Amazon PPC or Pay-Per-Click is a type of sponsored advertising on amazon which helps the sellers make their ads visible to the target customers by bidding on keywords. The seller only pays whenever a visitor clicks on the ad.
But just like everything, Amazon Pay-Per-Click also has its pros and cons:
Advantages of Amazon PPC
- Freedom of Choice
Amazon PPC is cost-effective as you only pay when a user clicks on your ad. You can decide how much you want to spend without budget restrictions. You get to choose how much to pay when a visitor clicks on your ad. Extra hidden costs are also not involved.
2. Relevant Traffic
Another huge advantage of using PPC is that it is very useful in targeting the right traffic. You can choose your audience depending on location, language, relevancy, time, date, and device. You can also use ad re-targeting, which will display your ad to someone who has previously visited your website.
3. Performance Metrics
PPC is calculable. Since everything has a measurable goal, you can measure everything related to Amazon PPC, whether it be profit, views, clicks, or visits. You will also have an idea of how much you are spending and whether you are incurring a profit or a loss. This way, you can analyze what’s working well for you and work on what’s not.
The recorded metrics of your previous PPC campaign also enable you to make a well-informed decision in the future.
4. Device Friendly
Amazon’s PPC campaign is device-friendly as it allows your sponsored product link to display on Amazon Apps on smartphones, mobiles, laptops, and tablets.
5. Faster Results
With PPC you get faster results and you can notice the effects almost instantly, in contrast to SEO which sometimes takes months to make any noticeable impact. It is handy if you want some instant traffic to create immediate momentum, whilst waiting for SEO to take its course.
6. You Reach Buyers, Not Viewers
Amazon Customers are usually at the end of their buying journey, which means they already KNOW what they are looking for. So your PPC ads make it easier for both sellers and buyers by showing relevant ads. This saves time as the product information appears along with their search.
7. Increases your Organic Ranking
Suppose you’re product is somewhere in the later pages of the search results, you can use sponsored ads to get to the top page to be visible. This increases your sales. As your sales increase, your product will gradually move to the top organically.
If your product is listed first due to both PPC and organic ranking, you’ll be able to increase your sales drastically and have higher profit margins.
It is very customizable that allows you to make any number of small modifications based on all the metrics discussed above.
9. Complements Amazon’s Search Engine Optimization
With Amazon PPC you get a complete list of keywords that the buyers use to find your products. This information is very important to use for SEO purposes in your listing title, bullets, description, and backend keywords.
10. Increased Discoverability
Amazon PPC helps your new products get discovered since they won’t immediately rank organically. Since free product giveaways to get reviews are no longer allowed, using sponsored advertising for Amazon for your product launch is now even more crucial. Your ads can help you get quicker reviews and in turn, increase your organic rankings.
11. Can be automated
Disadvantages of Amazon PPC
Understanding the demerits is far more important than the advantages in any business. There are a few disadvantages of Amazon PPC that you must know of:
1. Time taking
One of the disadvantages of Amazon PPC is that it can sometimes be quite time-consuming. Merely setting up a PPC Campaign and leaving it isn’t what you ought to do if you want it to be successful. A PPC ad campaign will need continuous optimizing and modifying based on the results it is getting.
2. Involves budget risks
A wrongly structured PPC campaign can get you a huge loss of your resources. Even if you bid for the wrong keyword, you might end up losing hundreds of dollars.
This is why most companies either automate their PPC Campaign or hire an expert in this area.
3. You pay for clicks, not sales:
You will have to pay amazon every time a customer clicks your ad irrespective of whether the click has been ‘converted’ to sales or not. This results in payment or ads that haven’t become sales.
Just like everything else, Amazon PPC has its pros and cons. Whether or not to choose this for your business totally depends on the requirements of the seller. However, the reasons to go for Amazon PPC are far more impactful than its disadvantages.