Amazon, the leading all-in-one platform for online sellers, is turning advertising into a huge business. Today, most of the platform’s above-the-fold search placements are reserved for Amazon ads. As the company continues to de-prioritize organic search results and dedicate more placements to sponsored products, brands that haven’t started advertising on Amazon will see a steady decline in traffic and sales.
“Amazon sellers cannot afford to skip out on advertising,” said Danielle Russell, Thrive’s eCommerce manager. “On page 1 of the SERPs (search engine results pages), only about half are organic results! Amazon truly is a pay-to-play space and if a seller isn’t an expert at Amazon advertising, they’ll likely lose out to competitors, even if they have a superior product.”
Established brands, third-party sellers and entrepreneurs are pumping investment into Amazon advertising services to stay ahead of the competition. So start doubling down on your Amazon pay-per-click (PPC) advertising efforts to drive more traffic to your online store.
Whether you’re looking to promote your brand, increase sales or protect your market share, Amazon PPC optimization is a surefire way to achieve your goals.
Still unsure if advertising for Amazon is a cost-effective move for your business? In this article, our Amazon PPC agency answers what is Amazon PPC and why you should invest in it now to drive up revenue. Read on and get the low down on Amazon PPC management to guide your marketing decision.
What Is Amazon PPC?
Amazon pay-per-click or PPC advertising is an Amazon marketing method where advertisers bid on relevant keywords to get listed in their chosen placement and pay a fee whenever a shopper clicks on their Amazon ads.
Amazon advertising cost varies depending on product category and competition in your niche market. On average, Amazon advertising cost per click or Amazon CPC ranges from $0.05 to $10. As brands become more and more competitive, Amazon advertising cost also increases. To reduce your Amazon CPC and ensure the success of your Amazon PPC strategy, you need a fine-tuned Amazon PPC optimization tactic.
Well-executed Amazon PPC optimization campaigns enable your brand and product to get more customer attention than those who do not prioritize advertising on Amazon. With increased visibility, your store engagement, conversion rate and, ultimately, Amazon sales will also improve.
The Growing Importance of PPC on Amazon
Over the years, Amazon has shifted its focus from organic search results to Amazon search ads. Whether you’re launching a new product or have a three-year-old listing with thousands of reviews, advertising for Amazon is essential to secure your profitability.
Here’s why:
→ Amazon now features more Amazon search ads instead of organic results.
Amazon ads have been around since 2012, but lately, they have taken over the search results. For consumers looking for a certain product, getting to unpaid results may require two full swipes on their mobile app. What’s more, there are only two organic results on the desktop screen above the fold.
• 1st row: Sponsored brand
• 2nd row: Three sponsored products and two organic 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 results
Only on the 6th row or below do you find organic search results. If you don’t use PPC on Amazon, shoppers will be less likely to see your brand offering and more likely to purchase a sponsored product instead.
→ Amazon’s product recommendation system is no longer the gold standard.
The company capitalizes on its market control, knowing well that most consumers begin their online shopping journey on the platform. And although advertising on Amazon is an optional service, it’s become such a lucrative business that Amazon ads have replaced most of the functionality on the platform.
In 2020, the company began replacing product recommendations based on customers’ previous purchases or activities with Amazon ads. They may look identical to the previous organic recommendations, but this section now contains sponsored products.
With the right Amazon advertising strategy, you can expand your ad targeting and increase the chances of your products surfacing in more product detail pages.
→ Amazon sellers featured on the SERPs have more chances of boosting organic ranking and conversion rate.
Several factors determine your product placement in organic search, including metadata, popularity and relevance.
Throughout the years, the company has also been testing and releasing new features, such as Editorial Recommendations, Amazon’s Choice and Highly Rated, on its search engine results pages. These SERP features allow some products to appear multiple times for a given search term.
To increase your brand visibility on SERPs and position your products in front of your target audience, you need to combine your organic marketing efforts with PPC on Amazon.
→ Amazon offers several advertising options on the platform and third-party websites.
The best way to drive traffic to your Amazon store is to ensure your brand is well-known, and advertising for Amazon allows you to do just that. The company offers various advertising options that enable sellers to generate more conversions:
• Sponsored Brands: This Amazon PPC strategy is for sellers who wish to showcase their brand and product portfolio through brand logos and custom headlines.
• Sponsored Products: This Amazon advertising strategy is recommended if you wish to display your products on shopping results and product pages.
• Sponsored Display: Formerly known as Product Display Ads, this Amazon advertising strategy allows you to display ads to shoppers who have previously purchased from you, viewed your product or similar products or used search terms relevant to your brand offering.
• Amazon DSP (Demand-Side Platform): This Amazon PPC strategy is for advertisers who want to buy ad space on and off Amazon and fuel traffic outside the platform. Trusted Amazon PPC services providers offer Amazon DSP advertising management solutions to help you maximize this advertising option.
• Video Advertising: Amazon also offers video ads that can be placed on Amazon-owned websites like Amazon.com and IMDb and Amazon devices like Fire TV. This gives you an opportunity to showcase your product features in a visually appealing way and capture your target audience’s attention.
As Amazon PPC management becomes a top priority, brands that fail to choose the right Amazon advertising services find their product listings buried in search results. Invest in growth-driven Amazon PPC services and position your product in front of your ideal customers.
How To Get the Most Out of Your Amazon Advertising Campaigns
Amazon is now a huge advertising player expected to eat into Google and Facebook’s dominant market share. However, Amazon’s expanding dominance also means surging Amazon advertising cost for brand owners.
With Amazon CPC going up, how can you gain control of your budget and ensure advertising success?
Amazon aims to display ads that are most relevant to shoppers. To increase your chances of conversion, you need to:
✓ Keep your target audience engaged with visually exciting and interactive Amazon ads.
✓ Carefully analyze and develop your pricing strategy.
✓ Continuously adjust your bidding strategy based on your ad performance.
✓ Use relevant and broad-match keywords.
✓ Remove low-performing keywords from your campaigns.
✓ Optimize your Amazon search ad campaigns for seasonal trends.
✓ Track your Amazon PPC campaigns.
Amazon ads are growing in depth and complexity, and now is not the time to cut down on your advertising efforts. Without a solid Amazon PPC management system, your products are less likely to be visible to a high volume of customers using the platform.
Let Thrive Internet Marketing Agency handle your Amazon PPC management while you focus on your product improvements. Our Amazon PPC agency consists of Amazon SEO and Amazon PPC experts dedicated to helping Amazon sellers get the most out of their ad spend and dominate their niche market.
We also offer Amazon seller consulting services to help your Amazon business grow. Call us at 866.908.4748 or fill out our contact form to talk with one of our experts.
