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Is Amazon PPC Worth It or Just a Waste of Budget?

Anyone who wants to sell their products online should know about the Amazon marketplace. It is the largest e-commerce site in the world with over 2 million sellers which also means it’s very competitive to get noticed by a potential customer. However, there are many ways to market your product on the Amazon marketplace and the most effective is through Amazon PPC.

PPC allows businesses to bid on keywords related to their products or services. The higher the bid, the more likely they are to appear at the top of search results. This means that if someone searches for something specific, they’re more likely to click on your ad.

While PPC is great for driving traffic to your site, it can also cost a fortune. In this article, we’re gonna answer the question: Is Amazon PPC worth it or not? Read through so you can get a clear view of the matter and decide.

Amazon PPC VS Google Ads

Amazon and Google both offer paid search advertising services, but there are some key differences between them. Amazon offers an ad service called Amazon Sponsored Products Ads (ASP) while Google offers AdWords. Both companies allow you to bid on keywords or phrases. However, Google ads allow advertisers to target specific geographic regions, while Amazon does not. Google ads also provide more detailed reporting than Amazon. In addition, Google ads allow you to set up campaigns that automatically adjust bids based on performance metrics such as clicks, impressions, conversions, etc.

Google is great for searching but not so for buying products. Amazon is better because it shows you what the product looks like before you buy it. People who use Google are probably at the beginning of the customer journey than people who use Amazon which means those types of PPC ads do not convert as well.

is amazon ppc worth it?

People who browse on Amazon are more likely to buy something than those who search elsewhere. Amazon positions products in front of buyers, making them ready to spend money. Other platforms do not offer this advantage.

Amazon PPC allows advertisers to see how their keywords perform and how they compare to other advertisers. This allows them to optimize their campaigns and increase their conversion rate.

Both platforms have negative keywords options, but with Amazon PPC, you can use this feature to exclude irrelevant terms in the search results. You can also use negative keywords to optimize your ad targeting by analyzing the search results your ads are receiving.

Is Amazon PPC worth it? Here are some of its benefits to help you decide:

1. More Exposure on Your Sponsored Products

If you’re selling products online, then it makes sense to advertise them using paid search advertising especially when you’re launching. The problem is that most people don’t know what they’re doing, so it can be difficult to tell whether or not this form of marketing will actually work.

With Amazon advertising, two of the most popular type of ads are sponsored products and sponsored brands. Sponsored products are displayed prominently on Amazon. They are also shown in the top right corner of the page. They are also shown on your competitors’ product detail pages.

Sponsored brands, on the other hand, are displayed above, to the side of, or below search results. You can display multiple products of your brand and show your logo in the ad as well.

Each ad type has its own pros and cons but you can use them regardless of whether you’re a newbie vendor or a professional seller. Your ads will always be prominently placed on the search results page. This gives you more exposure to your product.

Especially during product launches, when your product isn’t reviewed yet, it is recommended that you use Amazon advertising so your first potential customer will be aware of your product.

2. Very High Conversion Probability

Amazon users are more likely to buy a product if they see an ad on Amazon. People who browse Amazon are looking to buy something right now, while people who browse Facebook or Instagram are more interested in seeing what else is out there.

3. Improve Your Product Listings Organic Rankings

A pleasant side effect of running Amazon PPC campaigns is that they help improve your organic rankings enormously. You just need to understand that your organic rankings are affected by your sales performance as well as your product reviews. The more sales you make, the higher your rank.

Especially with new products, when there isn’t much competition, it is almost impossible to rank well in highly competitive niches without buying advertising. Running Amazon PPC ads drives a lot of traffic to the listing, gets visitors to buy your product, and collects your first reviews. The Amazon A9 algorithm takes these performance indicators into consideration and rewards your conversions, good conversion rate, and the first (good!) reviews with an increase in ranking.

You get better rankings because you invested in advertising campaigns. These improve your visibility, traffic, sales, and reviews, which helps you rank higher and so on. So you’ll have an upward spiral. 

More importantly, advertising costs decrease as sales increase.

4. Valuable Data Insights

Running Amazon PPC ads is an easy way to make money online. You can use them to promote your products or services as well as generate leads and increase sales.

You can also see what specific feature your customer is looking for and take this insight into account, for example in your product description, development, and presentation.

If you want to know what relevant keywords people are searching for, Amazon PPC will give you this information. This is valuable because it helps you understand which products are most relevant to your audience so you can optimize your product pages to rank higher.

5. Pay Only For Clicks On Your Ads

Ads on Amazon are fairly priced. There are no fees associated with them. Your daily budget can be freely set, and you can adjust it as often as you want.

The cost per click (CPC) is the amount you pay each time someone clicks on one of your ads. If you want to increase your CPC, you need to improve the quality of your ad copy so it attracts more people who will actually click on it.

Now, back to the question, is Amazon PPC worth it?

Yes, it is and it’s one of the most popular ways to increase traffic to your products! If done correctly, PPC advertising can be one of the most effective ways to market a business online. It’s definitely worth it if you put some time and effort into managing it. 

Visitors on Amazon are already looking to buy products. This means that if you want to generate sales, you should be focusing your efforts on the platform. You should also focus on getting more people to visit your website.

All you have to do is to get their attention. Crazy thing is that advertisers are finally realizing the power of Amazon advertising. Many are shifting their daily budget towards this platform in favor of others like Facebook and Google. In fact, an analyst from Atlantic Equities predicts Amazon PPC will quadruple its revenues from advertising by 2020.

You need to learn how to use Amazon PPC. You must know how to set up campaigns, create and target keywords, write ad copy, etc. Start small and test out a few keywords at first to give you a better idea of what works and what doesn’t. Once you know which keywords perform well, you can start running campaigns using them.

A piece of an expert advice though...

If you’re new to paid search marketing, it might seem like a great way to drive traffic to your site. But if you don’t know what you’re doing, you could end up spending a lot of money without seeing any results.

You should always think about what kind of traffic you want to attract before you start advertising on Amazon. If you’re looking to sell products, then you need to make sure that your offers are highly relevant to the keywords used in the search queries. Otherwise, you’ll end up paying for clicks that aren’t converting into sales.

You shouldn’t rely solely on Amazon PCC ads, but create a comprehensive advertising plan that also includes additional advertising measures and sources of traffic. If you’re not sure how Amazon PCC works and you don’t want to learn and master it by yourself, we highly recommend hiring an Amazon PPC specialist to help you develop and implement a strategy and monitor your ad’s success like Foxtrap Marketing.

To wrap this up

The conclusion is simple: if you have a well-planned strategy in place, then Amazon PPC is worth it. But if you don’t have one, then it isn’t.

Paid advertising is an investment that you’ll always pay for. You’re going to lose money if you spend your budget on poor keywords or on expensive, ineffective keywords. However, if you take the time to learn how to use Amazon PPC, and hire a specialist who can help you create and manage your campaigns, then paid to advertise can become a true gold mine.

Now, what do you think, is Amazon PPC worth it?

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