Amazon PPC 101: A Beginner’s Guide to Profitable Ads
Introduction
If you’re selling on Amazon, you’ve probably heard about Amazon PPC (Pay-Per-Click) advertising. But what exactly is it, and how can you use it to boost sales? This guide will walk you through everything you need to know to launch and optimize a successful Amazon PPC campaign.
Why Amazon PPC Matters
- Increases product visibility
- Drives more sales
- Helps improve organic rankings
- Provides valuable customer insights
By the end of this guide, you’ll be equipped with the knowledge to run profitable Amazon ads while keeping ACoS (Advertising Cost of Sales) in check.
What is Amazon PPC?
Amazon PPC is an advertising model where sellers pay only when someone clicks on their ad. These ads appear in search results, product pages, and more, helping you reach potential customers.
Types of Amazon PPC Ads
| Ad Type | Description |
|---|---|
| Sponsored Products | Appear in search results & product pages |
| Sponsored Brands | Banner ads showcasing multiple products |
| Sponsored Display Ads | Retargeting ads on and off Amazon |
Step-by-Step Guide to Setting Up Amazon PPC
1. Choose the Right Keywords
- Use Amazon Keyword Research Tools (e.g., Helium 10, Jungle Scout, or Amazon’s Search Term Report)
- Focus on long-tail keywords with high relevance and low competition
- Add negative keywords to prevent wasteful spending
Example: Instead of bidding on “earbuds,” use “best wireless earbuds for gym” or “Bluetooth earbuds under $50” to improve conversions.
Table of Content
- Amazon PPC Guide
- How to Run Amazon Ads
- Amazon PPC Strategy
- Best Amazon PPC Tips
- Lower ACoS Amazon
- Amazon PPC Optimization
2. Structure Your Campaigns Properly
| Campaign Type | Purpose |
|---|---|
| Automatic Campaigns | Let Amazon find relevant keywords |
| Manual Campaigns | Control keywords and bids for better performance |
| Segment Campaigns | Organize by product type, brand, or goal |
Example for a skincare brand:
- Automatic Campaigns: Discover new keyword opportunities.
- Manual Campaigns:
- Exact Match: “organic face moisturizer”
- Phrase Match: “face moisturizer for dry skin”
- Broad Match: “hydrating moisturizer”
3. Optimize Your Bidding Strategy
| Bidding Strategy | Description |
|---|---|
| Dynamic Bidding (Up & Down) | Adjusts bids based on conversion probability |
| Fixed Bidding | Keeps bids steady |
| Rule-Based Bidding | Automates bids to maintain target ACoS |
Example:
If “best noise-canceling earbuds” converts well, increase the bid. If “cheap earbuds” has low conversions, reduce the bid or set it as a negative keyword.
4. Monitor & Improve Performance
- Check ACoS (Advertising Cost of Sales) regularly
- Optimize bids on high-performing keywords
- Pause low-performing keywords
- Use A/B Testing for better ad creatives
Amazon PPC Best Practices for Higher ROI
1. Lower Your ACoS & Improve ROAS
- Optimize product listings (titles, images, bullet points)
- Use high-converting keywords
- Remove underperforming keywords & ads
- Set bid adjustments based on performance
2. Scale Your Winning Campaigns
- Increase budget on high-performing ads
- Expand to Sponsored Brands & Display Ads
- Retarget past visitors for increased conversions
3. Improve Organic Rankings With PPC
Amazon PPC indirectly boosts organic rankings by increasing:
- Click-through rate (CTR)
- Conversion rate
- Sales velocity
By running profitable PPC campaigns, your products rank higher organically, reducing your reliance on ads over time.
Common Amazon PPC Mistakes to Avoid
- Bidding on broad, high-competition keywords
- Not optimizing product pages before running ads
- Ignoring negative keywords
- Setting one budget for all campaigns
