Why Work With an Amazon PPC Agency? - Amazon Monitoring Software from AMZAlert

Why Work With an Amazon PPC Agency?

PPC, or pay-per-click, is an advertising model that charges users for clicks instead of views. Many different browsers and marketplaces use PPC, but Amazon’s PPC System is a pillar of your marketing system if your brand is on Amazon. There are plenty of Amazon PPC Agencies which offer services to increase profits on PPC campaigns. Should you work with one? If so, what elements should you look for to maximize your marketing budget?

When you’re in the dawn of your Amazon seller career, initiating PPC on Amazon can be an individual endeavor. However, as sales begin to flourish, you’ll want to do some research on the kind of Amazon PPC agency that will boost your returns, conversion rate, and ACoS. Factor the Amazon PPC agency cost into your advertising budget; prioritizing both marketing and marketing consulting is more profitable than solely focusing on marketing. Don’t toss money at the wind– consider working with an Amazon PPC agency.

Should I be Using Amazon PPC?

Amazon PPC offers a variety of costs and benefits, but most sellers should be mobilizing some form of PPC. Even if you’re brand new to Amazon selling, you should begin setting up some PPC ads in order to learn the system and start gathering data about sales and marketing.

Of course, boosting your PPC campaigns won’t help you unless you’ve also optimized your listings, built a brand, and have sparkling ad copy. You will want to generate some sales and reviews as well, because most people aren’t purchasing from a source without a history. Regardless, early on in your Amazon business venture, PPC marketing should be playing a role.

The Learning Curve

The best way to learn is to work alongside someone with knowledge and experience. You would want your optics to be made by a graphic designer, so why not use the same level of expertise to help you with other tasks as well?

A great Amazon PPC agency can offer you a helping hand without taking the wheel. They can explain the system and offer advice based on your products and systems, as well as provide you with the tools to perform PPC analytics in your own in-house marketing department long-term.

Best Practices Outside of Your Think Tank

We’ve all been in a situation where the ideas hit an echo chamber. Whether your Amazon business is 1, 10, or 100-people strong, there are certain cultures and ideas that get lifted up inside the think tanks of your e-commerce walls. Employing an Amazon PPC Agency will help provide data for the newbies, sure, but it also adds a professional and creative touch to the campaigns you’ve already been running. PPC might be 80% data, but that 20% design is critical to your brand awareness and brand success.

Utilize a PPC agency to work with professionals who can enable industry-standard best practices that you’ve missed along the way. You might be employing 9 of the 10 best practices, but one overlooked element could be holding you back!

Marketing Beyond PPC

Effective PPC will also leverage other types of marketing, like inbound marketing, to diversify buyer traffic. Amazon PPC campaigns are undoubtedly critical to success, but you’ll need to build a brand that draws buyers from a variety of sources. The best Amazon PPC agencies will have diverse business models to provide you with holistic business solutions in and beyond Amazon. Work with a company who understands e-commerce at large, and not a pigeonhole operation that can run vague numbers about Amazon PPC but can’t evaluate your content and online presence.

Choose a service that gives you a dedicated account manager so that you have someone to work with, instead of an employee who runs a few keystrokes, shifts a few keywords, and then drops your project into the “completed” pile (it happens). You don’t want to pay someone for just the stats! You want recommendations, ideas, and business partner.

Business Analytics

If you joined the business world because of your strong understanding of analytics, an Amazon PPC agency might not be a good fit for you. If you’re a math whiz who loves crunching the numbers for the sake of the numbers, carry on. Check those campaign stats yourself and plug away at custom-built excel spreadsheets. If, however, you got into business because you love home goods or branding, then the numeric side of PPC might be a bit intimidating. It’s one thing to set up a PPC campaign and make a few suggested keyword tweaks; it’s a completely different animal to optimize all your campaigns based on your seller data.

An Amazon PPC agency can run the analytics on your Amazon ads while also using data from the rest of your company to give you professional opinions about the best next step. Using an agency, you can advance conservatively or take risks based on the best available data. Agencies help compare and interpret numbers. Do you know the difference between ACoS and conversion rate? Should you?

PPC maximization requires extensive keyword research to ensure you aren’t tossing money at low-turnover keywords. In the beginning, you might be able to handle marketing. But as your business grows, let another company handle analytics to free your plate as CEO.

Does the PPC Campaign Offset the Expenses of the Service?

The bottom line: do both the short-term and long-term revenue growth offset the expenses of the service? If you make even a marginal profit above the cost of the PPC service, it was worthwhile. The tricks of the trade you learn from the agency are skills your marketing department can implement for years to come.

Factor the PPC agency into your ad cost– or cut ads– and work with an Amazon PPC agency. You might make more money than if your entire marketing budget was allocated to ads. Amazon’s ads are a huge business for Amazon; the company is projected to rake in 3.19 billion from digital ad revenue alone in 2019. Their overall ad revenue is even higher. Make sure that when you toss money to Amazon for ads, you’re getting your money’s worth!

Conclusion: What to Look For

Look for a PPC service that has some proven results, like conversion rates and ACoS improvement. ACoS stands for Advertising Cost of Sales, and is a measurement of the total ad spend divided by total ad sales times 100. In other words, if you spent $100 on advertising and that advertising created $300 of sales, your ACoS for the campaign is calculated at 33%. This seems great because you’ve paid $100 to make $300, but for many campaigns, the ACoS should ideally be much lower (depending on the product and marketplace). ACoS is a measurement of PPC turnover and is a great stat that companies use to determine how successful ads and ad-consulting services were.

Similar to ACoS, conversion rates are the number of successful purchases resulting from clicks. If 100 people visit your listing by clicking on the ad, and 10 of those people purchase the product, your conversion rate is 10%.

PPC programs that have track records of lowering ACoS and raising conversion rates are worth checking out. Skip the ones who simply promise “optimization” or “excellence”. Buzzword padding does not result in a great consulting company; look for stats.

These are a few of the qualities you should look for in an Amazon PPC agency. Find someone who understands e-commerce as a whole, wants to partner with your business and has proven results in the Amazon PPC space.