Amazon is the world’s largest platform, offering startups and businesses the opportunity to advertise and grow. Companies can locate and target audiences, simultaneously engage with other businesses, and generate direct leads on Amazon within their budget.
Pay-per-click (PPC) is one of the most effective marketing techniques for driving traffic, quality leads, and conversions for your Amazon listings.
Marketing agencies offer Amazon PPC management services that deliver tangible results. Moreover, Amazon PPC is a cost-effective and hassle-free platform that enables businesses to maintain high productivity levels.
Ready to choose the right agency for your Amazon PPC campaigns and learn how to start paid advertising on Amazon? Let’s dive in!
✔️ PPC Management Services for Amazon
Amazon offers a variety of paid advertising options for businesses. You will overspend if you ignore the PPC advertising. So, to run optimized PPC campaigns on Amazon, you must be attentive and constantly keep track of Amazon offerings. Some of Amazon’s PPC services include;
➪ Product Optimization
Companies can improve their products’ visibility by opting for Amazon’s product optimization services. You create a product listing with the chosen keywords. Product optimization typically uses SEO (search engine optimization) techniques and PPC.
➪ Product Copywriting
After listing a product, you create compelling content to engage customers by highlighting its features displayed on Amazon. Through optimized content, businesses advertise their products and create user-oriented content that leads to sales.
➪ Product Photography
As per Amazon’s guidelines, the product catalog is developed to showcase and advertise the products. These images with Amazon prices are listed on Amazon’s official website, from where customers can order the products. However, the prices are set according to the Amazon listings and offers.
➪ Review Management
The review management process involves continuously improving product quality and development according to the end users’ requirements. Developing, managing, and launching campaigns according to the customer’s interest is known as the review management process on Amazon.
When we run a PPC campaign on Amazon, we consider all these services according to our investment plan and the cost vs. profit of selling these products.
✔️ Amazon PPC Ad Types
PPC’s primary advertising services on Amazon focus on maximizing sales and leads. The Amazon PPC management services include the following services;
➪ Sponsored Brands
By utilizing Amazon PPC management services, you can amplify your product’s visibility threefold: 1) on your company’s page listing, 2) within Amazon’s product listings, and 3) through customer purchase listings. This means that when someone searches for a product on Amazon and Google, your product will appear up to three times more frequently on Amazon than Google, significantly enhancing your advertising reach and potential sales.
➪ Sponsored Product Ads
Sponsored ads are individual product ads displayed on Amazon for product promotion. These ads offer the best sales-per-click per the PPC campaign design, maximizing profits through sales. The ads designed also appear on Amazon search engines with the added PPC cost. This is the benefit of sponsored product ads on Amazon.
➪ Sponsored Display
This is a comparatively new PPC technique for retargeting customers who have already purchased the product. These ads are displayed on Amazon like the two other ads mentioned above to increase product sales. If a specific product becomes popular, the advertising cost decreases, and the PPC advertising cost is reduced.If we look at
Amazon’s advertising trends, 61% of businesses preferred sponsored product ads, whereas 51% opted for sponsored brand and display ads.
➪ Video Ads
It is one of the new PPC techniques used for brand visibility and direct advertising of product launches. Amazon allows you to run video ads even if you don’t opt to sell your products through Amazon. Launching a video ad on Amazon is a joint venture of the SEO and PPC teams to reach the target audiences. Creating relevant video ad content and driving the sales campaign is like connecting the dots between a customer and product selection.
✔️ Amazon PPC Marketing Prices 2024
Today ,it is a well accepted fact that if your product is not showing on Amazon, then you are not visible. But allocating a budget for Amazon is important to discuss. On an average , businesses invest from $5000-$50000 per month for Amazon Marketing. The amount varies as per the product demands and the nature of the products. The budget is only for PPC advertising.
Once w e know the overall budget , it becomes evident to know – how to decide the cost and how you should get started with Amazon PPC mamangement?
The simple formula used for managing the PPC cost on Amazon is 2.5 rule. Let’s explore , what is it?
➪ Amazon PPC Cost Estimation Using 2.5 Rule
One of the major concerns of a PPC ad expert is to reduce the advertising cost as much as possible, not only the initial cost but also the overall cost management, which can always go up as the product popularity increases.
The simple yet effective formula for PPC cost estimation is 2.5 Rule based on the two assumptions:
- Target ACoS: A 25% Advertising Cost of Sale (ACoS).
- Conversion rate: A typical 10% conversion rate (1 sale per 10 clicks).
Per these two assumptions, the target PPC cost per click must be at most 2.5% of your product’s sales price.to better understand the formula, take an example of the product having a selling price of $20; then, as per the 2.5 formula, the PPC cost must not exceed $0.50
To better understand this PPC rule, consider the same product having a selling price of $20. However, if you start targeting the same product for high-volume keywords, the cost will go up. Suppose the keyword cost you selected goes to $1.5; the total cost will go up.
However, this rule does not always work for high-demand products. The pricing strategy might vary. Consider the same example: a product with a selling cost of $20. If you spend $1.50 on PPC and a tray to target high-volume keywords, the cost will increase, going beyond budget and reducing the profit margin.
