Why You Should Use an Amazon PPC Management Agency
Updated July 7, 2023 – Want to Get (and Stay) Ahead of Your Competition on Amazon? Here’s What Amazon Agencies Provide and When to Consider Hiring One
It’s no secret that Amazon’s marketplace is growing at an incredible rate. Amazon hit nearly 514 billion U.S. dollars in net sales revenue worldwide in 2022.
With PPC advertising, you can reach Amazon’s audience of over 300 million customers worldwide. This means brands and sellers can use Amazon ads to get their products in front of potential Amazon shoppers.
The only downside is that with Amazon sales growing at an unprecedented pace, more businesses are selling full catalogs of products and vying for customer attention. Advertising effectiveness isn’t just critical for businesses and sellers, it’s the key to staying ahead of the competition.
Spending thousands of dollars on your PPC campaign management doesn’t automatically guarantee success on Amazon. You need a well-rounded strategy and wealth of experience and expertise to really set your brand apart.
That’s why, as businesses grow, most successful brands hire an Amazon agency.
Amazon PPC – Driving Profitability in the Amazon Marketplace
To compete on Amazon, you need more than an organic search engine optimization (SEO) strategy alone. You also need a well-executed PPC campaign to stay ahead of the competition.
An Amazon marketing agency can build and optimize your campaigns to deliver significant results that support your unique business goals.
When done right, the right Amazon account management service won’t simply offer a one-size-fits all strategy to every brand and seller. Instead, seek out an Amazon PPC agency that will help you determine EXACTLY what works for you and your brand.
While there’s more to Amazon advertising then PPC, Amazon experts typically focus on optimizing the three main Amazon ad types:
- Sponsored Product Ads: Sponsored Product Ads boost visibility for individual product listings on Amazon and appear in relevant search results and product detail pages. The more competitive your bid, the more likely your ad will show when it matches a shopper’s search query.
- Sponsored Brand Ads: Sponsored Brand Ads appear in relevant search results pages and some product detail pages and feature a custom headline, your brand logo, and a selection of your products. SBAs are perfect for increasing product visibility and sales if you have a large, cohesive portfolio of products.
- Sponsored Display Ads: Sponsored Display Ads reach customers across their purchase journey both on and off of Amazon. You can target audiences or retarget shoppers who have previously interacted with your products.
What Is Amazon PPC Management?
What exactly do we mean when we talk about Amazon advertising campaign management?
Typically, an Amazon marketing agency oversees and manages a brand’s PPC campaign strategy and ad spend to grow sales and achieve better business results.
Beyond managing ad spend, the highest-performing agencies (like Canopy Management) help you get the most out of your Amazon marketing efforts by looking at all aspects of your Amazon presence. They optimize your ad campaign using proven strategies that work to increase brand awareness and drive sales over the top.
Services offered by an Amazon agency include:
- Keyword research and identification
- Campaign structure and targeting optimization
- PPC ad bid adjustment and budget management
- Market monitoring and optimization for trends and seasonality
- Campaign tracking and analysis
- Professional advice and key insights from expert ad specialists
Amazon PPC Advertising Has Skyrocketed in Complexity
Advertising on Amazon is not as straightforward as many people think. Millions of competing sellers are looking to promote their brand and get their products in front of shoppers.
Even if you spend a significant amount of advertising dollars, that doesn’t guarantee you’ll reach more shoppers or increase sales. Without a sophisticated Amazon ad strategy, your advertising efforts aren’t likely to work. You’ll end up spending a lot of time and money for a low return on your investment (ROI).
That’s why many Amazon sellers hire an Amazon ad management service to save both time and money.
An Amazon agency can help with the following important components of ecommerce success:
- Set clear and realistic advertising goals
- Establish a well-structured marketing strategy that aligns with your business needs
- Get better results from your market budget
- Achieve a positive return of ad spend (RoAS)
- Increase revenue
- Grow profits and keep ACoS low
- Focus on other business activities that matter
By now you might be wondering, “What are Amazon PPC agencies or consultants doing differently? Or, what’s unique about hiring a PPC management service?”
Amazon PPC management experts have a wide range of powerful tools that they combine with the industry experience and connections to help you achieve your advertising goals.
At Canopy, we’ve developed specific systems and strategies to solve sellers’ biggest advertising problems and get results far beyond what they’re able to achieve on their own. That means dramatically reducing profit-killing advertising cost per click (CPC), and maximizing the effectiveness of the entire ad campaign.
We also have an inside track to beta programs, training, and other insider access that lets us stay ahead of the competition for our clients.
5 Reasons Why You Should Use an Amazon PPC Management Agency
So, if you’re considering hiring an Amazon marketing agency, here are five strategies that we use every single day to help get ecommerce sellers’ products to the top of the page.
1. Eliminate Wasted Ad Spend Through In-Depth Keyword Research and Analysis
The goal of effective PPC campaigns is to get your ads in front of shoppers who are already searching for a product like yours. Otherwise, you’re just wasting money on clicks that won’t end in a sale – that’s why your keyword strategy is so important.
Amazon Sponsored Ads must include relevant keywords and be optimized with the best keyword match type (broad match, exact match, or phrase match) to optimize ad deliverability and spend.
Canopy Management’s team of PPC experts utilize a proprietary keyword research and optimization process to create custom keyword bidding strategies (for specific partners and situations) to eliminate wasted ad spend and increase profit.
