How to Choose the Best Amazon Advertising Software

January 20, 2021
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10 min
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Long gone are the days when Amazon was just an online bookstore. These days, Amazon is not only a massive online retailer that generates tons of revenue, but also a great source of revenue for eCommerce sellers of all kinds, as well as all sorts of SaaS businesses meant to help them (including, but not limited to the best Amazon advertising software providers).

Clearly, the e-commerce giant tops the list of online retailers. Not only that, but it is also generating the highest global net sales, accounting for nearly 50 percent of online transactions taking place in the U.S. 

No wonder then that vendors and manufacturers alike flock to Amazon for selling their products. 

After all,  Amazon records 58 billion visits a month. Yes, you read that right. 

What that means for you as a seller is that you don’t have to create a brand site to sell your products (although a combined approach has its benefits as we will see later).Customers are already willing and waiting for you on Amazon.. You just have to find a way to get them to your product page.

The Power of Amazon

There are some pretty good reasons why selling and marketing your product on Amazon can do wonders for your business. 

Amazon might only be the third-largest digital ad platform in the US, but with higher average conversion rates than Google for example (10% compared to 3.75%), they’re a hidden treasure for many. 

Needless to say, both Google and Facebook have massive audiences. Google takes the lead as the #1 most visited website in the world and Facebook ranks second. So with that sort of traffic, it makes sense to advertise on those sites, right?  

However,  Amazon seems to have an edge over the aforementioned platforms: a much stronger buyer intent. In fact, two-thirds of US shoppers have reported that they start their search for new products on Amazon. When someone logs onto Amazon and starts searching, they’ve already set their sights on something they need or want ( or they’re just going there for everyone’s best friend: some sort of impulse purchase!). 

On the other hand, when someone is on Google or Facebook, their intent may not be to buy something at all (especially on social media). On Google, they could just be looking for information and on Facebook they may not even be thinking about your product (unless you want to drive them into a more complex sales funnel, case in which both Google and Facebook are quite good). If your main goal is making sales on Amazon, though, you might end up spending a lot more on Google and Facebook ads to make a sale.

Breaking through the Noise

One thing to remember, is that as it continues to grow its market share across a diverse range of product categories, the e-commerce giant is only getting more competitive by the year. 

According to Amazon’s own data, 70 percent of customers never click past the first page of search results. So if your product appears on page 2 or higher, only 30% of the total visitors have a chance of seeing it. But that’s not all. Even out of those 30 percent that make it to page 2 of their search, over a third click on the first product featured on a search page and overlook the rest. 

In essence, half the battle of selling your products on Amazon is making sure that they are found. 

Therefore, using Amazon’s advertising platform or Amazon PPC makes a lot of sense, in a lot of situations. 

What Are Amazon Ads?

Amazon ads are, as the name very aptly suggests, advertisements found within Amazon’s search engine results pages and product pages which are paid for by third-party sellers. 

Similar to Google’s search network, you type in a keyword in the Amazon search box, a list of results appears, and some of the top results are sponsored posts (in other words, they are ads)

Sellers can create these ads from Amazon Seller Central and pay for them through a program known as Amazon PPC.

Pay-per-click is an advertising method where the advertiser only pays for the ad once a potential shopper clicks on it to view their product (different than say, Facebook’s PPM where the advertiser pays for every 1,000 people who see the ad). 

Amazon PPC ads can be classified into three types, based on where on the website they appear:

  • Sponsored product ads
  • Product display ads
  • Headline search ads

When it comes to click-through rates and sales conversions, sponsored product ads always perform great. They are highly beneficial because they intermix with the organic results and impersonate them. In fact, many times, they are so well “disguised” that customers have no idea what they’re clicking is a paid ad. 

Should I Be Using Amazon PPC ?

As you might be able to guess by now, our answer is YES! 

Basically, the higher you rank in search results, the more products you will sell. That’s a no-brainer. There are many factors that come into play when your Amazon ranking is decided and most of them are interconnected. 

Your PPC campaign will influence your organic ranking by improving Performance Metrics, and how well you rank organically will mean that you can make a lower bid on a particular keyword and still rank higher than your competitors. 

Here’s the formula, according to visiture.com:

how amazon ranks ads

Higher rankings, organic or otherwise are not the only benefit of running a PPC campaign on Amazon. 

