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With millions of products selling on Amazon, investing in Amazon PPC campaigns is one of the most effective ways to stand out from the competition, increase company sales and grow revenue with Amazon. Today, Amazon advertising has progressed much faster and the competition has become even tougher. 

This is why Amazon PPC optimization is important. 

If you're new to Amazon PPC advertising or even if you've been in the game, it's important to take the time to understand the best PPC optimization strategies that will work best for your products. This will help you reduce advertising costs and improve your Return on Investment (ROI). 

Read on as we dive into top Amazon PPC optimization strategies that work in 2022. 

What is Amazon PPC? 

Before we dive into Amazon PPC optimization strategies, let's look at what Amazon PPC is all about. 

Amazon PPC Ads, also known as Pay Per Click Ads is an internal system on the Amazon marketplace where sellers advertise their products and pay for the ad each time a buyer clicks on the product. A seller will pay for every click regardless of if the buyer eventually bought the product. 

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Without Amazon PPC, even the best products may never get out to potential customers. 

Advertising also helps your product to be recognized by search engine algorithms. The higher you rank on search engines, the larger your potential audience, and potential sales. 

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There are three types of Amazon PPC ads you can access from your Amazon Seller Central account. 

• Sponsored Product Ads: Sponsored Product Ads are the most common types of ads. They appear just like organic listings on search results. To create Sponsored Product Ads, you can use automatic targeting or manual targeting. 
• Sponsored Brand Ads: This type of ad allows sellers to create brand awareness, as Sponsored Brand Ads allow sellers to include more visuals of their products, a custom logo, tagline, a video format, and so on. 
• Sponsored Display Ads: Sponsored Display Ads allow sellers to run ads on and off Amazon. With Display ads, sellers can retarget customers that have visited their product page. These ads can appear on affiliate sites like Google, Facebook, and Netflix. 

To start advertising, simply go to your Amazon Seller account, click on Advertising > Campaign Manager > Create Campaign, and then select the type of Amazon advertising. 

What are the benefits of Amazon PPC? 

Amazon PPC ads help sellers gain greater visibility and ultimately increase company sales. Here are a few benefits of Amazon PPC ads:

• Higher ranking on Amazon SERPs: With Amazon PPC ads, you can rank your product listings higher on search results and increase their visibility to a wider audience. Ultimately this means that more shoppers will see your product, leading to a higher conversion rate and sales. 
• Specific targeting: Amazon PPC ads allow you to reach potential buyers and not just viewers. Your ad will appear on the homepage when customers actively search for a particular keyword. 
• Increased sales: With more visibility, potential customers can see your product and easily make a purchase. 
• Pay only for clicks: Running Amazon PPC ads come at a minimal cost. You will only be charged when customers click on your product. You won't be charged for impressions generated from the ad. 
• Improves organic rankings: Amazon PPC ads influence organic rankings positively in the long run. As you run ads, the algorithm works to place your listing at the top of search results. In addition, it also improves organic keyword rankings. 

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8 Amazon PPC optimization strategies that work in 2022

Amazon PPC optimization involves all the steps employed to improve advertising performance. To outrank the competition, maximize your ad spend and increase Amazon sales, you need to optimize your Amazon PPC campaigns. Here's how to conversion rate on Amazon through these effective Amazon PPC optimization strategies: 

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1. Structure your ad campaigns 
2. Optimize your product listings
3. Create a precise and convincing ad
4. Know your target Advertising Cost of Sales (ACoS)
5. Track your bids (CPC)
6. Find out your advertising budget 
7. Pay attention to your product reviews and customer feedback
8. Experiment with your ads to find out what works 

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Structure your ad campaigns 

Creating structured ad campaigns is an effective way to maximize your ad spend and increase your overall ROI. But what exactly do we mean? 

Structured ad campaigns involve creating pre-established patterns with specific objectives, budgets, and timelines. 

More practically, it will involve creating individual campaigns for different product categories, and then creating ad groups under each campaign. This is similar to using Google Ads. 

