Wanna Get More Sales?
As the largest e-commerce platform in the world, Amazon is a natural choice for brands looking to sell their products directly to consumers. However, it’s not the most obvious choice for everyone.
Many brands are concerned about ceding control over their advertising and marketing strategy, and with good reason. As an intermediary between sellers and potential customers, Amazon retains control over which brands they feature and how they appear on search results pages.
That said, there are also undeniable benefits. The automated software available from Amazon allows sellers to create detailed product listings optimized for search efficiency. In addition, there is no cost to register as a seller or upload product listings – only when you make your products available to potential buyers will you be charged a fee (which can be as little as 10 cents per item). In this article we’ll compare and contrast the use of agencies and software for Amazon PPC management, and explain the pros and cons of each.
The importance of PPC management
Any PPC campaign aims to bring more customers to your products and have them complete their purchases on your website. Successfully managing your PPC campaigns means you will get more sales and revenue.
If you decide to manage your PPC campaigns independently, you’ll want to ensure you have the skills and knowledge to do so effectively. Another issue is that many brands don’t have the budget to pay an outside agency to create and manage their Amazon PPC campaigns.
In these cases, they must learn how to manage the campaigns themselves. PPC management software can be extremely valuable in this situation. It allows you to monitor and track your campaigns accurately to make adjustments.
Read More:
- How to Advertise on Amazon in 2023
- The 10 Secrets of Amazon Listing Optimization (do this for every SKU!)
Why properly managing your PPC campaigns is important.
Managing your Amazon PPC campaigns is an essential part of keeping your Amazon advertising cost low and getting the most out of your ad spend. If you’re just launching a new campaign or working on an old one, it’s important to know how to manage your Amazon PPC ads to get the most out of them.
Managing your Amazon PPC ads can feel like a balancing act at times, but with the right strategies you can optimize their performance and get the highest return on investment possible.
This is a crucial step in any kind of digital marketing campaign. If you don’t properly manage your PPC campaigns, you will not be getting the most out of the money you’re spending on these ads.
It’s important to have the data you need to make intelligent decisions about your campaigns so you can make adjustments as needed. It’s also important to track the conversions from these ads so you can see how effective your ads are at bringing customers to your website.
This is important for two main reasons. First, it will allow you to see how much you’ve spent on these campaigns over time. The second is that it will allow you to see how effectively these campaigns bring customers to your website.
Benefits of using an agency for managing PPC campaigns
As an Amazon seller, you have many responsibilities to fulfill. You need to find the right products, source them, list them on Amazon with relevant keywords, and keep your listings updated.
Moreover, the entire process needs to be completed fast so you can take advantage of the peak selling season. Avoiding information overload is important when managing PPC campaigns for your Amazon listings because it’s easy to get overwhelmed and lose sight of the big picture.
As you read through this blog post, you will learn about the pros of using an agency to manage your PPC campaigns. An outside consultant or agency can assist in developing and executing a successful strategy that will lead to more sales and happier customers. Let’s dive in!
PPC is a necessity for fast growth
When you start selling on Amazon, thousands of other sellers advertise their products. Now, this isn’t an issue if you’re selling a product that’s in high demand, like the Bose SoundLink speakers.
However, if you’re selling a product that isn’t in such high demand, you must invest in paid search campaigns. An Amazon PPC campaign can boost your sales, but only if you know how to properly set it up and make adjustments when necessary. If you don’t know how to set up a PPC campaign, hiring an outside company to take care of it for you is the best bet.
As an Amazon seller, there are certain tasks you will have to perform yourself. And there are certain tasks you will want to hire outside help with.
Regarding PPC campaigns, it may be best to outsource the work. You may not have any experience with setting up PPC campaigns. Or you may spend all your time sourcing products when you should be tending to your PPC campaigns.
If you decide to hire an outside company, they can help you create and optimize your PPC campaigns. They can also manage your campaigns, allowing you to focus on growing your business.
– More precise data – Some brands will need more precise data than what PPC management software can offer. If you run a large Amazon campaign with a big budget, you may want more precise data to know how to allocate your money effectively.
