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Utilize Amazon PPC Management and Maximize Your Returns this Festive Season 2021

Amazon PPC is a highly effective marketing technique for sellers of all types and sizes, used by three out of four sellers in 2021. It provides an amazing way to drive sales and visibility on the world’s largest marketplace. To know more, let us quickly dive into this article on Amazon PPC management.

What Is PPC?

PPC (Pay Per Click) is an advertising model wherein you pay a fee for every shopper’s click on your ad. With PPC ads on Amazon, you can target specific keywords and reach your target audience.

On Amazon, these adverts appear in the relevant search results as well as on relevant product detail pages. This way, your brand, and products are advertised to customers looking for products just like yours.

Why Are Sellers Crowding To Use Amazon PPC?

Adverts aren’t the first thing that comes to our mind when someone mentions Amazon. However, over the years, this retail giant has transformed into a behemoth in the advertising domain. Though it has not dethroned Facebook or Google, it still has rapidly scaled its market share.

The simple answer to why people, especially the sellers, are crowding to use Amazon PPC is the high return on investment. This retail platform is already filled with people who are already looking to make a purchase. So, your ads will have a higher probability of conversion. 

With widespread digitalization, the user base of Amazon is expanding rapidly. The regular shoppers on this platform are spending more on purchases every passing year. In the year 2020 alone, the worldwide retail sales of Amazon grew by 16.72%. A clear understanding of Amazon PPC management can help you quickly target the stable client base of Amazon to generate more sales for your business.

To meet your advertising needs, you can consult an Amazon PPC agency specializing in PPC services to take care of your Amazon product advertising needs. This way, you can increase productivity and work more effectively.

Types Of Amazon PPC Advertisements

Sponsored Products, Sponsored Brands, and Sponsored Display Ads are the three types of PPC ads offered by Amazon. Here, Sponsored Display Ads are the new extended versions of the previously available Product Display Ads (PDAs).

Sponsored Products – the most common type of ad run on Amazon. With Sponsored Products, you can create keyword and ASIN targeted ads, similar to Adwords by Google. It facilitates the promotion of individual products within the search results and on the product detail pages.

Sponsored Brands – ads to promote your brand with a brand logo, custom headline, and upto 3 products in the top spot above the search results (and other placements). Sponsored Brands allow you to direct customers to a custom landing page or the Amazon Stores page. Video ads that link to product pages are a new addition to it.

Sponsored Display Ads – sends customers to the product detail pages of Amazon. This type of PPC ad delivers relevant ads on Amazon and external sites to customers who have visited or are visiting certain products on Amazon.

Requirements To Run a PPC Ad

To run successful PPC ad campaigns, you need to ensure that the following requirements are met.

Seller Account: You should have an active seller account.

Shipping: Your products should be deliverable anywhere in the world.

Buy Box: To advertise using Sponsored Products, you need to meet the eligibility criteria of the Buy Box. It involves conditions like having an active seller account, reporting stock availability, and updating metrics such as cancellation rates, late shipment rates, order defect rates, and so on.

Amazon Brand Registry: You are required to be enrolled in Amazon Brand Registry to run ad campaigns. Being enrolled in the brand registry also protects your intellectual properties and offers a better user experience.

Factors Affecting Amazon PPC Ad Placements

Let us now look at how the ad placement is determined. The common assumption is that the highest bidder takes the best spot, but this isn’t always the case. Cost Per Click is a significant factor but isn’t the only one responsible.

The following two factors decide the ad placement:

Amazon CPC: The seller with a higher CPC has a higher chance of securing the prime ad space.

Quality Factor: Amazon gets paid only if the ads generate clicks, so a shopper’s chance to click on an ad is crucial. The higher the probability of a customer clicking on an ad, the better the placement. 

You can bid lower for a spot if your ads are converting well and getting a lot of clicks. To reduce ACoS (Advertising Cost of Sale) and maximize ROI (Return On Investment), you need to create a good product listing and solid ad copies.

What Is AcoS?

Advertising Cost of Sale is a metric you can use to measure the efficiency of the Amazon PPC campaign. The value is the ratio of ad expenditure to ad revenue. 

ACoS = (100 * ad expenditure) / advertising revenue

If the value of ACoS is more than 100, you are spending more than the revenue you receive.

There isn’t any golden value to assessing your campaign. An optimum ACoS relies on factors like advertising goals, product category, and business strategy. Depending on these factors, you will need to tailor your ACoS goals and work out strategies to meet your target.

Maximize Your Returns This Festive Season

Seasonality is among the most discussed topics in the e-commerce field. So, let’s take a look at some events that can impact the performance of your PPC campaigns in the upcoming months.

Halloween – a traditional American celebration, it has now become very popular in Europe and the UK. It represents a sizeable opportunity for sellers in specific industries.

Search results related to Halloween are increasing with every passing year. “Halloween decorations” and “Halloween costumes” are the most popular search terms during the season.

Black Friday – needs no introduction as it is now the most important day in e-commerce history. To drive more sales on Black Friday, retailers tend to run promotions over the weekend. Some begin a few days beforehand. This event alone can bring a massive change in sales, so you might want to carefully plan your campaigns to get ahead of your competitors.

Christmas – the most magical time of the year. Christmas-related searches tend to start increasing from September itself. And to make the most of the Christmas shopping season, you should start planning early.

Optimize Your PPC Campaign For the Festive Season

Make the most of the upcoming season by better optimizing your PPC campaigns to suit the needs of the events and festivals. You can start by

Analyzing Historical Data

It is essential to understand what worked and what didn’t in the festive season campaigns of the previous years. To get an idea of it, you can check for the following:

  • How many days before a particular event does the spike in search traffic occur?
  • When exactly did the traffic peak?
  • Did the campaigns exhaust your budget? 
  • Look for the keywords and product categories that performed well.
  • Which industries got the most traffic?

Budgeting and Campaign Planning

Once you have analyzed and understood historical performance and the seasonal events that affect your business, you can now start planning your PPC campaign. The following points shall paint a picture:

  • Know which products will be on sale.
  • Update your shopping feed.
  • Decide if you will be using a discount code.
  • If you have run out of budget before, then plan better this time.
  • Check if you will have product-specific promotions, or it will be a site-wide sale.

Ensuring That Your Ads are Relevant

Advertisements work as the first point of interaction between a brand and a shopper. The best thing to ensure a solid interaction is to make your ads relevant to the event and target the specific sales by mentioning the event in the headline. This will improve the CTR (Click Through Rate) and improve conversion. Also:

  • Ensure the existence of promotion extensions in all your ads.
  • Don’t forget to mention the event in the ad copy.

Bottomline

This was all about better managing your PPC campaigns and maximizing returns during the festive season. If you need assistance on Amazon PPC Management and other Amazon PPC services, there are many Amazon Advertising agencies you can go to.

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