Are Amazon ads worth it? The short answer is “yes” but we’ll go into more detail with 3 reasons why Amazon ads are probably worth it for your business.
Amazon Customers Are Primed to Buy
And I don’t mean Amazon Prime. Hey-o!
What I mean is that if people are shopping on Amazon then they’re looking to buy something. In marketing jargon, you might say that they have a high degree of “buyer intent”.
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That might seem obvious but not all shopping platforms have that benefit. Think about Google, for example, where someone might be browsing for any number of reasons like to learn a new skill, look up the net worth of a celebrity, or look for an answer to the age-old question, “Is my cat trying to kill me?”.
Not only that but Google searches are a lot broader. So, even if someone is searching for a specific product on Google they’ll likely be shown lots of different websites related to their search whereas on Amazon the customer is sent directly to a list of products relevant to their search.
Utilizing pay-per-click ads on a channel where you can target shoppers who are ready to make a purchase is probably a good idea. As an Amazon seller, you’ll have the opportunity for higher conversions and better return on ad spend with your marketing campaigns.
Utilizing Amazon Ads Can Improve Your Organic Ranking
Amazon uses an algorithm to determine which products to display to a customer. In order for your products to have the best shot at being seen by customers, you’ll want to try and get your product displayed on the first page of search results.
The bad news is that it’s really competitive to try and get on page one. The good news is that PPC or Sponsored Product campaigns can help you work towards that goal.
Amazon doesn’t officially disclose exactly what factors they use in their algorithm but it’s commonly accepted that these are a few important metrics.
CTR (Click Through Rate)
Here are some quick definitions for the first two.
CTR (Click Through Rate): Clicks Impressions or the number of times someone actually clicked your ad vs how many times it was displayed to them.
Conversion Rate: This is how often you get a sale compared to the number of clicks you receive. So, Sales Clicks.
Since Amazon doesn’t differentiate between clicks and conversions that come from ads vs. organic searches, using PPC is one way to get more clicks, sales, and user reviews. And that means your product could have a better shot at appearing on page one.
Of course, you could try to do that without paying for ads but it will take a lot longer since most shoppers don’t click past the first page or two of results.
Amazon Ads Can Make You Money
Getting ranked up organically over time is all well and good but you probably also want to make money now.
Amazon PPC can be a great way to increase your revenue (and profit). You’re able to spend as much or as little as you want in order to ensure you’re getting good returns.
Amazon Sponsored Products is a cost-per-click model, so you only pay when someone clicks on your ad. That means you’re able to control the amount you pay by setting a daily budget and a specific bid amount on the keywords you want to target.
Amazon also provides lots of analytics reports to help you ensure that your campaigns are helping you reach your goals and while staying on-budget.
How has PPC helped your Amazon business?