2. Use Negative Keyword Match to Boost Advertising RoAS
Negative matching of irrelevant keywords is essential to maximizing your return on ad spend (RoAS).
If you’re not using negative keywords, you’re likely paying for clicks that have no chance of converting into a sale. Amazon doesn’t want your ads appearing in front of unqualified shoppers, and neither should you.
Negative keywords tell Amazon to exclude your ads from showing up in product searches with those terms or keywords. For example, if you’re a shoe company that sells only men’s shoes, you’d want to add “women’s shoes” as a negative keyword so you don’t waste ad spend on searches that aren’t relevant to your product.
Negative keyword matching is one of the most useful tools in the Amazon advertising tool belt. An experienced advertising agency can help you thoroughly examine your campaign data to uncover the keywords that are costing you money.
3. Develop an Effective Amazon PPC Bidding Strategy to Increase Profitability
Optimizing your bidding strategy is like tuning up a car.
It takes time, expertise, and continual check-ins to make sure things are running smoothly. If you don’t do it, you’re going to have big problems.
Think of Amazon ad specialists as your mechanic. They have a deep understanding of the inner workings of PPC advertising and can help bring a critical eye to your bidding strategy.
What’s your average cost-per-click? Should you be using dynamic or fixed bidding? Are you bidding on the right keywords? What other strategies could you be using to bring in low-cost conversions?
Canopy Management performs a rigorous inspection designed to reveal flaws in the engineering of your campaigns, and then we optimize your bids for peak performance and profitability.
4. Stay Ahead of the Game With Competitive Analysis
Competitive analysis is all about discovering what your competitors are doing right, then figuring out how your Amazon business can do it better.
Analyzing the competitive landscape reveals your principal competitors, what they’re doing to achieve success, and how aggressive your advertising campaign needs to be to win Amazon’s Buy Box from them.
For example, you may need to decide whether to compete directly by bidding on the same keywords, or target queries that your competitors are overlooking.
Carefully combing over your own reports will help you find out which queries are used most often, which keywords that are performing well, and potentially underutilized keywords. Once you’ve done that you’ll end up with a much better idea of search volume, keyword ranks, and ad placement.
Combining this Amazon marketing knowledge with research on your top competitors will reveal the gaps that you can then take advantage of. The big problem is that this process requires both a ton of time and a high-level of expertise to do correctly.
That’s why many brands hire an Amazon PPC manager to help keep an eye on the competition and stay a step ahead.
They’ll help you track your Amazon SEO and rank for high-volume keywords that your competitors are not using, increase your overall return on ad spend (ROAS), and rake in sales.
5. Continuously Review Your Amazon Ad Campaigns
How many times has your product been abandoned in an online cart? What percentage of clicks ended in a sale? How many purchases were new-to-brand?
Most importantly, who wants to track all that?
Very few people want to spend their day staring at spreadsheets (aside from geeks like us). Although it’s time consuming to analyze your Amazon PPC ads performance, it’s a necessary step toward achieving better results.
Most sellers will take a glance at their campaign reports once in a while. By contrast, Canopy’s PPC managers regularly analyze their clients’ ad campaigns at the keyword, product, and ad group level, and adjust accordingly. This helps them uncover key insights related to sales and performance of advertised products, the ad performance by keyword, and the performance of different ad placements.
Since our clients’ overall business health is our #1 priority, they’ll also track and analyze campaign performance and advertising cost over time and see how ad changes impact sales and profitability.
Canopy Management also implements a comprehensive reporting dashboard to easily analyze campaign performance and measure success for every client. Not only does this help us easily break down and interpret the data, it allows our clients to see exactly what’s happening within their campaigns.
Who Should Use an Amazon PPC Management Agency?
One of the top concerns preventing an Amazon seller from using an Amazon marketing agency is cost. Most companies are nervous about the additional expenses that come from utilizing Amazon marketing services.
However, more experienced brand owners know that this thinking is completely backwards.
For one thing, trying to run your own Amazon PPC campaigns usually results in wasted ad spend, lower potential sales, and countless hours of wasted time. On the flip side, the fees associated with bringing in professional help are almost always dwarfed by the combination of saved ad dollars and new revenue.
You don’t have to be a large company to hire an Amazon PPC agency, either. Businesses of all sizes and in all situations benefit from using agencies, including:
- Organizations that want to achieve significant marketing results within a short period
- Marketers who are new to digital marketing or online advertising
- Startups that don’t have the staff strength to manage PPC campaigns effectively
- Brands that don’t have an internal digital marketing or advertising team
- Corporations that prefer to focus on their core competencies and other business operations
- Established eCommerce brands that are interested in successfully launching on Amazon
NOT Using Amazon PPC Management Might Be Costing You (a Lot of) Money
If you’re looking to get more money back from your Amazon PPC efforts, hiring an expert is your best bet. An Amazon advertising agency will work with you to optimize your ad campaigns, decrease your advertising cost of sales (ACoS), and increase your ROI-all while taking advantage of Amazon’s highly-effective advertising services.
In other words, if you sell on Amazon, you can’t afford to not be using some form of Amazon advertising management.
Canopy Management can help you to build an effective strategy that aligns with your unique business needs. Using a hands-on, human-led approach, we’ll help you get more from your Amazon advertising, so you can create more growth for your business in less time.
Canopy Management is Here to Help
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