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Home Blog PPC Amazon: Definition, Best Practices & Examples

PPC Amazon: Definition, Best Practices & Examples

PPC Amazon can elevate your sales and brand recognition to new heights. Learn the best practices for optimizing your PPC Amazon campaigns, explore its costs, and master efficient bidding management for better ROI. This guide, featuring real-life examples, demonstrates how to fully leverage Amazon PPC in your digital marketing strategy.
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Amazon, as the world’s dominant online marketplace, offers sellers an unparalleled platform to reach millions of potential customers. Central to leveraging Amazon’s vast audience is its PPC advertising system, a powerful tool that enables sellers to enhance their product visibility and drive sales. The efficiency of Amazon’s PPC is evident – the average PPC Amazon conversion rate is 9.58%, while, to the contrary, the average conversion rate of other e-commerce platforms is ca. 1.35%, according to Ad Badger statistics. These data speak for themselves; Amazon is one of the most popular and most effective platforms for eCommerce PPC campaigns.

Harnessing Amazon PPC’s full potential requires a strategic approach. Effective PPC management is essential for maximizing ROI, from keyword research and bid optimization to crafting compelling ad copy and utilizing advanced targeting options. You shouldn’t miss the opportunity to boost your campaign’s efficiency by utilizing landing pages that direct your target audience to Amazon auctions. The best PPC marketing tool for landing pages that can help you achieve better results is Landingi – a professional platform for creating and managing PPC landing pages.

This article delves into the complexities of Amazon PPC, guiding you through best practices and providing practical insights and real-world examples to help you navigate the competitive landscape of Amazon advertising. Uncover the Amazon PPC meaning in your eCommerce business and start preparing a new ad campaign with the 4 pro tips:

  1. Focus on keyword research and use long-tail phrases specific to your products.
  2. Utilize advanced Amazon product targeting to ensure your ads appear in the right place.
  3. Test various ad formats and always use attractive visual content.
  4. Use PPC landing pages to drive more conversions.

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What Is PPC in Amazon?

PPC in Amazon is a type of advertising model in which advertisers pay a fee for each ad’s click. Amazon PPC allows sellers to promote their products and brands directly on Amazon’s platform, targeting shoppers actively searching for similar products. Amazon display ads can also appear on different platforms, encouraging external users to check out offers. Various targeting options of Amazon PPC, including keyword targeting, product targeting, and audience targeting, ensure ads reach the most relevant customers.

The main benefits of PPC advertising on Amazon include the following:

  • Increased visibility – PPC ads help products appear prominently in search results and product pages, increasing their visibility to potential buyers.
  • Targeted advertising – by targeting specific keywords and products, sellers can reach shoppers who are more likely to purchase their products, improving conversion rates.
  • Measurable results – Amazon PPC provides detailed analytics and reporting, allowing sellers to measure the effectiveness of their campaigns and make data-driven decisions to optimize performance.

How Does PPC Advertising on Amazon Work?

Amazon’s PPC advertising operates on an advanced auction-based model where advertisers bid for ad placements. Marketers can control their advertising budgets precisely, which enables them to fine-tune bids to achieve the best possible outcomes. Amazon’s advertising platform offers robust analytics and performance tracking, empowering advertisers to closely monitor click-through rate (CTR), cost per click (CPC), and conversion rates. Thanks to gathering data on KPIs, advertisers can optimize their campaigns without guessing to achieve better ROI.

Amazon PPC advertising involves the following steps:

  1. Ad creation and targeting – you design ads and set specific targeting parameters to reach your desired audience. Targeting options include keywords, product categories, and even competitor products, ensuring that ads are shown to shoppers most likely interested in specific products.
  2. Bidding and budgeting – you can set a maximum cost-per-click (CPC) bid for each keyword or product target. You can also establish a daily or monthly budget for each campaign to control overall spending.
  3. Ad auction and placement – Amazon determines ad placement based on Ad Rank, which considers bid amount, ad relevance, and expected impact of ad extensions. Ads with higher Ad Ranks appear in more prominent positions, such as at the top of search results or product detail pages.
  4. Click and conversion tracking – the platform provides detailed analytics on how many times an ad was clicked and what actions shoppers took afterward, such as making a purchase. Implementing conversion tracking helps calculate ROI and identify areas for improvement.

