The Amazon platform offers online merchants numerous advantages in selling all kinds of products. Therefore, the variety of products on the platform is constantly increasing. As a customer, you can now find almost any item you are looking for on Amazon. Of course, so much demand attracts more merchants to the platform, which results in ever increasing competition between the sellers.
In order to meet the increasing competition, merchants are trying out various possibilities to place their products more visibly on Amazon and stand out from the competition. A frequently used option is Amazon PPC. While many sellers already use PPC to promote their products, only a few fully exploit its potential. In this article you will learn how to boost your sales on Amazon and which Amazon PPC tools are best suited for you to manage your campaigns.
- 1 What is Amazon PPC?
- 2 Advertising products at Amazon
- 3 Sponsored Display
- 4 Amazon PPC Tools
- 5 Sellics
- 6 Conclusion about Amazon PPC Tools
What is Amazon PPC?
Amazon PPC offers you as a seller the possibility to use different advertising spaces on the platform and to position yourself better than the competition. This makes you more visible to the end customer, which leads to more traffic to your products. PPC stands for Pay-per-Click, which means as much as You pay per click. As an advertiser, you only pay for the clicks that respond to your ads. So you generate paid traffic. You control your spending by setting your daily budget and choosing how much you want to offer per click. Since you can then evaluate individual keywords and campaigns in detail and see how much you paid where, Amazon PPC is assigned to performance marketing.
Amazon PPC offers you the following advantages as a seller:
Visibility of your products is increased
Sales via PPC push your organic ranking
Cost-efficient launch of new products
Protection from competing products
Playout with previously neglected keywords
Of course, Amazon PPC offers you many more advantages, which we will discuss in more detail later. So much in advance: You should definitely switch PPC!
So much for the theory. But how does it all look in practice?
Advertising products at Amazon
There are basically three different ways to highlight your products or brand with PPC. While you advertise your products with “Sponsored Products” and “Sponsored Display”, you can use “Sponsored Brands” to highlight your brand and thus your entire product portfolio. In the following, you can find out which marketing measure is best suited for you in your situation.
As already mentioned, Sponsored Products allow you to promote your products directly. These ads are then displayed exactly where potential customers see you. For example, if you place a corresponding bid in the search results, you will appear in organic rankings before the products. Also in the ranking between the other products you will find sponsored ads again and again.
In addition, you will be displayed in listings of other competing products. In this way, this measure leads to a better visibility of your product and you increase the number of places where a potential customer comes into contact with your product.
Sponsored Brands, unlike the other two types of Amazon PPC, allows you to promote your entire brand. To do so, however, you must have registered it in the Amazon trademark register. Sponsored Brands aims to increase the brand awareness of your brand. Individual texts help you to present your brand in the way you want the end customer to perceive it.
In the search results, your brand will be presented before or between the individual products of your competitors in the search results if the match is successful. Here, the customer is directly shown several products from your range that could potentially be interesting for him.
This advertising option is currently still in the test phase in Germany and was already introduced in the USA last year. Sponsored Display is shown to customers who have not yet made a purchase and who have already been to their own product detail page, browsed in the appropriate categories or been to selected other product detail pages. Thus, Sponsored Display mainly serves the retargeting of customers who have already shown an increased interest in the product.
As with the other two types of PPC, the advertisements in listings of competitors are also played out here. However, this is done as so-called display advertising.
The new feature of Sponsored Display is that the ads are also displayed on websites or in third-party apps. This offers sellers new opportunities to draw customers’ attention to their products outside the Amazon Marketplace and to persuade customers to buy. This was previously not possible in this form.
Amazon PPC as a success factor
Now that we have clarified what PPC actually is and you now know what different methods there are to place ads on Amazon, I would like to explain why you should place ads on Amazon. I will also show you the advantages of Amazon PPC tools over manual optimization.
First of all, we need to make it clear that you are approaching the whole thing the right way. The primary goal of Amazon PPC is not to make your campaigns super profitable. Of course we should constantly optimize them and make sure that we don’t lose money on advertising. But if your ads break even, that’s absolutely fine. Because Amazon PPC offers you so many advantages that can be seen as an investment in your product. You will get the profit back many times over through organic sales.
