Amazon PPC Management: Should You Hire an Agency or Manage It Yourself?

Amazon PPC Management: Should You Hire an Agency or Manage It Yourself?

Amazon PPC advertising is a powerful tool for boosting your product’s visibility and sales on the world’s largest online marketplace. However, the question that often arises is whether you should manage your Amazon PPC campaigns yourself or hire an agency to do it for you. In this blog, we will explore the pros and cons of both options to help you make an informed decision.

What Is Amazon PPC Management?

So, when we talk about PPC management, we’re referring to the ongoing planning, optimization, and monitoring of these campaigns. The primary goal is to ensure that the money you invest in your ads yields a positive return on investment.

Effective PPC management typically includes the following:

• Keyword research and selection
• Management of different Amazon ad formats (Sponsored Brands Ads, Sponsored Product Ads, Sponsored Display Ads, or Amazon DSP)
• Campaign structure optimization and targeting
• PPC bid management and budget management
• Detailed campaign tracking and analysis
• Launching new products and creating ads
• Boosting traffic of underperforming products
• Regular performance reporting

Do You Need to Use PPC to Be Successful?

Now that you know what PPC management is, you might be wondering if you need it at all.

Let’s break it down.

The truth is, that Amazon is becoming more of a “pay-to-play” arena. Recent data reveals that its advertising landscape is growing incredibly fast, surpassing giants like Google and Facebook in growth rate. In fact, in the third quarter of 2022 alone, Amazon PPC ads witnessed a remarkable growth of 25%, generating a staggering $9.5 billion in revenue. This trajectory is similar to how fast Facebook grew when its ad business was around the same size.

Amazon PPC places your product directly in a space where users are not just scrolling or browsing, but have a clear intent to purchase. This naturally increases the chances of converting any ad clicks into actual sales. In fact, according to Ad Badger, when compared to other platforms, Amazon PPC has a conversion rate of 9.89%, which is 7 times higher than the 1.33% conversion rate on non-Amazon websites.

Secondly, these ads are structured to target customers who are actively searching for certain products through specific keywords and search phrases. This makes your ad directly relevant, increasing not just visibility but also the likelihood of purchases.

Moreover, PPC ads receive prime spots on Amazon. Quite often, customers need to scroll past these ads to view the organic results. Therefore, it goes without saying that the ads receive the majority share of clicks.

And if you’re still not convinced, consider this: Amazon’s PPC is approximately 44% cheaper than advertising on Google or Facebook.

Considering these factors, neglecting Amazon’s PPC arena could be a risky move. Your competitors are most likely using these ads to gain an edge. In fact, 75% of sellers on Amazon use some form of PPC ads. Not engaging in PPC could potentially sideline your products, making it tough to compete and succeed in a marketplace that is increasingly ad-centric.

What Options Do You Have For Amazon PPC Management?

When it comes to PPC management, you have two options – either managing it yourself or hiring an agency. Below we will explore the pros and cons of of each of these alternatives:

Hiring an Amazon PPC Agency

Amazon PPC Agencies are specialized firms that focus exclusively on managing your brand’s PPC campaigns. Unlike more generalized advertising agencies, these firms offer in-depth expertise, custom strategies, and dedicated resources that are tailored to Amazon. When you work with such an agency, you typically have access to a campaign or account manager with whom you can discuss your campaign’s progress as required.

Below are the pros and cons of hiring such an agency:

Pros:

Saves Time

Effective PPC requires continuous testing, measurement, and optimization, which can feel endless. Additionally, there is a learning curve involved, particularly if you are new to managing PPC. It’s likely that you do not have several hours of free time each day to commit to these tasks. In such cases, Amazon PPC management agencies can be a real lifesaver.

Exclusive PPC Focus

Even if you believe you can incorporate PPC management into your daily routine, it will inevitably become just one of the many tasks competing for your attention. This often results in cutting corners or a divided focus that can negatively impact your Amazon PPC efforts. What sets an Amazon PPC agency apart is its unwavering commitment. This dedication translates to better outcomes, particularly when handling critical tasks like PPC management.

