Amazon PPC Step by Step: How to Launch and Optimize Your Campaigns in 2023

By Cepy 9/18/2023 Post a Comment

Hi everyone, welcome to our article on Amazon PPC step by step. If you are an Amazon seller who wants to boost your sales and visibility, you might have heard of Amazon PPC advertising. But what is it exactly and how does it work? How can you create and optimize your own PPC campaigns to get the best results? In this article, we will answer all these questions and more. We will guide you through the basics of Amazon PPC, the different types of ads and targeting strategies, and the best practices for setting up and managing your campaigns. By the end of this article, you will have a clear understanding of how to use Amazon PPC to grow your Amazon business in 2023.

But before we dive into the details, let's start with a quick overview of what Amazon PPC is and why it is important for Amazon sellers.

What is Amazon PPC and Why is it Important?

Amazon PPC stands for Pay-per-Click, which is an advertising model that allows sellers to promote their products on Amazon. Sellers can create ad campaigns for their products and choose which keywords or products they want to target. Each time a potential customer clicks on their ad, they pay a small fee to Amazon. The fee depends on how competitive the keyword or product is, and how much the seller bids for it.

Amazon PPC ads can appear in various places on Amazon, such as the top or bottom of the search results page, the product details page, or the sidebar. They can also appear on other websites or apps that are part of Amazon's advertising network. The ads are labeled as "Sponsored" to distinguish them from organic results.

The Benefits of Amazon PPC

Amazon PPC advertising has many benefits for sellers who want to increase their sales and visibility on Amazon. Here are some of the main advantages of using Amazon PPC:

Reach more customers: Amazon PPC ads can help you reach customers who are actively searching for products like yours on Amazon. You can also target customers who are browsing similar or complementary products, or who have shown interest in your product category. This way, you can expose your products to a larger and more relevant audience.
Increase sales and ranking: Amazon PPC ads can help you generate more sales and revenue for your products. More sales can also improve your organic ranking on Amazon, as sales history is one of the main factors that Amazon uses to rank products. By using PPC ads, you can boost your sales velocity and rank higher for your target keywords.
Control your budget and ROI: Amazon PPC ads allow you to control how much you spend on advertising and measure your return on investment (ROI). You can set a daily budget for each campaign and adjust your bids according to your performance. You can also track various metrics such as impressions, clicks, conversions, cost per click (CPC), advertising cost of sales (ACoS), and more. These metrics can help you optimize your campaigns and maximize your profitability.
Test and launch new products: Amazon PPC ads can help you test and launch new products on Amazon. You can use PPC ads to validate the demand and profitability of your new products before investing too much in inventory or marketing. You can also use PPC ads to generate initial sales and reviews for your new products, which can improve your organic ranking and social proof.

The Challenges of Amazon PPC

While Amazon PPC advertising has many benefits, it also comes with some challenges that sellers need to be aware of. Here are some of the main difficulties of using Amazon PPC:

Competition: Amazon PPC advertising is becoming more popular and competitive among sellers, especially in high-demand niches. This means that the cost of advertising can increase over time, making it harder to achieve a positive ROI. To succeed with PPC ads, you need to have a clear strategy, a competitive product, and a strong value proposition.
Complexity: Amazon PPC advertising can be complex and overwhelming for beginners or inexperienced sellers. There are many factors that affect the performance of your campaigns, such as keywords, bids, budgets, targeting options, ad types, optimization techniques, etc. To master PPC ads, you need to have a good understanding of how they work and how to use them effectively.
Maintenance: Amazon PPC advertising requires constant monitoring and maintenance to ensure optimal results. You need to regularly review your campaigns' performance, analyze your data, test different variables, and make adjustments accordingly. You also need to keep up with the changes in the market, the customer behavior, and the Amazon algorithm.

How to Create an Amazon PPC Strategy

Now that you know what Amazon PPC is and why it is important, let's see how you can create your own Amazon PPC strategy. A good PPC strategy consists of four main steps:

Define your goals
Conduct keyword research
Create your campaigns
Monitor and optimize your campaigns

Let's go through each step in detail.

Step 1: Define Your Goals

The first step in creating your Amazon PPC strategy is to define your goals. What do you want to achieve with your PPC campaigns? What are your key performance indicators (KPIs)? How will you measure your success?

