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PPC campaign guide on Amazon

PPC campaign guide on Amazon

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Date29 May 2024
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Category

Today, we’ll focus on outlining the characteristics of the PPC campaign system on the world’s largest marketplace – Amazon.


Advertising categories

1. Sponsored products

The goal of Sponsored Products campaigns is to promote products among actively searching buyers using related keywords and competitor articles. They are billed on a CPC (Cost Per Click) model. Two main configurations are distinguished:

  • Automatic – after launching the ad with selected products, the campaign generates necessary data based on the product card and information retrieved from the back-end. The algorithm displays campaigns in two designated places: in search results and under competitor listings.
  • Manual – their display rules are identical to automatic ads, except for the ability to choose and divide targets included in the ad into keywords, competitor ASINs, and product categories. In other words, manual campaigns allow targeting ads to selected keywords or competitor ASINs.

2. Sponsored Brands

The aim of Sponsored Brands ads is to increase brand awareness and recognition. They are billed on a CPC (Cost Per Click) model. Campaigns are displayed in specially designated places on the search page or competitor listings, after choosing one of three targeting options:

  • Keywords,
  • Competitor ASINs,
  • Product categories.

Three types of Sponsored Brands ads are distinguished:

  • Product Collection – ads containing the brand logo, lifestyle image, optional headline, and up to three products. When a customer clicks on a product tile in the ad, they are directed to the appropriate listing.
  • Store Spotlight – an ad format that increases traffic to the Amazon Brand Store. These campaigns include the brand logo, optional headline, and a redirect to the store (which must contain at least three subpages). When a customer clicks on the ad tile, they are directed to a specific store subpage. Clicking on the brand logo or headline takes buyers to the Brand Store’s main page.
  • Video – an ad format containing a video showcasing a single product, which redirects customers to a specific listing.

3. Sponsored Display

These are ads targeted at large groups of Amazon audiences and competitor products. They are billed in two models:

  • CPC (Cost Per Click),
  • VPCM (Cost per 1,000 viewable impressions) – cost for 1000 viewable impressions, meaning those in which at least 50% of the ad space remains visible in the browser window for a minimum of 1 second.

Sponsored Display ads include the brand logo, custom headline, and audiovisual content. They allow the following targeting options:

  • Targeting ads to customers who purchased a product in the same category or a related category within a specified period (7-365 days),
  • Targeting ads to related product listings,
  • Targeting ads to customers who purchased the advertised product within a specified period (7-365 days),
  • Targeting ads to customers who viewed our ad within a given period (7-90 days),
  • Targeting ads to categories where the product is located.

4. Vouchers and promotions

These are percentage discounts that affect not only conversion but also product positioning. They are visible on the Amazon search page and listings.


Summary

PPC advertising campaigns on Amazon, like on other marketplaces, provide sellers with an effective and cost-effective strategy for promoting their products or entire brands. Today, we discussed the characteristics of Sponsored campaigns: Products, Brands, and Display.

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The author of the article is Gonito - Marketplace Navigator

Gonito is a team of e-commerce experts dedicated to assisting and scaling sales on global marketplaces in 9 languages across 20 markets, 365 days a year.

This publication is non-binding information and serves for general information purposes. The information provided does not constitute legal, tax or management advice and does not replace individual advice. Despite careful processing, all information in this publication is provided without any guarantee for the accuracy, up-to-date nature or completeness of the information. The information in this publication is not suitable as the sole basis for action and cannot replace actual advice in individual cases. The liability of the authors or amavat® are excluded. We kindly ask you to contact us directly for a binding consultation if required. The content of this publication iis the intellectual property of amavat® or its partner companies and is protected by copyright. Users of this information may download, print and copy the contents of the publication exclusively for their own purposes.

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