Supercharge your Amazon Business

How Amazon PPC Works

Today I’ll tell you how to enhance the discoverability of your product before the eyes of the Amazon buyers. And a major factor in that is mastering how to plan your Amazon PPC( Pay Per Click) Campaigns.

You will find advertised products on Amazon mentioned as “Sponsored Product” when searching for a specific keyword. In Pay Per Click you’re not paying when your product is advertised, but only when someone clicks on your product ad. This works great as you will only be paying for what people click/choose for. If you have a good product, then it is definitely worth activating Amazon Pay Per Click (PPC) to attract people to your listing.

When should you activate Pay Per Click (PPC)?

We recommend that you activate your Amazon Pay Per Click (PPC) as soon as you have a new listing. To improve the effectiveness of your Pay Per Click (PPC) campaign, you can wait till your listing has 3- 5 reviews also. But nevertheless, you should start the Amazon Pay Per Click (PPC) campaign as soon as the listing is live for both identifying the right set of keywords as well as understanding the competition for your keywords. This will also help you understand the typical budget that you need to run Pay Per Click (PPC) campaigns. On the basis of this information, you can also even adjust the pricing to make sure that you are selling profitably.

What should be my Pay Per Click (PPC) campaign strategy?

We recommend a robust – 3 step process to make the most of your Amazon PPC campaigns.

Step 1: Activate Auto Campaign – High Bid

The objective of the “auto campaign – high bid” is to uncover all the keywords that are relevant for your listing across price range. The recommended values you have to enter for suggested bid rate for keywords is $5.00 with a daily budget of $20.00 and running for 3 days. The typical bid rates are much lower than $5.00 but when you run this campaign for 3 days with $5.00 as the bid rate, you will get a very good understanding about the range of bid prices and the keywords for which people click your keyword.

How to Analyse the search reports

At the outset our advice is to activate three campaigns. That’s exactly how I do it.

The first campaign is automatic. You can say Amazon: “Hey Amazon, I make an automatic campaign, then Amazon is there and look at your listing. Then Amazon starts your campaign then all that you have to say is “I pay and so much per click”. Here I recommend, go with a euro in the beginning. You pay only 1 € per click. And to reduce the risk because now you’re saying  I’ll pay 100 € a day at once. You can decide it yourself and say at 20 € ‘This is the end’ as an example. Amazon online marketing gives you this benefit.

The second campaign is: Do you think about which keywords are important to you? What keywords do people search for before they buy your product?

And the third campaign is again one of the things you can do with Google Adwords. Once you’ve set up an account with Google AdWords, you’ll be able to search for specific words in the keyword planner and it’ll also show you other keywords. I think it’s really about mass at the beginning. You want to get as many keywords as possible to see what works. And then it says to wait a week because the data from Amazon are not directly available. Then you can go into the individual campaigns and look exactly through what people have clicked, which keywords made impressions on the user, how many people clicked on it and how many people even ordered. All this keyword data is used to find amazon hidden keywords. You want to optimize your listing on these keywords that you found. The more keywords you have the better.

I’ll explain the importance of the whole thing. The above process. And how does it work? Through sales, Amazon spins up: when your product sells well to your keyword. Then it gets ranked at Amazon. Because Amazon wants to sell and if your product is the best and people buy your product then your product is also placed above. And that is the ultimate goal. The more you go up in organic searches for your keywords you’ve found out. This is the benefit of Amazon advertising.

The 6th step is very important. Always optimize again. What has changed, are there more keywords, more lists? And with optimization, I do not mean that you should stop the thing! This campaign is increasing that only what you need to optimize, is how much you spend, you need to ensure that the whole is not the Red goes. At least reinstate what they cost. This is the whole secret recipe as you at Amazon good ranks. Because Amazon sees someone searches “Wellies” sees your ad, clicks on it and buys the rubber boots is for Amazon: “Aha!”

The product is just right for someone looking for “rubber boots”. We better take it up!

Pay-per-click advertising (PPC) / Amazon marketing is by far the most successful advertising model on the Internet. The inventor of this advertising model was the US company Goto.com, which later renamed Overture and has been trading as Yahoo Search Marketing since the end of February 2006. But Google’s success led to this advertising model: when Google began advertising in 2000, Google named this ad, AdWords was the breakthrough for the commercial success of the search engines. Today it can be assumed that over 90 percent of Google’s revenues come from these ads.

Even if there are many similarities between search engine optimization and the booking of PPC ads on a superficial view, both marketing activities differ considerably. The most obvious difference for the user is that the PPC ads are marked as advertisements and highlighted in color. From the point of view of the online market, however, the fact that AdWords advertising is paid per click is the most important difference to search engine optimization.

Because search engine optimization initially poses higher requirements, under certain circumstances the complete web appearance has to be completely reworked; if this initial hurdle is taken care of, the following fixed costs remain rather low and the single click is itself “free”.

If you want to draw parallels to off-line marketing, search engine optimization is most likely to be compared with public relations work. In both activities, it is very difficult to predict the possible benefits. This means that a press release can be just as unread as an optimization cannot bring about any improvement in position. PPC ads, on the other hand, correspond to the classic advertising, such as in newspapers or magazines. Here and there you can estimate in advance how many people will consume the advertising message. And from experience, both measures are relatively easy to estimate such as ROI (Return On Invest). For particularly short-term activities, PPC displays are excellently suited.