Your goals can vary depending on your product, niche, and stage of your business. For example, some common goals for Amazon sellers are:

Increase sales and revenue
Improve organic ranking and visibility
Build brand awareness and loyalty
Test and launch new products
Reduce ACoS and increase profitability

Once you have defined your goals, you need to set specific, measurable, achievable, relevant, and time-bound (SMART) objectives for each goal. For example, if your goal is to increase sales and revenue, your objective could be to generate $10,000 in sales with a 20% ACoS in the next 30 days.

Having clear and realistic objectives will help you plan your budget, choose your keywords, create your campaigns, and track your progress.

Step 2: Conduct Keyword Research

The second step in creating your Amazon PPC strategy is to conduct keyword research. Keyword research is the process of finding and analyzing the words and phrases that customers use to search for products like yours on Amazon. Keyword research is crucial for your PPC campaigns, as it determines how relevant and visible your ads are to your target audience.

To conduct keyword research, you need to use a reliable tool that can provide you with accurate and comprehensive data on various aspects of each keyword, such as search volume, competition, relevancy, cost per click, etc. One of the best tools for Amazon keyword research is Jungle Scout's Keyword Scout. Keyword Scout can help you discover thousands of relevant keywords for your product, along with valuable insights such as:

Exact Match Search Volume: The number of monthly searches for the exact keyword on Amazon.
Broad Match Search Volume: The number of monthly searches for the keyword and its variations on Amazon.
Relevancy Score: A score from 1 to 100 that indicates how relevant the keyword is to your product.
Dominant Category: The main category where the keyword appears on Amazon.
Average Price: The average price of the products that rank for the keyword on Amazon.
Average Reviews: The average number of reviews of the products that rank for the keyword on Amazon.
Average Units Sold: The average number of units sold per month by the products that rank for the keyword on Amazon.
Average Revenue: The average revenue generated per month by the products that rank for the keyword on Amazon.
HSA Bid (Exact): The suggested bid amount for the exact match type of the keyword for Sponsored Products ads.
HSA Bid (Broad): The suggested bid amount for the broad match type of the keyword for Sponsored Products ads.
SBA Bid (Exact): The suggested bid amount for the exact match type of the keyword for Sponsored Brands ads.
SBA Bid (Broad): The suggested bid amount for the broad match type of the keyword for Sponsored Brands ads.

Step 3: Create Your Campaigns

The third step in creating your Amazon PPC strategy is to create your campaigns. A campaign is a group of ads that share a common goal, budget, and targeting option. You can create multiple campaigns for different products, keywords, or objectives.

To create a campaign, you need to choose which type of ad you want to use, how much you want to spend per day, and how you want to target your audience. There are three main types of ads that you can use on Amazon: Sponsored Products ads, Sponsored Brands ads, and Sponsored Display ads. Let's see what each type of ad does and how to set it up.

How to Monitor and Optimize Your Campaigns

The fourth and final step in creating your Amazon PPC strategy is to monitor and optimize your campaigns. Monitoring and optimizing your campaigns is essential for improving your results and achieving your goals. You need to regularly check your campaigns' performance, analyze your data, test different variables, and make adjustments accordingly.To monitor and optimize your campaigns, you need to use a reliable tool that can provide you with detailed and actionable data on various aspects of your campaigns, such as impressions, clicks, conversions, cost per click, advertising cost of sales, return on ad spend, etc. One of the best tools for Amazon PPC optimization is Jungle Scout's Launch feature. Launch can help you:- Track and compare your campaigns' performance across different time periods, ad types, targeting options, etc.- Identify the best and worst performing keywords, products, ad groups, etc.- Optimize your bids based on your target ACoS or ROAS- Automate your bid adjustments based on predefined rules or machine learning algorithms- Test different ad creatives, headlines, logos, etc.- Find new keywords or products to target or exclude- Manage your negative keywords or products- Generate reports and insights on your campaignsBy using Launch, you can save time and money on managing your PPC campaigns and focus more on growing your Amazon business.

