How Does Amazon PPC Work?

This type of advertising on Amazon is based on auctions and keywords. A seller bids a specific sum on the keyword for which he wants his product to appear. In short, the seller that has the highest bid will be in the first position in the search results of Amazon. Sellers pay when their advertisement is clicked on.

How Does Amazon PPC Work to Help Find the Right Keywords?

If you want to find keywords for which people buy products similar to yours, you need to run an Automatic Advertising Campaign. But in order to do this correctly, you must know the specifics of using such a method.

First of all, remember that PPC as a keyword research method can be more effectively used if there are already a few reviews about a product. Otherwise, if you have not received product reviews, the conversion of advertising may be worse, because reviews increase confidence in the product.

Also, you must optimize the listing of the goods. This is very important because advertising will not help to attract the attention of the buyer if you have not properly decorated the window of your mini-store.  We will describe below how to do it.

Set up an attractive price. At the start of sales, it will be difficult for you to compete with products that are already selling well and have good reviews. Therefore, in order to attract buyers, the price must be very competitive.

If you use Amazon PPC with the relevant keyword, the buyer will not only click on the ad but also buy the product, because he needs it.

After 2-3 weeks of Automatic Amazon Advertising Campaign, you can analyze whether people bought goods using some specific keywords. If these keyword phrases are suitable for your product, you can add them to your keyword list.

Now let's talk about what needs to be done before launching Automatic PPC.

PPC Step-by-Step Guide for Keyword Research

Before starting a campaign ensure you have a superior Amazon product listing with quality images, product descriptions, and bullet points.

1. Listing optimization

Make your product attractive. How to do it as efficiently as possible? Look at it through the eyes of the buyers and describe it so that after reading they understand that this is exactly what they were looking for. What do people expect from your product? What problems will it help them to solve? How exactly does the product do it? Why is your product better than competitors? By answering these questions, you can make a correct description of your product.

But write briefly, because long descriptions will most likely not be read by people.

When you write the title, try to think about how you would be looking for such a product, if you needed it. What additional words did you use besides the main key phrases? The more accurate and complete you pick the title, the better the result will be.

2. Images optimization

Images are the first thing buyers pay attention to. And if they don't like the photo of your product, they will not even read its description. Therefore, it is important to choose high-quality photographs in which your product will look attractive.

3. Get reviews

Reviews not only help buyers to evaluate your product. They are a sign that you as a seller can be trusted, and your product is high-quality and worth the money. So try to get at least a few reviews before the PPC campaign begins. To do this, you can sell the goods using coupons. If you want to sell your product at a significant discount, go to the Amazon Seller Central Create Discount Code page.

4. Launch Automatic AD Campaign

After identifying the amount you are willing to spend on Amazon PPC, you are ready to start the process. To launch the first Automatic AD Campaign, visit Amazon Seller Central and then go to “Campaign manager“ under the subsection of Advertising.

After you select the Automatic Targeting, Amazon will launch it on its own and connect your product with the customer requests that are most likely to meet it (according to Amazon, of course). The process is so easy, create your advertisement group, choose the products you like to promote, and enter a bid amount.

The minimum recommended budget for advertising per day is $ 30. Of course, you can use more money. If necessary, you can change the settings of the advertising campaign at any time.

An Automatic Ads campaign should be run for 2-3 weeks. You don't need to enter keywords. Amazon will choose which keywords match your product the best based on its listing, title, and other data. Then you need to analyze the results and look at the advertising report.

5. Results analysis

Setting up your Automatic Ads is just the start of the process. Afterward, you will want to monitor the performance of your campaign to ensure you are spending your ad budget effectively.

To track your ads, go to All Sponsored Product Campaigns in the Ad section of Amazon Seller Central. And from here, monitor the cost-effectiveness of your ads with the sales. You are also able to alter the start date, the end date as well as the daily budget of the campaigns.

After three weeks have passed, you can begin to analyze the results. You also need to review the performance of your advertisement keywords to know the ones that convert to the most clicks and sales and must be utilized in future campaigns. You can evaluate the performance by going to the All Sponsored Products Campaign, choosing a campaign, choosing an Ad group as well as viewing the Amazon Keywords Seller Central Section.

Reviewing the performance of your Ads and keywords gives you control over your Ad spend. It provides the insights you need to ensure that your campaigns are leading to higher product exposure and sales.

See what keywords have brought you sales. Use them for the product listing optimization and set up the Phrase Match campaign.

6. Re-optimization of the listing

When you see which phrases people most usу when they bought goods, you can redo the listing of your product. Add the found keywords in the title, the product description, backend section.

7. Launch Phrase Match campaign

Now you can launch a Phrase Match campaign with specific keywords that you choose. What is it for? This type of search helps to narrow the target audience and allows you to distribute the advertising budget more effectively. Now you will pay for clicks that are more likely to lead to the sale of goods. After all, after analyzing the keywords found in the Automatic Ad Campaign, you already know what the buyers are looking for.

You run a manual Amazon PPC campaign with the match type Phrase. When you use Phrase Match, you can control the order of the words in the key phrase, but extra keywords could be before or/and after phrases. For example, for the keyword "women's sweater Fila", a "red women's sweater Fila" could appear in the search results. But "Fila women's sweater" will not be seen in the search results, because the word order is changed.

Also, when using such an advertising campaign, you will exclude some requests that are simply related to yours but do not correspond to your product. Thus, you narrow the target audience and be able to find those buyers who are really want to buy your product.

The time you need for this is about 2  weeks. Then you can analyze the advertising campaign, correct phrases if necessary, change the daily budget, and then use it again. This will help not only to sell the product but also, perhaps, to move up it in the organic ranking. If the key phrases increase sales, then the conversion of these keywords will also increase. This means that the product can also slightly improve its position related to these words.

Phrase Match Campaigns are also needed to check random clicks. So you can weed out random phrases and find the keywords using which people will definitely buy the product.  You can see the indicators relating to the sale of goods, using the capabilities of Amazon statistics.

Also with this type of the launch of an advertising campaign, you can find those keywords that were not previously found. Why is it good? Because buyers often use not short phrases, consisting of 1-2 keywords, but long ones for searching. Therefore, the more keywords that describe your product you will find, the more accurately it will be possible to create its description and title. And this will help to attract buyers, and therefore to sell the goods.

It is possible that the chosen words will be irrelevant, chosen incorrectly. In this case, you need to conduct a more in-depth analysis and find out why this happened. You may need to change the listing of your product and conduct keyword research again.

The Automatic AD Campaign, which you launched earlier in the first stage, now needs to be turned off. Or significantly reduce its daily budget.

You should learn more information about how to raise your product in the organic rankings using a Manual Advertising Campaign to get the best results.

Conclusions

Amazon is a marketplace where you can earn really big money. But you should know how to present your goods to customers properly. Therefore, the use of Amazon PPC is an important point when promoting your product. PPC for keyword research is an effective option to find the right keywords using which people actually buy products. It doesn't provide lightning-fast results, but it allows you to optimize the product listing and at the same time increase conversion rates. So, promote your product to the top, which is your primary goal.