Amazon has its own channel of marketing just like Google PPC advertising. Amazon PPC Marketing spreads on and off amazon to its affiliate websites as well.
PPC stands for Pay per click. Meaning, for every click from the customers, sellers are going to pay some amount to amazon, in return for showing their listings as an ad on the top of the search (there are other ad placements as well, which we will discuss in upcoming posts).
That means, there is going to be competition between sellers for acquiring the sponsored placement for ads. and that’s the other side of PPC. Sellers are going to bid for sponsored placements on keywords(also Asins), and the ones with the higher bids are going to win the desired ad placement.
But Amazon is a consumer-centric Platform. they are not greedy for the highest bid someone makes. Amazon wants its shoppers to have the best shopping experience, and buy quality products from the best sellers.
> Yes, that’s right and for this purpose, Amazon has developed A10(updated) Algorithm.
Amazon has also applied the same criteria to PPC sales as it did to organic sales. This means that along with the highest bids, sellers have to meet the other Matrics as well.
Following are the Matrics along with how to acquire them at the start.
1. Relevancy. How relevant is your Product to Amazon customers?
Shoppers on Amazon are not yours, They are Amazon customers, and Amazon wants to know how much your product is relevant to its customers.
So organically, you will do all the things that are required to make your listing optimized. In PPC what you can do to make relevancy, is to target all your main (seed) keywords and Relevant Asins in the Exact Campaign. It will not only teach A10 about where your listing lies, but it will also help auto campaigns in their targeting more efficiently.
*There is no need to go aggressive with this approach, as we are not aiming for Sales but for relevancy. We can go with low bids. and you can also turn these exact campaigns off after one week or so.*
2. Click Through Rate. How many shoppers clicked on your Listing after seeing it?
CTR is basically clicks/impressions. CTR is also linked to relevancy. if your keyword is relevant, it will have CTR.and vice-versa, if your keyword has high impressions but almost zero clicks, it implies that the keyword is not relevant (if the listing is well optimized).
CTR depends on 4 Major Factors.
- Ad Visibility (Relevant Targetting).
- Main Image. (Highly attractive 3D image).
- Social proof. (At least 15 to 20 reviews)
- Offer. (low price, good quality, discounts, coupons, etc)
*Make sure these factors are Met on your listing to increase CTR.*
3. Conversation Rate. How many orders compared to clicks?
CR is orders/clicks, which is not the same as unit session percentage. While sessions might serve as a proxy for clicks that landed on a detail page nut Units might not serve as a proxy for orders, as people often buy more than one unit or more than one unique product from your catalog. Units ≠ Orders. Hence, the overall conversion rate is not exactly the same as the Unit Session Percentage.
There are also 4 factors for CR.
- Broad Targeting.
- Irrelevant Keywords.
- PDP (product display page)/offer is less convincing.
- Ad placement.
Low CR will not only hurt our PPC it will also hurt our organic ranking.
*The listing must be fully optimized, Relevant Targetting along with Good price and offers is the way to go.*
4. Bids or Cost per click.
Biding high on a keyword will surely help you win your desired ad spot. Amazon loves how much their sellers are willing to compete for getting the 1st sponsored spot. it shows how serious you are about generating revenue for yourself, and also for Amazon.
But the wise way to do it is to know how to bid on profitable keywords or ASINS and on which spot. (which is a topic of some other Discussion).
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