A Detailed Table Breakdown Related to the Topic

To help you understand the topic better, here is a detailed table breakdown that compares the three types of ads that you can use on Amazon: Sponsored Products ads, Sponsored Brands ads, and Sponsored Display ads.| Feature | Sponsored Products | Sponsored Brands | Sponsored Display || --- | --- | --- | --- || Ad format | Product listing with "Sponsored" label | Logo, headline, and up to three products with "Sponsored by [brand name]" label | Image, headline, and call-to-action button with "Sponsored" label || Ad placement | Top or bottom of search results page or product details page | Top of search results page | Product details page, sidebar, or other websites or apps || Targeting option | Automatic or manual (keywords or products) | Keyword or product targeting | Views remarketing or product targeting || Creative type | Auto-generated based on product information | Auto-generated or custom | Auto-generated or custom || Main goal | Increase sales and ranking | Increase brand awareness and loyalty | Reach customers who have shown interest in your product category or who are browsing similar or complementary products || Main benefit | Show your products to customers who are searching for keywords or products related to yours | Show your brand name and message to customers who are searching for keywords related to your product category | Show your products to customers who have viewed your products or similar products in the past 30 days but have not purchased them yet || Main challenge | Competition and complexity | Competition and complexity | Competition and complexity |

FAQ Section

Here are some of the most frequently asked questions about Amazon PPC step by step:

What is ACoS and how to calculate it?

ACoS stands for Advertising Cost of Sales. It is a metric that measures how efficient your PPC campaigns are. It is calculated by dividing the total amount spent on advertising by the total sales generated from advertising. For example, if you spend $100 on advertising and generate $500 in sales from advertising, your ACoS is 20%. A lower ACoS means a higher profitability.

What is ROAS and how to calculate it?

ROAS stands for Return on Ad Spend. It is a metric that measures how profitable your PPC campaigns are. It is calculated by dividing the total sales generated from advertising by the total amount spent on advertising. For example, if you spend $100on advertising and generate $500 in sales from advertising, your ROAS is 5. A higher ROAS means a higher profitability.

What is the difference between broad, phrase, exact, and negative match types?

Match types are the options that determine how closely your keywords match the customer's search query. There are four main match types that you can use for your PPC campaigns:- Broad match: Your ads will show for any search query that contains your keyword or any variation of it, such as synonyms, misspellings, or related terms. For example, if your keyword is "dog collar", your ads may show for "dog leash", "dog harness", or "cat collar".- Phrase match: Your ads will show for any search query that contains your keyword or any variation of it in the same order, but with additional words before or after it. For example, if your keyword is "dog collar", your ads may show for "leather dog collar", "dog collar with spikes", or "how to choose a dog collar".- Exact match: Your ads will show for any search query that matches your keyword exactly or with minor variations, such as plurals, abbreviations, or accents. For example, if your keyword is "dog collar", your ads may show for "dog collar", "dog collars", or "dog collar".- Negative match: Your ads will not show for any search query that contains your keyword or any variation of it. For example, if your keyword is "dog collar", you can use negative match to exclude irrelevant keywords such as "cat collar", "dog food", or "dog training".

How to optimize your bids for your PPC campaigns?

Optimizing your bids for your PPC campaigns is the process of adjusting the amount you are willing to pay per click for your ads based on their performance and your goals. Optimizing your bids can help you improve your ACoS, ROAS, and profitability.There are two main ways to optimize your bids for your PPC campaigns:- Manual bidding: You can manually change your bids for each keyword, product, ad group, or campaign based on your data and analysis. You can use various metrics such as impressions, clicks, conversions, cost per click, ACoS, ROAS, etc. to evaluate your performance and decide whether to increase or decrease your bids.- Automated bidding: You can use a tool or a feature that automatically adjusts your bids for you based on predefined rules or machine learning algorithms. For example, you can use Jungle Scout's Launch feature to automate your bid adjustments based on your target ACoS or ROAS.

How to test different ad creatives for your PPC campaigns?

Testing different ad creatives for your PPC campaigns is the process of comparing the performance of different versions of your ads to see which one performs better and generates more sales. Testing different ad creatives can help you improve your click-through rate (CTR), conversion rate (CR), and sales.There are two main ways to test different ad creatives for your PPC campaigns:- A/B testing: You can create two or more versions of your ad creative with different elements such as images, headlines, logos, etc. and run them simultaneously with the same budget and targeting option. You can then compare the results of each version and choose the one that has the highest CTR, CR, or sales.- Multivariate testing: You can create multiple versions of your ad creative with different combinations of elements such as images, headlines, logos, etc. and run them simultaneously with the same budget and targeting option. You can then compare the results of each combination and choose the one that has the highest CTR, CR, or sales.

How to find new keywords or products to target for your PPC campaigns?

