6 Reasons to Use an Amazon PPC Agency

February 22, 2022 CANOPY Management

6 Reasons to Use an Amazon PPC Agency

Is It Worth It to Hire an Amazon PPC Agency? Let's Look at What an Amazon Agency Provides and When to Consider Hiring One

In the battle for customer attention and brand awareness, experienced Amazon marketers deploy a variety of PPC strategies to stay ahead of the competition.

There’s no doubt that Amazon PPC (pay per click) advertising has the potential to boost visibility and sales. However, it takes experience and technical expertise to do it properly and achieve meaningful results.

Even Amazon veterans tend to struggle with PPC campaigns or make mistakes when launching new products or entering new markets. 

The best PPC agencies have mastered the art of PPC advertising and are well-positioned to help you achieve success. They analyze every aspect of your business and implement strategies that maximize your ROI (return on investment). 

Creating an Amazon PPC campaign may look pretty straightforward, and you might be wondering why you should pay an agency when you can do it on your own. 

To start, when you’ve finally added up your sales and subtracted the advertising costs, there’s a good chance that it will cost you less to take advantage of Amazon PPC management services than to manage PPC campaigns on your own.

With that said, let’s break down the six reasons that an Amazon seller might want to think about hiring an Amazon PPC agency.

Why Hire an Amazon PPC Agency?

PPC campaigns help Amazon sellers get their product in front of shoppers, boost sales and grow their business.

On the surface, an Amazon PPC campaign may appear simple, but if you look a little deeper, a successful campaign can actually be very complex. Should you choose a sponsored product, sponsored brand, or sponsored display ad in your Amazon PPC campaign?

How about all the other peripheral activities to PPC ads such as audience targeting, keyword research, bidding strategies, search engine optimization (SEO), competitive analysis, and campaign performance tracking.

So, if you’re considering outsourcing your advertising to an Amazon PPC agency, (smart move by the way), take a look at these six ways an expert ad specialist can help you grow your business.

1. In-Depth Keyword Research Drives Increased Conversions

If you want to get your products in front of people most likely to buy, keyword research is NOT something to take for granted. 

During the third quarter of 2021, Amazon generated total net sales of approximately 110.81 billion U.S. dollars, surpassing the 96.15 billion U.S. dollars in the same quarter of 2020.

With Amazon PPC advertising, you can reach that audience of over 300 million customers worldwide. This means brands and sellers bid for Amazon ads to get their products in front of potential buyers, earn more money, and grow their business.

And they use keywords to make sure that customers’ search results are a good match for their internet searches.

Keyword research is the process of researching and discovering words and phrases (“search terms”) that Amazon shoppers use to search for products like yours. This process should also reveal some key information to inform your ad strategy:

  • Where your business ranks for specific keywords
  • Which keywords your competitors are ranking for 
  • What keywords are easy to rank for

Using irrelevant keywords on your campaign can eat up your campaign budget, and if you don’t do something about it, your return on ad spend (RoAS) will suffer. 

We get it. There are tons of free keyword research tools out there, including paid versions that provide more in-depth data in exchange for a monthly fee. So, here’s the real question… 

What Can an Amazon PPC Agency Do for You?

Amazon PPC agencies know what to look for during the keyword research process.

While they may use research tools, they also develop complex keyword targeting strategies that are informed by their professional experience, shifting trends in multiple Amazon marketplaces, and their knowledge of their clients’ advertising goals.

To an untrained eye, a list of keywords doesn’t provide a ton of information. To a trained specialist, it’s a tool they can use to drive better sales and conversions.

This process, though, takes time. Keyword research is an in-depth and focused task that can quickly eat into any Amazon business owner’s already-busy workday.

2. Precise Ad Targeting Leads to Higher Conversion Rates

Targeting methods determine where your ads can show and who can see them. You can use more than one targeting method in an ad group, such as keywords and managed placements

Your ad targeting strategy is essential to maximizing your ad investment and conversions. If you want to avoid throwing away your ad dollars on irrelevant audiences (who doesn’t?), you need a calculated and flexible targeting strategy.

As a quick primer, Amazon offers multiple options to help you reach relevant audiences. First question: should you use an automatic campaign or a manual campaign?

If you choose an automatic campaign, Amazon will automatically decide where your ads are shown and who sees them. We can break that down even further into four more targeting options:

  • Close match: Ads appear to shoppers using search terms very closely related to your products.
  • Loose match: Ads appear to shoppers using search terms loosely related to your products.
  • Substitutes:  Ads appear to shoppers who view product detail pages similar to yours. 
  • Compliments: Ads appear to shoppers who view product detail pages that complement your products.

