Amazon PPC (Pay-per-Click) advertising is an advertising platform that Amazon makes available to its third-party sellers. It allows sellers to create ad campaigns for their products and then charges them each time a potential customer clicks and views their ad. Amazon PPC ads help sellers bring their product to the top of the search result page, which otherwise might end up buried among a sea of competitors. Amazon PPC ads provide a powerful means to generate sales for your online store through a click-through basis.
Amazon PPC has several key metrics that sellers need to understand, including:
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CPC (Cost per Click): This is the amount that advertisers pay for each click on their ad. The cost of Amazon PPC varies depending on how many ad campaigns a seller is running and how many keywords they are targeting. The cost per click can range from $0.15 to $6, depending on how competitive the product category is.
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ACoS (Advertising Cost of Sales): This is the ratio of advertising spend to sales generated by the advertising campaign. It is a key metric for measuring the effectiveness of an Amazon PPC campaign.
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CTR (Click-Through Rate): This is the percentage of people who click on an ad after seeing it. A high CTR is a good indicator that the ad is relevant to the target audience.
To create an Amazon PPC campaign, sellers need to log into Amazon Seller Central and go to the Advertising' section. From there, they can create a campaign and set a budget for their advertising spend. There are three types of Amazon PPC campaigns: Sponsored Product Ads, Sponsored Brand Ads, and Sponsored Display Ads.
In summary, Amazon PPC is an advertising model that helps sellers and brands amplify their product sales online. It is a cost-effective way to get products in front of customers and drive sales.