Amazon PPC is also called Sponsored Products because the product ads appearing in search results are ‘sponsored’ (paid for) and not organically ranking in those positions.
Amazon ads are a way for sellers to ‘buy’ a position at the top of Amazon’s search results. Advertisers pay each time a customer clicks on their ads, hence the name Amazon Pay Per Click.
How does Amazon PPC work?
This kind of Amazon advertising is based on keywords and auctions. A seller bids a certain amount on the keyword(s) for which she wants her product to appear. In simple terms: The seller with the highest bid will appear in the first position in Amazon’s search results, the second-highest bid will appear in the second position, etc. Sellers only pay when their ad is clicked on – just like Google’s advertising system, it’s a kind of ‘Amazon AdWords’.
Amazon PPC ads can be placed by any seller with a professional selling plan. PPC ads aren’t available for all product categories, though. An overview of all available categories for Amazon PPC can be found here (when logged into your Seller Central account). Some of those are:
- Pet Supplies
- Health & Personal Care
- Home & Kitchen
Where do Sponsored Products ads appear on Amazon?
The ads appear in two places:
Amazon’s Search Results: Ads appear on the search results page, even on the first one. Despite being discreetly marked as ‘sponsored’, the ads appear seamlessly in the search results next to organically ranked products.
Product listing pages: Amazon PPC ads also appear on product listing pages underneath the title and pictures, but above the product description text.
Key Benefits of using Amazon PPC
Even if your Amazon sales are running fine on their own, you might want to start running ads for a variety of reasons. Here are some of the most common reasons sellers use Amazon PPC:
1. Boost sales for all products in your product line
Amazon PPC ads can be started in order to boost the visibility of your product line and help increase sales. Some ways you can increase your sales generally include running ads on keywords for which your products don’t have enough natural visibility in Amazon’s search results. By placing ads, your products can get a lot more attention on the first search results pages than they normally would.
2. Seasonal campaigns
According to the product, seasonal campaigns can be run for corresponding keywords (e.g. Christmas, Hanukkah, Mother’s Day, Valentine’s, etc.). Amazon ads are a great way to make optimal use of increased customer interest in the product due to seasonality. The same can be said for end-of-season sales to quickly get rid of inventory at the the end of a season.
3. Boost a new product
New products have an especially difficult time being found on Amazon – because products that sell well are placed at the beginning of search results. New products generate few clicks, and therefore less sales, and have a more difficult time climbing to the top of Amazon’s search results. It’s a vicious circle that can be broken with the help of Amazon PPC ads. Running Pay Per Click ads gives you the option to boost new products by generating clicks and sales, so that they gradually begin to rank better organically. Because the long-term objective here is to boost sales, taking a loss or selling with minimal profitability can be acceptable in the short term.
Does Amazon PPC influence organic rankings?
Yes. Using Amazon ads can have positive effects on your product’s normal ‘organic’ ranking. This is in part due to extra sales that have been generated by ‘Amazon AdWords’ enhancing the sales history of the product. Sales history is a very strong ranking factor. If a product sells better, then Amazon will place it higher up in the ranking of search results. Furthermore, we’ve repeatedly seen that organic ranking has been considerably improved for those keywords that were used successfully in Amazon PPC ads.
At Sellics we recently devoted ourselves to writing a dedicated series of articles to help our sellers successfully master Amazon PPC. For sellers new to Amazon PPC, you can read our Amazon PPC Manual, which summarizes our complete writings on Amazon PPC, including a step-by-step guide for creating your first PPC campaign.
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