CPC (Cost-per-Click): The foundation for effective budget management in Amazon Advertising.

What is CPC, and how does it affect profits?

CPC is the price you bid in Amazon’s auction model to appear in search results for specific keywords or on product pages. It is influenced by factors such as competition intensity, bidding strategy, and ad relevance. A rising CPC with a constant conversion rate inevitably leads to shrinking margins and a rising TaCoS.

Here’s how we optimize your click costs on an operational level

We protect your profit margin from skyrocketing click prices. Through precise bid adjustments and improved ad relevance, we lower your effective cost per click.

  • Algorithm-based control: Real-time adjustment of bids based on current performance.
  • Relevance Boost: We optimize your listings so that Amazon considers your ads to be more valuable, which often leads to lower CPCs.

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Other relevant terms

Advertising
CPM (cost per thousand impressions)
The metric used in programmatic advertising (DSP) that indicates the cost per 1,000 ad impressions.
Advertising
Negative Keyword Optimization
The process of excluding irrelevant search terms from advertising campaigns to avoid unnecessary costs from clicks with no intention to purchase.
Advertising
Dayparting (Time-Based Bidding)
Strategically adjusting ad bids based on specific times of day or days of the week when the conversion rate is highest.
Advertising
Amazon DSP (Demand-Side Platform)
A programmatic advertising platform that enables brands to buy ads on both Amazon and external websites and apps to reach audiences throughout the entire purchasing process.

Do you want to boost your Amazon performance through operational excellence?

Let’s work together to figure out how to turn your brand from a listing into a bestseller. No strings attached and data-driven.

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