Why You Should Use an Amazon PPC Management Service

March 26, 2021
March 26, 2021 Alex Smythe

Why You Should Use an Amazon PPC Management Service

It’s no secret that Amazon is growing at an incredible rate. (Amazon even reported 41% year-over-year growth at the end of 2020!)

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

The downside is, of course, that competition on Amazon is also growing at an unprecedented rate, with more and more businesses selling a rich catalog of products and vying for customer attention. On such a competitive e-commerce platform, advertising effectiveness isn’t just critical for businesses and sellers… It’s the key to staying ahead of the competition. 

With that in mind, spending millions of dollars on ads doesn’t automatically guarantee success. You need a well-rounded strategy and wealth of experience and expertise.

That’s why, as businesses grow, most successful brands hire an Amazon PPC management service.

Amazon PPC – Driving Profitability in the Amazon Marketplace

Competing on Amazon requires more than an organic search engine optimization (SEO) strategy. You need a well-executed PPC campaign to boost visibility, reach more shoppers, increase sales, and stay ahead of the competition.

Using a wide range of PPC tools and strategies, Amazon PPC management agencies build and optimize your campaigns to deliver significant results that support your unique business goals.

Amazon PPC doesn’t have a one-size-fits all strategy for all brands and sellers, so a trained PPC expert can help you find works for you.

While there’s more to Amazon advertising then PPC, Amazon PPC experts typically focus on optimizing the primary three Amazon ad types:

  1. 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.
  2. 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.
  3. Sponsored Display Ads: If you want to reach customers across their purchase journey both on- and off-Amazon, Sponsored Display Ads may be right for you. With SDAs, you can target audiences similar to your target customer or retarget shoppers who have previously interacted with your products. 

What Is Amazon PPC Management?

What exactly do we mean when we’re talking about Amazon PPC management?

Usually, it involves overseeing and managing a brand’s PPC campaign strategy and ad spend to grow sales and achieve better business results. 

Beyond managing ad spend, PPC consultants, managers, or agencies—like CANOPY Management—help you get the most out of your Amazon marketing efforts. They optimize your ads and campaigns using proven strategies that work to drive sales over the top. 

Some services offered under the umbrella of “PPC management” include…

  • Keyword research and identification
  • Campaign structure and targeting optimization
  • Bid adjustment and budget management
  • Market monitoring and optimization for trends and seasonality
  • Campaign tracking and analysis
  • Professional advice and key insights from ad specialists

5 Reasons Why You Should Use an Amazon PPC Management Service

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 millions of advertising dollars, that doesn’t guarantee you will reach more shoppers or increase sales. Without a working Amazon PPC strategy, your advertising efforts aren’t likely to give you the results you need.

Besides lackluster results, you may end up spending a lot of time and money for a low return on your investment (ROI).

That’s why many Amazon sellers—no matter what their end goal is—hire an Amazon PPC management service to save time and money.

An Amazon PPC agency can help if you’re struggling to…

  • Set clear and realistic advertising goals
  • Establish a clear marketing strategy that aligns with your business needs
  • Get better results from your market budget 
  • Achieve a positive return of ad spend (RoAS)
  • Grow sales and profits
  • Save time and focus on other business activities that matter

Maybe you’re wondering, “What are PPC agencies or consultants doing differently? Or what’s unique about hiring a PPC management service?”

Here’s what you need to know. Amazon PPC management experts have a wide range of powerful tools as well as industry experience and connections to help you achieve your advertising goals.

At CANOPY, we have developed specific systems and strategies to address sellers’ advertising concerns and go beyond what they’re able to achieve on their own.

We also have access to beta programs, training, and other insider access that lets us stay ahead of the competition for our clients.

So, if you’re considering hiring a PPC management agency, here are a few ways that increased experience and access can benefit your business.

1. Eliminate Wasted Ad Spend Through In-Depth Keyword Research and Analysis 

You want 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 should include relevant keywords and be optimized with the best keyword match type (broad match, exact match, or phrase match) to improve ad deliverability and spend.

Through an in-depth keyword research and optimization process, Amazon PPC experts, like those at CANOPY Management, help you identify best- and worst-performing keywords and develop an effective keyword bidding strategy designed to eliminate wasted ad spend.

2. Use Negative Keyword Match to Boost Advertising RoAS

Negative matching 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.

Negative keywords tell Amazon to exclude your ads from showing on 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 toolbelt, and 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. Plus, if you don’t do it, you’re going to have 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? Are you 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?

At CANOPY, we perform 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 and figuring out how to do it better.

If you do it right, analyzing the competitive landscape is meant to reveal…

  • Your main paid search competitors,
  • What they’re doing to achieve success, and 
  • How aggressive your campaigns should be to stay ahead

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 often used, keywords that are performing well, and potentially underutilized keywords. You’ll get a better idea of search volume, keyword ranks, and ad placement.

Combining this knowledge with research on your top competitors will reveal the gaps that you can take advantage of.

The problem is that this process can be challenging and time-consuming.

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 rank for high-volume keywords that your competitors are not using, increase your overall return on ad spend (ROAS), and rake in sales.

5. Analyze Amazon Ad Campaigns to Continuously Improve Effectiveness

How many times has your product been abandoned in cart? How many clicks end 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 product and Amazon PPC performance, it’s a necessary step toward achieving better results.

Most sellers will take a glance at their campaign reports once in a while, but Amazon PPC managers take it a step further to analyze their clients’ PPC ads at the keyword, product, ad group, and campaign level and uncover key insights related to…

  • Sales and performance of advertised products
  • Ad performance by keyword
  • Performance of different ad placements

They’ll also track and analyze campaign performance over time and see how ad changes impact sales and profitability.

At CANOPY Management, for example, we use a comprehensive reporting dashboard to easily analyze campaign performance and measure success. Not only does this help us easily break down and interpret the data, it helps our clients see exactly what’s happening within their campaigns.

Who Should Use an Amazon PPC Management Service?

One of the top concerns preventing more businesses from using an Amazon PPC management service is cost.

Most companies are nervous about the additional costs that come from working with experienced Amazon ad specialists.

However, when you factor in wasted ad spend, loss of potential buyers, and the huge time-sunk associated with PPC management, that overall total is going to outweigh the cost of bringing in a professional.

You don’t have to be a large company to hire an Amazon PPC management service. Many different types of businesses use Amazon agencies, including:

  • Organizations that are looking 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 e-commerce brands that are interested in successfully launching on Amazon

As a whole, most dedicated PPC management agencies and experts have significant digital advertising and marketing expertise. Businesses like the ones above hire consultants and agencies because they have the resources and capacity to help new and existing Amazon sellers stay ahead of the competition.

Wrapping Up

If you’re looking to get more from your Amazon PPC efforts, hiring an expert is your best bet.

An Amazon PPC optimization service 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.

If you sell on Amazon, you can’t afford to not be using Amazon advertising.

But, before you invest your hard-earned money into Amazon PPC advertising, you should know that you may not achieve results without a well-defined strategy. 

CANOPY Management can help you to build an effective strategy that aligns with your unique business needs. We’ll help you get more from your Amazon advertising so you can do more for your business.

Ready to Grow Your Amazon Business?