Finding new keywords or products to target for your PPC campaigns is the process of discovering new opportunities to reach more customers and generate more sales. Finding new keywords or products to target can help you expand your audience and increase your traffic.There are two main ways to find new keywords or products to target for your PPC campaigns:- Keyword research: You can use a tool such as Jungle Scout's Keyword Scout to find new keywords related to your product category or niche. You can also use Amazon's search bar suggestions or competitor analysis to find new keywords.- Product research: You can use a tool such as Jungle Scout's Product Database to find new products related to your product category or niche. You can also use Amazon's best sellers list or customer reviews to find new products.

How to manage negative keywords or products for your PPC campaigns?

Managing negative keywords or products for your PPC campaigns is the process of excluding irrelevant or unprofitable keywords or products from your campaigns. Managing negative keywords or products can help you reduce wasted ad spend and improve your ACoS and ROAS.There are two main ways to manage negative keywords or products for your PPC campaigns:- Manual management: You can manually add or remove negative keywords or products for each campaign, ad group, or keyword based on your data and analysis. You can use various metrics such as impressions, clicks, conversions, cost per click, ACoS, ROAS, etc. to evaluate your performance and decide whether to add or remove negative keywords or products.- Automated management: You can use a tool or a feature that automatically adds or removes negative keywords or products for you based on predefined rules or machine learning algorithms. For example, you can use Jungle Scout's Launch feature to automate your negative keyword or product management based on your target ACoS or ROAS.

How to generate reports and insights on your PPC campaigns?

Generating reports and insights on your PPC campaigns is the process of creating and analyzing data visualizations and summaries of your campaigns' performance and results. Generating reports and insights can help you understand your strengths and weaknesses, identify opportunities and threats, and make informed decisions.There are two main ways to generate reports and insights on your PPC campaigns:- Manual generation: You can manually create and analyze reports and insights on your PPC campaigns using various tools such as Excel, Google Sheets, Google Data Studio, etc. You can use various metrics such as impressions, clicks, conversions, cost per click, ACoS, ROAS, etc. to create charts, tables, dashboards, etc.- Automated generation: You can use a tool or a feature that automatically creates and analyzes reports and insights on your PPC campaigns for you. For example, you can use Jungle Scout's Launch feature to generate reports and insights on your PPC campaigns using various metrics such as impressions, clicks, conversions, cost per click, ACoS, ROAS, etc.

How to scale your PPC campaigns?

Scaling your PPC campaigns is the process of increasing your budget and reach for your campaigns to generate more sales and revenue. Scaling your PPC campaigns can help you grow your Amazon business and achieve your goals.There are two main ways to scale your PPC campaigns:- Horizontal scaling: You can scale your PPC campaigns horizontally by adding more keywords or products to target with your existing campaigns. This way, you can reach more customers who are searching for keywords or products related to yours.- Vertical scaling: You can scale your PPC campaigns vertically by increasing your bids or budget for your existing campaigns. This way, you can increase your visibility and competitiveness for the keywords or products that are already performing well.

How to avoid common mistakes when using Amazon PPC?

Using Amazon PPC can be challenging and complex for beginners or inexperienced sellers. There are some common mistakes that you should avoid when using Amazon PPC, such as:- Not defining clear goals and objectives for your campaigns- Not conducting proper keyword research or product research- Not creating separate campaigns or ad groups for different types of keywords or products- Not using the right match types or targeting options for your keywords or products- Not optimizing your bids or budget based on your performance and goals- Not testing different ad creatives or headlines for your ads- Not finding new keywords or products to target or exclude- Not managing negative keywords or products effectively- Not generating reports and insights on your campaigns- Not monitoring and optimizing your campaigns regularlyTo avoid these mistakes, you should follow the steps and best practices outlined in this article. You should also use a reliable tool such as Jungle Scout's Launch feature to help you create and manage your PPC campaigns more easily and effectively.

Conclusion

Amazon PPC advertising is one of the most powerful ways to boost your sales and visibility on Amazon. By following the steps and best practices in this article, you can create and optimize your own Amazon PPC strategy step by step. You can also use Jungle Scout's Launch feature to help you with every aspect of your PPC campaigns, from keyword research to bid optimization.We hope you found this article helpful and informative. If you have any questions or feedback, please feel free to leave a comment below. And if you want to learn more about how to grow your Amazon business in 2023, check out our other articles on our blog.

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