The Direction in which amazon is headed:
Amazon has been shifting towards the type of platform where you can expect the top-selling items to be sponsored. With competition constantly increasing and markets becoming oversaturated quicker than they arrive. Sometimes the only way to stand out is by just paying for it.
That's not to say that organic results do not have a place on Amazon any longer. If anything, your sales should primarily come from organic rather than paid. But it's needed to point out that advertising on Amazon is now more crucial than ever. You need that push for the Amazon algorithm gods to pick up on your product.
A brief on how amazon's algorithm works:
The way the platform's algorithm works is by emphasizing sales conversions. Amazon is a business after all. And one that usually looks for its own best interests. And the algorithm does that by promoting listings which are more likely to result in sales as Amazon favours listings with high conversion rates and a strong sales history.
And that is the exact reason why you need to pay attention to both the organic and paid parts. The ads are what will give you that needed push to drive sales up. But focusing on using the right photos, keywords, and an accurate description is just as important to drive up the conversion rate.
Use Amazon's PPC to your advantage as it can have a dramatic indirect impact on your organic rankings.But we do have to set a distinction and define the difference between the 2 types of results on Amazon.
Also known as Amazon Pay-per-Click (PPC) advertising is part of Amazon’s internal advertising system. Through Amazon, PPC sellers can target specific keywords, which appear in Amazon’s search results and competitor product listings. That fact, sellers can present relevant products to a ready to purchase audience, while measuring the ads. To identify which specific ads are driving conversions. It’s a highly effective marketing technique that every Amazon seller should know about and utilize. Especially knowing that with the influx of online retail traffic comes more competitors looking to capture the most sales.
Having an effective PPC advertising strategy is all but essential for Amazon businesses of all sizes. After all, there are over 350 million products on Amazon, and listings can easily get lost in the noise. And with the increase of competitors comes an increase in the PPC itself.
Types of paid Advertising:
Amazon offers a few Types of PPC ads for sellers to use. It's recommended that you try all of the ad types available to you when you're starting out, especially automatic-targeting ads and manually targeting Sponsored Products ads. Understanding the different ad types will help you get the best direction to your campaign and when choosing the right keywords and search terms.
1. Sponsored Products ads
Sponsored Product ads appear in search results and product listing pages, and can closely resemble organic listings. This is the most common type of Amazon PPC ad, used by 66% of third-party sellers.
2. Sponsored Brands ads
Sponsored Brands ads, allow sellers to drive awareness to more than one product at a time and catch shoppers’ eyes with more interesting visuals than with Sponsored Products.
Sellers can choose between three presented formats. It can appear at the top of search results as headline banners or it can be placed further down the page as a video.
3. Sponsored Display ads
Sponsored display ads are similar to brand ads in that you need a registered brand. It does go a step further as it allows sellers to not only target customers who have visited their products pages on Amazon, and off Amazon as well. Ads will appear on Amazon’s affiliate sites, including Google, Facebook, and even mobile apps.
Sponsored Display is the newest type of PPC and hasn’t quite reached the popularity of Sponsored Products and Sponsored Brands: just 25% of third-party Amazon sellers use Sponsored Display PPC ads.
Now, the Reasons why you should use Amazon's PPC ads
As briefly mentioned above, it's become apparent now more than ever that you need to use Amazon's PPC in order to stand out more in a crowd full of competitors trying to reach the same customer base. And here are a few reasons as to why.
How to use profit Cyclops to your advantage when using Amazon's PPC?
Profit Cyclops keeps track of the cost of advertising per order. And it does this for every single marketplace in real-time.
Amazon ACoS (Advertising Cost of Sale) is a key metric to measure the performance of an Amazon PPC campaign. Profit Cyclops has everything you need to know about this metric, so you always know how much you spend on advertising.
With all the campaigns and ads, you would be running you need the right tool to keep track of all the costs, so you can sell without the worry of overspending on ads and other Fees Amazon doesn't show you.
Stay ahead of the competition. Compete at the highest (and fastest) level possible with our proprietary, goal-based artificial intelligence algorithms. With your goals in mind, Profit Cyclops can handle the day-to-day management of your advertising optimization.