Amazon PPC cost is a hotly debated topic amongst sellers who have never run ads before. However, Amazon PPC cost is like any other; the higher your budget and bid, you will get more clicks.
The article will discuss how much to spend on Amazon PPC. It will explain the cost and what factors can determine the amount you should be spending.
How Much Does It Cost on Amazon PPC?
The Amazon PPC cost is the amount you will pay per click. It’s similar to the display network, where the more you bid, you may get a higher placement on Google and other search engines as well as more impressions for your ads.
The variable here is how much you are willing to spend and how competitive it is for your keyword phrase. If countless sellers are bidding on the same keyword, your position will be low regardless of what you bid or how high of a budget you set aside each day.
On the other hand, if there are not many competitors, a seller could probably get away with spending very little money on PPC compared to someone who’s competing in a more competitive niche. Amazon PPC cost is directly proportional to competition for your keyword phrase and bid/budget amount placement on the page.
How Does The Bid and Budget Amount Affect Clicks?
Budget and bid amount are the only factors that directly affect how many clicks you get for your PPC campaign. Therefore, it should be set at an appropriate level based on your competition.
For example, if we sell women’s boots, there will probably be millions of results when searching “women’s boots.” If we put a $0.05 budget per click (budget is the max amount you can spend each day), it means something like 100 clicks until all my money runs out.
It wouldn’t make sense to spend money on ads in this situation because there were so many sellers already bidding higher than me for the highly competitive phrase.
With Amazon PPC cost much less overall traffic than other search engines or display networks, most sellers will be tempted to spend more on Amazon PPC than they might on other ad platforms.
You have to keep in mind that your competition on Amazon is probably much less, so you can’t expect to bring hoards of traffic with a relatively small budget per day.
If we are selling men’s shoes, the results won’t be as competitive. In this situation, we might want to put $50 or $100 per day into a PPC campaign and increase bids over time for higher rankings for my product listing.
As we get more sales from my ads, we could lower my bid amount if needed since it would still attract a few clicks (depending on how many sellers are competing for these keywords).
How Much Should You Spend on Amazon PPC?
How much you spend on Amazon PPC is ultimately up to you. It depends on how much profit you are making from your product each sale and how competitive the product is.
For example, if a seller spends $0.05 per click (budget is not a factor here) and makes $10 profit for that sale, it may not make any sense to continue running ads since they aren’t profitable (assuming high competition).
On the other hand, if we are making $220 in profit for each sale, continuing with my ad campaign will be well worth it because we could lower the bid amount to bring more traffic and sales to my listing.
If your goal isn’t to make money but rather just sell many products, you may try increasing bids and budgets to maximize traffic.
You must remember that higher spending will also mean more money out of your pocket if sales aren’t profitable.
Product competition is a huge factor determining how much you should spend on Amazon PPC, but there are other factors too, such as seasonality and price for the product.
If we are selling women’s boots in July, we might get less traffic than in February because it does not currently boot season. The same goes for pricing: if we are selling a pair of running shoes for $50 and suddenly they go on sale at $25, my ads will probably underperform since I cannot compete with the product price.
Whether you’re new to Amazon PPC or a seasoned veteran, these tips will give you insight into how much money to spend. They are meant as guidelines since every seller’s situation is different and should be tailored accordingly.
Amazon PPC doesn’t necessarily have to be expensive. You need to know how much you should be spending on it if you want your campaign to be profitable or relatively cheap to get more traffic for free.
We hope you enjoyed our guide on how much to spend on Amazon PPC. If you have any questions or want more details about Amazon PPC cost, please leave a comment below, and we will respond at the soonest possible time.
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