ECOMMERCE
How To Advertise On Amazon? Getting Started With Amazon Sponsored Products (PPC)
Amazon advertising is probably one of the best platforms for anyone trying to sell a product. How come? Let’s take a look at the numbers.
Last year, over $229 billion worth of merchandise was sold on Amazon, equating to almost half of all ecommerce sales in the United States. What’s even better than these numbers? Amazon is projected to keep growing their market share and sellers are flocking to the platform every day by the thousands.
Clearly Amazon presents a great opportunity, and it’s time for you to get started with Amazon Sponsored Products which is based on the PPC (Pay-Per-Click) model.
Amazon Advertising Basics
Amazon advertising primarily uses a pay-per-click (PPC) model for its ads. That means you pay when someone clicks on your ad, as opposed to paying when your ad appears in a search (CPM model).
When it comes to bids, Amazon has an auction-style format for determining what ads appear for a particular search. Amazon PPC is an auction where sellers bid on certain keywords. Obviously, higher bids are preferred to lower bids, but there’s more to the equation.
Amazon also factors in your ad’s performance to determine how it stacks up to your competition. This performance metric is called Ad Grade. The exact formula Amazon uses to determine Ad Grade is unclear, but there are some clear performance metrics and relevance metrics that factor in.
Read more here.
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