With a manual campaign, you’re in the driver’s seat. You choose how you want to target your ads and how much you want to spend. Depending on your selected ad type, you can decide how to target your ad with options that include keyword, product, category, and audience targeting.

If you choose keyword targeting (most common), you’ll also need to determine which match type you want to use so that Amazon can match your chosen keyword to shoppers’ search terms:

  • Broad: The ad may appear if the search term contains all the keyword terms in any order.
  • Phrase: The ad may appear if the search term contains the exact phrase or sequence of words in your keyword term. (Words before or after the phrase DO NOT disqualify a term from matching.)
  • Exact: In order for the ad to appear, the search term must exactly match the keyword or sequence of words.
  • Negative: Your ad will NOT appear for search terms that contain these words. (This is further broken down into negative phrase and exact match types.)

How to Determine the Right Targeting Option

The right targeting option for you and your specific campaign depends on a mix of factors, including the product you are trying to sell, the ad type you’re using, your advertising and larger business goals, and so on… (You couldn’t call it a one-size-fits-all situation.)

That’s why, if you’re new to Amazon advertising, you shouldn’t panic if these campaign settings look a bit confusing. Even existing Amazon sellers find it difficult to effectively (and profitably) put these targeting strategies to use.

Plus, even when you think you have a grasp on Amazon PPC management, you have to remember that any ad strategy must be flexible. You still need to make regular adjustments to achieve optimum exposure for your campaigns.

Without a clear understanding of how and when to apply these settings, you’ll never make as much as you could be making from your ad campaigns, and you may end up paying too much for the same traffic that your competitors are paying pennies for.

What Can an Amazon PPC Agency Do for You? 

So, how do you maximize the RoAS of your ads? You hire an Amazon PPC expert to help you demystify Amazon’s targeting settings and determine the best strategy to help you meet your advertising goal.

The PPC experts at CANOPY Management understand the best targeting strategy for your campaign at different times and across different scenarios. Tapping into their range of experience, CANOPY’s PPC pros analyze your campaigns and sales data to make regular adjustments aimed at lowering your ad cost and increasing your RoAS.

3. Campaign Tracking Allows You to Accurately Measure Advertising Effectiveness 

If you can’t measure it, you can’t optimize it. This is true of any marketing campaign, and Amazon PPC is no exception. Without tracking your key performance metrics and overall results, it’s impossible to know if your campaign is running smoothly or if you’re just wasting ad dollars.  

You should be able to track your sales and where they come from, as well as metrics like target ACoS (advertising cost of sale), conversions, impressions, cost-per-click, and so on. 

Of course, it doesn’t end at just recording these numbers in a spreadsheet. You’ll also need to understand and optimize these metrics to boost advertising effectiveness, sales, and business growth.

With a more in-depth analysis, you should begin to understand which ad placements and keywords bring you the most conversions and sales.

What Can an Amazon PPC Agency Do for You? 

The best Amazon PPC agencies have the technical, professional, and analytical skills required to manage and track your campaigns to measure their success and profitability.

The best PPC agencies will have their own methods of tracking and reporting on critical metrics, including sales, ad spend, profitability, and RoAS. A skilled PPC expert, (like the ones you’ll find at CANOPY Management) take it a step further and provides detailed reporting along with expert recommendations for changes, strategies, and campaign improvements to optimize ad spend and PPC sales.

4. Competitive Analysis Helps Your Business Stay Ahead of the Curve

Amazon is a competitive marketplace, and there are thousands to millions of merchants selling products like yours. That means there’s a pretty good chance that your ad campaigns are facing stiff competition to get products in front of Amazon shoppers. 

In such a crowded market, competitive analysis isn’t just a nice-to-have addition to your strategic plan. It’s essential to your business’s survival.

Competitive analysis reveals critical information-information you need to know in order to run effective ad campaigns-including intel on the following:

  • Successful Amazon PPC strategies employed by top-performing marketers in your niche
  • Paid and organic keywords that are driving engagement and traffic to competing listings
  • High-performing and underutilized keywords that your competitors are not ranking for
  • Real-time updates on competitors’ SEO and PPC strategies
  • Competitors’ prices and product reviews

The goal of competitive analysis is to show you what they’re doing right so that you can do it better.

What Can an Amazon PPC Agency Do for You?

There are obvious benefits of performing a detailed competitor analysis, but there’s also one big drawback…

Competitive analysis is tedious and time-consuming, especially if you’re in a particularly competitive niche. 

If you know what you’re doing and have access to the right tools, though, you can leverage a wide range of sophisticated analytics tools and data-driven strategies to spy on your competitors. That’s exactly what an Amazon PPC specialist is trained to do.

