Advertising Costs are out of control for our Category
Advertising Costs are out of control for our Category
For all those that do Amazon PPC, how are your costs this year compared to last year or let's say 3 years ago.
We woke up this morning to see what was say $3 per unit at midnight morph into $7 per unit the next morning. We try to keep the Ads active at night, but somehow the hours btw midnight and 3am double our Ad expense.
This is after really working to take the waste out of advertising. We have decided we cannot any longer participate in any meaningful advertising on Amazon. We simply turned down all ads and prior to Cyber Monday even starting we have shut it all down.
It is too expensive for us to get impressions and be seen in our category. After 23 years on Amazon, first as a Vendor now as a Seller it looks like we will wind Amazon down this year. Unfortunately, it is not a viable place for small business any longer.
Would be interested in thoughts about the rising cost of PPC?
Advertising Costs are out of control for our Category
Advertising Costs are out of control for our Category
For all those that do Amazon PPC, how are your costs this year compared to last year or let's say 3 years ago.
We woke up this morning to see what was say $3 per unit at midnight morph into $7 per unit the next morning. We try to keep the Ads active at night, but somehow the hours btw midnight and 3am double our Ad expense.
This is after really working to take the waste out of advertising. We have decided we cannot any longer participate in any meaningful advertising on Amazon. We simply turned down all ads and prior to Cyber Monday even starting we have shut it all down.
It is too expensive for us to get impressions and be seen in our category. After 23 years on Amazon, first as a Vendor now as a Seller it looks like we will wind Amazon down this year. Unfortunately, it is not a viable place for small business any longer.
Would be interested in thoughts about the rising cost of PPC?
25 replies
Seller_NbYSGJ8Tehgbv
I have driven the CPC of a Pizza category account to less than 1 dollar...which is unheard of when you speak to others in the Pizza category niche.
I would assume you are doing keyword research if your CPC has risen to $7. Instead, do keyword research based on your own search term reports. See what works for you and what fits your budget. Leverage those keywords in manual campaigns.
If you are a brand new account and have never advertised before, run auto campaigns for one week at suggested bids. Then check out your keyword reports to see what worked and what did not.
Repeat weekly.
Seller_mcxK94cz28Lzw
Try this little workaround maybe it will work for you.
You must be doing bids down only and amazon Ai will select your product if it wants to show your product to potential customer or not.
for anything less then 7$ you won't be able to get any visibility in search pages.
you can try using fixed bids and start with 1.2$ - 1.5$ and try to secure fixed position at product pages and then gradually increase the bid amounts for like 10% each weak. Continue to add negative phrases and exacts of the keywords that aren't working for you.
by doing fixed bids you are most likely bypassy Amazon Ads Algo .
Seller_UkUgnGPNVac5p
Amazon ads are the only ads that actually effect your organic ranking of your products. They are going to be expensive. Maybe you should consider hiring an expert.
Seller_QD2EaZq89yfSW
Some of our products costs $2-4 per click. Others just $0.45-0.60.
And a few that have zero ad costs because we dont advertise.
Ad costs are very category specific.
Seller_mh2sy2Nv8vEOG
For us too! The suggested bids in our catagory are near the product sale price !??4 to 8$ CPC .
Seller_3f5HRuLsKFxRK
In the post-pandemic era, Chinese marketplaces are gaining more ground by selling low-quality products at a lower cost, which is putting pressure on Amazon. To compensate for their losses, Amazon is allowing more Chinese third-party sellers to enter the market by enhancing logistics and removing any barriers that may prevent them from entering.
To compete with these heavily subsidized Chinese sellers, Amazon is forcing other third-party sellers like us to lower their prices.
Furthermore, Amazon is making search results less reliable by prioritizing sponsored results and hiding non-sponsored ones. As a result, sellers are compelled to invest more in Amazon's advertising platform.
However, the platform has become more sophisticated, complicated, and costly over time. This means that third-party sellers like us need to pay more to get less desirable results that are often contradictory and baseless.
In essence, Amazon's advertising platform is becoming increasingly like a casino in Las Vegas, where the house always wins. To remain competitive, we need to keep investing our money in Amazon, even though we know that the odds are not in our favor.
Seller_fyTNs0YGGwaT6
Hello @Seller_QwKkFcwd4hb61.
The PPC cost is rising year after year. The best thing you can do is to offer USP(Unique Selling Point) in your product and show the customer as well. Redo the Keyword research against your competitors. The best way to lower the CPC is by increasing the CTR which is mostly affected by main image, Price and reviews. Change your main image if you haven't don it in a while.
The Further can be checked by having a detailed analysis. I hope that These things helped.
Feel free to tag me if you still have any queries.
Seller_trIvoljJSsFin
You know the intensity of the advertising battle on Amazon, just like thousands of people fighting for a few breads.
Burn your hard-earned money to get to the first page or keep your business profitable? it is your decision to make.
Seller_aUbEyzlSSnsDJ
Instead of PPC it should be PFP Pay for play. :)
