Amazon Seller Guide 2022: How Does Amazon Paid Search Work?
If you’re looking to sell your products on Amazon, then paid search might be the right strategy for you. One way Amazon sellers can increase sales is through Amazon’s paid search service.
This service enables them to bid on relevant keywords related to their product(s), which customers use when searching online. Also, if someone clicks on one of these ads and makes a purchase, the seller gets credit for it!
In this article, we’ll go over everything you need to know about Amazon’s paid search, including what it is, how much it costs, how to get started, and tips for getting the best result in your ads campaign.
How does Amazon paid search work and what is it?
In a nutshell, Amazon paid search is a tool that allows sellers to bid on keywords and have their products show up when searching those keywords. For example, if you’re selling XYZ widget and “widget” is one of the terms you’ve chosen to bid on, your product will appear in the sponsored listings whenever someone searches for “widget.”
In addition to bidding on specific keyword phrases, you can also use negative keywords so that your ads don’t show up when somebody searches for something irrelevant like “XYZ widgets.”
If this sounds interesting or confusing, keep reading! We’ll discuss how it works in more detail below.
How to set up your Amazon Paid Search campaign?
The first step on Amazon paid search is to visit the paid search dashboard and create an ad campaign. To do this, click on Sell on Amazon > Sponsored Products > Paid Search.
This will take you to a page where you can choose from different keywords and negative keyword phrases, bid amount for each of those words, and identify your maximum daily budget. You’ll also need to select which categories or subcategories your product belongs in. These categorisations may already be pre-selected for you, then create a default bid per category.
Once all of this information has been collected, click “Create campaign” and save everything inputted into the system.
Note: You can always go back and edit any aspect of your campaign later.
After creating the campaign and saving, you’ll be taken to the “Edit” page for your new ads campaign. From here, you can click on Edit next to “Keywords,” select any of the search terms or negative keyword phrases that were automatically populated when you created your campaign, and adjust their bids accordingly.
Alternatively, there’s an option at the bottom of the list where you can add keywords if they haven’t already been collected.
You can also choose whether ads will appear in specific countries (Amazon might not allow cross-border advertising) or only on particular devices like mobile phones or tablets. You’ll need to remember that people searching through a specific device may be looking for something different than someone else doing a similar search through another device.
Finally, keep in mind the default daily budget you set up when creating your campaign. Depending on how much money you want to spend, adjusting this number might be necessary for your ads to run efficiently.
How much does Amazon Paid Search cost?
You can use two different strategies for this type of marketing – either cost per click or cost per impression.
Cost-Per-Impression
Whenever people see your ads but don’t click on them, it counts as an impression. The number of images your sponsored products receives daily will determine how much you pay Amazon each day for this service.
For example, suppose your maximum bid amount is $0.40, and 100 people saw your ad without clicking it that day. In that case, Amazon will charge you 40 cents for this sponsored placement since it doesn’t include any activity from potential customers. Keep in that no money exchanges hands unless your product receives a click from a potential customer.
Cost-Per-Click
Alternatively, when someone clicks on your ad, you’ll be charged based on the amount you’ve bid for keywords or negative keyword phrases. If you’ve only bid $0.20 for “XYZ widgets” and somebody does indeed click on that ad, you’ll be charged $0.20 even if they don’t purchase anything after landing on your product’s page.
On the other hand, if that person ends up buying the XYZ widget after clicking your link, then Amazon will not refund any of the money spent during this process since it already includes all of their advertising fees.
Who does Amazon Paid Search work best for?
Paid search isn’t the only way to advertise your products on Amazon. Still, it can be an effective way to reach specific customers – especially if you’ve already done keyword research using the free version of MerchantWords.
The more popular a particular word or phrase is, the higher your chances are of having people typing in that exact term end up landing on one of your pages (assuming you bid low enough). This helps eliminate confusion since people aren’t searching for something specific other than getting completely different results than what they were expecting based on their original intent.
However, if you’re not set on launching a paid campaign, Amazon does offer free options to drive traffic to your product pages, so be sure to check them out. For example, their sponsored products feature places your ad in relevant categories across the website, but this type of advertising doesn’t have the potential reach of their paid search engine optimisation strategy.
Even though it might be costlier at first glance, you’ll likely end up earning more money in the long run by taking advantage of both options simultaneously.
Tips For Getting Best Result in Your Ads Campaign
Amazon has strict rules about how much advertisers can spend each day which helps to ensure an equal playing field for all marketers. The cost-per-impression approach is rarely recommended since it’s impossible to know if your product will receive any clicks.
On the other hand, bidding too low and not getting enough impressions can be equally as ineffective. To increase your chances of success with Amazon paid search, try testing different keywords and ad copy. This testing process may include seeing how many people click on an ad after typing in a particular keyword or phrase into the search bar (with or without any additional modifiers such as “free shipping”).
Ideally, you want your ads to appear directly when someone types in a particular word but doesn’t add to it. For example, “clipart” is part of “free clipart.” A paid search expert can help you find the right balance between how much you’re willing to pay and how likely someone is to click on your ad.
If you want even more traffic to your website, you should visit Best PPC Automation Software for Amazon Ads for you to learn more.
FAQs
What is Amazon PPC?
Amazon PPC or “pay-per-click,” is an advertising option that allows advertisers to bid on specific keywords to have their product pages show up for relevant searches. The more you’re willing to pay for a click, the higher your sponsored products will rank on the page of results.
Why is Amazon PPC important?
Amazon PPC ads are more likely to be clicked than generic sponsored product ads because you’re targeting people actively looking for something. For example, someone searching for “clipart” is more likely to click on an ad that says “free clipart” than one that simply reads “sponsored products.”
How long does it take for Amazon PPC to work?
If you’re running a well-targeted campaign, it may take some time to see results since your customers also have many options available to them on Amazon.com. To give yourself the best chance of success, try testing different keywords and ad copy until you find something that resonates with your target audience.
Conclusion
If you’re looking for a way to get more visibility and sales on Amazon, paid search is an effective strategy. By focusing on the keywords that customers are searching for most often and bidding competitively against other advertisers in your category, you can increase your chances of showing up higher in ranking results pages.
We hope this article gave you some new ideas about how to improve your advertising campaigns with Amazon’s paid search!
