In this video, I want to cover what is the goal of PPC. So, the goal of PPC is very simple. It's to drive traffic into our listings as cheap as possible and that can be done by:
So, I went into Amazon.com and I typed in electrolyte powder. And you can see here, these are the sponsored ones. And then we have the organic. And then we have a sponsored video. And then as we scroll down, we're going to find more sponsored ones.
So the goal of PPC, if we understand the funnel, it's very simple. We launch campaigns, we're going to get a certain number of impressions. You see, everyone that I saw right now on this page, that was an impression. All of these people, they just got one more impression because I saw them. I didn't click on them, I just saw them. And because I saw them, that's an impression.
And so as I launch more campaigns, I'm talking about only the ones with sponsored here, because that's where we can only measure impressions for ads; we can't measure impressions for organic. But basically, as these people created those campaigns, they showed up here on the page when I typed in Electrolyte Power. And so they all got an impression.
Now, after that impression, I am choosing the most attractive ones to me and I'm clicking on them and that turns into a click. And then the number of clicks divided by the number of impressions equals the Click-Through Rate. So if a million people, let's say if a hundred people see these four products and then only 10 of them click, they have a 10% click-through rate. Obviously, the higher the click-through rate means more people are clicking on your listing and seeing it.
<aside> 💡 The number of clicks divided by the number of impressions equals the click-through rate. The higher the click-through rate means more people are clicking on your listing and seeing it.
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And so that's where all of the different factors of the image and the reviews and the title and the price and if it's prime or if it's not prime, all of that stuff matters because the more attractive this is to me, the more likely I'm going to click on it.