Amazon offers multiple tools for its sellers to use. Aside from a comprehensive dashboard for sellers, you also get tools like the Amazon PPC, designed to advertise your products to potential customers on the platform.
A lot of sellers are dismissing Amazon’s paid traffic program as being less effective than similar tools like Google Ads, but that dismissal isn’t necessarily warranted. In fact, there are a number of reasons why you shouldn’t ignore Amazon’s paid traffic program.
Platform Insights
Being Amazon’s own advertising network, the Amazon advertising tool is designed to meet the needs of the platform, and the users on it, perfectly. This makes the paid traffic program very suitable for advertising products already on Amazon.
From the very beginning, you get platform-specific insights that you can use to further optimize your ads. Depending on the products you are directing traffic to, you can learn about the market segments to target, relevant keywords to aim for, and understand other details quickly.
Compared to when you direct traffic from sources like Google Ads or Facebook Ads, Amazon’s own PPC program also gives you more ways to learn about the traffic you are getting – and more details about them – for a truly streamlined campaign.
End of the Funnel
Another big advantage that you don’t want to miss out on is the fact that your target audience – the people to whom your ads are displayed – are already near the end of the sales funnel. After all, they are already on Amazon, in search of products to buy.
This is a massive advantage that is crucial in today’s competitive market. Amazon’s PPC program can be very profitable simply because the audience groups you are targeting are more than ready to make purchase decisions.
Studies have shown that Amazon PPC ads produce more in-platform conversions than other advertising networks. That shows just how effective the paid traffic program can be when used correctly to target key market segments.
Optimization Options
Speaking of the program’s effectiveness, you also have more tools and instruments to help you optimize your ad campaigns down to the last detail. You’ll be amazed by how much you can learn about the target customers when you start using Amazon’s own ad network.
More importantly, you also have the ability to learn from the campaigns themselves. You have access to multiple campaign types, including display ads and headline search ads. You can implement campaign structuring and use different targeting methods to your advantage.
The optimization options are truly endless. Amazon even grants you the ability to manage search terms and stick to the good ones. This allows you to set up complex ad groups and push your return on investment to a whole new level, all while maintaining an efficient Ad Cost Over Sales, or ACoS.
ACoS as a Metric
ACoS alone is special. Using ACoS as one of the principal metrics, you can fine-tune your ad bids, squeeze more sales out of your ads, and work towards leveraging the entire network to drive more conversion.
The ad platform itself doesn’t have bid optimization features, but you can do this yourself using the insights we’ve discussed so far. By adjusting the default bid for different ad groups based on clicks, sales, and ACoS, you can really limit your spending without impacting the outcome of ad campaigns.
There are still so many other reasons why Amazon’s paid traffic program is well worth looking into. The platform is growing too, so you can expect more features to be introduced as you dig deeper into the available tools today. If you are looking for ways to optimize your ad campaigns and sell more on Amazon, the paid traffic program is a handy marketing instrument to use.
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