{"id":14411,"date":"2020-09-11T15:21:43","date_gmt":"2020-09-11T14:21:43","guid":{"rendered":"http:\/\/www.repricerexpress.com\/?p=14411"},"modified":"2022-02-07T16:32:38","modified_gmt":"2022-02-07T16:32:38","slug":"amazon-ppc-basics","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/amazon-ppc-basics\/","title":{"rendered":"Amazon PPC Basics: Getting Started With Amazon Sponsored Products"},"content":{"rendered":"

Guest post by Luke from Ad Badger<\/em><\/p>\n

Amazon advertising is the best platform for anyone trying to sell a product. Don\u2019t believe me? Let\u2019s take a look at the numbers.<\/strong><\/p>\n

In 2019, over $229 billion worth of merchandise<\/a> was sold on Amazon, equating to almost half<\/a> of all ecommerce sales in the United States. What\u2019s even better than these numbers? Amazon is projected to keep growing their market share and sellers are flocking to the platform every day by the thousands.<\/p>\n

Clearly Amazon presents a great opportunity, and it\u2019s time for you to get started with Amazon PPC.<\/p>\n

Amazon Advertising Basics<\/h2>\n

Amazon advertising primarily uses a pay-per-click (PPC) model for its ads. That means you pay when someone clicks on your ad, as opposed to paying when your ad appears in a search (CPM model).<\/p>\n

When it comes to bids, Amazon has an auction-style format for determining what ads appear for a particular search. Amazon PPC<\/a> is an auction where sellers bid on certain keywords<\/a>. Obviously, higher bids are preferred to lower bids, but there\u2019s more to the equation.<\/p>\n

Amazon also factors in your ad\u2019s performance to determine how it stacks up to your competition. This performance metric is called Ad Grade. The exact formula Amazon uses to determine Ad Grade is unclear, but there are some clear performance metrics and relevance metrics that factor in.<\/p>\n

\"Amazon<\/p>\n

To find your Ad Rank, multiply your bid by your Ad Grade. With a high Ad Grade, you can potentially have a lower bid than your competitors and still be valued more by Amazon.<\/p>\n

Amazon PPC Ad Types<\/h2>\n

When creating your first Amazon PPC campaign, you\u2019ll have to decide which type of ad you want to use.<\/p>\n

Amazon has three ad types:<\/p>\n

    \n
  • Sponsored Products<\/strong><\/li>\n
  • Sponsored Brands<\/strong><\/li>\n
  • Sponsored Display<\/strong><\/li>\n<\/ul>\n

    \"Campaign<\/p>\n

    Each ad type can be effective, but for this post, we\u2019re going to focus on Sponsored Products<\/a> because this ad type offers sellers the best return on ad spend and is easy for beginners to manage.<\/p>\n

    Sponsored Products<\/h2>\n

    When someone makes a search on Amazon, the first two or three products that appear at the top of the SERP (search engine results page) will have a small \u201cSponsored\u201d badge above the product title. These are Sponsored Products.<\/p>\n

    \"Sponsored<\/p>\n

    For certain searches, Amazon makes an item that fits the search criteria. In these instances, Amazon puts its AmazonBasics product at the top of the SERP followed by Sponsored Products.<\/p>\n

    Building a Sponsored Products Campaign<\/h2>\n

    To build your first Sponsored Products campaign, select the ad type and then consider which type of targeting you want to use. Amazon has two targeting methods: automatic and manual.<\/p>\n

    We\u2019ll dig deeper into those later.<\/p>\n

    You will also need to set a daily budget, the amount of time you want the campaign to run, and organize your campaigns by adding a campaign name. You can also make a portfolio where multiple campaigns can be grouped together for organizational purposes.<\/p>\n

    \"Settings\"<\/p>\n

    You will also need to determine your campaign bidding strategy. If you want to give Amazon the ability to raise and lower your bids, use dynamic up and down bidding. If you\u2019re only comfortable with Amazon lowering your bid, select down only bidding. The final option is fixed bidding where Amazon won\u2019t change your bid.<\/p>\n

    \"Campaign<\/p>\n

    You can also adjust your bids by placement. That means you\u2019ll pay different amounts based on where your ad is shown on Amazon. Learn more about adjusting bids by placement<\/a>.<\/p>\n