What is Amazon PPC
The Ultimate Guide to Amazon Pay-Per-Click Advertising
Types of Amazon PPC Advertising
When selling on Amazon, There are a variety of different ways that you can advertise your products to millions of potential customers.
Of course, optimizing your listing and using SEO are crucial aspects to bringing traffic to your listing, but they can’t be the only methods you rely on. In order to boost your impressions and conversions, you need to use every advertising method that Amazon offers.
Third-party Amazon sellers have three main types of PPC advertising to choose from in their Seller Central accounts, each type has a specific purpose and function depending on your goals.
- Sponsored Products
- Sponsored Brands
- Sponsored Display
This article will help you better understand each type of Amazon advertising.
What is PPC?
First off, let’s explain what PPC even is. PPC stands for “Pay-Per-Click”, and PPC advertising is a web-based promotion model where the advertiser pays for each click on an advertisement.
PPC ads are commonly used for a broad range of advertising goals, such as traffic-driving, sales conversion, and lead generation. Tailoring your ad campaign to your target audience will help you achieve these objectives.
Popular PPC platforms enable in-depth targeting methods, allowing you to create ads that suit the needs of a particular customer demographic.
Pay-Per-Click advertising campaigns can help you get in front of potential customers with the precision targeting features and tools that are not available through more traditional forms of advertising.
Using PPC enables you to target specific keywords, locations, categories, audience interests, and even competitors.
You can also set bids and ad copy to get the most out of your campaign. However, you will need to regularly optimize and manage your campaigns. This can help steer you in the right direction so you don’t overspend on keywords that don’t convert into sales.
PPC is a very effective way of targeting potential customers at the time when they are most likely to be interested in your product/service. It can lead to the collection of valuable customer data which can help target your ads more effectively in the future.
1. Sponsored Products Advertising
The first type of PPC advertising is “Sponsored Product Ads”. This type is designed to enable you to bid for particular keywords in order to gain maximum exposure within Amazon search results.
Sponsored Product ads are the most commonly used type on Amazon because they don’t require you to be brand registered to use them. Like the term “PPC” says, They require a small fee from the advertiser for every click on their ad.
This type of ads’ prominence on the page, and its similarity to organic listing thumbnails, make them particularly inviting.
It works like this; you first specify a list of targeted keywords or products that you want to show up in certain Amazon search results.
You want customers to find your ad when searching for something relevant, and then click on it. In order to rank at the top search results, you’ll need to bid high enough.
If you spend more money on your bids, you’ll get the top spot and will be able to reach the most customers. However, if you don’t bid high enough, your product will not appear anywhere.
2. Sponsored Brands Advertising
Sponsored Brand ads are banner ads that show up on top of the Amazon search results that highlight your brand’s logo, custom tagline, and a variety of products from your brand.
Sponsored Brands ads are different from Sponsored Products ads in that they help you increase brand awareness by driving traffic to your Amazon Storefront or another page of your choosing, that features your products.
With Sponsored Brands, you can also run video ads, which are very eye-catching to potential customers, as they scroll through Amazon search results. Like other PPC ad types on Amazon, you can still target specific keywords, categories, or products when setting up your ad.
On your landing page or Amazon Store, customers can only view your brand, no other competitors’ ads or products will show up. This is highly advantageous, and could give you a higher RoAS compared to other PPC ad types.
However, it’s important to know that this ad type is only available for third-party sellers who are Brand Registered.
3. Sponsored Display Advertising
Sponsored Display ads are the newest form of Amazon advertising, having been launched in 2019. This type may be the least popular ad type of the three, but its use is on the rise.
In 2022 more than 25% of third-party sellers are using sponsored ads and it accounts for around 2% of Amazon’s advertising revenue.
Amazon explains this type of advertising in this way; ”Sponsored Display is a self-service display advertising solution that helps you grow your business and brand on Amazon by engaging shoppers across the purchase journey, on and off Amazon.”
Sponsored Display brings advertising on Amazon next level, as this service offers the option to retarget Amazon customers on and off of Amazon. This means that your ads will not only show up across Amazon the same as with other ad types, but they’ll also be visible to customers on other websites and apps.
Unlike the first two ad types, there is no targeting keywords with Sponsored Display ads. Rather, the aim is to target the audience’s specific interests, shopping behaviors, as well as customers who have visited your product page previously.
Essentially, Amazon will display products that customers have looked at before, on other Amazon pages or third-party websites with the intention that a purchase will then be made.
This advertising method is another that requires the seller to be enrolled in Brand Registry, and is a very impressive tool to come out on top of your competitors.
This article has given you the basics of the different advertising options that are available to you as an Amazon seller. Competition is continuously rising in the marketplace, so it’s vital to have a thorough understanding of how to launch and promote your new products, as well as sustain sales for your already existing products. Amazon PPC will be one of your greatest resources.
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