PPC

PPC is the foundation of Amazon Advertising (Amazon Ads). It enables brands to drive visibility and sales by targeting relevant shoppers through keyword-based or product-based ads that appear in search results and on product detail pages. Each click incurs a cost - the CPC (Cost Per Click) - determined by an auction system.

How It Works:

1. Campaign setup: The advertiser selects targeting type (keywords, ASINs, or audience), sets bids, and defines budgets.
2. Auction process: When a shopper searches for a term or views a product, Amazon runs a real-time auction among eligible ads.
3. Ad display: The highest-bidding and most relevant ads win placement (e.g., top of search, PDP carousel).
4. Payment: The advertiser pays only when a shopper clicks the ad, not when it’s shown.

Main Amazon PPC Ad Types:

• Sponsored Products (SP): Keyword or ASIN-targeted ads promoting individual products; appear in search results and on PDPs.
• Sponsored Brands (SB): Ads featuring a brand logo, headline, and multiple products; appear at the top of search results.
• Sponsored Display (SD): Display ads that reach audiences on and off Amazon, based on behaviour or interest targeting.

Key PPC Metrics:

• CPC (Cost Per Click): The amount paid per ad click.
• CTR (Click-Through Rate): % of impressions that resulted in clicks.
• ACoS (Advertising Cost of Sales): Ad spend divided by attributed sales.
• ROAS (Return on Ad Spend): Revenue generated per $1 spent.
• Impressions / Clicks / Conversions: Volume and performance indicators.

Benefits for Vendors and Sellers:

• Visibility: Boosts ranking and discoverability for targeted keywords or products.
• Sales growth: Drives incremental traffic to listings and improves organic performance.
• Data insights: Provides keyword-level data to optimise content and pricing.
• Scalability: Budgets and bids can be adjusted dynamically.

Benefits for Amazon:

• Revenue: PPC ads generate a major portion of Amazon’s retail advertising income.
• Relevance: Algorithmically selected ads enhance customer experience.
• Ecosystem efficiency: Encourages high-quality, well-optimised listings.

Challenges:

• Competition: High CPCs in saturated categories reduce profitability.
• Optimization complexity: Requires continuous bid management and keyword refinement.
• Attribution lag: Sales reporting can have delays affecting decisions.

Why It Matters:
PPC is one of the most critical tools for product visibility and sales acceleration on Amazon. Mastering PPC strategy - bidding, keyword targeting, and campaign structure - directly impacts a brand’s overall marketplace success.

Example:
A supplement brand runs a Sponsored Products PPC campaign targeting the keyword “omega 3 capsules.” The ad receives 1,000 clicks at an average CPC of $0.85, generating $2,000 in attributed sales - resulting in an ACoS of 42.5%.

In short:
PPC (Pay Per Click) is Amazon’s core advertising model where brands pay only when shoppers click their ads - driving visibility, traffic, and sales through Sponsored Products, Sponsored Brands, and Sponsored Display campaigns.