– More time to focus on other aspects of your business – Managing your PPC campaigns can take up much of your time. If you’re constantly monitoring your Amazon campaigns, you may not have enough time to focus on other business areas.
– Can help you achieve specific campaign goals – Some brands want to achieve specific campaign goals with their Amazon PPC campaigns. If you want to increase brand awareness, drive website traffic, or drive conversions, an agency can help you achieve these goals.
Cons of using an advertising agency
– Can be expensive – Managing your PPC campaigns can become expensive depending on your chosen agency. You will have to pay a monthly or yearly subscription fee, which can add up over time.
– Isn’t always necessary – Some brands don’t need to hire an agency to manage their PPC campaigns. Some brands can do it themselves. If you are running a smaller campaign with a smaller budget, you may be able to manage it without hiring an agency.
– Can be time-consuming – It can take time to find the right agency for your Amazon PPC campaigns. You will also have to spend time talking to them and working together to meet your needs.
Benefits of using an software for managing PPC campaigns
Today, most marketers have access to the same technology that Amazon and other e-commerce sellers use. That means anyone can set up an account and start running ads.
However, there’s a huge difference between people who just sign up for the program and those who actually get results from it. If you’re going to spend money on advertising on Amazon, you need to do it strategically. Software is a game changer because it helps you understand what your competitors are doing, measure performance against goals, and create a plan for future campaigns.
Marketing software also makes it easier to keep track of all the different elements of your PPC campaign at once instead of having to switch back and forth between several different programs.
Pros of using PPC management software
– Helps you track the effectiveness of your PPC campaigns – As mentioned above, it’s crucial to track the effectiveness of your PPC campaigns. Without this data, it’s impossible to make intelligent decisions
– Helps you monitor your budget – As with tracking the effectiveness of your campaigns, it’s also important to monitor your budget. You don’t want to spend all your money in the first week, so the software will help you track your spending and make adjustments as needed.
– Saves time – Managing your campaigns manually will take up much of your time. Finding and purchasing new keywords, creating new ads, and constantly monitoring your progress is a time-consuming task.
Much of PPC management software can be automated so you can focus on other parts of your business. – Helps you create high-quality ads – PPC management software can help you create high-quality ads that will bring in more customers. With the help of this software, you can be sure that your ads are consistent. This will make them more appealing to potential customers.
Cons of using PPC management software
– Might not be accurate enough for some brands – While much of the data PPC management software offers is accurate, some brands may prefer more precise data.
If you are running a large Amazon campaign with a big budget, you may want more precise data to know how to allocate your money effectively.
– Can be expensive – Depending on your chosen software, managing your PPC campaigns can become expensive. You will have to pay a monthly or yearly subscription fee, which can add up over time.
– Can be time-consuming – Although software can make your PPC management process easier, it also takes time to learn how to use it effectively. You will need to learn how to use the software and set it up for your campaigns.
– No Feedback Loop for Improvement: The lack of feedback loop in using PPC management software can lead to money wasted on optimization tools that might not be necessary since there are no opportunities or systems that allow you feedback from buyers or sellers alike regarding the product they want or need, respectively
– Hiring an agency may be better than relying on an SEO company’s expertise with PPC management software: Agencies have deep experience in handling all aspects of the campaign while agencies usually employ copywriters who know how to create high converting advertisements with excellent landing pages which has been shown to boost conversions by 400%.
– Lack Of Expertise/Technical Skills Required to Use Software: Once it has been implemented, companies may not have the expertise or technical skills needed to operate simple aspects such as importing new advertisers and setting up site-wide ad rules for keywords in campaigns for Google Shopping ads that show up within search results pages (such as one for “shoes”).
This could potentially lead to unwanted consequences where there might not be enough budget left over from budgeting errors made during campaign setup leading more capital needs will need funding
Pros and cons of managing your own Amazon PPC campaigns
– You have more control – If you manage your campaigns independently, you have more control over them. You don’t have to worry about an outside agency meeting your expectations; you can manage everything yourself.
– Saves money – Managing your campaigns on your own can save you money. You won’t have to pay a monthly or yearly subscription fee for PPC management software.