For example, if you sell men's pants, men's underwear, and men's accessories, you can create individual campaigns for each product category. Next, create ad groups under each campaign. Craft relevant ads for each ad group and include significant keywords for each group. 

Optimize your product listings

While you utilize Amazon advertising, it is important to pay attention to your product listing. Optimizing your product listing will improve your search relevance and also increase your potential customer base. 

Here are simple ways to do this:

• Use relevant keywords: Keywords are important for SEO and traffic conversion. For Amazon PPC ads, including significant keywords in your product title can make all the difference. To get relevant keywords for your ads, you can carry out Amazon ads keyword research using keyword tools. You can check out our article here for an Amazon keyword research guide. 
• Use catchy and descriptive product titles
• Make sure your bullet point section and product description are informative and relevant. Don't forget to include significant keywords. 
• Use high-quality images that represent your product accurately. You can invest in Amazon A+ content and product videos to give your customers a better shopping experience. 

Create a precise and convincing ad

In an information-rich world, to get the attention of potential customers, you need to be more precise with your ads. For example, writing a long vague email copy will only make your ad just one of those emails left unopened. Being precise and clear will help you properly target the right audience. 

You also want to be as convincing as you are precise. You need to create a convincing ad copy with quality images and videos that sell your product alongside its benefits. If you sell clothing, you want to make sure you create video content and include high-quality images that reveal the clothing’s quality, fitting, size, and dimensions. To create a convincing ad, you need to start with research and also segment your ads based on various target groups. 

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Know your target Advertising Cost of Sales (ACoS)

Your Advertising Cost of Sales (ACoS) is your ad spend divided by sales from the campaign, expressed as a percentage. This metric is an indicator of the success or failure of an ad campaign and can differ based on the purpose of your campaign. 

Your ACoS will help you analyze your campaign performance and ultimately your Return on Investment. 

Depending on your objective, it is important to set a target ACoS. Doing this will help you monitor your ad performance and ensure that your ad spend is kept in proportion to your direct sales and revenue. 

Track and adjust your bids (CPC)

When you input keywords into the keyword targeting window, Amazon shows you keywords with match types and suggested bids. To capture more sales, it is important to adjust your bids. To do this, you need to work with data. So, it's best to wait for at least one week before adjusting your bids. 

Here are some general standards for bids adjustments: 

• If you notice that your ACoS is above your target value, you may need to lower your bid to see if your ad spend and sales can arrive at a more balanced ratio
• On the other hand, if your ACoS is lower than your target value, you may need to increase your bid to see if your reach and sales can be expanded. 
• For keywords that aren't generating sales, you may want to place a higher bid on them to test if they can improve their performance
• Keywords that aren't adjustable or generating any sales should be removed 

Overall, you need to constantly track and optimize your bids to ensure your ad spend and sales are at a balanced ratio. 

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Find out your advertising budget 

Amazon Advertising is an entire process that involves getting the attention of your audience, educating them, and then convincing them to buy your product. This may not happen within a short time. 

To succeed on the Amazon marketplace, it is important to find out your advertising budget. This will help you reduce costs and ineffective marketing. 

Draw out a plan and figure out how much it will cost to advertise your product and reach your target audience. 

Pay attention to your product reviews and customer feedback

To improve your advertising and sales, it is important to pay attention to your product reviews and feedback. Positive product reviews and customer feedback can increase buyer trust and convince customers to purchase your product. Higher ratings and positive reviews can increase conversion rate, lower ACoS, and increase revenue. 

Experiment with your ads to find out what works 

As we mentioned earlier, Amazon Advertising is a process that takes time. To unveil the right strategy that yields the quickest possible results, it is worth it to keep experimenting with different strategies that work best for your product. Don't limit yourself to using a single ad group. You can experiment with as many to find out which works best for generating sales. 

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Conclusion 

Amazon Advertising is a sophisticated tool that provides ad opportunities to reach a wide range of customers and increase company sales. However, you need to understand the dynamics of Amazon PPC optimization to be successful with Amazon advertising. You can go through the above PPC optimization strategies to get you started on the right foot. 

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