If you ask an expert how they perform a competitive analysis, their checklist will usually look something like this:

  • Create a detailed list of your direct competitors, and benchmark their metrics against your brand to target areas for improvement
  • Analyze competitor listings for insights into metrics like estimated monthly revenue, review score, pricing, and targeted keywords
  • Use professional competitive analysis tools to estimate cost-per-click, ACoS, search volume, and competition of your competitors’ targeted keywords
  • Uncover gaps in competitors’ advertising strategy, including underutilized keywords and placements
  • Routinely monitor your competitors for changes in their product listing or advertising strategy

If you haven’t performed a comprehensive competitive analysis (or if you don’t have the time to do so), an Amazon PPC agency can help. Usually, this process will be the first step toward developing a complete PPC advertising strategy for your business.

5.  Monitoring the Amazon Industry Allows You to Capitalize on New Developments

Successful Amazon marketers stay up to date with the latest trends in their niche by attending workshops and conferences, monitoring sales trends across accounts, reading online news and journal articles, and generally immersing themselves in the industry.

As anyone who’s ever tried their hand at selling on Amazon knows, the competitive landscape on this ecommerce platform is growing quickly, and there’s always the threat of some new change or algorithmic update to keep Amazon sellers up at night.

Other than Amazon’s internal updates, you also need to keep a close eye on seasonality and trends to help you predict sudden spikes and dips in sales. If you’re not keeping up with trends in your niche, you may miss out on an opportunity to drive more sales or you may end up making a costly advertising mistake. (We’ve seen sellers running ads for Christmas gifts in the summer. It’s not pretty.)

What Can an Amazon PPC Agency Do for You?

If you’re not spending every day immersed in the Amazon advertising community, it’s easy to fall behind the curve.

That’s why it pays to hire an Amazon PPC management specialist-someone who spends most days monitoring metrics across many different accounts, networking with other professionals, and keeping up with industry content.

An expert Amazon PPC strategy can help your business in a number of ways:

  • Create better and more effective advertising campaigns based on industry trends
  • Research and track Amazon SEO best practices
  • Spot upcoming opportunities to capitalize on new beta offerings and updates
  • Mitigate risk from changes to the market or to the algorithm that may hurt your business
  • Regularly adjust your advertising strategy to match changes in seasonality, trends, and Amazon events (e.g. Prime Day!)

6. Hiring an Amazon PPC Agency Saves You Time

Let’s be honest-running an Amazon business is hard work, and it gets harder every day as Amazon becomes more competitive.

Besides Amazon PPC, you have hundreds of other tasks on your checklist, including customer support, inventory management, new product design, social media marketing, review management, and so much more.

If you want to get the most from your Amazon PPC advertising, you’re looking at hours of additional work every week just from managing your Amazon ads.

What Can an Amazon PPC Agency Do for You?

PPC campaigns require close, consistent attention. Without that attention, you’ll notice either your sales start to dip or your ACoS start to creep up on you.

If you’re looking to save time and maximize your return on ad spend, make sure to look for an Amazon agency that takes an individualized approach to managing your campaigns.

Sure, you could use a tool to save you time. But the truth is that if you want the most from your ad campaigns, it takes time and expertise. That’s why most Amazon businesses, once they start turning a profit, end up calling in the pros to handle their PPC campaigns.

When Should You Consider Hiring an Amazon PPC Agency for Your Business?

For the last few years, Amazon has increasingly become a “pay-to-play” marketplace. If you want eyes on your products, you need to spend ad dollars to reach your ideal customers. 

As Amazon expands ad placements, more and more highly-visible real estate within the Amazon platform is dominated by sponsored ads. Where there used to be organic opportunities to reach your target audience, those spaces are now reserved for brands willing to pay for the exposure (and possible sales).

However, because the space has become so competitive, PPC campaigns that are not backed by a well-rounded strategy will fail. You may just drain your budget before you make your money back in sales.

That’s why most businesses are eager to hand off their Amazon ad management as soon as possible to a trusted PPC agency to manage their campaigns from strategy to execution to reporting and back again.

Hiring an Amazon PPC agency isn’t just about saving a few bucks on your ad campaigns. It’s about maximizing performance from every penny you spend in order to drive your business forward. (Plus, it means you don’t have to spend hours staring at a spreadsheet or tinkering in Seller Central.)

When you’re ready to create that powerful forward momentum for your business, look for an agency that takes an individualized approach to PPC management. By now, you know that there’s no one-size-fits all strategy, so don’t hire someone who treats you like a number.

At CANOPY Management, we don’t just plug you into an automated process, we analyze every aspect of your business and identify opportunities for growth and long-term success. With our team of Amazon insiders and experts at your side, we’ll balance data-driven decisions and human-powered insights to help you maximize profit so you’re free to do more with your Amazon business.

Ready to Level Up Your Amazon Business?

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