2022 Comprehensive beginner’s guide to Amazon advertising

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amazon beginners advertising optimization guide

If you sell on Amazon, you’ve probably heard of Amazon pay-per-click (PPC) advertising. There is no way you haven’t heard of it if you’re intending to sell on Amazon and have done some research. Everyone is discussing Amazon PPC and how it may benefit your Amazon FBA business.

What is Amazon PPC, and how does it work? These are the critical questions that many first-time sellers have. It is also critical to master the fundamentals of Amazon advertising if you are new to the platform. When you pay to play, you must maximize every dollar spent.

This comprehensive Amazon PPC tutorial will answer all of your queries and explain the fundamentals. It will assist you in developing effective Amazon pay-per-click campaigns that will enable you to take your business to the next level. So, let’s get started.

What is Amazon PPC?

Amazon PPC, often known as sponsored ads, is a well-known advertising network that helps sellers increase their online product sales. The pay-per-click (PPC) approach requires the advertiser to pay Amazon only when you click on the ad. You will not have to pay for impressions if you conduct Amazon PPC advertising.

When a PPC campaign is properly managed and optimised, it may greatly increase product visibility and sales. This will also improve the product’s organic rating, assuring its long-term success.

Because Amazon PPC campaigns are auctions, you will only ever have to spend one cent more than your competition for ad placement in the search results.

For instance, if you bid $3 for a term but your opponent only bid $1, Amazon will only charge you $1.01 for ad placement. However, keep in mind that Amazon sellers only get paid when their ad is clicked, not every time it shows in a search.

How it started

Paid traffic has a fascinating backstory.

It has been around since the year 2000 and is both a science and an art for many internet enterprises. It all started with Google AdWords, which is now known as Google Ads. If you’ve done a Google search in the last 20 years, you’ve probably seen some adverts in the results.

Amazon PPC Advertising came into effect in 2012, allowing retailers and sellers to display their items on Amazon’s website.

While Amazon Ads and Google Ads serve various purposes in life, they are closely related. Amazon aims to show customers adverts that are most likely to lead to a purchase. Google aims to show searchers advertising that they are more likely to click on.

Amazon bases its ad rank on profit, but Google based its ad rank on click-through rate (CTR).

Is Amazon PPC Worth It?

What makes Amazon unique is that they already have visitors. Why would you start with a non-Amazon site to try to generate traffic when Amazon is already where the consumers are?

Furthermore, when accessing the eCommerce site, Amazon visitors are prepared to make a purchase. According to Bloomreach, 55% of shoppers begin their search for a product on Amazon before completing a purchase. Every month, Amazon receives over 2.3 billion visits.

All you need to do is get their attention.

Surprisingly, advertisers are only now recognizing the value of Amazon Advertising.

The following are the most prevalent reasons why sellers and vendors execute PPC ads for their items.

To Increase Product Sales
One of the simplest strategies to increase sales is to run PPC advertising. Of course, increasing sales is the long-term goal of all sellers who conduct PPC ads for their items.

Improves the organic rankings of highly competitive keywords
Your listing may contain terms that are too competitive to rank in an organic search. Running PPC advertisements for such keywords aids in increasing exposure. Having a first-page result for such keywords not only promotes sales but also increases your product’s organic rating for the keyword over time.

In order to raise brand awareness for new product launches
Products with the greatest sales appear at the top of the search results. It is quite tough for new items to rank high for keywords. Sales are reduced when a company’s ranking is low. Running PPC ads is an excellent way to boost the product’s visibility and sales potential.

To keep competitors from stealing top positions and sales
Over time, the number of vendors in best-selling niches and categories reaches saturation. Even if your product ranks high in organic searches and has attractive offers, competitors running PPC advertising for their items may simply outpace it. Most top-ranking companies use PPC campaigns to protect and maintain their top rankings and positions in Amazon searches over competitors who also use PPC.

To Increase Product Visibility For Seasonal Trends
Amazon Sellers notice the most and highest sales throughout seasonal trends such as Christmas, Mother’s Day, Halloween, and so on. The same is true for end-of-season sales in the fourth quarter. Depending on the product, Amazon Ads can be an excellent approach to increase sales by raising customer interest due to seasonality.

