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Guide to Amazon Advertising: CPC Ads

Guide to Amazon Advertising - CPC Ads

The past few years have seen a radical change in the way people market and advertise their products. With the rise in popularity of digital marketing and advertising norms, the one significant change is the ease with which people can now market their products and services most effectively. 

One such medium that has made marketing very cost-effective and reasonable is the Amazon cost per click strategy. In this blog, we will  discuss the finer nuances of the world of Amazon ads CPC. Amazon CPC ads or cost per click is one of the most common Amazon PPC types of strategy that requires a person to pay only when your advertisement link is clicked on the online platforms. If the CPC is marginally high, it means that getting a possible return on your investment will be challenging. 

A carefully thought out and planned CPC strategy on Amazon will help your brand improve the ranking of their product listing on Amazon, which is crucial considering that the online markets at Amazon are filled with plenty of options and a diverse variety of consumer goods. 

When devising a strategy that can help brands reach the optimum level of recognition amongst the masses, there is a high level of confusion regarding the different concepts that make digital marketing more volatile and beneficial. The world of e-commerce marketing has been optimized further with the help of various strategies like PPC, CPC and even Amazon CPC ads. The only challenge that people encounter is when they are not aware of the differences between these strategies. 

Before investing in any one of these strategies, it is vital to know how “Amazon cost per click” is different from PPC? Pay Per Click (PPC) is the strategy that is used on several marketing platforms like Facebook and Google, through which an advertiser needs to pay every time someone clicks on the link to your advertisement. On the other hand, when you talk about Amazon cost per click, it refers to the price that one pays for running advertisements within the Amazon platform itself. If PPC is the strategy that you choose to go ahead with, CPC is the cost that you will pay for it to run on individual platforms. 

As a product seller, if you want to advertise your products on Amazon,  the Amazon PPC is the method that you follow to pay every time someone clicks on your ad. On the other hand, the Amazon cost per click analyzes and calculates the total price that you as a seller will have to pay to Amazon for promoting your product. The critical factor to keep in mind is that the lower your CPC is, the more fruitful and beneficial your PPC campaign is on the Amazon platform!

How does Amazon CPC work?

Now that you have understood the basic crux and nitty-gritty of what Amazon cost per click is all about, let us help you understand the semantics of how it works. The CPC Amazon ads brings to sellers a unique platform and strategy through which they start a bid to purchase keywords that best describe and enhance their products. If you have purchased a keyword that has a high search volume, the moment a customer searches for it on Amazon, your product will be the first thing that they will see. 

The products that get the highest bid and pay the required Amazon CPC cost wins the bid to place their advertisement on the search engine result page. As soon as their ad is set and the customers start clicking on it, it means your product has got the proper visibility that it needs to gain mileage on Amazon. A seller needs to keep in mind the main thing that is updating the keywords and supporting the bid and running it for at least a week. This way, they will update their products with the top searched keywords that people are using to find what they need to buy. 

Requirements for setting CPC ads?

It is true that when it comes to the best e-commerce platforms, Amazon has created a unique niche for itself. One of the reasons it is still considered one of the best online selling platforms is that they have a set of defined criterias that a seller needs to fulfil before starting their Amazon CPC ads. If you are looking to give your products the boost they need with the help of the CPC strategy Amazon, here are a few requirements that you need to fulfil. 

  • To reap the benefits of CPC Amazon ads, it is essential that you have an authorized sellers account that is up and running. If you are not a registered seller on the Amazon platform, you will not be able to take advantage of the CPC strategy Amazon.
  • With a seller account in place, you need to ensure that all the products you are selling can be shipped anywhere irrespective of the distance and location.
  • Another way to market and sponsor your products on Amazon is with the help of other sponsored products. To do so, you need to meet the Buy Box criteria, which consists of holding a professional sellers account on Amazon backed by metrics that give detailed information regarding the cancellation rates, shipment rates and the stock data that the seller has. 
  • If the product you are selling on Amazon is unique and you want to safeguard its intellectual properties, you need to apply for an Amazon brand registry. Doing this will protect your products’ individuality on Amazon and give you better results under the Amazon cost per click strategy. 

Importance of CPC?