Even if you’ve done your job and picked the perfect high-demand/low-competition product to sell on Amazon, PPC is still the best way to collect and refine data to get more sales at a lower cost over time.

Why You Need to Use the Best Amazon Advertising Software 

PPC campaign management is a very technical and laborious task if you want to have a go at it manually, and it can feel like a full time job. In order to ensure maximum impact at minimum cost, your keywords and bids have to be constantly monitored and adjusted. 

Fortunately, in 2021 there is no need to drown yourself in excel spreadsheets and Amazon PPC campaign reports. 

Finding the best Amazon advertising software to manage and automate your campaigns and bids is easier than you might think. 

Top Criteria to Consider when Choosing the Best Amazon Advertising Software

We have already shown you why you need an Amazon PPC tool - so that you have the time to focus on your core business instead of trying to figure out how to optimize ROI from Amazon ads. 

Now we will look at how to choose it. And what criteria you should consider.

Bid Management

Bid management is king. At the end of the day, what you want is to be profitable and  Amazon Advertising Software providers know that. Therefore, they came up with several automated tasks to help reduce your advertising cost of sale (ACOS). 

Some tools though, still manage to differentiate themselves from the competition by offering features like negative keyword updater (that automatically scans search terms every night to find and kill unprofitable keywords).  

Keyword Harvesting

Knowing what keywords your clients are searching for when landing on your product page is, obviously, pretty important. After all, you don’t want to waste a big chunk of your budget on keywords that don’t generate sales. Can you do this manually ? Sure! Will it take endless hours of your time ? Most definitely. 

Today’s smart seller relies on the latest AI technology to research keywords that can be used in their PPC campaigns or to optimize their product listing pages. At the same time, some tools come with features that allow them to double down on one’s campaign’s winning keywords to help increase visibility on those that make the most sales. 

Advanced Analytics and Reporting 

Many sellers say that although improvements have been made, Amazon’s reporting is still largely insufficient. That’s where the right Amazon Advertising Software comes in. Some of the tools available on the market today have made it their goal to offer their customers detailed analytics and reports based on data that Amazon itself would never have access to, like profit or inventory levels for example. 

Pricing

...Is always an important factor to consider. After all, your goal here is to make money, right? And with some excellent choices for newbies priced at just $10 a month (only available to sellers with less than 1000 orders sold), there really is something out there for everyone.

One piece of advice from the PPC experts at ClickGUARD? Make sure not to fall into the trap of basing your decision solely on the price factor. 

Why Amazon Sellers Should Use Google Ads

You might be surprised to learn that 25% of Amazon sellers use Google Ads to promote their products. The service, only available to Amazon sellers (not to affiliates) might turn out to be profitable in more ways than one.  

The overall concept is simple – more sales channels means more people see your product, which leads to more people buying your product. 

Ergo, by advertising on Google Ads, you can increase your sales, which goes on to increase your organic rankings as well. 

average ROI Google Ads

At first glance, the 25% figure may seem higher than one would expect. 

But if you’re anything like us, we bet you’re asking yourself why the remaining 75% of Amazon sellers (probably yourself included) are not doing it. Amazon itself does it, so why wouldn’t you? 

There might be many reasons so many Amazon sellers are (still) not advertising on Google, but if click fraud is one of them, you can rest assured that there are solutions to fight it. Cough-cough, ClickGUARD, for example. 

After all, with an estimated 20% of clicks on PPC ads coming from fraudulent sources, fake traffic and those pesky click bots are costing businesses around the world an estimated $60 billion a year, so it’s no joke y’all. 

At the end of the day, whether you’re just starting out on Amazon or you have a product that is making pretty decent sales already, you might want to consider running PPC campaigns for a variety of reasons.And if you’re running PPC ads on Amazon, then you definitely need to take advantage of the tools at your disposal to automate and augment your business efforts. 

It is basically down to individual preference when it comes to choosing the best Amazon advertising software to use. The best thing about most of these instruments is that they come with free trial offers, so you get the chance to try it for yourself and see first hand what would fit your Amazon business best.

Jason is a passionate data-driven specialist with extensive PPC & SEO experience. When not writing about SEM he can be found surfboarding the wildest ocean waves of the Argentinian coast.