As mentioned above, you increase the visibility of your product on the marketplace through advertisements. When using Amazon PPC, the end customer will see your product not only in the organic rankings but also in the sponsored ads as they scroll through the search results. In addition, you will appear in listings of your competitors and, when using Sponsored Display, you will now even appear in third-party applications. This way you generate many more impressions, which inevitably results in more traffic to your product. Once you have done your listing job well and your conversion rate is right, you will generate many additional sales through PPC that would not have been possible without this advertising.
Amazon PPC and the organic ranking
How does PPC influence the organic ranking? This is a question you hear again and again from new sellers. But the answer is quite simple. As explained in our article on Amazon SEO, the sales history is the biggest direct ranking factor for your products. This means that the more sales you make, the higher your organic ranking will rise. However, not only organic sales are evaluated, but also the sales generated by sponsored ads are included in your sales history and thus have a positive effect on the organic ranking. So you generate more visibility for your product organically.
Launch with Amazon PPC
You can also use PPC to launch new products easily and successfully. Without sponsored ads, you have to fight your way up the organic rankings from bad positions at the beginning. Sales increase only very slowly over time. This is of course due to the initially poor ranking but also the conversion rate. So the conversion rate for new products will be quite low in the beginning, because you have to build up ratings to increase the confidence of the customers in your product. This process is lengthy and it can take several months before you achieve significant sales. Not so with PPC: When you place ads, your product is visible from the first minute and customers start to interact with your product. This way you generate many more sales from the start and the whole process of building ratings, generating sales and generating high turnover is greatly accelerated.
Protection from competing products
“The competition never sleeps.” We’ve all heard that sentence before. This also applies to e-commerce. Because your competitors know the advantages of Amazon PPC and know how to use them for themselves. Competitive products will be displayed in the sponsored articles of your listing and will therefore chase away valuable sales. With PPC we can protect ourselves from this by buying our own product into the listings of our other products. In this way, we push competing products out of our listings and protect ourselves from lost sales.
Playout with neglected keywords
Even with the best keyword research, it happens that relevant keywords are overlooked and the product is not ranked for them. Although these keywords are often long tails over which only a few sales come about. But if you missed 20 long tails, which generate two sales per month, that’s 40 more sales you make each month. But how do you get the neglected Long Tail keywords? If your campaigns are cleverly targeted, you can set up the automatic campaign to search for keywords for you and find neglected keywords. Through these campaigns you will then make sales under these keywords and increase your organic search. In this way you can realize the full potential of Amazon PPC and increase your sales figures.
Amazon PPC Tools vs. manual optimization
There are now many different tools on the market to set up, manage and optimize Amazon PPC campaigns. Basically I recommend you to monitor your ads manually before you use any tool. This is for the simple reason that you should first develop your own understanding of how the different Amazon PPC processes work before you use a tool. Once you understand Amazon PPC, it makes sense to use an automation tool because it saves you a lot of time and effort. Especially if you already have a lot of products on the market, it is very difficult and complex to keep track of the multitude of your campaigns and to optimize them manually.
In addition, you don’t know which keywords will work for your campaigns, because LongTails in particular often have a very high conversion rate, but only very few clicks. Until you can decide whether a keyword is relevant for your product or not, a lot of time passes with worse sales figures than would actually be possible. In addition, collecting the data costs you money, because you also have to try out many keywords that are not relevant for your product. This is not necessary when using different tools and you can immediately reach the maximum yield with your product.
So in the long run nobody should do without tools for PPC management on Amazon. These can help you to avoid many costs and are in most cases worth the money.
Amazon PPC Tools
In the following, I would like to introduce you to a selection of PPC tools for Amazon that can be helpful in setting up and optimizing campaigns. You will find out what the respective tool can do and what it costs you. I will also give you tips and advice so that you can assess which tool is best suited for you and your company.
Functions: Keyword migration, bidding automation, time of day planning, analysis tool for historical data
Price: The price varies according to the edition you choose (Seller, Vendor or Agency), your annual turnover on Amazon and the contract period. You can view the prices here.
