Why You Should Use an Amazon PPC Management Agency

June 24, 2022 CANOPY Management

Why You Should Use an Amazon PPC Management Agency

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.

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 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 Amazon shoppers, earn more money, and grow their business.

The only downside is that with Amazon sales growing at an unprecedented rate, more and more businesses are selling full catalogs of products and vying for customer attention. On such a competitive eCommerce platform, 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 the Amazon platform. You need a well-rounded strategy and wealth of experience and expertise.

That’s why, as businesses grow, most successful brands hire an Amazon agency.

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, an Amazon PPC agency builds and optimizes your campaigns to deliver significant results that support your unique business goals.

An Amazon account management service (doing things the right way), should not offer a one-size-fits all strategy to every brand and seller. 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 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 campaign management?

Typically, an Amazon marketing agency would oversee and manage a brand’s PPC campaign strategy and ad spend to grow sales and achieve better business results.

Beyond managing ad spend, agencies such as CANOPY Management help you get the most out of your Amazon marketing efforts. They optimize your ad campaign using proven strategies that work to increase brand awareness and drive sales over the top.

Some services offered by an Amazon PPC 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 ad specialists

5 Reasons Why You Should Use an Amazon PPC Management Agency

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 considerable 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 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)
  • Grow sales and profits
  • Focus on other business activities that matter

Maybe you’re wondering, “What are Amazon 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 an Amazon marketing 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. Amazon doesn’t want your ads appearing in front of unqualified shoppers. Neither should you.

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 tool belt, 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?

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.

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
  • How aggressive your advertising campaign 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 Amazon marketing 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 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. Analyze Amazon Ad Campaigns to Continuously Improve Effectiveness

How many times has your product been abandoned in an online cart? Did 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 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, 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 and advertising cost over time and see how ad changes impact sales and profitability.

CANOPY Management implements 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 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.

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 agency. Many different types of businesses use 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

Amazon PPC Management Next Steps

If you’re looking to get more 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.

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. We’ll help you get more from your Amazon advertising so you can do more for your business.

CANOPY Management is Here to Help

CANOPY Management is a “full service” marketing agency for Amazon sellers, and our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. When you consider the ways in which CANOPY Management is able to help you grow your Amazon business, you’ll know why.

  • 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

Are you looking to expand your income stream, or transition away from your primary career? It’s a new year and with the growth of eCommerce, now is a great time to reap some benefits yourself!

Ready to Grow Your Amazon Business?

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