➪ Simple Explanation of 2.5 Rule for PPC Campaigns
If your product has a 10% conversion rate on Amazon, you need ten clicks to make one sale. If your target ACoS (Advertising Cost of Sales) is 25% of your total sales price, then your average Amazon PPC cost should be around 2.5%. Here’s how you calculate it in detail.
- PRICE x 25% = Target ACoS
- Target ACoS ÷ 10 Clicks = 2.5%
- Amazon PPC Costs = 2.5% of Total Sales Price
In a more straightforward way:
- The PPC ad cost= Product Price x 2.5%
Pro Tip: Multiply your product’s sales price by 0.025 to find your target Amazon PPC Costs.
✔️ Amazon PPC Management Techniques
In a PPC campaign, the selection of keywords plays a vital role. However, some other variables are responsible for the total cost of the PPC Amazon campaigns. PPC Amazon campaigns success depends on the following factors:
➪ PPC Campaign Tools
PPC management tools offer real-time estimates of bidding costs for various keywords, allowing PPC executives to understand how keyword costs may fluctuate before launching a campaign.
➪ Competitor Analysis and Historical Data
If you have already launched a PPC campaign, consider the campaign results. Preparing a list of high- and low-performing keywords will help you develop a cost-effective strategy. Also, compare your designed campaign with competitors for more accurate cost estimation.
➪ Bidding optimization
Dynamic bidding strategies include marketing techniques such as looking at the search ads (DSA)or using automated bidding options. These methods will help you adjust bid prices with real-time bid rates. Close monitoring of bid prices is required to run a cost-saving PPC campaign. Moreover, having the keywords matching for the right bid plays a vital role in achieving success with PPC campaigns.
➪ Amazon Sale Account Maintenance
When you design PPC campaigns, Amazon also considers your business account information. To maintain the low cost of advertising, set the defect order rate, response rate, favorable discount rate, Amazon sales rate, etc.
➪ Constant keyword Research and Monitoring
In the end, keyword selection decides the cost of the PPC Amazon campaign. Identifying the high-volume, low-competition keywords relevant to your product will always help you run cost-effective campaigns.
✔️ Advanced Techniques for Amazon PPC Cost Optimization
Amazon PPC is fast and evolving. You might face a significant loss if you ignore the right keywords. That’s why advanced techniques to optimize the PPC campaigns with the right keywords are opted for. Here are some of the advanced techniques that will help you design better Amazon PPC campaigns:
➪ AI Powered Tools
AI tools are widely used for finding sponsored products, automatic targeting, and dynamic bidding strategies. A continuous evolution of AI tools is helping in the accurate cost estimation of PPC campaigns specially designed to run on Amazon.
➪ Dynamic Bidding Strategy
While we use advanced tools, manual bid-tracking methods are still widely used. Manual CPC with Downward Bidding Rules are some of the bid control tools. These tools help you target specific search terms and optimize costs according to business needs.
➪ Mobile – Traffic Optimization
Amazon sales are equally distributed among all the channels. The mobile sales are considered for Amazon PPC campaigns. In 2024, if you are not considering landing page designs and mobile ad formats, then you are making a big mistake > you are increasing the campaign cost and decreasing the sales through mobile.
➪ Decision-Making Tools
Advanced marketing tools are used to analyze competitors, understand market trends, and make informed decisions about PPC strategy. These tools help you explore marketing, generate reports, and conduct A? B testing to reduce costs and design effective campaigns.
➪ Research and Adaptability
The success of a PPC campaign depends on continuous monitoring, improvements, and research to obtain better results. Since there are multiple listings on Amazon for one product type, adjusting the product price is quite normal. Using faster campaign development tools, content generation tools, and keyword research tools will always help you optimize the cost of an Amazon PPC campaign.
✔️ Reasons to Choose Amazon PPC Management Service Agency
Companies often focus on launching their products and services, so instead of spending time designing marketing campaigns, they partner with professional marketing agencies. These agencies specialize in creating cost-effective Amazon PPC campaigns. Agencies like IndeedSEO possess the expertise needed to design results-driven campaigns that deliver impactful outcomes.
- High demand and high competition are the competitive edge needed to succeed on Amazon. Launching a successful PPC campaign requires experience in designing the campaigns.
- Once you have launched a PPC campaign, you need to adjust the prices according to the market competition. An expert agency can handle ongoing complexities and set and modify the prices.
- Higher product prices mean low conversion rates. To balance the prices and run cost-effective campaigns, you need to rely on a marketing agency.
Amazon offers user-friendly interfaces and the world’s most advanced seller platform. However, you need to keep track of Amazon’s policies to run cost-saving PPC campaigns. A professional company can provide appropriate services for running cost-saving campaigns.
Final Thoughts
The cost of Amazon PPC campaigns depends on how you optimize them. You can’t judge the overall cost of the PPC campaigns by the initial investment. However, using the right tools, targeting the right keywords, and monitoring the success of your campaigns will help you minimize the cost of Amazon PPC campaigns.
In the end, having a clear roadmap with ABR (Always Be Researching) allows you to run bespoke ads with an allocated budget. Ultimately, the aim of running a cost-saving ad campaign on Amazon means designing a campaign with high-scoring ACoS and RoAS.
Have a clear roadmap as to what goals you want to accomplish with your ads and allocate your budget accordingly. Make sure you test out all possible strategies to see which best fits your budget and gives you a good ACoS and RoAS.
