What is Amazon PPC?
Posted: Sat Jan 25, 2025 9:15 am
PPC, you pay Amazon every time a customer clicks on your ad, whether they buy your product or not.
Amazon provides third-party sellers with an easy-to-use advertising platform to set up multiple PPC advertising campaigns in just a few minutes. The amount you pay depends on the type of ad, the keywords you target, and how competitive your niche is.
Amazon provides sellers with important key metrics to help effective slovenia mobile numbers list measure the success of each campaign they run:
Clicks: This metric shows the number of times your ads were clicked. Amazon adjusts the report to detect invalid clicks (accidental or illegitimate clicks), typically within 3 days.
Impressions: How many times the ad was shown to a customer on Amazon.
Spend: How much you've spent per campaign. This is the total amount of click charges per product ad.
Sales: The total amount of product sales generated within a week of clicking on your ads.
Advertising Cost of Sales (ACoS): Measures the efficiency of your ads and represents the percentage of ad-generated sales you spent on advertising. To calculate ACoS, divide the total amount of money you spent on ads by the revenue generated by the ads.
Return on Ad Spend (ROAS): Another efficiency metric and the opposite of ACoS. To calculate it, divide the sales dollars attributed to ads by ad spend. For example, a ROAS of 5 means that for every $1 spent on ads, you'll receive $5 in revenue.
These metrics can help you set goals for your advertising campaigns.
Understanding them all requires a bit of a learning curve, but after a little practice, you'll be able to optimize your campaigns.
Types of Amazon PPC Ads
There are three types of Amazon PPC ads:
Sponsored Products
Every seller starts their Amazon advertising journey with a Sponsored Products campaign. You don’t need to have a trademark to use it and it’s the easiest form of PPC to set up. After doing proper keyword research, you can launch a Sponsored Products campaign in minutes.
Sponsored product ads appear both at the top of the Amazon search results page and in all organic results, as well as on competitor product listing pages.
As an example:
The first four search results have a "Sponsored" label, indicating that they are ads targeted to the keyword you searched for.
Another thing to note is the third and fourth sponsored ad results have a much lower review count than the first two ad results, as well as the organic results below them.
Within sponsored products, there are two types of targeting to choose from:
Automatically Targeted Ads: Amazon will decide which keywords to target based on the type of product you sell. This is a great way to start running ads if you're not sure what keywords to target. You'll have the opportunity to see what keywords Amazon comes up with and if they're converting into sales. The downside is the lack of optimization options that manual targeting offers.
Manually targeted ads: Sellers decide which keywords or products to target, set custom bids for each, and set the search specificity of their keywords to broad match, phrase match, or exact match .
The requirements for Amazon Sponsored Product ads are not very high, you do not need to be registered as a brand, but you must have an Amazon Professional Seller account or be a Seller. You cannot advertise products with an Individual Seller account.
Your product must be eligible for the Buy Box to qualify. The Buy Box is a box that appears on the product page and is the fastest and easiest way for customers to make purchases on the platform.
Amazon provides third-party sellers with an easy-to-use advertising platform to set up multiple PPC advertising campaigns in just a few minutes. The amount you pay depends on the type of ad, the keywords you target, and how competitive your niche is.
Amazon provides sellers with important key metrics to help effective slovenia mobile numbers list measure the success of each campaign they run:
Clicks: This metric shows the number of times your ads were clicked. Amazon adjusts the report to detect invalid clicks (accidental or illegitimate clicks), typically within 3 days.
Impressions: How many times the ad was shown to a customer on Amazon.
Spend: How much you've spent per campaign. This is the total amount of click charges per product ad.
Sales: The total amount of product sales generated within a week of clicking on your ads.
Advertising Cost of Sales (ACoS): Measures the efficiency of your ads and represents the percentage of ad-generated sales you spent on advertising. To calculate ACoS, divide the total amount of money you spent on ads by the revenue generated by the ads.
Return on Ad Spend (ROAS): Another efficiency metric and the opposite of ACoS. To calculate it, divide the sales dollars attributed to ads by ad spend. For example, a ROAS of 5 means that for every $1 spent on ads, you'll receive $5 in revenue.
These metrics can help you set goals for your advertising campaigns.
Understanding them all requires a bit of a learning curve, but after a little practice, you'll be able to optimize your campaigns.
Types of Amazon PPC Ads
There are three types of Amazon PPC ads:
Sponsored Products
Every seller starts their Amazon advertising journey with a Sponsored Products campaign. You don’t need to have a trademark to use it and it’s the easiest form of PPC to set up. After doing proper keyword research, you can launch a Sponsored Products campaign in minutes.
Sponsored product ads appear both at the top of the Amazon search results page and in all organic results, as well as on competitor product listing pages.
As an example:
The first four search results have a "Sponsored" label, indicating that they are ads targeted to the keyword you searched for.
Another thing to note is the third and fourth sponsored ad results have a much lower review count than the first two ad results, as well as the organic results below them.
Within sponsored products, there are two types of targeting to choose from:
Automatically Targeted Ads: Amazon will decide which keywords to target based on the type of product you sell. This is a great way to start running ads if you're not sure what keywords to target. You'll have the opportunity to see what keywords Amazon comes up with and if they're converting into sales. The downside is the lack of optimization options that manual targeting offers.
Manually targeted ads: Sellers decide which keywords or products to target, set custom bids for each, and set the search specificity of their keywords to broad match, phrase match, or exact match .
The requirements for Amazon Sponsored Product ads are not very high, you do not need to be registered as a brand, but you must have an Amazon Professional Seller account or be a Seller. You cannot advertise products with an Individual Seller account.
Your product must be eligible for the Buy Box to qualify. The Buy Box is a box that appears on the product page and is the fastest and easiest way for customers to make purchases on the platform.