If you have been selling on Amazon, you must have heard about Amazon pay-per-click (PPC) advertising. If you are planning to sell on Amazon and have done some research, there is no way you haven’t heard of it. Everyone is talking about Amazon PPC and how it can help your Amazon FBA business.
What is Amazon PPC, and how does Amazon PPC work? These are the pivotal questions that many new sellers have. If you’re new to Amazon advertising, it is also pivotal to learn the basics. When you are paying to play, you need to optimize every cent spent.
This complete Amazon PPC guide will answer those questions and explain the basics. It’ll help you create successful Amazon pay-per-click campaigns that will help you take your business to the next level. To make the process easy and quick, you can use SellerApp’s advanced advertising suite. It will give you automated, reliable insights from your sponsored ads – all in a single click!
So, let’s get started.
But before that, here’s a quick walkthrough of what is covered in this post:
- What is Amazon PPC?
- How does the Amazon PPC auction work?
- Overview of Amazon ad revenue
- How does Amazon paid search work?
- Amazon PPC ad types
- Requirements to run a PPC ad
- Factors affecting the PPC placements
- Basic terms used in PPC
- Top 5 reasons to try Amazon PPC
- Amazon keyword match types
- Amazon PPC ad campaign strategy
- Final thoughts
What is Amazon PPC? How does the Auction work?
Amazon PPC also referred to as sponsored ads, is a well-known advertising platform to help sellers amplify their product sales online. With the pay-per-click (PPC) model, the advertiser only pays Amazon when you click on the ad. If you are running Amazon PPC campaigns, you will not have to pay for impressions.
When a PPC campaign is managed and optimized well, it can significantly boost the product’s visibility and sales. This will also boost the product’s organic ranking, thereby ensuring long-term success.
How does the Amazon PPC auction work?
The Amazon PPC auction process is simple. Each advertiser submits a default bid and competes against each other for ad spots. However, the bid set by the highest bidder is not necessarily the cost-per-click.
Suppose you have bid $2.00 for a keyword. The second-highest bidder has a default bid of $1.50. As the highest bidder, you will win the ad spot, but you won’t have to pay $2.00. You will only have to pay $0.01 more than the other bidder. This means you end up paying $1.51 instead of $2.00.
This means that the cost-per-click (CPC) for a keyword or targeted ASIN will depend on the highest bid, but it isn’t always the highest bid.
