How Does Pay Per Click Advertising Work?

August 9, 2019How To

Due to its importance for success in the Amazon Seller space and the demand of searches for products online, a lot of experts are recommending Pay Per Click Advertising or PPC.

It sounds complicated, and many people don’t know the time or skills that it will take to create and manage their accounts. Here is a breakdown of what happens when you start Pay Per Click advertising, how to begin setting up your account for it, and what you’ll need to manage to be successful.

How does Pay Per Click (PPC) work?

Pay Per Click advertising works the same way it sounds – when a potential buyer clicks on an ad that you displayed on a page, you pay for that click. The goal is for that click on the advertisement to turn into a sale.

As a seller, you get to choose what search terms cause your ad to be displayed. You choose a list of keywords and, when they’re searched, your ad appears. Of course, your competitors who are selling a similar product will also want their ads to show up for similar keywords. For this reason, each keyword has a bid that you choose to have your product show up above or below your competitors.

Bids can be adjusted either automatically or manually, depending on the campaign that you choose. In order to not overspend, you can choose a budget for each of your campaigns so that there is only so much that can be spent per day on advertising.

A click from an ad is not a guarantee that you will make a sale, so it’s important that your listing looks great and has positive reviews so that when a buyer reaches it, they’re enticed to make the purchase.

The good news: 46.7% of U.S users go to Amazon first with 20% of users purchasing an item within 5 days of the search according to EMarketer. Compared to other services like Google Ads, Amazon has a much higher chance of a conversion from a click.

Amazon Pay-Per-Click advertising option is their Sponsored Product Ads which shows your product listing at the top of a page for a keyword you designate. Think of it as buying a space on a store shelf, but in this case the user is looking for exactly what your selling. Here’s an example of how the product listing looks.

How to get started with Amazon PPC?

The most essential part of getting started with Amazon PPC is to have the best list of keywords for your account.

Strategies for building this keyword list:

  • If you’re already advertising on Google Ads, it may help to look at top performing keywords there.
  • You can use online services like JungleScout or Helium10 to do research on top-performing keywords for your product.
  • You can brainstorm words that you think would be relevant to your product listing
  • You can use BRIKKER’s plug and play solution to automatically identify a relevant list of top-performing keywords.

Once you’ve created your list, you can add these keywords to campaigns, and then monitor their performance, ensuring they align with your ACOS goal to see which are working well and which aren’t.

What if I don’t have time to set this up?

Coming up with this list, and then checking performance and managing keywords can be a very time-consuming task. While in a perfect world you would have enough time to do all this, there are many parts of your business which may distract you from doing so or there may be times when you can’t pay attention to campaigns.

BRIKKER software was created as a way to automatically create keyword lists, adjust bids on profitable keywords, and remove ones that aren’t generating sales. The best part – it monitors this 24/7, even on weekends and holidays so that you don’t have to.

If you’re just getting started with PPC or have years of experience but need more time on your hand, check us out to see if we can make this an easy process.

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