Within a very short time, with Google often only in a few minutes, the advertisement is activated and immediately on the web to see. And just as quickly, the ads can be stopped again. This makes PPC advertising an ideal advertising form for special activities of online shops.

Amazon PPC Functioning

PPC advertising works on the auction model: Who is willing to pay per visitor at a higher price, will continue to appear within the listed ads above and can gain more visitors. The minimum prices for a booking are usually 0.10 Euro per click; to the top, only the game of supply and demand sets a limit. For particularly popular keywords such as “insurance comparison” or “data rescue”, Google’s advertisers pay more than 10 euros for each click.

The Augsburger search engine agency explido provides on its website a monthly comparison of different keywords. There, not only can the approximate prices for particularly sought-after search queries be determined; the sometimes extreme differences in click prices between PPC providers expect out of this formation.

Pay-per-click or cost-per-click, abbreviated simply PPC or CPC, comes from the English language area. In English, pay-per-click means “pay or cost to click”.

Pay-per-click or PPC has developed in the field of online marketing. Internet pages are provided with advertising banners. For example, on a blog for long-distance travels, you’ll find airline banners or search engines for flight bookings. These advertising banners are operated by companies. As soon as a customer is aware of the advertising, no costs arise. Only when he clicks on the advertising banner and is forwarded to the side of the company does it cost. Behind the system are various ways to operate marketing. Advertising banners can be placed on search engines, blogs, private homepages or company pages. Amazon PPC is based on the same principle.

Again, the dealer has the opportunity to influence. Thus, the product appears at all, the product of the needs keyword are considered relevant. This is because the keyword is contained in the product name, for example. Another requirement is that the product in the Amazon Buy box stands . If these two conditions are fulfilled, the advertisement can be displayed.

If the keyword is relevant to multiple ads, they are in competition with each other to position the items. To solve this conflict, Amazon takes an auction that decides on the ranking. Two factors have an important influence on this auction.

Who benefits from FBM – Fulfillment by Merchant?

The click rate. With the click rate of Amazon PPC, traders determine how much they are ready for a click. When competing for advertising advertisements are auctioned, those are upwards, where the click price is higher. Traders can thus intervene in a directing direction. If the quality is very high, however, the advertising can also be moved upwards at a low click-through price.

Amazon PPC does not cost the world. Amazon itself gives the average click price with 10 Eurocent. However, the click-through price has to be set higher depending on the category, the advertisement should be displayed in the upper section.

The click price is not always the price, which is actually paid. It is only the maximum price. In fact, the price that is required to place the product before the competition is paid. The number of competitors and the keywords have a big impact on the actual click-through price. The kick-off price can be particularly high for popular keywords. It is important to consider whether it is worth competing with the product. The answer to this question also depends on how much revenue the ad generates. Alternatively, this product can also be placed without advertising.

How to make your PPC campaign work despite a small budget

Bring your resources to the point

Turn the light on the customers: Which keywords would benefit customers intuitive to find your products? Record the most important four to five keywords that are relevant to your business.

Let’s take an example, if you are planning to travel to the Black Forest, your top keywords would be “Busreisen Schwarzwald”, “Bus Reise Schwarzwald”, “Schwarzwaldreise” and “Deutschlandrundreise Schwarzwald”.

Choose one or two trump keywords from this selection. Here you can use the planner Adwords Keyword for help. It shows you what search volumes have individual keywords and how much is the average realized click (cost per click).

Your company is not located in a niche, and your keywords are often used by the competition?

In order to achieve a higher search engine ranking, the strategy of the keyword phrases, the so-called “long tail keywords”, can be used. Keyword phrases are combinations of less used search terms, but in their combination, you generate the most clicks on your page.

Use your keywords profitably. Keywords are not ends in themselves. You should catapult your company in the targeted search for the top and thus boost your sales.

For this to happen, I recommend you to go through the following three steps and to repeat them on a regular basis:

  • Invest and offer enough for your trump keywords; That is, so much that you appear with Google with it.
  • Test ads with different keywords, and see which generates the highest click rate.

Make sure that your landing page also contains relevant content for the search terms. That is, don’t explain air travel to Spain, but bus trips to the Black Forest!

Your goal should be to make your campaign appear at the top of the search results with your chosen keywords – most likely right under the search box at the top. Because that is what is seen by your target group as a search result first.

  • Save by target group focus

I personally have made in our PPC campaigns the experience that a campaign is more cost efficient and more successful, the more the ad is aimed at the target audience of the product.

Of course, you can control this in detail, but the following three tips will help you to improve this rate significantly:

  • Geo-targeting for targeted customer approach

The profitable use of keywords, of course, includes about companies that are active only in a particular region or their customers from a specific region which is restricting their ads on these areas.

Specifically: If the travel company determines that mainly residents from the north and east of Germany book the bus trip to the Black Forest, the company can align its ads precisely to these states or regions.

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