Explanation: Sellics offers three different editions: The Seller Edition, for merchants using Seller Central, the Vendor Edition, for vendors logging in via Vendor Central and the Agency Edition for agencies dealing with Amazon marketing. Depending on the chosen edition, the tool includes different functions, but is not a pure PPC tool:
Keyword Migration: With the help of this function you no longer have to manually move keywords between different campaigns. Furthermore, you are spared from adding poor performing keywords to your negative list. Once you set up fixed rules, your keywords will be moved to the appropriate ad group and the software will take care of everything for you. Should it not work as desired, you can of course change the rules at any time.
Bidding Automation: This feature relieves you of routine tasks of monitoring your bids. Bids are automatically increased when the ACoS is low, decreased when the ACoS is low, or even paused when a keyword is unprofitable. Of course, everything follows the rules, which you define once and can change at any time.
Time of day scheduling: The so-called ad scheduling allows you to pause your ads at certain times of the day. So if you have set a time of day or a day of the week when your ads are not running as planned, you can turn them off for that specific time period. This way the ads will only run when you want them to.
Historical data: The detailed analysis tool in Sellics shows you historical data that is not available in Seller Central. So you can evaluate and compare every period of your campaigns. The graphics provided by Sellics add enormous value to the whole thing. In addition, you can compare your sponsored brand ads with those of sponsored products and immediately see which type of advertising makes more sense for you based on various key figures.
Tip: The Sellics PPC tool offers you many useful functions and can only be purchased as a complete package with many additional functions. The price can be an advantage or a disadvantage for you depending on your turnover. While sellers with low annual sales profit from the low price, sellers with higher sales pay a correspondingly higher price. Since Sellics offers many more features than the PPC software, you should take a close look at the individual functions and compare prices with other tools.
functions: Keyword migration, Bidding automation, Portfolio budgets, Automatic campaign creation
Price: Starter: 199€/month, Basic: 299€/month, Growth: 499€/month, Professional: 999€/month, Enterprise: 1499€/month. The prices are staggered according to monthly advertising expenditure.
Explanation: Adference automates your PPC campaigns based on artificial intelligence and machine learning. Since the software analyzes everything comprehensively, you don’t have to set any rules yourself. Adference offers the following functions:
Keyword Migration: With Adference’s fully automated keyword migration, you no longer need to manually move keywords from campaign to campaign. Because the tool uses machine learning, you don’t even have to define rules for moving keywords. This way, Adference automatically recognizes relevant keywords and automatically transfers them to your manual campaigns.
Bidding automation: With this feature you no longer need to monitor your bids manually. You define your target ACoS or specific bids and choose from various bidding strategies. Machine Learning will then ensure that the bids are appropriate.
Portfolio Budgets: The technology behind Adference can identify campaigns or campaign portfolios that use up the entire daily budget allocated. Here too, the tool automatically ensures that the budgets are intelligently distributed across the various campaigns so that the ads are played out consistently.
Automatic campaign creation: With Adference, campaign creation is also completely automatic. You only need to make a few specifications to create a complete campaign structure for your product. The software then takes care of creating all the individual campaigns for you.
Tip: The PPC software from Adference offers you many different tools. Machine Learning automates the entire process to a great extent. This automation can save you a lot of time and effort, but at the same time you don’t know what criteria the software will use to make a decision and have less leeway for individual specifications. Ultimately, it’s up to you to know what you expect from your PPC software and to decide whether Adference is right for you.
functions: Keyword migration, bidding automation, automatic campaign creation, keyword research
Price: BidX distinguishes between the tools for sellers and those for vendors & agencies. While sellers pay 89€/month in the Starter Package, 149€/month in the Advanced Package and 249€/month in the Professional Package, vendors and agencies pay at least 449€/month. However, from 15.000€ AdSpend per month a percentage of the advertising expenses is to be paid.
Explanation: The BidX tool uses self-learning algorithms similar to Adference to optimise advertisements. This is also done here through constant bid and keyword adjustments. The great thing about BidX is that in addition to the automated adjustment, rules can also be set by the user, so that bids can also be adjusted based on these set criteria.