6 Amazon PPC Best Practices

Meet the 6 Amazon PPC best practices and learn how to craft effective campaigns that increase conversions and boost ROI. Use the following guide to ensure your PPC campaigns on Amazon are perfectly prepared to engage new customers.

#1 Focus on keywords

The first Amazon PPC best practice is to focus on keywords. Identify the most relevant and high-performing keywords for your products. You can use professional tools to find the most relevant phrases. Focus on long-tail keywords specific to your products, as they often have less competition and higher conversion rates. Remember to implement negative keywords to prevent your ads from appearing for irrelevant searches. This helps reduce wasted spend and ensures your budget is used more efficiently. Regularly review your search term reports to identify and add new negative keywords.

#2 Optimize product listings

The second Amazon PPC best practice is to optimize product listings before running PPC campaigns. Ensuring your product listings are fully optimized is crucial for enhancing ad performance, improving ad relevance, and increasing the likelihood of conversions.

Use high-resolution, professional images that clearly show your product from multiple angles. Follow Amazon’s image guidelines, which typically include having a pure white background, showing the product occupying at least 85% of the frame, and avoiding additional text or graphics in the main image. In addition to standard product images, include lifestyle images that show the product in use.

Write detailed product descriptions that accurately convey the product’s features and benefits. Use persuasive language to highlight the product’s benefits and differentiate it from competitors. Focus on how the product can solve a problem or improve the customer’s life. Incorporate keywords naturally within the description to enhance search visibility without keyword stuffing.

#3 Test different ad formats and strategies

The third Amazon PPC best practice is experimenting with different ad formats such as Sponsored Products, Sponsored Brands, and Sponsored Displays to see which performs best for your products. You can also test various bidding strategies, such as dynamic and fixed bids, to determine what works best for your goals. A/B testing can help you determine which ad elements work best, including ad copies, images, and headlines. Data-based optimization can significantly improve the ad’s performance.

#4 Leverage automated campaigns

The fourth Amazon PPC best practice is to use Amazon’s automated campaigns to complement your manual campaigns. Amazon’s algorithm with automated campaigns can help you discover new, high-converting keywords. Once you identify these keywords, move them to your manual campaigns for more precise control.

#5 Focus on product targeting

The fifth Amazon PPC best practice is to focus on product targeting. Utilize advanced Amazon targeting to show your ads on specific product detail pages or in the related products section. This strategy helps you target shoppers who are already interested in similar products, increasing the chances of conversion.

It’s one of the most important factors affecting your campaign efficiency – product targeting allows you to place your ads directly on the detail pages of products similar or complementary to yours. Shoppers who visit these pages are likely to have a high purchase intent, making them more likely to click on your ad and convert. This relevance boosts your chances of turning a visitor into a buyer.

Product targeting isn’t limited to direct competitors. You can also target products that complement yours. For instance, if you sell phone cases, you could target ads on smartphone product pages. This cross-selling approach helps you tap into an audience interested in related items, increasing the potential for additional sales.

#6 Optimize for seasonality

The sixth Amazon PPC best practice is to optimize ads for seasonality. Adjust your campaigns based on seasonal trends and shopping behaviors. For instance, increase your ad spend and bid amounts during peak shopping seasons like holidays, Black Friday, or Prime Day to capitalize on increased traffic and sales potential.

How to Start a PPC Campaign on Amazon?

To start a PPC campaign on Amazon, you must set up an Amazon Seller account, choose the campaign type, and set your campaign parameters and targeting type. Then, you should conduct keyword research, set bids, and create an ad campaign. The rest is launching, regular monitoring, and optimization, which are important for achieving the best results. Check out a detailed 8-step guide below to launch your Amazon PPC campaign:

1. Set up an Amazon Seller account

Before you can run PPC ads, you need an active Amazon Seller account. If you haven’t already, sign up for an Amazon Seller Central account and complete the necessary registration and verification processes. Once your account is set up, log in to your Seller Central account and navigate to the Amazon Advertising Console. This is where you will manage all your advertising campaigns.