More Experience and Better Performance

PPC agencies typically have a team of seasoned experts with extensive experience in managing various advertising campaigns and formats whether that is Sponsored Brand Ads, Sponsored Product Ads, Sponsored Display Ads, or Amazon DSP. They have a deep understanding of industry best practices, have access to advanced tools, and stay updated with the latest trends and algorithm changes. This level of expertise can lead to more efficient campaign management, improved ROI, and quicker results.

Cons:

Higher Costs

PPC agencies typically come with a higher price tag. You’ll need to pay for their services, which can include management fees and a percentage of your ad spend. While the expertise they provide can lead to improved ROI, the cost can be a significant factor, especially for small businesses or startups with limited budgets.

ROI Uncertainty

There’s no guaranteed success in PPC advertising. Even with expert management, campaigns may not provide the return on investment you were hoping for. In such cases, you might end up with a significant loss of the valuable investments you made in PPC agencies.

Loss of Control

When you outsource PPC management, you lose some level of control over your advertising strategies. If the agency does not fully align with your brand vision, this could be problematic, especially considering that the majority of agencies require a minimum contract period.

Managing PPC Yourself

When it comes to managing PPC on your own, it typically means handling it in-house independently, often with the help of software tools. These tools allow you to gain complete control over PPC. All you have to do is set certain parameters and goals and let the tool adjust your campaigns based on the guidelines. Some sellers choose to manage PPC without using software tools. However, this approach is not advisable, as it increases the likelihood of errors.

Let’s explore the pros and cons of self-managing PPC campaigns:

Pros:

Lower Costs

One of the most significant advantages of managing PPC yourself is the cost savings. You won’t need to pay a fee to a PPC management agency, which can range from $400 to $2,000/month. Even if you use PPC software, the fees are typically much lower, ranging from $30/month for basic features to $1,500/month for advanced features. This cost advantage is especially beneficial for small or new sellers with limited budgets.

Immediate Decision making

Handling your PPC campaigns in-house enables you to respond quickly to changes in market conditions, seasonal trends, or inventory levels. You can adjust bids, keywords, and ad copy immediately without relying on a third party to make changes. This swiftness can lead to improved campaign performance.

In-Depth Business Understanding

As the owner of your business, you understand your enterprise like no one else. This unique insight allows you to guide your PPC campaigns in a direction that aligns perfectly with your overall objectives. Additionally, you also bear the ultimate responsibility for the outcomes. This often translates into a higher level of dedication and determination. Although it does not guarantee that you’ll outperform a PPC specialist in terms of efficiency or decision-making, it does mean that you’re likely to put in more effort and time to ensure the success of your campaigns.

Cons:

Lack of Experience and Expertise

Amazon PPC can be complex, with numerous features, ad types, and bidding strategies. Learning to navigate the platform effectively can take a significant amount of time. Even with in-depth knowledge, you will still not be able to match the expertise of professional PPC agencies or consultants who have spent years specializing in Amazon advertising. Without the necessary experience, you might make costly mistakes and end up wasting any money you hoped to save by not hiring an agency.

Time Constraints

Amazon PPC involves multiple daily tasks such as keyword research, bid adjustments, ad testing, search engine optimization, and performance tracking. While you can use automated tools to handle routine tasks, having a dedicated person adds valuable human insights to the process. Considering your potential time constraints as a business owner, not having someone committed to this role can result in overlooking crucial aspects.

Limited Scalability and Resource Constraints

Lastly, as your business grows, managing PPC campaigns on your own may become increasingly challenging. Scaling up campaigns, optimizing for various products or categories, and handling larger budgets can stretch your resources thin. This limitation may lead to missed opportunities for growth or less effective campaign management.

Summary

When deciding between hiring an agency or managing your Amazon PPC campaign yourself, consider your budget, time, expertise, and business needs. If you have the funds and want to lean on expert knowledge, an agency might be your best bet. However, if you want to reduce your advertising cost budget and want full control, taking the DIY route could be the way to go. Whichever path you choose, remember that ongoing monitoring and adjustment are key to a successful PPC campaign.

Looking for expert assistance in managing your Amazon ad campaigns? Enso Brands offers a comprehensive range of one-stop Amazon PPC management services tailored to optimize your performance and maximize your potential on the platform. Contact us today and discover how we can help your Amazon business!