Amazon PPC Costs are Rising: Why an Advertising Agency Can Help

An inevitable effect of Amazon’s e-commerce dominance has been a steady rise in the costs of PPC Advertising.  Three million sellers have joined Amazon’s ranks since 2017, and that means a lot more competition in catching customer attention. 

Many if not all above the fold search results are ads, and sponsored advertisements are now featured on all product pages; for your products to compete in the Amazon marketplace, PPC advertising is a must. But not just any PPC advertising will do. To avoid excessive and ineffective ad spend, sellers have to watch their PPC campaigns closely and be strategic. As Egility’s CEO Liz Adamson has said of PPC advertising, don’t just spend more, spend wisely.  

Going it alone can be tricky, costly, and time-consuming. But sellers who hire an Amazon advertising agency are more likely to spend that advertising budget wisely and to the greatest effect. There are many key advantages to having a savvy advertising agency on your side that are worth considering. 

Time is Money.

By delegating the minutiae of PPC advertising to an agency, you’ll have more time to focus on product development, interfacing with customers, and managing your off-amazon channels. A good agency will have specialists who have their finger on the pulse of Amazon’s ever-changing advertising rules and programs. They’ll also have access to third-party software and systems that might be cost-prohibitive for individual sellers and brands. In short, an advertising agency is best situated to optimize your weekly ad strategies so you don’t have to. 

Put Your Best Foot Forward.

If you’re new to selling on Amazon, launching a new brand/product, or are unfamiliar with Amazon’s A9 algorithm, an advertising agency can offer you the knowledge and expertise that will get you on the right track to long term success.   

Increase Your RoAS (Return on Ad Spend).

An adept agency can help you identify those missed places where you’re losing money in advertising and help you get more sales at a lower cost. For example, after beginning management on one of our client's PPC campaigns, Egility was able to drop their ACoS by 14.6% and increase their ad sales by 147%, all within the course of a few months. In other words, an ad agency can help you overcome the rising costs of PPC advertising by dramatically increasing your RoAS.  

Grow Your Brand & Improve Product Search Rankings.

An ad agency can polish up your brand and increase its presence on Amazon. Greater brand presence and a professional look means customers will like you more, as will Amazon’s algorithm. As they come to recognize and trust your name, browsers turn into buyers, and buyers will come back for more. An ad agency’s effective PPC advertising will help improve your search rankings, which will improve your organic ranking over time.

And consider: are you properly utilizing all of Amazon’s branded content like A+ content, Storefront, and sponsored ads? An ad agency’s creative team will apply their expertise to your branded content, making sure it targets your audience, tells your brand’s story, and increases your CTR and conversions.  

Amazon Policy Changes.

Keeping on top of Amazon’s policy changes can be difficult even for those who are diligently paying attention. A reputable advertising agency will have a relationship with Amazon such that they know about upcoming shifts in the marketplace before everyone else and have access to Amazon contacts when questions arise. Having an in-the-know ad agency on your side will give you an edge over your competitors and help you avoid costly missteps. 

To Sum Up. . .

Don’t forget, Amazon wants to improve and maintain their reputation, and that entails promoting sellers that make them look good. The notion that you can easily earn a buck by throwing up a product on Amazon will quickly crumble under the reality of increased competition and rising PPC costs. Being a successful seller on Amazon requires being in-the-know about Amazon policies and trends, having third party tools to help you optimize advertising and listings, and being constantly on top of your PPC strategy. A reputable advertising agency can take much of that workload off your hands and turn the lemons of rising PPC costs into delicious, high RoAS lemonade. 

Contact Egility today if you’d like to learn more.

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