Keyword migration: The keyword migration is also fully automated with BidX. Keywords are moved between the different campaigns depending on their relevance to your product in order to get the most out of your ads.
Bidding automation: With automated bidding you no longer need to monitor your bids yourself. You define your target ACoS and the software adjusts the bids through your algorithm. In addition, you can simply set IF-THEN rules to have the keywords automatically moved when the respective rule occurs.
Automatic campaign creation: With the BidX tool you can create campaigns automatically with just a few clicks. You define the structure of the different campaigns and enter match types, budgets and bids. These settings can then be loaded as default when adding keywords. This allows you to edit multiple campaigns for different products at the same time.
Keyword research: In addition to the keywords found by Amazon, which are displayed in the overview of BidX, it is possible to have a manual research done by the BidX team. The team focuses especially on neglected long tails in order to rank and generate sales via these keywords. This way the full sales potential of a product can be directly exploited.
Tip: BidX combines the advantages offered by extensive automation with manual adjustments by the user. This saves you a lot of work and you can define your own rules if you want to.
functions: Keyword suggestions, bidding automation, campaign manager
Price: The price depends on your advertising expenses per month. Up to $15,000 AdSpend/month, you’ll pay $149 + 7% of your monthly AdSpend, $15,000 AdSpend/month and above, $799 + 3.5% of your monthly AdSpend, and $50,000 AdSpend/month and above, $1,999 + 2%.
Explanation: The Flywheel from teikametrics is a PPC tool that specializes in Amazon, which handles campaign management on Amazon for you and provides you with many different key figures. You are the decision maker for keyword management and can make your decisions based on the data supplied by teikametrics.
Keyword suggestions: Teikametrics flywheel will highlight keywords that perform well and those that perform poorly. Unlike other tools, you have the freedom to decide whether you want to move the keywords to other campaigns or keep them in the current campaign.
Bidding Automation: Bidding on different keywords is handled by the algorithm in Teikametrics. You can make various settings that allow the algorithm to learn more about your preferences. Bidding is then automated on this basis. Alignment with the target ACoS is also possible here.
Campaign manager: The campaign manager classifies your campaigns into different categories and shows you different key figures for them. In this way you can see the best keywords and campaigns for your product.
Tips: Although Teikmetrics also works on the basis of different algorithms, it allows the user a lot of freedom. At the same time, the software provides a great data basis on which to make important decisions.
functions: Keyword migration, bidding automation, automatic campaign creation, analysis tool for historical data
Prices: Only on request. These can be requested here.
Explanation: AdSpert started as an automated trading system to optimally place bids on all common online platforms. This is done by means of an algorithm that originates from stock exchange trading. In addition to automated bids AdSpert takes over services like campaign setup and keyword maintenance. AdSpert offers these services independently from Amazon on all common marketplaces.
Keyword migration: At AdSpert the keyword migration is also completely automated. These are moved from campaign to campaign depending on performance
Bidding Automation: Bidding automation is the heart of AdSpert. This means you no longer have to monitor your bids yourself. You set a target KPI, whether ACoS, profit or ROI and the software adjusts the bids through your algorithms.
Automatic campaign creation: AdSpert allows you to set up campaigns automatically with just a few clicks. This allows you to create complete portfolios quickly and easily.
Analysis tool for historical data: You can also read out historical performance data with AdSpert. You can evaluate and compare different periods of your campaigns. You can track individual products and run different time periods against each other to get additional insights into your products.
Tip: AdSpert is a tool that works especially cross-platform. So it is especially relevant if you also sell outside of Amazon. So you have one tool for all your sales channels from one source.
Conclusion about Amazon PPC Tools
In this article some Amazon PPC tools have been introduced. Basically it is difficult to give a general recommendation, which tool is the best. This depends mainly on the size of the company, the purpose and the costs. Although all tools offer similar basic functions, they are quite different in the freedom they offer the user and in some details. Finally, you need to know if you are looking for a tool that will only help you in your decision making regarding Amazon PPC or if you want a tool that will do everything for you. With most providers it is possible to request free trial accounts, which I would recommend if you don’t know exactly what kind of user you are.