4 Steps for Creating a Profitable Amazon PPC Campaign

Amazon PPC advertising is a wonderful way to keep ahead of the competition, increase product visibility, and improve your overall Amazon PPC strategy.

While investing money in sponsored display ads may seem appealing, it is not that straightforward.

Redberries, a leading Amazon Marketing agency in Dubai, frequently aids clients in building an Amazon PPC strategy that yields a profitable ROI.

So, if you’re new to Amazon advertising, here are some tips for developing great PPC ads.

What precisely is Amazon PPC?
Amazon’s internal advertising strategy includes pay-per-click (PPC) advertisements. In a nutshell, sellers bid on keywords related to their products.

The vendor gets charged a fee each time a potential buyer clicks on their product as a result of such keywords.

It can be difficult to create an Amazon PPC campaign as a new merchant. It’s tempting to focus on keywords that receive a lot of searches.

However, these are typically more expensive, and higher-performing brands will almost always outbid you.

As a result, it can appear that you’re wasting money.

We are an experienced Amazon PPC agency that can guide you through the first phases of launching your campaigns.

Because you can’t do it alone, it makes sense to hire an expert to help you get started.

Metrics for PPC
Do you believe PPC advertising is simple? Unfortunately, it is not so simple, as PPC advertising uses a range of indicators to evaluate various aspects of a PPC campaign.

Here is a brief summary:

ACoS (advertising cost of sale) refers to the percentage of attributed sales spent on advertising.

Assume you spent $5 on advertising and earned $20 in sales. If you divide 5 by 20, your ACoS is 25%.

Sales with Attribution
This is the total number of products sold based on clicks in one week.

Data may take up to 48 hours to emerge.

As previously indicated, it is an important part of your ACoS calculations.

Impressions
This term may already be familiar to you. Impressions refer to the number of times your advertisements appeared when customers searched on Amazon.

Clicks are self-explanatory: they represent the number of times customers click your advertisements.

Impressions and clicks combine to create the basis for conversion calculations.

What is the importance of an Amazon PPC strategy?
Why should you be concerned about keywords like PPC ads and ACoS as an Amazon seller?

You simply want to make as many sales as possible. Amazon is currently the largest online retailer, accounting for roughly half of the American e-commerce market.

This indicates that selling in this market is difficult.

Your organic ranking (decided, among other things, by reviews and sales) is critical.

Even well-selling items may be overshadowed by a slew of additional high-performing options.

PPC advertising is an excellent way to broaden your platform’s reach and increase product visibility.

Of course, if you need some early feedback, consider joining Amazon Vine.

How to Develop an Amazon Pay-Per-Click Strategy
Sponsored display advertising is somewhat experimental in nature.

Don’t be startled; even professional merchants experiment with keywords.

Benchmarking your progress on Amazon can help you select the best course and make any required changes. Learn how here.

Then try once more!

Consider hiring an Amazon PPC agency in Dubai, such as Redberries, if you want the majority of the work done for you.

However, if you believe you have what it takes to develop a profitable Amazon PPC strategy, here is a quick how-to guide.

Step 1: Selecting Products
Before beginning, it is critical to understand that you should only use sponsored products.

You can set up automatic campaigns for these, such as sponsored display ads or brand or product advertisements.

Step 2: Should I go with automatic or manual?
We’ve already hinted at it: pick automated campaigns over manual ones. They’re a better choice for beginners because they’re simpler to set up and maintain.

Manual campaigns, on the other hand, allow you to bid on your preferred keywords, such as precise keywords, phrase matches, and broad keywords.

The advantage is that you can test out different phrases to see which ones work best for your product.

Manual and automatic PPC ads have advantages and disadvantages. It is ultimately determined by your experience and desire to examine and track.

However, combining the two can provide you with valuable data to work with.

Step 3: Choose bids
PPC advertising relies on bids. In short, it is the amount of money you are willing to spend per click.

You have two options: dynamic bidding (down just or up and down) and fixed bidding.

Active bids are based on Amazon’s perception of your ad’s conversion ability. If it believes it is more or less likely, it will raise or lower your bid accordingly.

Fixed bids are exactly that: you establish a price and change it manually. This choice should be avoided because it nearly always leads to overspending.

Step 4: Analysis.
After establishing a simple PPC campaign, you may begin collecting data.

You can test different keywords and categories to determine what performs best for your products.

Create a weekly list of good and negative keywords to utilize as follows:

Deactivate incorrect keywords for manual campaigns and mark them as unfavorable in automatic campaigns.

Select good keywords from automated campaigns to use as manual keywords. Change them to a negative on automated campaigns later.

Never spend more than AED 48 on a keyword or ASIN that hasn’t been converted.

It is very usual for your ACoS to be 60–90% within the first two months of a new product’s debut.

With adequate optimization, your ACoS should decline to 40% or lower after month three.

Of course, your target is determined by your overall Amazon PPC strategy, competition, and seasonality.
Conclusion
PPC advertisements might be perplexing in the early stages because there is so much information.

With a little experimentation, you can develop a profitable Amazon PPC plan in a matter of months.

As an Amazon marketing agency, we understand how to build PPC ads that consistently provide results.

4 Steps for Creating a Profitable Amazon PPC Campaign