An Amazon PPC management agency is the one where a marketing team oversees and manages the seller’s advertisements and campaigns on Amazon and further optimizes them for better sales and results. With Amazon Pay per Click Campaigns the sellers get the wonderful opportunity to promote your products in the sponsored advertisement and pays for only the number of times the ad gets clicked by a user.
There are three types of Amazon PPC ads and campaigns which the sellers and vendors can choose from- Sponsored Ads, Sponsored products and Product Display Ads.
There are a number of benefits that the sellers can avail by hiring a PPC agency for their products on Amazon but the most important is improving their conversion rates.
What are conversion rates?
PPC ads and campaigns help you improve the conversion rates of your sales. This can be derived by calculating the Advertising Cost of Sales (ACoS)
ACoS is a measurement of total expenditure on ad with respect to the number of sales. For instance; If a seller has spend 50$ on advertisement and sold items worth 200$ that means ACoS is 25% which is a decent score. In a nutshell it means the seller spent 50$ to make 200$.
Conversion rate is the number of purchases made as a result of click on the Ads. Suppose, 10 people clicked on your Ad and 3 people bought the product from you, the conversion rate of your Ad would be 30% which is not so great.
So, to make your sponsored ads work on Amazon, the sellers should have a lower ACoS and higher conversion rate.
The PPC agencies have better knowledge inside out and years of experience that can help sellers in lowering their Advertising cost of sales and increasing their conversion rates. And to achieve that, the sellers should focus towards their product listing or enhanced brand content and constantly try to optimize the listing and sponsored campaigns for increased user traffic.