Is Amazon PPC Worth It? Pros and Cons

In 2024, Amazon remains a dominant force in e-commerce as one of the world’s most popular and competitive online marketplaces. Its advertising platform, Amazon PPC, poses numerous benefits and drawbacks to sellers, leaving many to consider: Is Amazon PPC worth it? In most cases, absolutely. However, it is not a perfect solution for all businesses. To help you decide if Amazon PPC is worth using for your business, we have compiled a list of pros and cons that come with using Amazon PPC.

Pros of Amazon PPC

Amazon PPC can be significantly beneficial for your business for a multitude of reasons. Here are some of the benefits of using Amazon PPC:

Immediate High Placement in Search Results

The ability to immediately promote a new product with no sales history at the top of search results pages cannot be understated. With Amazon PPC, a brand-new product with minimal visibility can be instantly put in the spotlight, allowing it to quickly gain the sales history it needs to rank high in organic placements.

Extended Promotional Reach (Unique Visibility)

Amazon PPC campaigns allow sellers to promote their products in locations otherwise unreachable with organic placements. Unlike organic placements, Amazon PPC enables sellers to advertise their products at the top, middle, and bottom of search results pages and on product detail pages, customer review pages, and Amazon-generated marketing emails.

Depth of Data

Amazon PPC campaigns provide sellers with many more data points to take advantage of than with organic placements. This allows sellers who use Amazon PPC to make the most of their ad campaigns, giving them an advantage over sellers using organic placements.

Pay-Per-Click Efficiency

While other platforms, such as Facebook Ads, utilize a cost-per-mile (CPM) or cost-per-thousand-impression model that can quickly become expensive to manage, Amazon’s PPC model is much more efficient and cost-effective. With Amazon PPC, sellers only pay for their advertisements each time they are clicked, allowing sellers to pay for ads that are most likely to bring sales.

Cons of Amazon PPC

While Amazon PPC may have its benefits, it also has many drawbacks. Here are some of the downsides to using Amazon PPC:

Rising Costs

In recent years, the cost of launching and managing Amazon PPC campaigns has steadily increased, making it one of the primary reasons sellers are reconsidering the use of Amazon PPC. With higher costs, sellers are required to risk more when launching and managing their ad campaigns, and it has led many to question are Amazon sponsored ads worth it?.

Increasing Complexity

Although greater complexity in Amazon PPC’s platform offers sellers additional data and opportunities to take advantage of, it also steepens the learning curve for newcomers. This makes it difficult for newer sellers to get a foothold in the Amazon online marketplace.

Platform Limitations

Although Amazon PPC has seen many improvements since its initial release, the advertising platform still has its limitations. For instance, Amazon PPC’s algorithm decides which ads appear for particular search terms, making it impossible for sellers to ensure consistent ad displays. 

Expertise Required

The competition on Amazon is often intense, and even with the boost of Amazon’s PPC, sellers still need an extensive understanding of how the advertising platform works to optimize their ad campaigns and make the most out of them. Without this planning expertise, sellers can lose more money than they make from their ad campaigns.

Optimize Your Amazon PPC Campaigns with Oyova

So, is Amazon PPC worth it? The answer is generally yes, absolutely. However, Amazon PPC is not always the perfect solution for every business due to its unique qualities. To develop the best advertising strategy for your business, it is crucial to carefully weigh the pros and cons of Amazon PPC to determine its suitability for your business.

At Oyova, we specialize in PPC services tailored to help businesses like yours excel on Amazon. Our team of experts is dedicated to launching and managing strategic ad campaigns that drive traffic, increase sales, and maximize ROI.

If you’re ready to take your Amazon PPC campaigns to the next level, contact Oyova today to learn more and start making the most of your Amazon PPC ad campaigns.