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For over a decade, most ecommerce brands could manage their Amazon pay per click advertising campaigns internally. The modest amount of competition between relatively unsophisticated sellers left a reasonable margin for error for learning the Amazon advertising ropes and making the inevitable mistakes.

But, as the barriers to selling on Amazon’s lucrative marketplace gradually decreased, seemingly overnight, it’s become MUCH easier to sell on Amazon. Amazon’s FBA has made beginning to sell a breeze!

At the very same time, the overall competitiveness of pay per click (PPC) advertising has exploded exponentially. Worldwide, PPC advertising spending is projected to reach US$306.7 billion reflecting an annual growth rate of 8.01%, and a projected market volume of US$417.4 billion by 2028.

That’s created a level of Amazon advertising sophistication never seen before.

The complexities of digital marketing, keyword research, and search engine optimization have raised the bar for everyone.

Amazon Advertising Used to Be JUST One Launch Strategy

Amazon’s core algorithm updates and policy changes seem to be increasing in frequency – suddenly disrupting organic visibility as well as the promotional tactics that ecommerce sellers have historically used to find success with their ad campaigns.

Meanwhile, the pace of machine-learning fueled advertising innovations like automated campaign creation, bid optimization and 1:1 ad personalization based on shopper segmentation signals continues accelerating – perpetually outpacing the abilities of the average Amazon seller.

What all of that has done is make 2024 a pivotal year in Amazon marketplace history. Experienced sellers have felt it coming; now it’s here. Over the next year, advertising success is going to require a new level of PPC expertise. Gone are days that brands are able to manage through generalized knowledge.

Specialization rules now.

That’s why, 2024 might just be the year that you absolutely NEED to employ the services of a dedicated Amazon PPC Management Agency. Here are the top four reasons why:

1. Skyrocketing Advertising Competition on Amazon

Beyond the intensified competition endemic to Amazon’s marketplace, even the mechanics of visibility and auctions changed. For example, a new innovation in the features of Amazon PPC Sponsored Ads – ‘Adjust bids by placement – allows sellers to let Amazon automatically raise their bid by up to 900% for ‘Top of Search’ and ‘Product Pages’ placement auctions.

This is the kind of shift that has caused runaway ad-spend inflation as brands pay any cost to chase top visibility.

Advertising that once cost $0.20 a click has jumped to $3.00 (and more) for red hot categories, steadily rising as competition increases. Some experts fear that average sellers – without the sophisticated skill set required to compete at this level – will quickly fall behind.

These Amazon changes have helped lead to a dramatic increase in the number of raw conversions needed to find online success. Margins have already tightened significantly throughout 2023 for most categories as the escalating cost of PPC advertising outgrew proportionate sales rate jumps.

It’s become an arms race over advertising real estate – requiring an equally aggressive defense taking advantage of elevated analytics, complicated segmentation, and rapid A/B testing that might help mitigate losses.

This kind of expert-level ad campaign management is what makes a great Amazon Marketing Agency an obvious solution.

2. Amazon’s Frequent Feature and Policy Changes

In the past, significant Amazon advertising updates were released intermittently – allowing PPC ad teams time learning before next shifts.

But recently the speed of platform changes increased dramatically. Across 2023 alone dozens of unannounced modifications affected seller capabilities and media formats in paid and organic channels.

From sudden visibility declines to the removal of previously counted-upon features, rapid disruptions hit revenues hard for those unprepared. Without specialized insights, or the ability to track or tests daily, average Amazon sellers quickly fall off the pace required to keep up with entrepreneurs using top Amazon Agencies.

Dedicated Amazon advertising experts are able to proactively monitor early indicators through new tests that they’re conducting on niche seller channels. Then they’re able to rapidly make money-saving adjustments based on the patterns they’ve uncovered, and quickly implement them in their PPC campaign strategy.

3. Amazon’s Accelerating Machine Learning Advertising Capabilities

Amazon advertising has evolved to take advantage of two rapidly growing forms of algorithmic automation:

1. Automatically managing repetitive PPC workload like bids and budgeting based on intelligence replacing manual effort. This can remove low value tasks through automation.
2. Discovering hidden insights within massive consumer data that uncover micro-opportunities related to customer segmentation and predictive buying signals. This reveals future potential.

Combined capabilities include:

• Personalized ad copy aligned to regular “Subscribe and Save” household purchase histories
• Auto-modified targeting from recent browsing patterns
• Multidimensional bid optimization adapting to inventory factors

However, there’s a big problem with that approach. When “only average” PPC advertisers end up using the powerful levers of AI and machine learning, they’re just able to get into trouble faster and more irrevocably.

Simply using the immense leverage of artificial intelligence without a well-crafted strategy is a recipe for disaster. The same technology that helps leading Amazon agencies and PPC experts to be efficient is going to work against less experienced sellers.

Top Amazon PPC management services are able to take full advantage of these powerful innovations, and carefully integrate the elements that make sense, and discard the rest. Most importantly, they’re able to immediately course-correct from automation that falls outside of their Amazon advertising strategy.

4. Rising Mobile and Video Commerce on Amazon

Mobile ecommerce is estimated to make up 44.6% of total US retail ecommerce sales in 2024. To account for this, Amazon has rapidly been building enhanced discovery formats that mirror mobile behaviors to increase overall ad engagement.

Paired with the rise of mobile usage, social commerce has exploded over the last 12 months. Social media has become a huge ecommerce player. From shoppable live video streams demoing products to augmented reality apps allowing virtual try-ons simulating real-world use – emerging tools are changing the way that brands are able to market their products.

Using Amazon Live broadcasts, sellers can test promoted niche products using influencers and storytelling. At the same time. the in-app mobile checkout increases conversion rates.

Much of ecommerce success in 2024 might have to do with your ability to understand and capitalize on a multi-channel sales strategy. Experienced Amazon advertising managers can translate early brand building momentum into online sales. Influencer partnerships help capitalize on this brand momentum and know how to connect the dots between brands and niched-down audiences.

Amazon PPC Agencies are able to use cutting-edge social media marketing strategies to put your brand squarely in the spotlight. 

How Canopy Management’s SEO Experts Can Help

The unavoidable reality is that in 2024, Amazon PPC advertising management has evolved to the point where it requires a 24/7 obsession JUST to keep pace with the competition. If your goal is the Buy Box, Amazon sellers need to set their sight even higher. That’s where the Amazon experts at Canopy Management come in. 

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation