This ultimate guide to Amazon PPC Services optimization covers the basics of pay-per-click advertising on Amazon, including campaign types and setup tips.

I will share optimization tricks and tell you how you can save time AND money.

But before we dive into the optimization, we need to cover the basics. After all, a solid base is a foundation of success!

Amazon PPC Basics

If you are an Amazon seller or vendor (or thinking about becoming one) you must be wondering: how can I grow my sales?

With Amazon Ads! This can be an extensive and complex topic.

But if you understand the fundamentals and follow some basic guidelines, you can quickly get a great return on your Amazon Ads investment and become an expert.

And I’ll cover the basics for you in the following chapter.

What is Amazon PPC?

Amazon PPC is also known as Amazon Ads, an advertising program for Amazon’s e-commerce platform. The platform lets you advertise your products directly in Amazon stores and across Amazon’s devices.

The abbreviation PPC stands for Pay Per Click. It means that you only pay for ads when users click on them.

Mini Amazon Ads Glossary

I’m not going to lie: Amazon Ads world is extensive and therefore confusing to a lot of people.

All of a sudden you find yourself in a PPC world filled with terms and expressions you’re with.

That’s why I put together a mini Amazon Ads glossary. Here you can find short and quick explanations of key expressions:

ASIN

ASIN is an Amazon term that stands for Amazon Standard Identification Number. This is a unique number given to every product sold on Amazon.

ASIN consists of ten digits and helps Amazon keep track of its near-limitless inventory.

Keywords

Keywords are key phrases that can trigger an ad to appear on Amazon.

With pay-per-click advertising, you select keywords and then bid on them with your advertising campaigns.

Negative Keywords

This is a list of keywords for which no ads should be displayed. By using negative keywords you can use your budget even more effectively.

Keyword Match Types

There are three match types within Amazon Ads:

  • Exact match: your selected keyword must exactly match the user’s search query for your ad to be displayed.
  • Phrase match: your selected keyword triggers your ad when the user’s search query includes either an exact match or its close variation.
  • Broad match: your selected keyword triggers your ad when the user’s search query is similar to your keyword. Or if Amazon’s search algorithm detects it is somewhat relevant.

Amazon PPC Targeting Options

There are several different types of targeting.

Keyword targeting

Keyword targeting refers to keywords that you use to describe your product listing. Then you select the most relevant keywords to target in your Amazon Ads campaigns.

When shoppers are searching for those keywords on Amazon, ideally, your ad appears in their search results.

Product targeting

Instead of targeting keywords, you can also target products. This means when an Amazon user searches for the same or similar product on Amazon, your ad can appear in their search results.

Negative targeting

Negative targeting works exactly the opposite way. Instead of including keywords or products to your advertising campaigns, you exclude them.

When you add a negative keyword or product to your Amazon Ads platform, you tell Amazon to exclude your ads from related search results.

Retargeting

Retargeting addresses users who were interested in your products or product category on Amazon within the past 30 days, but did not buy anything.

Bid

A bid is the maximum price that you are willing to pay per click on one of your Amazon ads. You can increase bids to improve your ranking options hopefully. Bids can be fixed or dynamic.

Daily Budget

Your daily ad budget is the maximum amount you want to spend on ads per day. To display Amazon ads on amazon.com, you can have a daily budget between 1 and 1,000,000 €.

Product Attribute Targeting

Do not mix up Product targeting and Product Attribute Targeting! The latter focuses on product attributes such as:

  • Brand
  • Price range
  • Star ratings
  • And more

This type of targeting is more specific and allows you to reach better-defined audiences.

Audience Remarketing

With audience remarketing, your ads are displayed to users who have shown interest in your or similar products but have not yet bought them.

Learn more about related terminology and the Amazon acronyms list. This will help you gain more knowledge and confidence when it comes to optimization.

Key Takeaway

Now you know exactly what is Amazon PPC – the same as Amazon Ads. You can advertise on Amazon whether you are an Amazon seller or Amazon vendor/b.