Many sellers still have trouble understanding exactly why Amazon’s CPC strategy is an excellent strategy to opt for. As discussed above, the bidding and pricing depend on the keyword you are looking for and the niche that your products cater to. A CPC strategy helps you measure the level of your product’s success. It is a process of bringing some method to the chaos of digital advertising on Amazon. If you spend more  money on a single advertising and not get the right volume of ROI, a carefully executed Amazon cost per click strategy will help you eliminate the errors and rethink your strategy. 

Unlike the other forms of digital marketing, Amazon CPC ads are something that you can control. This control gives you the liberty to decide when you want to start or hit the pause button to your ongoing marketing strategy. When you choose to invest a certain amount towards a campaign and see that it is not driving in the results you expected to see, you can easily pause it with ease. 

How do you know how well your marketing strategy is working? With the help of the Amazon cost per click strategy, you can also figure out how much you are earning. When the Amazon CPC ads are hosted, it helps drive more customers to your products and the higher the digital footfall is, there are more chances of your product being bought. Another plus point you get with the CPC strategy on Amazon is that you can hit the bullseye each time by marketing your product to the right target audience.

These are some of the reasons why opting for Amazon CPC ads is the best way to market your products on Amazon in the most successful manner. As this process has become more defined with time, more and more sellers understand why investing in Amazon ads CPC is essential and critical to achieving brand success.

Guide to set up CPC bidding

When setting up your Amazon cost per click strategy, it is essential to note that the cost per click is determined according to a second price auction strategy. In general, every advertiser will submit the amount that they are willing to pay for their bid. This is considered the default bid. 

The advertiser/seller who bids the highest wins the highest position and ranking on Amazon and will also pay the highest CPC. The relevant thing to understand here is that the bidder won’t pay the actual amount they bid but will pay only $0.01 more than the second-highest bid amount. When you are setting up to place your bid for the Amazon CPC cost, understand that you won’t pay the actual amount you quote (which is the highest) but will pay less than a dollar more than the amount considered the second-highest bid.

Average CPC cost on Amazon (aCoS)

The thumb rule for every advertiser/marketer before investing in a digital strategy is to understand the cost factor that they will have to bear. On average, a marketer on Amazon typically pays anywhere between $0.02 to $3 for every click on their ad. While calculating the aCoS, it is vital to remember that this cost will keep fluctuating depending on the competition and your advertising budget. 

Since the key is to use the right keyword, there could be a chance that more than one company is bidding for that keyword, which means that the average aCoS for your Amazon ads CPC may increase more than the average price depending on the product type, niche and the marketplace.  

Tips on setting the correct CPC for your business?

As advanced and technical as it may sound, setting up the right CPC strategy on Amazon is easy and effective as long as it is done right! If you have finally made up your mind to invest in the Amazon cost per click strategy, here are a few pointers to help you get a head start in the right direction. 

  • Initially, it will be all about trial and error, which is why you will have to try multiple CPC and PPC strategies before you finally get the right one that brings you the right ROIs. The key here is to be flexible and try several automatic and manual keyword search strategies that can help you get the best keywords that optimize your Amazon CPC strategy. 
  • Source the right keywords and select the ones that best highlight and describe your products on display. It should be keywords related to your brand or even keywords related to those used by your competitors and the products displayed by them.
  • When deciding your budget, set the initial daily budget 50-100% higher than what Amazon recommends.  
  • The ad campaigns that you start with the CPC strategy Amazon should be allowed to run for a minimum of two weeks to get the right results and make any adjustments to your content strategy if at all it is needed. 
  • Before switching or changing the keyword of your product description, it is advisable that you get a minimum of 10 clicks from it. 
  • Last but not least, it is crucial that you generate and view reports every week so that you can keep track of high volume keywords that are getting good business for you and accordingly add, subtract or adjust the keywords as needed. 

The best thing about the CPC strategy provided at Amazon is that it is open for everyone who has a product that is worthy of the masses’ attention. Gone are the days when you needed to set aside a large sum of money to work on campaigns that may or may not bring you the desired results. With the unique availability of the CPC Amazon ads, you are expected to pay and are charged only when someone clicks on your advertisement link. And, in the case when you don’t get positive leads, at least there will be an increase in the impression and digital footfall of your page so that people know about you and your brand. 

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