Pay-Per-Click (PPC) advertising is one of the fastest ways to generate traffic, sales, and data in digital commerce – but it’s also one of the easiest ways to lose money if misunderstood. For sellers on Amazon or selling on Walmart marketplaces, PPC is not just an optional marketing channel; it’s a core growth lever that directly affects visibility, ranking, and profitability.
At SwanseaAirport, we work with marketplace sellers who rely on PPC not as a buzzword, but as a measurable business system. This guide explains what PPC is, how it actually works, and how sellers can use it strategically – especially on Amazon and Walmart – without wasting ad spend.
What Is PPC (Pay-Per-Click)?
PPC (Pay-Per-Click) is a digital advertising model where advertisers pay only when a user clicks on their ad. Instead of paying for impressions or exposure, you pay for intent – someone actively engaging with your listing, product, or offer.
In practical terms:
- You bid on keywords, products, or placements
- Your ad appears in search results or on product pages
- You pay only when a shopper clicks, not when the ad is shown
This model is used across platforms like Google Ads, Amazon Ads, Walmart Connect, and social networks – but its strategic role differs significantly between search engines and marketplaces.
PPC in Marketplaces vs Traditional Search Ads
Many sellers assume PPC works the same everywhere. It doesn’t.
Traditional PPC (e.g., Google Ads)
- Goal: Drive traffic to a website
- Success metric: Clicks, conversions, ROAS
- Ranking factors: Bid + Quality Score
- Traffic intent: Mixed (research, browsing, buying)
Marketplace PPC (Amazon & Walmart)
- Goal: Drive sales inside the marketplace
- Success metric: Sales velocity, ACOS, organic rank lift
- Ranking factors: Bid + relevance + conversion history
- Traffic intent: High purchase intent
On marketplaces, PPC is not just advertising – it’s a ranking accelerator.
Why PPC Matters So Much for Amazon and Walmart Sellers
Marketplace algorithms reward products that sell consistently. PPC helps trigger that momentum.
Key reasons sellers rely on PPC:
- Launch Visibility
New listings have no sales history. PPC is often the only way to get immediate exposure. - Keyword Data You Can’t Get Elsewhere
PPC search term reports reveal exactly how shoppers describe your product. - Organic Rank Improvement
Profitable PPC campaigns often improve organic placement over time. - Defense Against Competitors
Without PPC, competitors can advertise directly on your product pages. - Scalable Growth
Once a campaign is profitable, budget – not traffic – is the only real limit.
How PPC Actually Works (Behind the Scenes)
Understanding the mechanics separates strategic advertisers from sellers who “just turn ads on.”
1. Keyword or Placement Targeting
You choose:
- Search keywords (e.g., “wireless label printer”)
- Product ASINs (competitor or complementary)
- Automatic targeting (platform decides)
2. Auction System
Each time a shopper searches:
- Advertisers enter a real-time auction
- Highest effective bid wins (not always the highest bid)
3. Ad Placement
Your ad may appear:
- At the top of search results
- Within search results
- On competitor product pages
- Below the Buy Box
4. Click → Cost → Conversion
- You pay when clicked
- Profit depends on conversion rate and order value
This is why PPC is not about clicks – it’s about economics.
See more: optimize product data to improve PPC performance
Key PPC Metrics Sellers Must Understand
Many sellers fail because they focus on the wrong numbers.
Essential metrics that actually matter:
- ACOS (Advertising Cost of Sale)
Ad spend ÷ ad revenue
Measures efficiency - ROAS (Return on Ad Spend)
Revenue ÷ ad spend
Inverse of ACOS - Conversion Rate (CVR)
How well your listing converts traffic - Cost Per Click (CPC)
What you pay per click - Search Term Profitability
Some keywords deserve budget; others don’t – regardless of volume
At SwanseaAirport, we emphasize profit-weighted decision-making, not vanity metrics.
Common PPC Types on Amazon and Walmart
Amazon PPC
- Sponsored Products (core revenue driver)
- Sponsored Brands (brand visibility + keyword defense)
- Sponsored Display (retargeting and competitor conquest)
Walmart Connect PPC
- Sponsored Products
- On-site display placements
- Off-site traffic integrations (more limited but growing)
Each format serves a different role in a mature ad strategy.
Strategic PPC: Beyond “Turning Ads On”
The biggest misconception is that PPC is a set-and-forget tactic.
High-performing sellers:
- Separate discovery campaigns from profit campaigns
- Harvest search terms weekly
- Adjust bids based on margin, not emotion
- Pause keywords that don’t justify their cost
- Use PPC to test pricing, images, and titles
In this sense, PPC becomes a research engine, not just an ad channel.
Common PPC Mistakes Sellers Make
From reviewing hundreds of accounts, these are the most damaging errors:
- Spending aggressively before optimizing listings
- Treating ACOS targets as universal
- Never reviewing search term reports
- Competing on broad keywords without margins
- Copying “guru” strategies without context
PPC amplifies whatever foundation you have – good or bad.
Is PPC Worth It for Every Seller?
PPC is not magic – and it’s not optional either.
PPC works best when:
- Your product solves a clear problem
- Your listing converts well
- Your margins support advertising
- You treat PPC as a system, not a gamble
If those conditions aren’t met, PPC will expose weaknesses quickly.
Final Thoughts: PPC as a Business Tool, Not a Hack
So, what is PPC really?
For serious Amazon and Walmart sellers, PPC is:
- A visibility engine
- A data source
- A ranking catalyst
- A profit lever when managed correctly
At SwanseaAirport, we view PPC not as advertising – but as controlled experimentation backed by numbers. Sellers who adopt that mindset don’t just spend on ads; they build predictable, scalable growth.
Frequently Asked Questions (FAQ)
