Definition

PPC stands for Pay-Per-Click Advertising which means that every time a shopper on Amazon clicks on one of the ads, you’re paying money.

PPC is used to drive traffic - to list things on Amazon. There are a lot of brands selling on Amazon out there and they have their products listed.

When you go to Amazon.com and you type in the search field, you’ll see a lot of products there. People are coming in and they’re searching for products on Amazon.

For example, popcorn bowl, a shower cleaner, or an energy drink - whatever it is. Go to Amazon and type in the search field then, once the search loads, people will see lots of different products and will click on the products that are being shown. As they click on them, they’re going to take a look - is it good or is it bad? They’re going to make a decision and they’re going to buy.

Benefits of PPC

One way to make shoppers buy more of our client’s products is to show up more.

• If 100 people search for certain keywords - popcorn bowl, and of those 100 people, only 10 of them see your popcorn bowl; and, out of those 10, two of them buy, you end up with a hundred people searched the popcorn bowl and two bought yours.
• If 100 people searched popcorn bowl and 80 of them see yours and out of those 80, 20 people buy the popcorn bowl - now, you have more sales. And you did that, by showing your product to more people.

How does it work?

The whole point of PPC - paying in a bidding system. The way that a bid works is like an auction.

<aside> 🪧 The person who bids the most show up first in the top of the search in the first page.

</aside>

• I’m willing to spend $2 for every time someone clicks on my popcorn bowl.
• And then, this other guy is willing to spend $2.50.
• And then I’m willing spend $3.

And obviously the person that bids the most, they show up on the first in the top of the search in the first page and then the people who bid less and less, they show middle of page 1, bottom of page 1, top of page 2, middle, bottom, and so on and so forth.

And, the bid is dependent on how much you’re willing to pay and then how high you show up depends on how much you’re willing to pay plus how much everyone else is willing to pay. And that’s why it’s an auction system.

How do we run PPC?