Amazon PPC Advertising

Amazon is the largest e-commerce platform in the world, bringing in $500 billion in revenue in 2021.

Few people realise that it is also a huge advertising platform and to succeed as a Seller or Vendor on Amazon, you need the right marketing strategy.

To implement it, you first need to understand what Amazon PPC ads are and that’s where this article will help you:

  • What are Amazon PPC ads and why are they so important?
  • What types of PPC ads are available on Amazon and which ones should you choose?
  • How do you create a marketing strategy on Amazon?

What are Amazon PPC ads and why are they so important?

Amazon’s platform allows you to create advertising campaigns to promote your products, or brands, thanks to its PPC – Pay Per Click – system, which means the advertiser pays when a potential customer clicks on the ad, not for the display itself.

Depending on the type of ad, these can display both on and off Amazon, offering huge potential and opportunities to trade their products across multiple markets.

It is estimated that there are over 400 million unique items on Amazon, so you need to take care of a number of factors to ensure that your listings are as high as possible in the rankings, and in the search results.

One of the key elements is actually advertising on Amazon to reach as many potential customers as possible.

What types of PPC advertising are available on Amazon and which should you choose?

There are 3 types of Amazon PPC advertising available:

Which type of advertising campaign to choose? It depends on the retailer’s needs, goals or advertising strategies.

Does revenue, the number of products sold or the highest possible number of impressions count? Each type of advert will help to achieve different objectives.

How do you create the right marketing strategy?

Creating a marketing strategy on Amazon using PPC advertising is impossible without understanding the metrics used to measure results:

  • Impressions – how many times an ad has been displayed
  • Clicks – the number of times an ad was clicked, either intentionally or accidentally
  • CPC (Cost per Click) – the average cost per click
  • Spend (Cost) – how much money was spent on the ad, through clicks
  • ACOS (Advertising Cost of Sales) – an indicator that measures the effectiveness of advertising campaigns, expressed as a percentage. It is calculated by dividing the money spent on advertising, by advertising revenue
  • TACOS (Total Advertising Cost of Sales) – this is an indicator that is not visible in the advertising panel, but refers to the ad spend compared to the total revenue, both from advertising and from organic sales of a product
  • ROAS (Return on Ads Spend) – measures the effectiveness of advertising, is expressed numerically and is calculated as the inverse of ACOS, i.e. revenue is divided by money spent on advertising

Once you have reviewed the above indicators, it will be possible to determine the right marketing strategy for you.

You will need to decide if you are looking to maximise profit, sales or if you want to focus on promoting your brand to as many to potential customers as possible.

need some help?

If you feel your knowledge of Amazon PPC advertising is insufficient and you don’t feel comfortable enough to handle it yourself, then contact the specialist team at Boomd.

You can trust Boomd to take a comprehensive look at your Amazon Seller or Amazon Vendor account, and all aspects of your advertising.

Together, we’ll set the advertising goals you want to achieve, then develop and implement a marketing strategy, measure and analyse the results and make any necessary changes required. Contact us for help now!