Understanding the difference between Amazon SEO Sales and Amazon PPC Sales

Amazon, like every other search engine marketing platform, offers organic and sponsored search sales.

Organic Amazon sales occur when a customer sees and purchases your goods without you sponsoring it for higher placement in Amazon’s search results. You should concentrate on Amazon Search Engine Optimization to increase your organic sales (SEO).

Paid search sales, often known as Amazon PPC, occur when a buyer finds your goods after seeing an advertising in their search results.

The quickest approach to promoting your product to the top of Amazon’s Search Results Page (SERP) and create more visitors is to sponsor it with Amazon Ads.

Seller Central And Vender Central

Amazon sellers have two selling platforms: Seller Central and Vendor Central.

Third-party sellers should use Seller Central. Consider third-party sellers to be small business owners who sell directly to customers on Amazon’s website. These vendors can opt to ship their items directly to their consumers or use Amazon to meet their shipping needs, earning their product the Amazon Prime badge.

Vendor Central is for first-party sellers, which are often larger firms that sell directly to Amazon and ultimately to its consumers. Because suppliers sell directly to Amazon, their products are instantly eligible for the Fulfilled by Amazon (FBA) Prime Badge.

Types Of Amazon Ads

Sponsored Brand Ads, Sponsored Display Ads, and Sponsored Product Ads are the three forms of Amazon Ads. Let’s find out more about them right now!

Sponsored brand advertisements, often known as “headline search ads,” are generally for top-of-the-funnel consumers, offering your product the opportunity to capture a customer’s attention before they know exactly what they want.

On desktop computers, Sponsored Brand ads appear in the following places:

  • Above search results, thus the moniker “headline search.”
  • Immediately to the left of the search results
  • Below the search results.

Because of their capacity to display several items, you may market complimentary products side by side.

Sponsored Brand Ads are excellent for capturing the attention of buyers in a variety of ways. This ad type also comes in a number of formats, including Sponsored Brands Video for more eye-catching appeal.

To create Sponsored Product advertising, just choose a product, a keyword term, and a budget. When you do this, Amazon will automatically target your sponsored advertising to a relevant audience.

According to research, several businesses have reported more sales with Amazon Sponsored Product advertisements than with Google Ads. Furthermore, they are three times less expensive than Google’s CPCs.

Display Ads Sponsored by Amazon

Amazon Sponsored Display Ads are excellent for increasing impressions, generating upper-funnel attention, and retargeting interested consumers to clinch transactions.

Amazon Sponsored Display Ads can be seen in the following places:

  • Customer Review Pages 
  • Product Detail Pages on Desktop and Mobile
  • Top of the Offer Listing Pages

Sponsored Display can re-target buyers who have recently visited your Amazon product pages, your competitors’ product pages, or searched for terms related to your listing.

Sponsored Display Ads offer the distinct benefit of being able to be displayed both on and off Amazon, enhancing re-targeting options.

Amazon Product Advertisements

Sponsored Product Ads highlight your items on product detail pages and in search results. Companies have boosted their spending on Sponsored Product advertisements since they offer excellent customer attraction and conversion capabilities.

This like other Amazon PPC advertising choices, only costs you when a shopper clicks on your Sponsored Product Ads. This tool gives your company control over its advertising budget and keyword bidding.

Sponsored Product Ads can be found in the following places:

  • Among the search results
  • On the right side of the search results page
  • At the bottom of the list of search results
  • On product information pages

The Sponsored Product Ad type is by far the most common on Amazon PPC, and it occurs at every stage of the buyer experience.

This is the greatest Amazon ad type for newcomers, and it should account for the bulk of your Amazon Advertising expenditure even when you grow into Sponsored Brand and Sponsored Display.

How Do Amazon Keywords and Match Types Work ?

When launching an ad campaign, you must select the keywords for which you wish to bid. Keywords might consist of more than one word. Then, if a client’s search phrase matches your keyword, your ad qualifies to appear in the search results in front of the consumer.

You must also pick a match type for each term you select. The match type relates to how well your term matches the user’s real Amazon search.

Broad Keyword Match

Search phrases that are not only relevant to your search but also match it. Your ad may appear regardless of the order of the keywords, as well as for extra terms. Synonyms, misspellings, and variants of your term may be included.

