As you can see from the title, what will be presented to you next will be the content about Amazon PPC campaigns. In this series, content related to PPC will be explained.
1. How to compare Google or Facebook ads?
Amazon’s PPC ads are more effective than Google and Facebook. Google and Facebook certainly have a lot of audiences. Even today, Google is still the most popular website in the world. With this accumulation of traffic, it is reasonable to promote ads on Google.
However, compared with Google, Amazon’s PPC ads have some natural advantages that cannot be surpassed, that is, Amazon’s ads are more accurate for groups. The groups that can see Amazon ads are either logged in to Amazon and ready to consume, or users who have consumed on Amazon. The characteristics of these two groups are that they have a stronger tendency to buy. We don’t need to analyze which one is more inclined to buy, which one searches for literature on Google and prepares some papers, and which one searches for references on Amazon and writes papers.
It is precisely because the audience’s purchasing tendency is different that the conversion rate of ads is different. The advertising conversion rate of most Amazon products is between 10% and 20%, which is nearly 10 times higher than the average marketing conversion rate. This is also the main reason why we choose Amazon PPC instead of Google or other platforms!
2. Influence on natural rankings
Natural rankings refer to the rankings presented on the search engine results page, which has nothing to do with paid content and relies only on the relevance and importance of the page itself. There is no doubt that Amazon PPC advertising will affect natural rankings.
3. What can PPC bring?
In order to make money on Amazon, we need to sell a large number of products. This is different from dealing with chicken dogs that we don’t want. We want to send it to FBA, which requires our purchase volume. We can sell so many goods! It is very important to understand this. Most of the products we sell are low-priced and have limited single profits. If we want to support the store, we must increase sales, and PPC advertising is the fastest and most direct way to increase sales.
4. Advertising costs
PPC should bid for keywords and phrases in operation, and the price of each keyword or keyword combination on Amazon may be different. For a seller selling cups, the cost of the two keywords “wineglasses” and “glasses” may be different, and a seller selling towels will also find that the cost of “softtowelforbaby” and “towels” is different. Between $0.35 and $5 per click, we can only bid the price. We need to calculate the specific amount ourselves. So how should we calculate it?
5 How to calculate keyword costs?
Amazon PPC keyword bidding depends on our bidding with competitors. When we start bidding, we will set our target price, and Amazon will determine the position of our advertisement based on this bid price. If the price is high enough, we may see our advertisement on the first page, but if it is too low, it may never appear in the eyes of consumers. Even if it appears, it may reach the fifth and sixth pages, and most buyers are unlikely to have the patience to turn so many pages. Knowing this, let’s take a look at some methods to predict our advertising costs.
It is impossible to accurately estimate and predict advertising costs before actually selling products and starting corresponding advertising. However, we still have some methods to roughly calculate advertising costs.
Do a good job of product keyword research
Product keyword research is a good way to help reduce the cost of trial and error for low-frequency and low-conversion keywords. If we find the exact matching keywords and the competition is not great, it will be of great significance to our actual operation and predicted costs. The more competitors there are, the higher the cost of bidding keywords.
6. Leave a profit margin
Suppose the product we sell is $13, Amazon extracts $5, and the cost of goods is $2, leaving us with a single profit of only $7. Even with a 10% conversion rate, our bid will be deducted from this $7. Even a 10% conversion rate is good because the conversion rate of advertising is never very high. In this case, even if our bid for a single click keyword is only $0.7, it is just breaking even for us, with no profit. If the price is slightly higher, our profit range will be larger.