Advertising permeates our daily life. Advertisements are all around us, and no matter if we're okay with ads or annoyed by them, they are here to stay. Advertising exists because it drives sales and sales make a profit. This is why the Amazon pay-per-click is one of the primary focuses of serious sellers since it ensures product promotion.
They come in software apps and live consultations that will help you, the seller, formulate strategies on how to best market your inventory in the search pages. They send reports on the key metrics that drive the promotion, such as ACoS, CTR, and CPC. They also offer keyword optimization, which is an important driving force in the world of Amazon selling.
To put it simply, Pay Per Click is a paid advert campaign to put sponsored products right on the first page of the search results whenever a consumer types a specific keyword.
Let's say somebody types "key-rings" on the search bar. They will then be redirected to a page full of different kinds of key-rings to choose from. The first four items this person sees on that page is the PPC doing its work. These will be labeled "sponsored" below the image, meaning the seller paid money to place it there. There will be four more such "sponsored" items in the middle and another four at the bottom of the page.
As you can see, this will make your item easier to find and therefore have a significantly higher chance to be seen (also known as an "impression") and be converted into a sale. The concept is no different than the strategy they use in supermarkets, where the management places the items they want to be sold first on a person's general eye-level within their shelves. The easier a product is found, the more likely it is to be bought.
To understand how Amazon PPC Management works, we must first understand the mechanism behind the PPC itself. So, you already have a good product and you've secured a good supplier, that's great. Now, what's next is for you to market them. How? Through the selection of the right keywords. Keywords make the Amazon world go 'round. And what you're going to do is bid on these keywords.
Take, for example, our "key-rings". Amazon will have a suggested bidding price for this word. A seller pays this bid every time a consumer clicks on the ad, hence its name (pay-per-click). Paying above the suggested bid puts you in a better spot for using the word "key-rings". So whenever a consumer types "key-rings", it's your item that's more likely to be on the first 4 item results list because you've paid more.
Using as many keywords as possible and placing a bid on each of them will increase your chances of sale conversion. This is why it is vital to test how the keywords perform over time. Upon seeing the results (usually after two weeks), determine if these keywords are relevant enough to be used continually or discarded. This process of keeping and eliminating keywords is called Keyword Optimization.
Keyword optimization is one of the features of PPC management solutions. They determine which keywords appeared in most impressions and which led to clicks and conversion. You or your consultant can now decide which keywords are relevant to your product. Management services can also provide keywords with the strongest rankings, so your word fares better than others with the same product.
Aside from this, you can also keep track of the changes in several key metrics such as CTR, CPC, ACoS, TACoS, and more. Managing and balancing these metrics is key to a successful Amazon selling business. Amazon PPC management services keep everything automated for you so you are better informed and can develop the best strategies to increase profit margins. But what do these KPI metrics mean?
CTR (Click-Through-Rate) - It is the number of times your PPC ads have been clicked. This figure represents the percentage of people who see your ad (impressions) and subsequently click on it (clicks). This is the formula for CTR:
(Total Clicks) / (Total Impressions) = Click-Through Rate
CPC (Cost per Click) - This is an internet advertising revenue model in which websites charge advertisers depending on how many times users click on a display ad on their site. In Amazon, you determine the number of clicks by putting money on it. For example, if the cost per click is 10 cents, you'd pay 50USD for 500 clicks.
ACoS (Advertising Cost of Sales) - This determines how effective your ad campaign is. It tells you the amount you spend on adverts for each sale you make. It is presented in %, and so you can calculate the ACoS using this formula:
Acos = Ad spend / Ad Revenue x 100
For example, if you made 500USD because you have a sponsored product, and if it costs you 200USD to have it advertised, then ACoS = 200/500 x 100 = 40%. It means that for every dollar made, 40 cents went to advertising. TACoS means the total advertising cost of sales.
We hope you appreciate how vital it is to have such management service at your side while making your way to becoming a successful seller. Having a quality PPC management service you can trust to optimize your keywords, create effective campaigns, and keep track of your metrics can significantly impact your performance and profit margin.
Good thing Riselane is there to help you every step of the way into finding the perfect management service solutions that would suit your changing needs and help you with your business growth. Visit Riselane.com to see a wide selection of Amazon PPC management services with loyalty points and attractive discounts.
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