Amazon is one of the leading marketplaces in the world. In order to make the most out of Amazon selling, it is important to invest in Amazon advertising for huge business. Amazon has reserved most of the above the fold search places for Amazon ads. The company is de-prioritising the organic search places and providing easily visible and accessible search places to sponsored ads. Sellers who do not invest in Amazon sponsored products, will hardly find any traffic on the detail page and sales will decline.
Well known brands, third party sellers and established entrepreneurs are investing huge in Amazon advertising services in order to stay ahead of the competition. Small and medium sellers, new sellers and emerging brands all need to gear up and start making use of Amazon Pay Per Click (PPC) services for driving traffic to their online store.
Either promoting and establishing the brand on Amazon or driving traffic to the detail page or increase in sales, Amazon PPC optimization can help in achieving all of your objectives.
Whether Amazon sponsored PPC service is cost effective or not? Do my sales increase suddenly after investing in Amazon ads? How will traffic divert to my detail page using Amazon PPC service? Let us read the article to get answers of all the questions and to know Amazon Advertising in detail.
Amazon Pay Per Click (PPC) Service
Amazon PPC advertising is an Amazon marketing strategy. In this marketing strategy, sellers bid on relevant keywords to get their product listed on their selected place. PPC is not about paying high for better places, it is about paying on the basis of the number of clicks made on that particular product at selected places.
Amazon Cost Per Click (CPC) differs across categories depending upon the competition. On an average Amazon CPC ranges from $0.50 to $10.00. Rising in competition will directly increase the Amazon advertising cost. It is important to execute Amazon PPC strategy in an efficient manner so that your Amazon CPC is minimal but Amazon sales is maximised.
Amazon PPC optimization ensures more visibility of your brand, product and store compared to those who do not optimise their Amazon PPC services. High visibility will lead to high clicks, engagement and conversion rate eventually leading to higher sales.
Emerging Era of PPC on Amazon
In the past few years, Amazon has shifted its focus from organic search results to Amazon search ads. No matter how much new or old your listing is, Amazon advertising is important to grow your profits.
Here’s why:
Amazon features more number of Amazon search ads compared to organic search results
Amazon ads were introduced after organic search results but now it has gone much ahead of organic search results. Organic results appear much below on both mobile and desktop screens. When a customer searches for some product through Amazon mobile app, then organic search results will appear after two whole swipes. On the other hand, the Amazon website on the desktop screen has only two organic search results visible above the fold.
Typical Amazon search results follow this format:
- 1st row: Sponsored Brand
- 2nd row: 3 Sponsored Products and 2 Organic Search Results
- 3rd row: Best Rated or Amazon’s Choice in the category
- 4th row: Editorial recommendations by third party websites
- 5th row: Amazon Brands
- 6th row: Organic Search Results
You can find organic search results from 6th row onwards which have less visibility. It is important to use PPC strategy or else, your product will not reach the customer and they will end up buying some sponsored products.
Product recommendations on Amazon is not the gold standard any more
Nowadays, people usually search for products online rather than going to the physical store. Taking advantage of this, most of the brands want to gain visibility. Amazon advertising is an optional marketing service tool but it has become the most profitable business and has taken over most of the functionalities of the marketplace.
Before 2020, Amazon showed product recommendations to the customers based on previous purchases but after 2020, it is being replaced by Amazon ads. The format is still the same but the content is not. Previously where organic product recommendations were seen, that same place is now for Amazon sponsored products.
Right execution of Amazon advertising strategy is important for expansion of ad targeting and increases the chance of your product’s visibility in more detail pages of other brands under the same category.
Featuring on SERPs have higher chance of boosting Organic Ranking and Conversion Rate
To be featured on Search Engine Result Page other than Amazon ads, factors like metadata, popularity and relevance also matter.
Amazon is coming up with new features such as Editorials page, Amazon’s Choice, Top Rated products on SERP. Due to this, some products appear multiple times on SERP.
Best way to increase brand visibility on SERP, for better reach to the target audience, is to make use of organic marketing and Amazon PPC collectively.
Amazon Advertising options on the platform and third party websites
Marketing for physical stores results in higher footfalls, similarly marketing on Amazon will result in higher clicks. Amazon provides various advertising options to the sellers for driving traffic to its detail page or Amazon store.
- Sponsored Brands: Sponsored Brands PPC marketing strategy is suitable for the sellers who want to establish their brand along with products. Here, sellers get to provide their brand logo and customised headline for the brand. It also includes 3 products to be showcased besides the brand logo.
- Sponsored Products: Sponsored Products PPC marketing strategy will help your product to be featured on the search result pages and detail pages of other products in the same category.
- Sponsored Display: Sponsored Display, also known as Product Display Ads, is an advertising strategy that allows you to display ads of your product to the shoppers who have previously purchased from you, viewed your detail page, searched for similar products, etc.
- Amazon DSP: Amazon Demand-side platform PPC strategy is for the brands who want ad space on and off Amazon platform. This means advertising beyond Amazon and driving traffic to your website or other social media handles.
- Amazon Video Advertising: Amazon offers an appealing advertising strategy like video advertising which can be published on Amazon owned platforms such as Amazon.com, IMDb, Fire TV, etc.
Investing in Amazon’s advertising strategy is merely not enough. Investing in a proper advertising strategy is more important or else your investment does not result in profits.
Optimum use of Amazon Advertising Campaigns
Amazon will become a top advertising player in the near future, leaving Google and Facebook behind. With the rising demand for Amazon advertising, its cost will also rise to make it more expensive for the sellers.
Rising Amazon CPC will result in rising overall budget along with uncertainty of advertising’s success.
Amazon displays ads, which are highly relevant to your potential customers. In order to increase the conversion rate of that potential customers, you need to:
- Increase engagement with frequent and attractive Amazon ads.
- Analyse and prepare pricing strategy carefully.
- Modify your bidding strategy as and when required based on ad performances.
- Targeting relevant keywords
- Optimising Amazon ad campaigns based on seasonal trends
- Continuous tracking of Amazon PPC campaigns
Strong Amazon PPC management is required in such a competitive place. It is not the time to consider Amazon advertisements as of secondary importance. If you do not take it seriously, your products will have less visibility for a large number of audiences.
Let Sipransh Ecommgrowth handle your Amazon PPC management while you focus on your product improvements.
