Amazon has transformed the way we shop online. It is not just that; it has also revolutionized digital marketing and advertising!
Sellers can make a lot of money with their Amazon business. In fact, in 2022 only, sellers spent a whopping $20.6 billion on Amazon advertising, out of which $13.5 billion was only in the US!
This shows us that the competition is fierce! Every seller is putting in their best efforts to showcase their products in the best possible way.
This is where Amazon ads come to the rescue!
So, what is Amazon advertising price, where do sellers spend most of their advertising budget, and how can you keep the costs at bay?
Read on to find out!
What is Amazon Advertising?
To put it simply, Amazon advertising is a suite of advertising services that Amazon offers to businesses of all sizes.
With Amazon Advertising, you can reach and engage with potential customers on and off Amazon, kind of like Google Ads, but with a focus on reaching shoppers who are already in the buying mindset.
Let us break down the details about Amazon advertising for you:
- It Is a Pay-Per-Click (PPC) Model
You only pay when someone clicks on your ad. This means you can control your advertising costs and only pay for qualified leads.
- There are a Variety of Ad Formats
You can create sponsored product ads, sponsored brand ads, display ads, and more. This allows you to target your ads to specific audiences and keywords.
- It Reaches a Massive Audience
Did you know that Amazon has over 200 million active customer accounts worldwide? This gives you the potential to reach a huge number of potential customers.
- It Is Constantly Evolving
Amazon is always adding new features and functionalities to its advertising platform. This means you need to stay in the loop on the latest trends, best practices, and updated Amazon advertising fees.
In short, it is a great way to get your brand out there and grow your business!
Now that you have a clear idea about what exactly Amazon ads are and what they do let us tell you about the types of ads Amazon has to offer.
Amazon Advertising Price in 2024
Amazon advertising cost depends on the types of ads you choose, your daily budget, and how you target your audience. But, on average, Amazon-sponsored products cost $0.81 for every click the seller gets on their products.
Although you get to decide how much money you want to spend each day, it is not always that straightforward. Simply spending a certain amount every day might not work if your ads don’t make more money than you spend.
Choosing the right keywords for your ads is important; however, other things matter, such as:
- Quality of your product images
- Pricing
- Customer reviews
If your product page is not set up well, people might not buy from you, especially if your page is not as good as your competitors.
So, when it comes to Amazon’s PPC cost, there is no single answer to it. It varies based on the product, the type of item you are selling, and the seller.
It might take some time to figure out, but with the help of a renowned Amazon advertising agency, you will be able to create better ads and product pages, leading to more sales and more profits.
Amazon PPC Weekly Ad Types
When it comes to Amazon PPC ads, you have three main types to choose from, each with its own strengths and purposes:
Sponsored Products
Sponsored Products are a great way to make your products visible to the customers. They appear within search results and product detail pages and have “sponsored” written next to them. The best part is that you only pay when shoppers click on the ads. It’s a win-win situation!
Sponsored Brands
Sponsored Brands is an Amazon advertising feature that enables brands to showcase their products in a really eye-catching way. Formerly known as Headline Search Ads, these ads allow advertisers to display their brand logo, a custom headline, and multiple products in a single ad. They typically appear right at the top of search results, which is great for brand visibility and awareness.
Sponsored Display Ads
Wouldn’t it be great if you could reach shoppers beyond the Amazon platform? Sponsored Display Ads are your ticket! These banner ads pop up on other websites and apps, catching the eye of potential customers as they browse the web. It is also a great way for brand building, off-site traffic, and engaging shoppers outside the Amazon bubble.
Where is the Majority of Amazon Advertisers’ Budget Going?
How much advertisers spend on ads depends on what they want to achieve with their campaign.
Different types of ads are designed to achieve different goals. As discussed earlier, there are three types of ads to choose from, but the most popular are Sponsored Products because they’re affordable and easy to use.
But cost isn’t the only factor to consider anymore. Advertisers are now looking for other benefits like:
- Exposure
- Brand awareness
- Sales
For instance, Sponsored Brands offer lots of customization options, which means advertisers can include their logo, tagline, and a range of products in their ads. These ads can be designed to make a strong impression and direct shoppers to a specific landing page, resulting in a high RoAS.
Sponsored Display ads are also becoming more popular. They might be a bit more expensive, but if you’re looking to increase your presence on Amazon, they’re definitely worth investing in. These ads have a lower RoAS, but they’re effective in promoting products and targeting customers both on and off Amazon.
How to Lower Amazon Cost Per Click?
Every Amazon seller is on the quest for lower CPC! But what does lowering cost per click mean?
Lowering CPC involves Amazon PPC optimization to stretch your budget and maximize your campaign efficiency. Here are some tactics on how to do so:
Sharpen Your Keywords
If you want to attract the right audience to your Amazon storefront, it is best to focus on specific and targeted keywords instead of broad and fuzzy ones. This will help boost your click-through rates and relevance, which in turn can help lower your cost per click.
The Magic of Negative Keywords
To help you get the most out of your ad budget, try blocking searches that are not relevant to your product or service. Words like “free” or “alternatives” can lead to wasted clicks and budget drains.
Audience Precision
By targeting demographics, interests, and shopping behaviors, you can ensure that your message reaches the right people.
Bidding Strategies
Amazon has some amazing automated bidding options for you, including Target ROAS and Target CPA. They allow you to optimize bids based on your desired conversion goals without manual micromanagement.
Adjust Your Bids
You can also adjust your bids based on the location, device, and even the time of day. For example, if you have a lot of customers who tend to visit your website late at night, you might want to consider lowering your bids during those hours. Or, if you find that mobile users are more likely to make purchases, you can focus your bids on mobile devices for better results. By fine-tuning your bids, you can get the most out of your advertising budget.
Quality Score
To make sure your ads appear to the right people, it is important to focus on relevance and user experience. Try to craft ad copy that grabs attention, and make sure the landing page your visitors land on is easy to navigate.
By creating strong ad group themes, you can increase the chances of your ads being clicked on. And remember, a higher Quality Score can result in lower costs per click.
A/B Testing
If you want to attract more clicks for less, try experimenting with different ad copy, headlines, and calls to action. The data will reveal which ones work best so you can refine your message and find the perfect harmony for your audience. It is all about finding what resonates with them!
Campaign Structure
Make the most of your ad campaigns by organizing them logically to get better results and save on your budget. Trust us, a well-structured campaign can make all the difference!
Track Your Conversions
To get the full potential out of your advertising efforts, it is important to keep track of your conversions. This means paying attention to what works and what does not so you can adjust your bids and get better results over time.
Don’t worry; data may sound boring, but why complain if it helps reduce costs and increase returns?
However, if you hire an Amazon PPC specialist, they can help you understand Amazon advertising pricing and lower your CPC.
So, where to find an Amazon expert? You don’t need to go far, as Impact Wolves is just a click away!
Lower Your CPC with Impact Wolves
If you are running ads, you know how important it is to save money and get more clicks. That’s where we come in!
At Impact Wolves, we have been helping businesses like yours for over 3 years. Our team of digital marketing experts is here to help you figure out a plan to get more clicks without breaking the bank.
We will work with you to lower your CPC and maximize your budget.
Why Choose Us?
If you want an Amazon PPC management company that gets good results, you should check out Impact Wolves.
In the past 3 years, we have helped our clients make over $60 million in money and get an 82% rise in sales.
Our team will make a plan to help your business grow!
But you don’t have to take just our word for it! Our clients have a lot of good things to say about us. You can read the testimonials to see the great work we do!So, get ready to prosper to new heights with us! Book a free consultation call with us!
