Optimize Amazon PPC campaigns

What must be considered in a PPC campaign? The fact that paid advertising campaigns are a must in the Amazon sector is not a novelty. The difficulty now lies in using these campaigns goal-oriented and effective.

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Amazon PPC (Pay-per-click)

In addition to positioning in 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. He enters the search word in the search bar, which probably shows his desired result: The article of his desire. This customer will only perceive the listings on the first positions, which are often already filled in by sponsored ads. 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: With the most common method Amazon Sponsored Products through Amazon PPC campaigns, this is possible.

What do the different terms mean?

Amazon advertising

The umbrella term for marketing/advertising via the Amazon Network (formerly Amazon Media Group)

Sponsored Ads

Advertising format that a retailer can book to promote products in search results (former AMS [Amazon Marketing Services])

Sponsored Brands

"Banner ad" above the search results in which 3 products, a headline and links are included (formerly Headline Search Ads)

Amazon Demand Side Platform

Network for advertisements of products outside Amazon (formerly AAP [Amazon Advertising Platform])

Compact explanation of PPC advantages

While Amazon SEO optimization limits keyword targeting in Amazon listings due to restrictions in the length of the description, Amazon PPC ads allow unlimited targeting. The "payment per click" variant allows sellers to bid specifically on any keywords. PPC marketing can be very rewarding, even if it initially involves coverage costs. 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 displayed more frequently at the key positions of the search result pages of potential buyers.
  • The products are broadcast specifically to the right searches, the customer expectations are fulfilled.
  • Sales and turnover figures are increased immensely through clever campaign and ad design, well thought-out control of the budgets used and appropriate keyword selection through PPC.

How does a customer see the Sponsored Product advertisement?

How does a customer see the Sponsored Product Ad?

  1. A customer searches for a specific word, the so called keyword.
  2. The Amazon algorithm searches for all sellers who bid on the keyword (RTB = Real Time Bidding).
  3. The seller who bids the most (releases budget) wins this real-time auction.
  4. The corresponding product is selected and a corresponding advertisement created.
  5. The Sponsored Product is displayed to the customer when he searches for the assigned keyword.
  6. The ad looks like a normal product listing and is only identified by an inconspicuous "Sponsored" label.
  7. 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 on Amazon Sponsored Ads (formerly 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 has only one overriding goal. Choose meaningful, unambiguous and meaningful names that can be assigned to the product.

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 come 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 to generate keywords. Manual ones, however, are much cheaper and more effective if they are well thought out.

Set 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.

Add products and keywords in the ad groups

Now comes one of the most intensive and elaborate parts: extensive and targeted keyword research for the PPC campaign. A targeted selection of keywords ensures a successful ad placement by linking to the product. 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.

Optimization of campaigns & 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. A regular adjustment of the keywords, the products and the evaluation of the sales is essential. Without proper monitoring and reporting, unnecessary money is quickly burned.

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 of the advertisements in question being played out in such bad places that users are no longer aware of them. Find out when the desired balance between spending and sales has been achieved. Here it is necessary to check the success of the campaigns regularly and adjust the bid amount of the Amazon PPC campaigns accordingly.

As Amazon Marketing Agency we are specialized in Amazon PPC Marketing and 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 we achieve together that you use your budget sensibly and increase the conversion rate.

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