2. Choose your campaign type

The second step in creating an Amazon PPC campaign is to choose its type. Select one that aligns with your goals and will allow you to reach your target audience. Amazon offers 3 main ad formats, as follows:

  1. Sponsored products – this ad format is designed to promote individual product listings. Sponsored product ads appear directly in search results and on product detail pages, making them highly visible to shoppers actively looking for similar items. They target shoppers with high purchase intent, which can lead to increased sales and improved product rankings.
  2. Sponsored brands – it’s another Amazon ad format, the best choice to increase brand awareness. These ads feature a brand logo, a custom headline, and multiple products, building recognition and trust among shoppers. They appear at the top of Amazon search results.
  3. Sponsored display – this type of ad targets audiences both on and off Amazon with display ads, so they can extend your advertising reach beyond Amazon. These ads appear on product detail pages, customer review pages, and third-party websites. Retargeting capabilities of Amazon display ads can re-engage shoppers who have shown interest in your products, improving conversion rates.

3. Create a new campaign and set its parameters

A third basic step in starting a new campaign on Amazon is ad creation. In this process phase, you select the type of campaign you want to create (e.g., Sponsored Products). To set up your campaign, you must fill in the required fields:

  • Campaign name – choose a descriptive name to help you easily identify the campaign later.
  • Start and end dates – set the duration of your campaign or choose to run it continuously.
  • Daily budget – determine how much you will spend per day on this campaign.

4. Select your targeting type

The fourth phase is selecting targeting type between manual targeting and automatic targeting. The first type allows you to select specific keywords or products to target, giving you more control. It’s a great option for more experienced advertisers. Automatic targeting is useful for new advertisers or those looking to discover new keywords – Amazon uses its algorithms to match your ads to relevant search terms and products automatically.

According to Ad Badger statistics, in 2023, the average daily impressions on Amazon were 90,875,833. It’s crucial to make your ad attractive and well-optimized. Higher impressions can lead to more clicks, but this ultimately depends on the ad’s quality and relevance.

5. Set bids for keywords or products

The fifth step in starting an Amazon PPC campaign is setting bids for chosen keywords or products. Determine how much you are willing to pay for each click on your ad and set a maximum bid for each keyword (in case of manual targeting strategy) or if you’re targeting specific products, set your bids accordingly.

6. Create your ad

The sixth step, ad creation, is the most creative part of PPC advertising on Amazon. It requires various approaches, depending on the ad format. For sponsored products, you simply select the products you want to advertise. For Sponsored Brands, you’ll need to create a compelling ad with a brand logo, attention-grabbing headline, and immersive picture. If you want to create a video ad, use a short-format product video showcasing its benefits and real-life usage cases to engage users with your offer.

7. Launch your campaign

The seventh step is launching your campaign, but before you start running your ads, review all the campaign settings and ensure everything is correct. Check twice headlines, copy, prices, and visuals. Make sure you determine the right budget to ensure the financial efficiency of your campaign.

8. Monitor and optimize

The eighth step is monitoring and optimizing your campaign after launching. Regularly check its performance using the Amazon Advertising Console. Pay attention to key metrics such as impressions, clicks, click-through rate (CTR), cost-per-click (CPC), and conversions. Then, you can use this data to increase bids on high-performing keywords or lower bids on underperforming ones and refine targeting by adding negative keywords. You should continuously test and improve your ad content to increase engagement and conversions.

What Is the Cost of a PPC Amazon Campaign?

The cost of a PPC Amazon campaign ranges from $0.20 to $6.00 CPC, but on average, advertisers pay $0.81$2.00, depending on various factors, as follows:

  • Bidding strategy – in manual bidding you set your own bids for keywords or product placements, which can give you more control but requires constant monitoring and adjustments. In automatic bidding, Amazon optimizes bids to achieve the best possible outcomes within your total budget, often leading to varying costs based on competition.
  • Keywords and competition – popular and high-demand keywords tend to have higher costs per click (CPC) due to increased competition. Niche keywords may be less expensive but might have lower search volumes.
  • Product categories – different product categories can have different levels of competition. For example, electronics and beauty products might have higher CPCs compared to niche or less competitive categories.
  • Ad placement – ads placed in high-visibility areas, such as the top of search results or product pages, generally cost more due to their prime positioning.
  • Targeting options – broader targeting can increase reach but might lead to higher costs. More precise targeting, such as by specific demographics or shopper behaviors, can be more cost-effective but might limit the audience size.

