Is it necessary to Run Amazon PPC Ads?  Find out how to optimize your ad spending and dramatically increase your PPC profitability!

You already know that the Amazon marketplace is difficult to beat if you’re looking to sell your products online.

Nothing compares to Amazon’s eCommerce footprint as the global leader in sales. Unfortunately, this also makes it a challenging place to stand out without a sound marketing strategy in place.

You have one important question to ask about the management of your Amazon PPC campaigns. Is it more effective to run an advertising campaign on Amazon itself or should you concentrate your marketing efforts on bringing outside traffic to the Amazon platform?

Let’s compare the benefits of Amazon PPC ads to those of Google PPC ads. We’ll also talk about how to make the most of your Amazon marketing opportunities.

The Benefits of Amazon Advertising

The degree of buyer intent differentiates those who browse for products online from those who browse Amazon.

People on Amazon are more likely to make a purchase than on Google.

A significant benefit that Amazon has over other platforms is the ability to place your products in front of customers who are interested and ready to spend money on them.

Although Google has a great algorithm for general searches, its PPC results frequently direct customers to a particular brand’s site. Compare that with Amazon, which displays the item on a sales page and suggests other products that are comparable to the initial search result.

Additionally, Google users appear earlier in the sales funnel. These PPC ads have a very low conversion rate (1-2%) because the potential customers are far away from making a purchase decision.

When compared to other search results, Amazon users are significantly further along in the purchasing process, and these PPC advertising have a much higher conversion rate (about 10%).

Consequently, to resolve the question, is Amazon advertising worthwhile? Yes, to answer short.

It’s easy to understand why. It only makes sense to use pay-per-click advertising on a platform where customers are already active and prepared to buy. With their advertising strategies, Amazon sellers can increase conversions while also saving money on their marketing costs.

Amazon ads offer the advertiser significantly more detailed insights into the performance of their keywords and how their ads stack up against those of their competitors. Better data will result from it, allowing campaigns to be optimized and product placement to be more effective.

Let’s take a closer look at the distinctions and similarities between Amazon and Google advertisements before we discuss the best methods for maximizing your Amazon PPC campaign.

Google and Amazon’s Biggest Differences

With Google, customers are looking for a certain brand, trying to learn more or find a better price. In other words, they haven’t finished their shopping yet.

On the other hand, consumers go to Amazon when they are prepared to make a purchase.

The only things that might be preventing the potential customer from making a purchase are similarities between related products, shipping prices (which are significantly reduced with Prime membership), or other small product variances.

Let’s analyze performance metrics now, along with Google and Amazon’s main differences from each other.

Performance metrics for Google PPC advertising will show:

  • Click-Through-Rates (CTR)
  • Relevance of Keywords
  • Relevance of Ad Copy
  • Relevance of the Landing Page
  • Historical Performance

While Amazon PPC advertisements offer far more detailed info:

  • Click-Through-Rates
  • Conversion Rates
  • Unit sales overall

Additionally, Amazon PPC advertisements will specify the relevance of key metrics like:

  • Optimizing product titles
  • Descriptors
  • Relevance of a brand
  • Converting Keywords

Since the platform serves as the landing page for each product, Amazon doesn’t need to monitor landing page relevancy.

You can more effectively target your advertising and place products by using an Amazon ad, which gives you better information into keyword performance and converting phrases.

The Primary Benefits of Amazon PPC Ads
The benefit of Amazon PPC ads is that you may advertise your products in a visible place. 
They also allow adjustable budgets and a wide range of analytics to assess the overall efficacy of your adverts.
Sponsored advertising target specific products or shopping queries. 
They appear both on and off Amazon in important places (such as the top page of an Amazon search result).

Using keywords in an Amazon ad will boost the chances that it will show for a specific search term. This means that based on your target keywords and phrases, your product shows up more frequently.

Because sponsored ads are cost-per-click (CPC), you only get charged when people click them. You can set your own budget and decide how much to bid every click.

Ad Products on Amazon

Amazon Sponsored Product advertisements are displayed on the site and assist in promoting particular products in search results and relevant product pages. It’s easy. A customer is directed to the corresponding product page after clicking an advertisement.

Amazon Sponsored Brand ads are displayed on Amazon and provide you the option to build advertisements that include multiple products, your brand logo, and a unique headline. A selection of your products are directed to potential customers from the Sponsored Brands advertisement.

