budget

A campaign title should follow a specific format to get the best results. It will make your campaigns more efficient and help you to keep them organized.

Amazon allows you flexibility when it comes to your daily Budget. Amazon allows you to be flexible when it comes down to your daily Budget.

5. Select your target

Once you’ve completed the initial campaign setup Amazon will let you choose your targeting settings.

There are two options for manual or automatic targeting

  • Amazon targets your ads automatically with product information
  • Amazon uses manual targeting to deliver your ads using keywords and bids.

Amazon recommends automatic targeting whenever you launch a new campaign. This will provide you with information about keywords that are performing well. The manual campaign can be launched by Amazon.

  • Any ad group can be added, including one for Product A and one for Product B.
  • Select the products that you would like to promote
  • All products can have a default price.

Amazon will review and launch your campaign if it has been selected for automatic targeting. If you choose manual targeting,

6. Upload your keywords

Amazon PPC manual target allows you to use up to 1000 keywords per ad group — you have two options. Amazon can suggest keywords you could add manually.

You can also choose from these keyword-targeting options

  • Broad
  • Phrase
  • Exact
  • Negative phrase
  • Negative exact match

This table contains more information, examples, and a list of keyword match types.

MATCH TYPEDEFINITIONEXAMPLE KEYWORD    AD WILL SHOW     AD DOES NOT SHOW
BroadMatches to the search: The whole keyword in any order. The plural form of the keyword. This includes variants of keywords.Toilet seatToilet seat White Toilet Seat Black Toilet heated seatSeat cushion Toilet plunger
PhraseSearch: Contained the exact phrase or the sequence keywords’ words A toilet seatWhite toilet chair Toilet seat BlackToilet seat cushion Cushion Seat cushion for the toilet Seat cushion for the plunger Seat toilet white Seat to black
ExactMatches if the search is precise. The exact sequence of words matching close variants of the keywordToilet seatToilet seatToilet seat cushion White Toilet plunger cushion Cushion Toilet black
Negative phraseCancel if you don’t want to search for the whole keyword.     Cover for the Toilet SeatCover for the Toilet SeatPink toilet seat cover
Negative exact matchCancel if your search: Does not contain the exact phraseCover for the Toilet SeatPink toilet seat coverToilet seat cover Covers

By understanding the different keyword match types, you can create cost-effective ads. This will help you to identify the negative keywords you wish to target.

7. Your keyword bids

Now you can update your default bidding. In this example, you might raise the default price for one keyword but then increase it for another.

No matter what your price range is, make sure you use data to calculate it. 

Keyword bids can be modified at any time just like your daily budget

You should regularly monitor your ads’ performance. This proactive approach with Amazon PPC will help you spot potential opportunities to lower your bids or raise them to increase your campaign’s return on investment.

8. Submit your ads

After you’ve entered your keyword bids, you can submit your Amazon ads

Amazon generally takes a few hours to review your ads and campaigns before it launches them. Then you can start evaluating their performance.

Amazon will inform you if there are any issues with your ads. Log in each day to see the performance of your campaign.

This aggressive approach allows you to make quick changes to your strategy, such as updating keyword targeting, bidding, and daily budget. As your campaign ages, you can make adjustments.

Online advertising: Get professional assistance

Amazon PPC gives your business an efficient method to sell products. Kobe Digital, an advertising agency for Amazon-like Kobe Digital, can help. 

We have been trusted by vendors and sellers who want to promote their products through Amazon.

Contact us to find out more about our PPC services for Amazon.

About the author

Kobe Digital is a unified team of performance marketing, design, and video production experts. Our mastery of these disciplines is what makes us effective. Our ability to integrate them seamlessly is what makes us unique.