4 Examples of PPC Amazon Advertising

Find out how to leverage PPC on Amazon by checking out the 4 various campaign examples. Each of them illustrates different Amazon PPC ad formats, showcasing their characteristics and leveraging best practices that increase ROI. Get inspired to create your own Amazon PPC campaign by examining the examples below in detail.

1. Video product ads

The first example is an Amazon video product ad leveraged by Bose. They use a sponsored product ad campaign to present their product offer – Bose’s headphones. The video is short yet immersive, with compelling headlines explaining real-life product functionalities. Video content shows how the product can be used and underscores its visual aspects.

The Bose ad that relies on video content also includes product ratings, price with a special discount offer, and a link to the auction. In addition, users can click CTA, directing them to the brand’s Amazon store. This type of ad appears when Amazon shoppers search for similar products, catching their attention immediately and encouraging them to check out the auction. Video product ads displayed in search results, among other auctions, have great efficiency thanks to advanced targeting options.

2. Related product ads

The second example illustrates a sponsored products campaign, including a list of offers related to an auction currently being viewed by users. The product list includes a few different ads, each with a high-quality thumbnail image showcasing the offered product, ratings, price, and a short product description linked to an auction. Some of these ads include special offers encouraging users to purchase.

This type of Amazon PPC ad appears at the bottom of a specific item auction, making it a great option for catching high-intent shoppers. This strategic placement helps capture the attention of potential customers already engaged in the buying process, maximizing the potential return on your advertising investment. Amazon sellers use these ads to increase product visibility, drive more traffic to their listings, and ultimately boost sales by reaching buyers ready to purchase.

3. Display product ads

The third example of an Amazon PPC campaign is a display product ad on the right sidebar of a specific item auction. This type of Amazon ad is designed to catch the eye of shoppers browsing product details, providing an additional opportunity to showcase your product to potential buyers. By appearing in the sidebar, these ads benefit from high visibility and can effectively draw attention away from competitors’ listings.

Amazon display ads usually include a product picture, its short description, ratings, and price, often with highlighted special discounts. These ads can be tailored to target specific audiences based on their browsing and purchasing behavior, enhancing their effectiveness in driving traffic and sales to your product listings.

4. Brand ads

The fourth example of an Amazon PPC campaign showcases brand ads appearing in search results. They are related to products users are looking for during their shopping, but brand ads are based on visual attractiveness and brand recognition instead of specific products. Each brand ad includes a high-quality picture, brand logo, and CTA with proper messaging, encouraging users to discover a particular brand’s Amazon store.

Sponsored brand ads are used by Amazon sellers to boost their brand awareness. Their high-visibility placement captures shoppers’ attention right at the start of their search journey, increasing the chances of clicks and engagement. Sponsored brand ads help drive traffic to your product listings and direct customers to a customized Amazon store or a dedicated landing page.

This holistic approach builds a cohesive brand image, fostering trust and recognition among potential buyers. By strategically utilizing these ads, sellers can effectively differentiate their brand from competitors, enhance customer loyalty, and drive long-term growth on the Amazon marketplace.

Can PPC Be Used in Amazon?

Yes, PPC advertising is highly effective on Amazon, enabling sellers to promote their products and brands directly within the marketplace. By leveraging campaigns such as Sponsored Products, Sponsored Brands, and Sponsored Displays, sellers can significantly enhance product visibility, drive targeted traffic, and ultimately boost sales. Advertisers bid on relevant keywords, ensuring their ads appear in search results and on product detail pages. The cost-per-click model means advertisers only pay when a shopper clicks on their ad, offering a cost-efficient strategy to reach potential customers. Continuous monitoring and optimization are crucial to maximizing campaign success.

What Distinguishes PPC in Amazon?

PPC in Amazon refers to pay-per-click advertising, a strategic model enabling sellers to elevate their products and brand visibility directly on Amazon but with specific ad formats, like display ads, also on external platforms. Through meticulously crafted campaigns, sellers can drive targeted traffic and increase sales. This performance-based model requires advertisers to bid on relevant keywords, with costs incurred only when a potential customer clicks on the ad. Optimizing these campaigns through continuous monitoring ensures maximum ROI and competitive advantage.

