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What is Amazon PPC And How Does It Work?

What is Amazon PPC?

Amazon PPC is a powerful and very noticeable marketing platform sponsored by Amazon itself. It lets professional businesses and vendors run advertising campaigns by indexing keywords to the product for increased visibility in search results as well as competitor’s listing, and if everything goes according to the plan, higher organic rankings.

According to Amazon, Amazon PPC is an advertising service that is used to run advertisements of products so you can acquire visibility on Amazon’s page one search results using specific keywords. Pay-Per-Click, as its name suggests, charges the seller every time a customer clicks on the advertisement displayed.

How Does Amazon PPC Work?

The concept behind Amazon PPC Ads isn’t as complex as it sounds. Buyers type either small search terms or long search terms. The longer string of keywords is known as long-tail-keywords and the small search terms are known as short-tail-keywords.

The products that are visible to you in the results have two sources to be there. The first one is organic and the second one is paid. Amazon PPC deals with paid sponsored products. Both types of these results have a place on the top of search results. However, paid results can appear more than one time.

Amazon PPC uses an enhanced auction-based approach. Sellers and vendors place bids on keywords that the buyers will likely use to search for products. The daily budget is set for each keyword.

You have two options for keywords. You can either let Amazon fetch relevant keywords according to your listing or you can manually enter them. The chances of your ad’s display go higher depends on the bid you placed. You always have the option of managing or changing bids on keywords in between your campaign according to the profit you receive from them. Once your ads are visible, every time a customer clicks, you pay for it.

Amazon PPC Ad Types:

1. Sponsored Product Ads:

Sponsored Product Ads allow a business to advertise their products that depend upon the keywords. When it comes to click-through rates (CTR) and sales conversions, sponsored product ads always perform well. They are highly beneficial because they blend with the organic results and impersonate with them.

2. Product Display Ads:

Product Display Ads are shown on a product page – in a similar product section. These advertisements are designed to be a self-service option, which is matched with the ASINs and thereby, giving marketers the best options to focus on the behavioral segments.

3. Headline Search Ads:

A Headline Search Ad is limited to specific product categories. Headline Search Ads appear on the top of the search results with the brand logo. Headline Search Ads are also known as banner ads whose main goal is to get buyers to click from a group of products.

To learn more about Amazon PPC, enroll in our Amazon Webstore Course now.

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