As ecommerce becomes more and more competitive, the pressure to reduce costs and increase profits is mounting on businesses of all sizes. One area where many businesses are looking to cut costs is in their pay-per-click (PPC) advertising campaigns.
Google AdWords, the largest and most popular PPC platform, has been raising prices steadily for years, and competition for keywords is only getting more intense. So it’s no surprise that businesses are turning to alternative PPC platforms like Amazon Advertising.
Amazon Advertising is the PPC platform operated by Amazon.com. Unlike Google AdWords, which sells ad space on millions of websites across the internet, Amazon Advertising only sells ad space on Amazon.com and its affiliated websites.
This may seem like a disadvantage at first, but it’s actually a big advantage for two reasons:
First, because Amazon is the world’s largest online retailer, it gets a ton of traffic. In fact, Amazon gets more traffic than Google itself! This means that there’s a lot of potential for your ads to be seen by potential customers.
Second, because Amazon sells products itself, it has a lot of data about what people are interested in buying. This allows Amazon to show your ads to people who are more likely to be interested in what you’re selling.
So how does this all translate into lower CPC costs? The answer lies in the way that Amazon charges for its ads.
Unlike Google AdWords, which charges you based on the number of times your ad is clicked (CPC), Amazon charges you based on the number of times your ad is seen (CPM). This means that you only pay when someone actually sees your ad, regardless of whether they click on it or not.
The result is that you can get a lot more exposure for your ads on Amazon without having to pay as much per click. And since exposure is what drives sales, this can lead to lower CPC costs and increased profits!