– Requires more time – Managing your campaigns on your own will require more of your time. You will have to spend time finding and purchasing new keywords, creating new ads, and constantly monitoring your progress.
– Lower quality ads – You may create lower quality ads if you manage your campaigns on your own. You don’t have anyone helping you create high-quality ads that will bring in more customers.
One of the main disadvantages of Amazon PPC campaigns is that they tend to be competitive. Since these ads are shown to specific audiences, there is a high demand for them. This can make it difficult for new advertisers to compete with established brands.
Another disadvantage of Amazon PPC campaigns is that results can vary widely. Since these campaigns are targeted, results will depend on how well the ads are able to appeal to their audience. If the ads aren’t successful, it may be necessary to make adjustments or switch campaigns completely.
Frequently Asked Questions
How do you perfectly manage a PPC campaign?
Well, there is no one-size-fits-all approach to running PPC campaigns. However, there are some general best practices that you can follow to help ensure that your campaigns are successful.
1. Optimize your ads - The first step is to make sure that your ads are well-optimized. This means making sure that your ad copy is clear and effective, and that your keywords are relevant and well-selected.
2. Monitor campaign performance - Once you have launched your campaigns, you will need to keep an eye on their performance. This will require regular monitoring of things like click-through rates, cost per click, and campaign costs. If these numbers start trending in the wrong direction, you will need to take action before the situation gets out of hand.
3. Continuously test and refine - Once your campaigns are up and running, the work is far from over. You will need to continuously test and refine different elements of your campaigns in order to make sure that you are maximizing results. This includes things like ad copy and landing pages, as well as campaign settings like budget and bid amount.
4. Optimize for ROI - With PPC campaigns, it's important to focus on return on investment (ROI). This means making sure that the dollars spent on ads are generating the best possible return through increased sales or conversions. If you are able to meet or exceed this metric, your PPC campaign will be successful.
How much should you spend on Amazon PPC?
Finding the right balance between your advertising budget and the resulting ROI can be a challenge when running Amazon PPC campaigns. While it may be tempting to increase your spending in order to generate more sales, this can have a negative impact on your campaign's performance.
By understanding the factors that affect your campaign's ROI, you can make informed decisions about how to most effectively spend your advertising budget. The two most important factors affecting your campaign's ROI are bid price and click-through rate (CTR).
The bid price is the amount you bid per click, while the CTR is the number of times your ad appears in front of a potential customer. Optimizing these two factors is crucial for maximizing your campaign's ROI.
The bid price represents how much you're willing to pay for each click on your ad. If you set this price too low, you may not attract enough visibility in search results, which can lead to lower CTRs and lower ROIs overall.
Conversely, setting this price too high can lead to fewer impressions and lower CTRs, also resulting in lower ROIs. Finding the right balance between these two factors is crucial for achieving maximum campaign performance.
What is the difference between RoAS and ACoS?
RoAS stands for Return on Ad Spend, and ACoS stands for actual Cost of Sales. RoAS is the ratio of sales generated by your ads divided by your total advertising costs. The higher the ratio, the better. ACoS is the ratio of revenues generated by sales over your actual costs. The lower your ACoS, the better, because it means you're making more money on each sale.
What’s The Best Way To Manage Amazon PPC Campaigns? Agency or Software?
Is it best to use an agency, a software, or self-manage your Amazon PPC advertisements? It is your decision! You may want to consider an advertising software or agency if you feel that your Amazon business is growing and you want to free up some time.
Regarding Amazon PPC campaigns, it’s important to find a middle ground. You don’t want to overspend on PPC management software, but you also don’t want to manage your campaigns manually when software can do the job for you.
As you can see, each method has benefits and drawbacks. When deciding how to best manage your PPC campaigns, it’s important to consider what is best for your brand, your budget, and your level of experience with digital marketing.
Amazon PPC is our sole focus. It’s all we do. We’ve even worked on it for brands like Everlast. So if you want to team up and have us apply our playbook, we’re standing by and happy to discuss. Click the ‘Book A Call’ button for more information!
