What Is Amazon PPC? (How It Works, Benefits + More)

Amazon has so much to offer, not just for shoppers but business owners, too. In fact, Amazon is at the forefront of the tech and e-commerce industries, and more and more businesses are taking advantage of Amazon’s extensive resource offerings.

So, if you’re interested in internet advertising, you may be wondering: what is Amazon PPC? If you’d like to learn more about what I discovered on this topic, keep reading!

What Is Amazon PPC In 2022?

Amazon PPC stands for pay-per-click sponsored ads, a trusted advertising stream that supports third-party sellers through targeted ad campaigns in 2022. Amazon Marketplace sellers can boost their sales by signing up for PPC ads, while Amazon charges a small fee for ad clicks. Amazon sellers can get closer to the top search results with PPC.

If you’re eager to know more about Amazon PPC, keep reading for our full guide, which includes the reasons why Amazon pay-per-click advertising is so popular, plus how it all works!

How Does Amazon PPC Work?

Amazon PPC serves as an advertising platform for third-party Marketplace sellers who want to increase product visibility and overall sales on Amazon.

With this pay-per-click program, Amazon charges advertisers a fee when users click on an ad.

Additionally, this is a dynamic solution that’s become one of the most valuable ways to make products more visible on Amazon search results.

Amazon has nearly two million small and medium-sized businesses selling goods on Marketplace.

As well, PPC advertising has quickly become the preferred method to get these items in front of interested shoppers.

Essentially, Amazon PPC is one way for sellers to buy visibility to push their products toward the top of trending search results.

There are several different Amazon PPC ads to choose from, including the following:

  • Sponsored products – these are the most popular Amazon ads that target keywords, much like Google Adwords. Sellers can promote various products on Amazon search and item pages.
  • Sponsored brands – sellers use these brand-building ads to highlight the brand logo and a custom headline, plus up to three products. These ads are positioned above search results and can send shoppers to Amazon Stores, or other custom landing pages. Video ads are a new offering for sponsored brand ads leading shoppers to product pages.
  • Sponsored display ads – also known as product display ads, sponsored displays connect consumers to product detail pages on Amazon, showing relevant ads on Amazon and external sites. These ads are displayed to users who visit targeted products on the Amazon website or app.

Running ad campaigns with Amazon PPC requires sellers to sign up for Amazon Brand Registry, and once they do, they can take full advantage of Amazon advertising solutions.

Does Amazon PPC Work With FBA?

Does Amazon PPC Work With FBA?

Fulfillment By Amazon (FBA) is a warehouse and distribution program that streamlines logistics for third-party sellers.

The good news is Amazon PPC ads work for FBA products, as well as those fulfilled directly by the merchant.

Also, keep in mind that both vendors and sellers can use Amazon PPC, regardless of their fulfillment method.

The main difference is that third-party sellers list products on Amazon Marketplace directly to consumers.

In contrast, vendors or first-party sellers sell in bulk to Amazon before Amazon sells the goods straight to its customers.

If you’re selling on Amazon, just remember you need to meet the eligibility criteria for PPC ads, and Amazon advertising in general:

  • An active Amazon account in good standing
  • Valid payment method and shipping method to the country you want to advertise in
  • Professional seller, vendor, or author with Kindle Direct Publishing (KDP)
  • Used, refurbished, or adult products are not eligible
  • Sponsored products must be in stock and in the Buy Box

It’s also important to note that Amazon has a list of eligible categories for Amazon PPC advertising, so make sure your products fall under one of these categories, as well.

What Are the Benefits of Amazon PPC?

Amazon PPC ads are a prime example of how Amazon doubles as both a selling and an advertising platform.

One of the most valuable benefits is how effective Amazon PPC ads are in increasing sales, because these ads target shoppers who actually make purchases on Amazon.

Rather than advertising to an external audience and hoping they follow through to the product listing, Amazon PPC ads take users right there.

It simply makes sense for Amazon Marketplace sellers to advertise directly on Amazon in an effort to boost sales and visibility.

Amazon PPC campaigns also help to generate brand awareness and climb organic rankings by promoting products to thousands of viewers on Amazon.

These ads appear on desktop, mobile, and Amazon’s app, and sellers always have the flexibility to control the advertising budget and chosen ad types.

Also, Amazon produces detailed reports outlining ad performance and how targeting methods are working, such as keywords, brands, categories, and products.

Amazon Standard Identification Numbers (ASINs) are incorporated into these reports, and ads may be remarketed on external sites to further reach the intended audience.

Finally, Amazon displays sponsored product and brand ads at no charge, meaning advertisers get free impressions and views.

In fact, you only need to pay when a possible customer actually clicks on the ad.

Also, because you can set the amount you want to spend per click, you can keep a close eye on the total amount you spend on ads.

If you want to know more, you can also see our posts on Amazon Prime shipping, what is Amazon Pay, and Amazon Marketplace return policy.

Conclusion

Amazon is the top online retailer in the U.S. and beyond, and not only is it a valuable resource for online shoppers, but it’s also a trusted source for digital advertising.

Pay-per-click advertising or PPC is especially popular on Amazon, as the company increases visibility within Amazon search results and product detail pages.

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Marques Thomas

Marques Thomas graduated with a MBA in 2011. Since then, Marques has worked in the retail and consumer service industry as a manager, advisor, and marketer. Marques is also the head writer and founder of QuerySprout.com.

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