What Is the Difference Between Amazon Ads and PPC?

Amazon ads encompass a range of advertising options available on Amazon’s platform, including various formats such as display ads or video ads, and more, designed to enhance brand visibility and drive sales. PPC (pay-per-click) is a specific type of advertising model used within Amazon ads where advertisers pay a fee for each ad click. While all Amazon PPC ads are part of Amazon ads, not all Amazon ads operate on a PPC model. Other models, such as CPM (cost-per-thousand-impressions), are also used in Amazon’s broader advertising ecosystem.

Which Is better, PPC or Amazon ads?

For e-commerce companies operating on Amazon, Amazon ads are typically better than general PPC campaigns because they allow for direct promotion within the world’s largest online marketplace. Amazon ads provide a seamless way to increase product and brand visibility directly where shoppers are already searching and buying. Their efficiency is enhanced by targeted advertising, leveraging detailed customer data to show ads to relevant audiences, resulting in higher conversion rates. Additionally, the variety of ad formats allows for tailored advertising strategies. The PPC model ensures cost-effectiveness, while robust analytics and reporting tools further enhance campaign optimization, making Amazon ads a superior choice for e-commerce success on the platform.

What Is the Best PPC Amazon Tool for Landing Pages?

The best PPC Amazon tool for landing pages is Landingi, a versatile platform that excels in creating highconverting landing pages, which can be an ideal campaign hub that seamlessly connects various advertising channels, such as social media ads, with Amazon product pages. Landingi allows users to build focused landing pages that present a single product and its special offers effectively.

Landingi, one of the best PPC software for digital marketing campaigns, provides tools for creating engaging, objective-driven landing pages that direct traffic to your Amazon auctions. These pages can provide detailed product information and highlight special offers before users reach Amazon, enhancing the likelihood of conversions.

Landingi’s intuitive drag-and-drop editor requires no coding skills, enabling users to design professional, responsive landing pages. With over 400 customizable templates, users can speed up the landing page creation process – these professionally designed patterns are prepared to meet various industries’ needs. Landingi provides AI-powered features for content generation, SEO optimization, and image editing to make the landing page creation process even faster and more effective. The platform supports 27 languages and allows the creation of RTL landing pages that meet their audience’s needs and expectations. These options allow you to expand your campaign’s reach and maximize ROI. All landing pages created with Landingi are mobile-friendly, ensuring a consistent user experience across all devices.

Landingi also offers an A/B testing feature, allowing users to compare page variants without external tools. This feature helps make data-driven decisions to optimize user interaction and improve conversion rates. A built-in EventTracker solution provides an internal tool for tracking user behavior and micro-conversions, allowing you to discover improvement areas and tailor your pages to meet users’ expectations.

Landingi integrates with various marketing tools and platforms, ensuring seamless connectivity between your landing pages and other marketing channels. By leveraging these features, Landingi helps create highly effective landing pages tailored to drive traffic from PPC campaigns to Amazon product pages, ensuring a cohesive and streamlined customer journey.

Improve Your Amazon PPC Campaign with Landingi

PPC advertising on Amazon has become an integral tactic for companies looking to expand their reach and maximize ROI. By mastering the basics of Amazon PPC and following tried-and-true best practices, businesses can effectively target their audiences, optimize ad campaigns, and achieve marketing goals.

Setting clear goals, gaining deep insights into your target market, and creating compelling and relevant ad content are crucial to successful Amazon advertising. The examples highlighted in this article showcase the significant impact of precise audience targeting, creative ad content, and strategic promotions in increasing user engagement and driving sales. However, a way to achieve even higher ROI than your competitors is to leverage PPC landing pages to drive traffic to your Amazon auctions.

Discover the advantages of high-converting product pages with Landingi – design product pages that perfectly complement your ads and see how an optimized page can significantly boost the success of your PPC campaigns on Amazon.

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Martyna Targosz

Content Writer

Martyna Targosz is a marketing content expert with over 3 years of experience in digital marketing. She specializes in landing page creation and conversion optimization. She is currently being mentored by Błażej Abel, CEO of Landingi, a leading company in landing page technology.
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