Amazon CPC: What is it? What Are the Differences between CPC & PPC

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Amazon has taken the e-commerce world by storm with its distinctive strategies that have led to an exponential growth of the platform. Every e-commerce seller is in the rush to gain a competitive edge on Amazon to drive more revenue. From electronic gadgets to everyday supplies, the platform has proved to be a convenient place for online shopping.

Amazon advertising has been a constant helper of sellers and it has offered new and upcoming brands a means to gain visibility and get conversions. Among the diverse marketing and advertising services available on the platform, Amazon cost-per-click or CPC is a distinguishing strategy that allows sellers to advertise products and listings.

What is Amazon CPC?

Amazon CPC is the overall cost of the number of clicks generated on an ad from the time that the ad becomes live. In simple terms, if you get a higher number of clicks, you will incur more cost of advertising. This gives you a window of opportunity to convert more customers without spending a huge amount.

How does the Amazon CPC work?

CPC ads have a bidding system where sellers choose relevant keywords and bid on them. As soon as the customers search for those products. The highest ad bid wins the ad placement on the search results page on Amazon. If your ad is placed on the results page and you get clicks then you will be charged for the service.

Keywords are an essential part of the program and you should update the keywords regularly. The bids should also be updated frequently. You must be sure that the keywords are relevant to get the best results.

Why do you need the Amazon CPC?

Amazon’s advertising services are constantly improving with time and you as an e-commerce seller must be using some of these services to drive sales to your products. There are several reasons to choose Amazon’s CPC strategy. Some of these are:

1.  Track marketing costs

CPC strategy helps you to determine how much money you are spending on your campaigns and whether your campaigns are getting desired results or not. In the case of the latter, you can use preventive measures for improved performance. Having an idea of the cost incurred for your campaigns allows you to plan in the correct direction.

2.  Reach relevant audience

Amazon CPC can determine whether your campaigns are reaching the intended target audience or not. If you have higher costs, you might be targeting the wrong set of potential buyers. Hence, you can make necessary changes to target a relevant audience.

3.  Measure the output from marketing efforts

CPC strategy can help you evaluate the success of your marketing and advertising efforts. It allows you to check if you are getting good returns on the invested money in your campaigns. Thus, you can check and optimize your marketing activities.

4.  Control campaigns

Amazon CPC can indicate the success or failure of Amazon ad campaigns. If a campaign is underperforming, then you can make amendments or stop it altogether. This control over your campaigns is beneficial for the growth of your business.

How does CPC bidding work in your Amazon ad campaigns?

In your Amazon ad campaign, you need to set bids for your relevant keywords. All advertisers submit a default bid amount. Now, if your bid is the highest, you will win the bid but you will end up paying the highest CPC. However, the actual amount that you shall pay will be $0.01 more than the second-highest bid amount and not the amount that you set your bid for. Thus, your cost incurred depends on competition apart from your own advertising budget, and the average aCos for your CPC ads may vary depending on the product.

What are the differences between CPC & PPC?

You must have come across several terms related to Amazon advertising which might have baffled you. Especially with PPC and CPC, sellers tend to get confused about the details. PPC or pay per click in simple terms means that the advertiser must pay for every click which occurs on their ads. The value of each click changes based on the keywords and their search volumes. With a bidding system in place, PPC campaigns can easily take place.

CPC or the cost per click is a metric that helps you in measuring the effectiveness of your Amazon campaigns. Through Amazon CPC, you can measure the total expenses you had to bear for your PPC promotions. CPC measurement ensures that your ad campaigns are effective and your investment in advertising campaigns goes to your benefit.

●    PPC is an approach and CPC is a metric

PPC and CPC can be considered as the two faces of the same coin. The major difference is that PPC is a particular marketing approach that can be measured with the help of CPC. Your PPC campaigns give you the advantage that you have to pay Amazon only when a user clicks on your ad. CPC, however, is considered while you are setting up the bids for your ads. You can learn more about Amazon CPC and set up your ads for driving more sales and increasing your revenue.

●    CPC can supplement PPC by optimizing costs

When you set the bid for a particular keyword, to win the bid, your amount should be the highest. But this may lead to an increase in the costs that you incur for your campaigns. CPC can help you make an informed decision on how much money you wish to invest in your advertising campaigns.

●    Calculate the effectiveness of your PPC campaigns with CPC

You can calculate how effective your Amazon advertising campaigns are with the help of Amazon CPC. Start measuring your CPC and then find out how many conversions occurred. You can adjust and allot your advertising budget in such a way as to maximize returns.

The fascinating world of Amazon advertising has a lot to explore and you as a seller can learn on the way. For all e-commerce sellers advertising on Amazon, the significance of analysis and improvements is second to none. The opportunities to grow on Amazon are endless and thus, with the help of performance measuring metrics such as CPC, you can be a sure shot success on the platform.