Is Amazon PPC worth it or a wastage of money?



With the increasing trend of online shopping, competition between sellers is also increasing overwhelmingly. It has become crucial for sellers to rank their products on the Amazon search engine result pages. For this, sellers have to put more effort into increasing their sales rank. 

Amazon PPC- refers to ‘Pay Per click.’ In it, Amazon helps sellers to amplify their product sales online by creating ad campaigns for their products. With the PPC model, advertisers pay a fee to Amazon when someone clicks on their website or product ad. 

Many sellers find it difficult to learn how to use PPC. Amazon Pay-per-click is a complete strategy-based model. To boost your sales rank via Amazon PPC, you should have profound skills to utilize this advertising platform cost-effectively. Otherwise, it is essential to have an expert who manages your Amazon PPC campaign. 

After reading this article, you will be very clear about the worth of Amazon PPC in scaling a business. We will discuss the advantages of running an Amazon ad campaign and common management mistakes in PPC campaign strategies. 

Why it is vital to use Amazon PPC:

Give your product more exposure through Amazon PPC and make it stand out:

One of the advantages of Amazon ads campaigns is that Amazon’s search engine places the sponsored products on top of search results than non-sponsored products. Your product listing will get more exposure to the audience than others. 

There are different types of Amazon PPC ads from sellers that Amazon displays to the customers. 

  • Amazon sponsored products Ads: Sponsored product ads (SPA) are the most effective and typical PPC campaign to increase your conversion rates. In SPA, ads of your product show to the right of, between, or below the organic search results. These ads will also show on your competitor’s product detail pages.  
  • Amazon sponsored Brand Ads: It is also known as headline search ads. Sellers can choose their product logos, customer headlines, and landing pages in SBA. These ads display the above, left of, and below the search results.
  • Amazon sponsored Display Ads: These ads are usually displayed in front of the ‘add to cart icon. Sellers use this ad to target the interested audience. SDA has the specialty that these can appear on websites other than Amazon. On Amazon, it will appear on the different product detail pages. 

All of these Amazon PPC ads have advantages as well as requirements. To use sponsored product and brand ads, you must register your seller account with the Amazon Brand registry or be a part of the Amazon vendor program. However, there is also a non-PPC ad model in Amazon DSP advertising. 

Irrespective of all disadvantages, the best benefit of the Amazon PPC ad is that your product will be placed on the top of the search result pages, and hence it will get more exposure to customers. It is imperative when you don’t even have any product reviews at the start of your product launch.

Amazon PPC will make conversion rates high:

Only people with intentions of buying a product come to the Amazon eCommerce platform. About 50% of people who want to purchase products online use the Amazon search engine instead of any other browser. Therefore, there is a high probability that a customer will buy the product when he has come to the Amazon platform. 

Thus, it will be more beneficial to display your product ads on Amazon instead of on other advertising platforms like Facebook, Instagram, YouTube, etc. Thousands of people watch your product ads on social media platforms, but most of them have no purchase intentions. Therefore, there are fewer chances of product purchase through these platforms.

That’s why, with Amazon PPC, there is a higher probability of boosting conversion rates. As more interested people see your product, the more they will click on and buy the product. Currently, the average conversion rate on Amazon is around 10%. 

Amazon PPC will improve the organic ranking of products:

The most pleasant benefit of running an Amazon PPC campaign is along with paid trafficking Amazon also drives organic traffic to your products. With the success of the PPC ads campaign, organic traffic to your product will also increase enough to gain an authentic place in shoppers’ eyes. 

Amazon SEO has its specific strategy of ranking products. It drives more traffic to the product listings most likely to be purchased. Other factors also impact the ranking of your product include; product reviews and rankings. The Amazon search engine will drive more traffic toward your product listings with the best reviews. 

Amazon PPC ads will help you drive more traffic and customers to your product; ultimately, product purchase and conversion will increase. Considering these factors, the Amazon ranking algorithm- A9 algorithm will place your product on top of search pages. Consequently, you will get more conversions, reviews, and traffic which boosts your sales rank. 

Amazon PPC delivers valuable data insights:

By running a PPC ads campaign, you can also access valuable insights related to your products that you wouldn’t get otherwise. 

From these insights, you can identify customers’ demand and most purchased items. Furthermore, you can also find the most relative keywords to your product that give the most conversions. You can also nullify irrelevant keywords. Thus, analyzing these insights will help you optimize your product description using relevant and traffic-driving keywords. 

Ultimately, you can boost the visibility and sales of your product. In addition, you can improve your product by analyzing the most demanding features of products—improvement in the sense of product development and presentation.

Amazon PPC is Budget-friendly:

The Amazon Pay-per-click model is not cheap but quite reasonable. There is no subscription fee and fee on impressions (flat fee). You have to pay for clicks by customers on your ads. 

You can easily manage your budget at any time, which means this marketing model is controllable and will not burden the seller’s pocket. Without giving any subscription charges, you can start your PPC ad campaign. 

Consequently, the Amazon PPC is a budget-friendly campaign for the sellers. They can quickly initiate the process and run their PPC campaign even if they are on a low budget to rank their products and boost sales rank and conversions. 

Conclusion: Amazon’s PPC can be worth it with a well-built strategy.

Is Amazon PPC worth it? Yes, It is. Amazon PPC is worth it if you prepare the ad campaign strategy mindfully and wisely invest your money in essential procedures. There will be no benefit from running a poorly planned ad campaign. It will just be a waste of time and money. Instead of relying only on Amazon PPC, you should also go for other advertising platforms with proper ad planning. A wise and right plan will positively impact your sales rank. 

To be an expert in Amazon PPC ads, you have to take proper training. Otherwise, you can also get help from Amazon virtual assistants. PPC ads are precious in the product launching process. It will help drive traffic to your newly launched product and push its ranking. 

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