What is Amazon PPC: The Ultimate Guide & Strategy for 2024!

The e-commerce landscape is rapidly evolving. However, even after several others have come, Amazon remains the unmatchable champion in this field.

With millions of active purchasers, Amazon is one of the most preferred platforms for online shopping worldwide. This makes Amazon PPC the best chance for brands to capitalise on Amazon and enhance visibility and sales. But what is Amazon PPC?

If you do not know what Amazon PPC is and what other details about it are, continue reading below. This post is a comprehensive guide introducing you to everything you must know about Amazon Pay-Per-Click.

What is Amazon PPC?

Amazon PPC refers to an advertising model that assists sellers and brands to enhance the sales of their products online. An Amazon PPC campaign allows the sellers to create ads for their products and run them on Amazon. Every time a purchaser or potential customer clicks on these ads, Amazon charges a small fee to the seller.

What are the 3 types of Amazon PPC ads?

There are three types of Amazon PPC campaigns.

Sponsored Products Ads

One of the first types of Amazon PPC ads is the sponsored products ads. These ads are displayed in Amazon search results and product listings. They showcase the products with their little image, price, Prime eligibility and title.

Sponsored Brands Ads

Another type of Amazon PPC ads is the Sponsored Brands Ads. These ads aim to enhance brand awareness for your business. They feature your brand’s logo, multiple product listings and customer headlines. Sponsored Brands Ads drive traffic to your product catalogue on Amazon.

Sponsored Display Ads

The third type is Sponsored Display Ads. These ads appear on and off on Amazon. They target customers depending on their search history and interests. These ads are quite helpful in retargeting past customers. They also help promote new products and enhance brand awareness.

How does Amazon PPC Work?

Below is a step-by-step explanation of how an Amazon PPC campaign works.

• The process initiates with a customer searching for a particular product. For example, they search for “school bags”.
• Now, Amazon gathers all the relevant search results along with ads containing the keyword “school bags”.
• Sellers bid for each keyword. The one with the highest bid wins the auction.
• Amazon displays the ads of the winning seller at the top of the search results page.
• If the potential buyer clicks on the ad, the seller is charged a small fee by Amazon.

Amazon PPC Strategies for 2024

Amazon Pay-Per-Click is undoubtedly advantageous. However, you must use the best strategies to enjoy the advantages of these ad campaigns. The best strategies for 2024 are listed below.

Keyword Research

The first Amazon PPC strategy is conducting thorough keyword research. You must put in your efforts to identify high-volume and relevant keywords for your products or brand. You can use Amazon's keyword research tools or reliable third-party tools for this. These tools will help you get data on keyword competition, volume and conversion rates.

Campaign Structure

The next step is to organise your Amazon PPC ads effectively by product category. You must also consider the brand and target audience for the campaign structure. A well-structured campaign will allow you to enhance ad optimisation and targeting.

Match Types

Now, understand and use the appropriate match types for your Amazon PPC campaign to control the specificity of your keyword targeting. Match types include broad, phrase and exact. Broad matches provide a wide net. On the other hand, an exact match targets the specific search terms.

Negative Keywords

Your strategy must also include excluding irrelevant keywords from your previous ads. This will help you prevent your ads from showing in irrelevant searches. Ads appearing in irrelevant searches result in unnecessary expenditure; however, if you remove the irrelevant keywords, such expenditure can be prevented.

Bidding Strategies

Bidding for keywords is a crucial step in running Amazon PPC campaigns. So, choose a bidding strategy wisely. You must choose the one that resonates with your advertising goals. You can opt for either manual or automatic bidding algorithms. Manual bidding allows you better control over bids. On the other hand, automatic bidding algorithms optimise bids depending on their performance.

Ad Copy Optimisation

The content or copy of your ad plays an important role in attracting potential customers. Therefore, make sure to use a compelling ad copy that perfectly explains your product’s unique selling points and attracts clicks. Your ad copy must include relevant keywords, persuasive language and strong calls to action.

Landing Page Optimisation

Your product listing pages must be optimised for conversions. Use high-quality and engaging content like images, clear pricing and detailed descriptions.

Ad Performance Tracking

Your strategy must also include regularly monitoring your ad’s performance metrics. You must keep track of the clicks, impressions, cost-per-click and conversion rates. This data will help you optimise your campaigns for better ROI.

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To Sum Up

An Amazon PPC campaign can significantly help brands to advertise their products and increase their sales. However, opting for the right strategies is crucial for the success of these campaigns. So, use all the strategies listed in this post to create an effective campaign. If you find it difficult to handle this on your own, do not worry, as the DO Communication team will get your back. In addition to the strategies listed in this blog, we use several other methods to ensure the effectiveness of the campaigns. We also perform competitor analysis for you to enhance your campaigns.