The only difference is where you access Amazon Ads: either through Amazon Seller Central or Amazon Vendor Central.

I also introduced basic terminology and explained what ASIN is, the targeting options, and keyword match types (exact match, phrase match, and broad match).

Let’s move on to see how Amazon PPC works before we move on to reveal how you can optimize PPC campaigns!

How Amazon PPC Works?

In a nutshell, PPC is online advertising based on auctions, bidding, keywords, and products.

Advertisers place a bid either on a product or keyword to get their item to appear at the top of Amazon search results.

The highest bid usually (but not necessarily!) wins the auction. More on that a bit later (scroll down to The Highest Bid Does Not Always Win).

Only the winner’s ad appears in the Amazon search results.

How Much Does Amazon PPC Cost?

PPC stands for pay-per-click. First: you only pay for an ad if someone clicks on it. Second: you set your daily budget, the maximum amount that you are willing to spend on Amazon Ads per day.

Essentially, you will never pay more than what you specified as your daily budget. You decide what will be your cost. When you run out of your daily ad budget, you automatically won’t take part in auctions anymore on that day.

How Is Amazon PPC Bid Calculated?

The maximum bid does not mean that the auction winner pays the exact amount. The click price for the winner is based on the runner-up’s bid and is just slightly higher.

Essentially, this is how Amazon bidding works. The entire bidding process is automated and is happening over and over again in the background.

Every time a shopper searches on Amazon a bid auction automatically happens in split seconds and thousands of sellers and vendors keep losing or winning Amazon PPC bid auctions.

The Highest Bid Does Not Always Win

The bid amount is important but is far from being the only criterion for ranking Amazon search results.

In other words, having the highest bid does not guarantee that your product will appear at the very top of the search results.

Why? Because with Amazon, the customer comes first.

Amazon’s ranking algorithm is complex and takes into account numerous factors.

Here are some that are related to customer service:

  • Customer reviews and ratings
  • On-time delivery
  • Product availability
  • (Free) Shipping options
  • Response time to customer inquiries

Even though higher bids do not guarantee you to win the auction, they do drastically increase your chances.

When will I be charged?

A big advantage of PPC is its pay-per-click model. You only pay for actual clicks on your product or ads (with an exception of Sponsored Display campaigns, but more about that later on).

Amazon shows your ads, but you pay for them only when shoppers click on them.

Think of it this way: your ads are shown for free and even without clicks, you can get a lot of impressions.

For this reason, Amazon aims at getting you clicks and it’s good for both sides. Amazon shoppers get served the products they are looking for and sellers and vendors get to sell their products if shoppers go for them.

Is Amazon PPC Worth It?

Like anything, also Amazon advertising has its pros and cons. Whether it is worth it for you, it depends on a wide range of factors related to your business goals and circumstances.

A lot of sellers and vendors successfully use ads to sell their products faster and increase their product turnover.

Amazon Ads benefits

1. Increase product visibility

With the help of Amazon advertising, you can significantly increase the chances for your products to appear at the top of the Amazon search results.

Your products will receive more attention than other listings placed lower in search results.

2. Sell more products

It doesn’t matter if you want to sell a top seller or a new niche product. With Amazon Ads and their proper optimization, you can promote all products from your portfolio. Ultimately, your sales will grow!

3. Accelerate sales of seasonal products

Do you sell seasonal products? Like Christmas decorations, Valentine’s cards or Halloween costumes? With the help of Amazon Ads, you can make sure to sell your products when it’s the right time.

4. Promote new products

What are the chances for new products to appear at the top of Amazon search results? Close to zero (in most cases)! With advertising campaigns, you can give your new products the boost they need.

5. Leverage top products to gain more visibility

Congratulations, some of your products made it to the top of the Amazon search results page! Now: don’t rest on your laurels. Leverage ads to maintain your product at the top and don’t let competition beat you.

More than that, by promoting your top products you can also increase your visibility. Amazon shoppers will see your products more often. And more exposure means more clicks (and conversions – fingers crossed)!

