How does Amazon charge for advertising? What are the tips?

In addition to on-site and off-site advertising, Amazon advertising can also be divided into free and paid advertising. Now it is becoming increasingly difficult to obtain free traffic from Amazon. Regarding paid advertising, sellers are most concerned about the Amazon advertising fee. So how does Amazon charge for advertising?

How much does Amazon charge for advertising?

CPC advertising is charged mainly based on the number of times the ad is clicked. CPC costs are related to the keywords and bids selected for the ad, while sales data is related to the number of clicks and conversion rates. In the early stage, the CPC budget will be relatively high, about 30-50 US dollars. In the middle and late stages, you can reduce it according to the situation of the product, and increase the manual advertising budget, about 20-30 US dollars.

PPC pays based on the number of users who click on the ad. That is to say, if your product gets 60 clicks with $30 in PPC advertising, then the cost of each click is 30/60=$0.5, which means that each time a buyer clicks on your ad, they will pay $0.5.

What are the tips?

1. Wait for a while before optimizing your ads. Any Amazon ad will take some time to get results. Be patient and wait until you see results before making any changes or optimizations; use Amazon's ad settings, such as budget allocation, to control your budget within a specific range to avoid spending too much budget before getting results. The main results you should focus on are impressions and keyword bids.

2. Make sure your ad budget is sufficient to get impressions. Otherwise, your ad will not be shown often enough to generate conversions, which may affect the performance of your ad and prevent you from surpassing your competitors. The target sales costs and profit margins of products vary, so the bid amounts vary. After determining the most appropriate optimization plan, test it by modifying one variable at a time and let the ad run for a few days to analyze its effect.

3. The key is to use these match type options in combination to get the most targeted and reach the buyers who are most likely to make a purchase. The maximum number of users can be reached using the broad match type. The word can be added before, in the middle or after the target keyword. Broad match is the least targeted match type, but it can be used to improve activities and discover new keywords that may bring conversions, and finally use manual matching.

The structure of your ads is crucial to your advertising. If your ad structure is messy, then your ads may be triggered by the wrong keywords, resulting in unqualified clicks, causing your budget to be wasted, or you may end up spending more money on clicks.