Amazon Sponsored Display advertising assist you in interacting with viewers who have shown an interest in a related product category or who have just visited the description page for your product. In only a few clicks, self-service, programmatic display advertising may be developed, according to Amazon, to “target relevant consumers throughout their buying and entertainment journeys.”

Amazon is a platform with a higher conversion rate due to the nature of the customers, even if Google and Amazon PPC ad campaigns both provide advertisers exact targeting inside their own platforms.

They are on the platform to SHOP, after all!

Keywords are King

Keywords are the terms someone types into a search with their desired outcome in mind. Your product will be clearly visible to your ideal customers thanks to a good keyword approach.

Users can use keywords to target specific products using Amazon advertising (including negative keywords). Broad, Phrase, and Exact Match options are available.

Broad Match: The keyword results for this category are more inclusive and cost less per click. But because the terms are so general, they can become irrelevant. To keep your bid cost low while increasing the exposure of your brand, using a long-tail variation of a broad keyword is a wonderful tactic. The catch is that these broad sorts don’t convert well, therefore you need use a more targeted keyword strategy for higher conversions.

Phrase Match: Compared to a general search, this kind of keyword search is more focused and more oriented toward the search results of potential customers. If you offer laptops, you may use a phrase like “Apple MacBook Laptop” to indicate what is more relevant to a user’s search.

Exact Match: With exact match type advertisements, your results will only appear if the user precisely matches your keyword phrase with theirsearch terms. 
For example, if your exact match phrases are “Apple MacBook Pro 2022 Laptop” and you are selling laptops, your ad will only display results that contain that exact phrase.
The Power of Negative Keywords

Negative Keywords: This is where Amazon PPC advertisements excel compared to Google ads.

Although negative keyword match possibilities are available on both platforms, you may use this one on Amazon to accomplish two crucial tasks:

1) Create search results that don’t include pointless terms. When targeting your Apple MacBook Pro 2022 Laptop, if you’re selling a laptop and exclude terms like “Microsoft, Dell, Chromebook, and Desktop,” your ad will not show up in search results for someone looking for a different product, such as a desktop computer.

2) Check the search results your advertising are obtaining to determine the best negative keywords to use to target your ads. You may discover the types of search results that work best for your ads by excluding specific terms and phrases (using negative keywords). Continue to adjust them to incorporate a negative term to see if your ads perform better.
Amazon PPC Ad Campaign Strategies

You have the choice to use an automatic campaign or a manual campaign when using Amazon PPC campaigns to promote your product listing.

Manual targeting enables you to better manage your cost per click and concentrate just on the crucial terms that are converting for you by selecting the precise keywords and phrases your ad campaign covers.
You can ask Amazon to put up ad campaigns with automatic targeting, and it will check to see if there are any extra words or phrases you might consider using when creating manual advertising.
Ad Cost of Sale and Other Performance Metrics

The ability to evaluate the Advertising Cost of Sale and improve your campaigns for increased effectiveness is another important advantage that Amazon has over Google.

Ad cost divided by ad income multiplied by 100 is how the ACoS is determined (ACoS = ad spend/ad revenue x 100).
Your ad cost is calculated by your ad revenue to determine your ROAS (ROAS = ad spend/revenue).
To provide you more control over your ad campaigns, this data provides you with deeper insights into the effectiveness of your ads and their conversions into sales.
This method is a terrific way to uncover your higher-converting keywords without having to spend a lot of time testing each one.
You can reduce your advertising budget and test various keyword combinations to see which ones work best before incorporating them into your advertising and product descriptions by using automatic targeting with your ad group.
As a result, you will invest far less time and money in testing and experimentation.
Optimising Your Amazon Advertising Campaigns

You may target your ad campaigns far more effectively than with other ad platforms when it comes to ACoS and RoAS by using these data  points, the types of keywords you are using in your advertising, and the product descriptions you are including.

By limiting the costs involved with traditional testing and experimentation, Amazon’s automatic targeting allows you to better plan the keywords you want to target in your ads.

Finally, having the freedom to modify your keyword targeting using these data points allows you to improve the performance of your advertising campaigns and product listings.

While testing higher converting keywords, this optimization strategy can assist you save a significant amount of time and money in your marketing.