Amazon PPC - Optimize campaigns

Amazon PPC (Pay-per-click)

In addition to the display in the classic search results, a product can also be found via Amazon PPC campaigns (Pay Per Click). The first question that arises is how does a typical buyer proceed? First, a customer searches for a product. In the search bar, the customer types in the keyword that probably indicates the desired result: The article of his desire. This customer will only notice the listings on the first positions, which are often already Amazon Ads (advertisements). Since an Amazon seller sometimes has to keep up with strong competition, there is the possibility to “buy” the best positions in a targeted and sales-increasing way: The most common method is called Amazon Sponsored Products through Amazon PPC campaigns.

What are the benefits of Amazon PPC?

Compact explanation of PPC advantages

During the Amazon SEO Optimization due to restrictions in the length of the description in Amazon Listings, the alignment is limited to keywords, this is basically unlimited with Amazon’s PPC ads. The “payment per click” variant allows sellers to bid on any keyword in a targeted manner.
PPC marketing can be very worthwhile, even if this initially results in costs for the reach. So what are the advantages of Amazon PPC advertising?

  • The visibility of the products to potential customers is greatly increased
  • An individual selection of keywords per product is possible, depending on the ad type
  • The products are more frequently displayed at the key positions of the search result pages of potential buyers
  • The products are broadcast specifically on the right searches, the customer expectations are fulfilled
  • Turnover and sales figures are immensely increased by clever campaign and ad design, well thought-out control of the budgets used and appropriate keyword selection using PPC

How does a customer see the Sponsored Product advertisement?

A customer searches for a specific word, the so-called keyword.
The Amazon algorithm searches for all sellers who bid on the keyword (RTB = Real Time Bidding).
The seller who bids the most (approves budget) wins this real-time auction
The corresponding product is selected and a corresponding advertisement is created.
The Sponsored Product is broadcast to the customer when he searches for the assigned keyword.
The advertisement looks like a normal product listing, is only identified by an inconspicuous “Sponsored” designation.
The position of the broadcast depends on the bid height, whoever bids the most gets the best position.

How does setting up Amazon PPC advertising work?

Basically, there are four important aspects to consider in order to advertise the products at the Amazon AMS (Amazon Marketing Service) and thus make them visible to the user

PPC campaigns and their structuring

Each campaign pursues its own specific goal and should be set up accordingly. There are already big differences, depending on whether you want to optimize for sales increase, increase brand awareness (= branding), sales (= clearing) or cross & upselling. Each individual campaign pursues only a single, overriding goal. Choose meaningful, unambiguous and meaningful names that can be assigned to the product.

Setting up ad groups

A good strategy is to group together products in the respective ad groups that can be searched for using the same keywords. These can be, for example, products from the same category or products that serve the same purpose for the customer. Alternatively, it is possible to use different ad groups for keywords with different degrees of generality.

Optimierung der Kampagnen & Monitoring

This part is directly linked to the optimization of the campaigns. Simply setting up campaigns is not enough to efficiently sell products through Amazon PPC campaigns. Regular adjustment of keywords, products and sales evaluation is essential. Without proper monitoring and reporting, unnecessary money is quickly burned.

Create campaigns either automatically or manually

In automatic campaigns, Amazon (and not the seller) decides independently on the selection of keywords, i.e. the target of Amazon Product Ads, by independently selecting the search terms and linking them to the product. The keywords usually originate from the product description, which is evaluated by the Amazon algorithm.
In the manual campaign, on the other hand, the sellers themselves determine the selection by defining the appropriate keywords. Manual campaigns are much more advantageous when it comes to the targeted broadcast of Amazon ads, as the seller can determine the appropriate strategy depending on his goals. Automatic campaigns can be helpful in generating keywords. However, manual campaigns are much cheaper and more effective if they are well thought out.

Hinzufügen von Produkten und Keywords in den Anzeigengruppen

Now comes one of the most intensive and elaborate parts: the extensive and targeted keyword research for the PPC campaign. A targeted selection of keywords is linked to the product to ensure successful ad placement. All relevant keywords must be selected and listed. A tip: The automatic campaign searches out the keywords for you. Then transfer the most suitable keywords into your manual campaign. Then check your listings to make sure that all ads are placed for the relevant search queries. Make sure that unwanted search queries are explicitly excluded, otherwise you will incur unwanted costs.

Budgeting and Strategy

Define in advance how much budget you can and want to invest to achieve the goal. High bids increase the chance of achieving high positions on the search results page, but reduce the revenue through higher costs. Lower bids, on the other hand, run the risk that the corresponding advertisements will be played out in such bad places that users will no longer perceive them. Find out when the desired balance between expenditure and turnover has been achieved. Here it is necessary to regularly check the success of the campaigns and adjust the bid amount of the Amazon PPC campaigns accordingly.

As Amazon Marketing Agency we are specialized in Amazon PPC Marketing and would like to support you with your projects. We rely on our broad knowledge and, among other things, self-developed tools that help with reporting and monitoring. In this way, together we can ensure that you use your budget sensibly and increase the conversion rate.

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