Broad Keyword Match Advantages and Disadvantages:

Broad match looks for a wide variety of search phrases, including abbreviations, acronyms, and synonyms:

  • As customers may use a larger mix of search phrases to activate your ad, this typically implies better exposure and sessions for these keywords.
  • Broad match may be incredibly expensive and deplete your funds by soliciting clicks from unrelated adverts and search phrases, as seen in the example above.
  • Broad match is an excellent technique to reach more individuals and increase the exposure of your listing.
  • You may conduct a wide keyword campaign for a set length of time, then evaluate the data and fine-tune the keywords based on the search terms.

Phrase Match

The phrase match is used when you specify a phrase and the keywords are matched with terms before or after the phrase. The ability to adjust the word order is a fundamental element of phrase match. Misspellings, singulars and plurals, stemming, and other variations are possible.

Example : swimming shorts, swim wear, abbreviations, and acronyms are all examples.

Advantages and Disadvantages of Amazon Phrase Match Type:

The ad is displayed only when the search phrase matches the keyword, however other words can be inserted before or after the keyword.

  • The ad’s target audience is in the middle range and can be triggered by both short and broad search phrases.
  • You still have excellent visibility for your goods, but you save a few unwanted clicks that would have occurred in the case of a wide term match.
  • This is a decent compromise between wide and specific match because you have a little more control over when your ad appears.

Exact Match

You may narrow it down to people who are specifically looking for your goods by using an exact keyword match. Precise match targeting restricts your ad to only your exact term (includes plurals, singulars, and misspellings).

Advantages and Disadvantages of Amazon Exact Match:

  • The ad’s target audience is limited yet highly specific.
  • Precise Match reduces the amount of impressions compared to other ad options since the ad is shown to users who input the exact search phrase as your keyword.
  • Exact match is an excellent approach to ensure that you receive the appropriate clicks and target the people who are specifically looking for your goods.

Negative Keywords

If keywords are search terms where you want to appear, negative keywords are search terms where you don’t want to appear. 

Negative keywords aid in avoiding ad spend being wasted on irrelevant or unproductive search inquiries. Amazon’s algorithm will only show your goods for relevant searches, so don’t worry about adding every bad phrase you can think of.

There are just two match kinds for negative keywords: phrase and precise. These function similarly to phrase match and exact match keyword targeting.

There is a third form of negative, in addition to these two: negative ASINs or negative product targeting. Negative product targeting is a type of negative exact that lets you to specify which ASINs or brand names you do not want your product to show for.

How To Get Going As A Beginner With Amazon PPC

Starting a business on Amazon might be intimidating, but not for anyone who has AiHello on their side.

Why Should You Begin With Sponsored Products?
Remember how we stated Sponsored Product Advertisements are the most visible ads on Amazon since they appear at all stages of the consumer journey?

When first starting out, use Sponsored Products to obtain the highest return on ad investment (ROAS).

Sponsored Product Ads are displayed beneath Headline Search Ads, to the right of the SERP, and on product detail pages. You can reach the most people and get a high conversion rate by using Sponsored Product Ads (around 10 percent ). Customers can even be retargeted on third-party sites via Sponsored Product ad campaigns.

What is ACoS ?

ACoS is a statistic that is used to test the efficiency of your Amazon PPC campaign. It is the ratio of ad spend to ad revenue. It basically calculates how much you spend for every dollar of income earned.

ACoS = (ad spend * 100) / advertising revenue

If your ACoS is more than 100, it suggests you are spending more money than you are bringing in.

There is no magic number that can be used to evaluate a campaign. The optimum ACoS is determined by a variety of criteria, including but not limited to product category, company strategy, and advertising objectives. All of these aspects will need you to adjust your ACoS goals and design ways to reach your aim.

Conclusion

That concludes the fundamentals of Amazon PPC. There is a lot of data to analyze, but a seller must understand the essentials.

Keep in mind that Amazon PPC is a marathon, not a sprint. Make a budget and decide where you’re going to spend it. When it comes to advertising, there is no such thing as a one-size-fits-all solution. 10% of your sales is a decent place to start, and you can work your way up from there depending on your margins, breakeven point, and ROI.

Monitor and fine-tune your campaign’s performance to achieve the greatest outcomes. The worst thing you can do is let your campaigns run without optimizing them on a regular basis to get the most bang for your dollars.

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