Amazon PPC Guide, Basics of Ad Formats

Amazon lures many sellers from around the globe for the strength it has in the shape of prime customers. It has millions of loyal customers from around the globe and that’s what entices sellers to join this platform as a seller. But that enticement has caused immense competition on this platform. Old sellers are enjoying a good repute and best badges to keep their products in the limelight while new entrants are struggling to find their feet. But that does not mean it does not provide a level playing field to new entrants from different parts of the world. Tell you what: the success rate for new sellers is also the same. There are a number of options available for new sellers that can be used to get on top. One can use Amazon SEO to manage good ranks for one’s products while pay-per-click ads will not only promote new products but also will enhance reach. The organic visibility of products gets enhanced automatically when they start selling on Amazon. 

Every best Amazon PPC guide will throw light on the value of using pay-per-click ads to gain promotions and sales. But here you will also be told about the basics of ad formats. Yes, pay per click works in many ways for the sellers but it is only a rational strategy that proves productive at the end of the day. One needs to do all the homework for the existing competition and the opportunities to make good use of a PPC campaign. 

What is Amazon PPC?

Amazon PPC as the name indicates is a paid model of an advertisement on this platform. It is not only an eCommerce platform but also works as a search engine. Hence, sellers can simply buy pay-per-click ads to keep their products on top of the search results. It works just like any other known search engine where paid items appear on top of the organic search results when people search for a product online. Pay per click implies that a seller will only be charged after his/her ad is clicked by a visitor. Amazon PPC is a useful tool to enhance reach and visibility for the products and brands. It is commonly known as Amazon sponsored ads. But it comes in multiple forms that will be discussed later in the following passage. 

How Amazon PPC Works?

A seller is supposed to select the product or brand it wants to promote through PPC ads and then a daily budget is defined right up front. The ad will keep on appearing until the daily budget is consumed e.g. if a person has set up a low daily budget and it is used up after a few clicks then an ad will no longer appear in the search results. The cost per click is defined by the approach other sellers have adopted to bid against a specific keyword. Amazon will select the higher bidder but will go with the second price auction rule. This means the highest bid against a specific keyword will win the ad slot but the advertiser will be charged the cost of the second bidder. One needs to have an active seller account or advertising console of Amazon to run PPC campaigns.

Why Should Amazon Sellers Advertise?

Amazon is stuffed with sellers and every new entrant is likely to face stern competition after joining this platform. This is why promoting a product or branding has become a bit more difficult than is perceived. Pay per click remains the only option to market new items on Amazon. It will be required to create awareness while branding will also depend on paid campaigns. Even the existing customers will not be directed to your product listings if they are not selling superfluously. Yes, Amazon works on its own and brings a variety of products in the organic search results but it is also vital to notice that its bots keep price, previous sales history, and ranking of a product in mind. So where to find all those factors if you are launching a new product or looking to build a brand there. The pay-per-click campaign has the solution for you and all new entrants. You can also consult experts at to know how Amazon PPC works for sellers.

What Amazon Advertising Formats Exist?

Several formats are available for sellers and vendors to advertise their items on this platform. Different entities are used to choose different options depending on their respective needs and budgets. Amazon offers the following three formats in general till this time in 2021.

  • Sponsored product ads 
  • Sponsored brands 
  • Sponsored display ads 

A glance at the Amazon search results will indicate that without buying ad campaigns it is almost impossible for the newcomers to showcase their products. Visibility is very low when we talk about fresh products or new brands on Amazon. 

  • Sponsored product ads

Sponsored product ads are the most common types of pay-per-click ads used on Amazon for advertisements and promotions. They are used to appear on top or below of the organic search results in general but at times they can be found in between the organic results. The term “sponsored” can be seen along with these items. 

  • Sponsored brands 

Sponsored brands are the kind of PPC ads that are most commonly used to establish brands on Amazon. Usually, brands run such campaigns to occupy the mind of potential buyers. These can successfully be used to create brand awareness on this platform. They are usually shown on top of the searches right at the beginning of the buying decision process. 

  • Sponsored display ads 

The sponsored display ads are used to target specific interest groups or segments. One can use this type of ad for the proper persuasion of potential buyers. They are also getting famous among the sellers nowadays. 

Amazon’s Advertising Platforms 

Amazon’s advertising platforms are available on this single platform and it tells it all about how Amazon advertising works. Amazon marketing service on the other hand also works along with this program. Amazon demand-side platform on the other hand is used to book the platforms in general. 

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