6. Improve organic search results

Amazon PPC is paid, which is the opposite of organic. Here’s the interesting part: organic search results are related to paid search results.

You might find it contradictory but paid advertising also increases organic rankings! It is not a secret and a lot of Amazon sellers and vendors use Amazon Ads to improve their organic sales as well.

7. Stay ahead of your competitors

Amazon is huge and for basically anything you sell, there’s competition. Advertising is one of the ways to stay ahead of your competitors by promoting your products.

8. Boost your click-through rates

Do you have products with high margins but low click-through rates? Here’s where Amazon Ads can help you out. Set up advertising campaigns for your products to get more clicks and grow your profit margin.

9. Get rid of your leftover stock

Amazon advertising campaigns help to sell reduced products even faster. They make your target group aware of the price reduction.

Here are 6 components of retail-ready products that also boost the performance of your campaigns:

1: High-Quality Images

Visual elements play an enormously important role in everyday life: they make up about 93% of human communication. eCommerce is not an exception.

Especially with Amazon where it’s all about the customers. The better your product images, the better the idea they get about your product.

To make your product listing retail-ready, follow these image guidelines:

Do’s:

  • Use only high-quality images.
  • Put a white background behind your main image.
  • Display the whole product.
  • Use all the space. Your product should fill 80-100% of the image.
  • Don’t add text or graphics that aren’t a part of your product.
  • Show different angles of your product, dimensions, detail shots, different colors, sizes, styles, etc.

2: High-Quality Text

No one likes confusing and vague descriptions! Describe your products in a clear and detailed way. Use the most relevant keywords to describe the product.

Product Title

When you are creating a product listing, the product title automatically generates based on the data you have provided. If you have thousands of products, this can save you lots of time.

But if you can set some time aside, I recommend you to spend some time creating your own, more appealing product titles.

The Ideal Amazon product listing title is:

  • Precise and appealing.
  • Max. 80 characters long (so that it is also displayed in full on mobile devices).
  • Includes information about color, size, and weight.
Bullet points

Next to the product image on Amazon, 5 bullet points outline the product’s main benefits and features.

  • Each bullet can be 10-255 characters long.
  • Use product-related keywords.
  • Do not write full sentences.
  • Do not use exclamation marks or superlatives such as “best”.
  • Do not include hyperlinks.
  • Product Description
  • Product description explains the most important product features.

3: High Customer Ratings and Reviews

Positive product ratings and reviews help other users make a purchase decision. They also influence the search engine optimization (SEO) of your listing and can thus promote conversions.

Only a few positive reviews are not enough. Amazon will consider your product retail-ready when it has at least 15 ratings or reviews with an average of 3.5 stars or higher. Needless to say, also your Amazon PPC campaigns will be more successful.

Customer ratings on Amazon are updated in real-time. Check them regularly, especially when you are running advertising campaigns.

Your product doesn’t have enough ratings or reviews? Use the Amazon Vine program to gather more customer reviews.

4: Competitive Price

Price is a big factor from most perspectives. If your product has the lowest price in your segment, it will be much more attractive to Amazon users and Amazon Ads alike.

5: Inventory (or Why You Should Never Run Out of Stock)

You can’t sell what you don’t have! Even worse: running out of stock can hurt your product ranking. Products that you sell on Amazon should always be available to customers. Check your inventory regularly – especially during sales events such as Amazon Prime Day, Black Friday, and Cyber ​​Monday.

6: Promote Your Brand with the Amazon Brand Registry

If your company or your products are registered as a trademark, use the Amazon Brand Registry to register your brand.

Registering a brand with Amazon gives your brand additional protection. You can also benefit from a better presentation of your products.

Final Words

So, that’s my ultimate guide to Amazon PPC optimization.

We first covered the basics and learned Amazon PPC Services stands for pay-per-click advertising. Even if you are not a complete digital marketing rookie, Amazon Ads can be confusing because there are so many options and functionalities.

In this practical guide, I laid out what is important within Amazon Ads, which campaigns you can run, and what you should pay attention to when setting them up.