Amazon is everywhere. Millions of people use Amazon daily, buying products and services that are delivered directly to their homes. In fact, Amazon single-handedly changed the way that the world does business.
Amazon does more than complete sales transactions, of course. It also helps you sell your products through its extensive advertising options. In fact, you can sign up to be part of their PPC ad program quickly and begin using it almost immediately with little financial investment. Amazon’s take on advertising differs from many of its competitors, and that difference is apparent in its PPC approach. Many users swear by Amazon ads and can share multiple success stories about their sales experience. But before you embrace the Amazon ads experience, you need to first learn how their advertising process works.
How Do You Advertise on Amazon?
Amazon is eager to attract advertisers and offers a step-by-step process for do-it-yourselfers. You can register online to create an account and then set up your advertising agreement. You can even create your own content in a matter of minutes, including display ads, video ads and audio ads. Amazon also offers a managed service option to create and launch more sophisticated, customized campaigns.
A better approach may be to hire a digital marketing firm with expertise in Amazon PPC. With the right company, you’ll get an effective ad campaign specifically tailored to Amazon’s requirements. Since Amazon has millions of Prime subscribers and other users shopping for millions of products, you need your PPC ads to stand out from competitors’ efforts. Marketing professionals understand how to get the most out of Amazon’s ad platform.
What is Amazon PPC?
A pay-per-click ad is an affordable way for entrepreneurs to advertise their products. During the process, you create an online ad and place it on various forums, such as Amazon. You only pay the platform for ad impressions or ad clicks, which will then guide the consumer to your website or product description.
How Does it Compare to Other PPC Platforms like Google Ads?
Amazon’s PPC works differently than some of its competitors. Other companies like Google charge you for clicks and for impressions, the number of people estimated to see your ad when it runs on a search engine or other site. In contrast, Amazon lets you decide how much your budget will be and then charges you for each actual click on the ad. When your allotted budget runs out, the ad stops running unless you decide to purchase more ads. Amazon does not charge you for impressions, which significantly reduces your costs.
Types of Available Amazon PPC Ads
When plotting your Amazon ad strategy, you need to consider which type of sponsored PPC ad will best deliver your message. Amazon offers three sponsored ad options:
Amazon Sponsored Display Ads
These ads are available to Vendor Express and Vendor Central sellers. These sellers are higher up on the food chain because of their volume of sales and other factors. They are shown to buyers who have demonstrated an interest in your products. When using these ads, you get to choose which products to target so you can increase your sales.
Sponsored Products Advertising
A set of keywords that are created manually or automatically trigger this type of advertising. If you choose manual keywords, you develop the keyword list, choose match types and then set your ad bids.
Automatic targeting uses an Amazon algorithm to create the best keywords for your product. This process means you no longer control bid price but you can set a daily spending limit. You also get a set of keywords specifically designed to give you the best results.
Headline Search Ads (Sponsored Brands)
These ads are triggered by keywords, and are placed at the top of a results page. Amazon designs these ads for use by third-party sellers and vendors. You can pick three products to display or choose to link the ad to your product page. These ads are a clear and effective way to drive buyer traffic.
You will tailor your ad choices depending on your success rate. And as your product presence grows, you may choose to use multiple sponsored ad types.
How to Set Up a Campaign Through Amazon Advertising
You have multiple choices for setting up an Amazon Advertising campaign. The system allows you to create your own ads through their online forum. It’s a step-by-step process that takes you through your keyword choices, ad type and bid price. You can also use the Amazon Advertising team to help you create and launch a custom campaign.
Many companies prefer to use outside digital marketing experts to create their Amazon ad campaigns. These experts understand how to maximize the benefits that Amazon PPC offers and free you from the sometimes difficult learning curve of creating your own campaign. Your choice largely depends on your ad budget, time constraints and sales goals.
Do You Have to Sell on Amazon to Advertise on it?
While most of the ads on Amazon are for products sold on its platform, some are not. You can create display ads or video ads and place them on Amazon or on a third-party site. Some products, such as insurance policies or automobiles, are not sold on Amazon, but these companies get fantastic exposure by using the platform. Millions of qualified buyers visit the site daily, making it a popular site for all types of advertisers.
Where Do These Ads Appear on Amazon?
Your ad will be placed depending on its type and your ad budget. Display ads run on Amazon websites, wireless devices and apps as well as third-party sites and apps. If you place an Amazon Streaming TV ad, you will see it on publisher channels, networks, IMDb and connected televisions. You will hear your audio ad on Amazon Music’s free tier, on Alexa-enabled devices and on desktops and mobile devices. With Amazon PPC, wide product exposure is guaranteed.
What is a Good ACOS for Amazon PPC?
ACOS stands for Advertising Cost of Sales. You determine your ACOS by dividing the amount you spend on Amazon Ad clicks by your sale amounts. The formula for ACOS is ad money spent/product sales x 100. So if you spend $100 and sell $500, your ACOS is 20%, a desirable result.
Obviously, you want to keep your ACOS low. You can achieve this through effective ads, ad placement and product development. The ACOS number will fluctuate during the sales year for most companies. Sellers consider an ACOS around 15%-25% to be desirable, while a 35% ACOS may only be a break-even point.
How Do I Calculate My Target ACOS?
ACOS is an important metric but not the only indicator of successful PPC advertising. You should determine your target ACOS by considering several factors. For instance, is your ad campaign a brand new one or have you been running it for some time? Is your product one of your mainstays or is it something new for your company? Are you in a prime season or a slow season for sales?
When you have a new campaign, you should see excellent results that a low ACOS reflects. As time goes by, that number may be less favorable, although you are still reaping profits. Even when you reach the break-even point, continuing your advertising campaign may be a solid choice. Remember, you are brand building as well as seeking sales. You should consider your long-term goals as well as short-term profits.
The holiday season is when you may make most of your sales, so your target ACOS should be on the low side. But you will still want to run advertisements when sales are slower. In short, your target ACOS should reflect your current circumstances. You may shoot for a 15 – 20% ACOS at times but accept a 35 – 45% ACOS at others. You may also judge your success by your annual ACOS. Your team of Amazon PPC experts can help you determine your goals and ways to achieve them.
Hire a Team of Amazon PPC Experts
Amazon will walk you through the PPC process, but you will be more successful if you hire a team of experts to shape your ad strategy. There are many moving parts when you construct an ad campaign, particularly when you are using third-party vendors as well as Amazon as a platform. Unless you are an expert in Amazon advertising, you will miss out on some valuable opportunities to increase sales.
The Symphonic Digital Difference
The Symphonic Digital team is made up of digital advertising experts who help companies reach their sales potential by offering as much or as little support as you want. We specialize in a number of areas including Amazon Advertising, a lucrative forum for most businesses.
While Amazon’s system is meant to be user-friendly, it offers some challenges, especially when it comes to automatic bidding. At Symphonic Digital, we use a 3rd party bid-management system that optimizes your ad campaign and your sales profits. By taking over this time-consuming burden, we allow you to pursue other vital management tasks.
Because we take the time to learn about your products and goals, we can customize your ad campaign to be more effective. And by using the Amazon Advertising Platform system, we can implement display advertising techniques that reach your target consumer. In addition, we are masters at bid management so you get the best possible performance from your keywords. For more information, call 1 866-669-3969 or fill out our free online PPC audit form.
Symphonic Digital partners work with you to get the best possible sales numbers through Amazon PPC. Amazon is not the only game in town, but it is incredibly powerful. You need to use it to your company’s advantage.