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FAQ’S

What is Amazon PPC?

Amazon PPC is an advertising system built by Amazon, that is auction based. This means that every advertiser is bidding on their targeted keywords that are relevant to the products they sell. The combination of the highest relevancy of the keyword to the advertised listing, and the highest bid; will determine what product gets to the first page of search results. There are three types of ads you can use under the Seller Central advertising platform: sponsored products, sponsored brands and sponsored display. If you want to use amazon PPC for the purposes of getting your product ranked on Amazon, we suggest you begin with Sponsored products and using keywords as a targeting method.

Does Amazon PPC really work?

Of course. In the past two years, Amazon has really developed their advertising platform so that Amazon sellers can leverage advertising to gain better organic ranking for their products. You need to be covered with a couple of aspects for success on Amazon:

• Your product needs to be a result of thorough product research process – hopefully, before starting ads you already did different types of research.
• Competitive price – your product offer should be attractive to your targeted audience and your prices should be competitive.
• Product reviews – it is also super important to have at least 10 reviews before starting any PPC campaigns for that product, because good reviews are known to greatly improve conversion rates on your Amazon listing.
• Healthy margin – your product needs to have a healthy margin in order to support the advertising cost without causing you the loss of money

How does Amazon PPC work?

Amazon has built an advertising system that relies on bidding for different keywords. This system is called pay-per-click, which means you only pay Amazon when a customer actually clicks on your ad, and visits your listing. It is very important to generate high click-through rates because they are one of the most important metrics for positioning your product in organic ranks on Amazon. In order to enter the pay-per-click advertising system you’ll need to create campaigns in the Seller Central interface and choose the keywords or products you want to target on Amazon.

Is Amazon PPC worth it?

Amazon PPC is a great tool to get your products ranked on the first page of the search results on Amazon. However, it does cost a lot of budget to use this tool so if you are not careful it might burn your budget without delivering the expected results. You can turn PPC into your own advantage by carefully choosing long tail keywords to use, and handpicking the right products to target in your strategy. This will help you gain better control over your own ad spend and make your campaigns more profitable.

How long does it take for Amazon PPC to work?

The waiting time for the first results on Amazon really depends on the campaign type you’re using, the daily budget you assigned to you campaigns and the competitiveness of the category you’re in. The more competitive the category – the faster your data collection is going to be. Same thing with daily campaign budgets. But, when it comes to targeting types, there are certain differences that apply:

• Automated campaigns will take just a couple of days to show first impressions and clicks. You will know then if the whole campaign is going in the right direction. Automated campaigns are good for discovering some parts of the demand on Amazon that you might have not been aware of, and also for learning where is Amazon positioning your product in the marketplace.
• Manual campaigns will take a bit longer to start showing impressions and clicks because manual targeting is often much narrower defined than auto targeting.

How much does Amazon PPC cost?

Amazon’s advertising platform works on a pay-per-click basis. This means that you only pay for actual clicks that Amazon arranged to come to your listing. However, you get to determine the daily budget for each PPC campaign you created, and that cumulatively translates into a monthly ad spend that is charged to you by the end of each month. If your maximum daily budget is $1/day, then your monthly ad spend is going to be $30.  

How do I switch from manual to auto campaigns on Amazon PPC?

It’s easy to change your campaigns from manual targeting to auto targeting. First you need to pause the manual campaign and then create an automated campaign. All this is being done through using the Seller Central interface. Each campaign targeting type has its own advantages. Manual campaigns enable you to target more effectively through making your own choice of keywords and products to target. Auto campaigns are useful too because they provide your products more exposure in the marketplace through automated placements.

What is a good ACoS for Amazon PPC?

A good ACoS is the one you can handle without losing money. This is also called the “breakeven ACoS”. The calculation for a breakeven ACoS is very simple. Your target ACoS should equal your profit margins because then you know you’re not losing money on advertising. So, if your product’s profit margin is 35% then that is the maximum ACoS you can afford without losing money. Some sellers who are in the middle of a product launch process will tolerate much higher ACoS for a long time, in order to help their product rank better organically on Amazon.

What are negative keywords on Amazon PPC?

There are two types of keywords on Amazon. Targeted and negative keywords. The ones you want your product to show up for are called targeted keywords. At the same time, you can easily “tell” the platform for which keywords you do not want to pay for. This means that once you enter negative keywords to your campaign, the system will not show your ads when a user is searching for that keyword on Amazon. Negative keywords can be more or less restrictive, depending on their match type. Exact match type negative keywords are less restrictive, meaning that Amazon will not show your ad for that specific phrase in that specific order. Phrase match negative keywords are more restrictive because they will prevent all similar search phrases from triggering your ad.