#amazonadvertisingppc

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Increasing ACOS With Amazon Advertising PPC Platform Impacting Profitability?

**The Rising Trend of Cost Per Click on e-Commerce Giant Amazon** We often come across the term Co

Amazon Advertising PPC - dotcomreps.com

We often come across the term Cost Per Click (PPC), especially in Marketing to Marketing Management and several other related fields. It is a common phenomenon and term for marketing, especially about the e-commerce giant Amazon. It denotes how much advertisers need to pay for the ads that they put up on various platforms. The calculation is done based on the number of clicks the ad receives. It is an essential determinant of the price that a particular brand demands for its paid advertising campaign.

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Increasing ACOS With Amazon Advertising PPC Platform Impacting Profitability?

**The Rising Trend of Cost Per Click on e-Commerce Giant Amazon** We often come across the term Co

Increasing ACOS With Amazon Advertising PPC Platform Impacting Profitability-dotcomreps.com

The price has already started to increase from the beginning of 2021. It went up to 1.20 US dollars by the middle of next year. There is a possibility that it might further increase this year. The marketing experts are planning to deal with the increasing Price Per Click (PPC). A few reasons to cite for this is an increase in large companies migrating to Amazon to sell their products directly to the consumers.

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Pay-Per-Click Advertising - Dotcomreps

A few short years ago, Amazon.com decided to offer a CPC (cost per click) advertising model to help sellers create artificial relevance for an ASIN, and it has since exploded into one of the fastest growing ad platforms on the internet. The purpose is to provide an additional way to drive traffic and promote awareness about your detail pages. The program first began as an exclusive to 1P vendors only (Vendor Central) but has since become widely used by 3P vendors on the Seller Central platform as well. Within the Amazon advertisement family, you have control over all advertising and your Brand Store (formally Brand Page) for your brand(s) sold on Amazon.com.

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Increasing ACOS With Amazon Advertising PPC Platform Impacting Profitability - Dotcomreps

Surge of e-Commerce

On an e-commerce platform like Amazon, ad real estate has remained almost the same, but brand advertising has phenomenally increased. Sellers thus need to keep in mind their return on investment because if the CPC is high, it becomes difficult to achieve a higher return. In the case of an ad campaign, the lesser is the CPC bid on the keyword. The higher are the returns on investment. However, if the CPC bid is more elevated, winning an advertisement is also greater.

The CPC metric is also an excellent way to determine the profitability of an ad campaign. It tremendously helps the marketer to achieve a higher degree of profitability. That way, one can also increase the returns on investment. The general rule is that popular keywords lead to a higher cost per click. Sellers can use the CPC metric to compare one's CPC with their conversion rate, which would give an idea of whether the CPC should be worth the investment.

Sellers can use the metric to have a prior understanding and gain some extra advantage. As an increasing number of consumers' rush to e-Commerce platforms like Amazon to purchase different products, sellers need to make the most of advertising tools to sell their products and overcome the rising CPC.