Conducting an Amazon PPC campaign can be an extremely lucrative way for sellers to generate substantial sales for their products as well as increase the possibility of more reviews, and improve the visibility of new products.
But, it is necessary for Amazon sellers to put in an enormous amount of time in order to ensure their advertising campaigns are planned from the start.
As the seller, this is crucial as your company grows and you soon become a manager of an increasing number of advertising campaigns. For efficient and smooth business growth, check out Tips and Tricks for Expanding your Startup.
In this article, we’ll walk you through our suggested approach to structure an effective Sponsored Products campaign, as well as our suggestions to help you start in the process of Amazon PPC advertising.
Structure Your Amazon PPC Campaign
- Each product (ASIN) for each product (ASIN), you’ll make two campaigns: one of them is automatic and the other one is a manual campaign.
- Start your automated campaign and then let it run for a couple of weeks at the most.
- Once you’ve gathered a decent amount of information then you can download the Search Term Report and go through it to locate the most profitable keywords that you can include in the next manual campaign.
- For your manual campaign you’ll need to set up three ads Groups (for each match type) and one each for Broad Match, Phrase Match, and Exact Match.
- Determine the amount of time and budget you will need for both your manual and automatic campaign. For your manual campaign, you’ll also need to establish the daily bid. Begin with the estimated price provided by Amazon and adjust as needed.
Important Tip
Check the Search Term Report for long-tail keywords. These are the terms used by customers with more specific search intentions which means you are targeting them further down the funnel of conversion.
Keywords with long tails are profitable for sellers since they usually are more profitable in terms of conversion and lower CPC cost since the keywords are not as competitive.
Amazon Keyword Research Tool
Utilize SellerApp to speedily increase your list of keywords that are relevant to your business. Input a keyword relevant to your product, and select those keywords that are most pertinent to your product (e.g. keywords that have a high quantity) from the search results.
SellerApp will show an estimate of the volume of searches for each keyword suggested. This will allow you quickly determine those keywords that are worth your time and would like to include in any manual marketing campaign.
Important Note:
Be careful not to change bids too fast. You should ensure that you have sufficient data to make any bid changes.
The general rule is to get more than 1,000 views and, ideally, more than five thousand impressions because the average click-through rate (CTR) is 0.2 percent (i.e. 100 clicks).
Be careful not to make drastic bid adjustments; you’ll be able to increase/decrease bids incrementally by 20-30 percent.
Learn to Optimize Your CPC Bids
After you’ve created an advertising campaign for your Amazon product, you’ll have to master the art of optimizing your CPC bids, so that you can keep your advertising budget in check and to stay clear of buying keywords that will not make a difference for you.
Sellers must understand that testing bids are an essential element of CPC optimization.
And you will only be able to improve your bids when you have enough information in order to be able to make an informed decision on how to increase or decrease the bids for keywords.
In the beginning, you’ll need to figure out your target Amazon ACoS (Average Cost of Sale).
If you can compare your current ACoS with your desired ACoS, it will be able to measure how your ads are performing in relation to your desired profit margin. For efficient websites creation, check Benefits of WordPress for Business Websites.
Guidelines for Amazon CPC Optimization
- If your actual ACoSis higher than the desired ACoS is higher than the target ACoS, this means that you’re paying too much i.e. you need to lower your bid to determine if you are able to reduce your expenditure without impacting the sales of your business significantly.
- If you are able to reach your current ACoS’s goal is ACoS indicates that you have more funds for spending, i.e. you should increase your price and see if the reach of your ads (and therefore, your sales) could grow exponentially.
- When your search terms are not getting any clicks Make sure you check the category of your product (‘browse node’) and make sure that it’s correct and that the keyword is in your listing, or the backend keywords.
If your category for your product is correct and your keywords are included in your listing, then you’ll need to begin increasing the bid in order to determine whether an increase in bids will make the keyword active’.
- Keywords that don’t generate sales over the duration of and are not profitable even after the bid on the keyword has been decreased, must be taken off of the manual campaigns and included in your negative keyword list.
In a Nutshell
To be successful as an Amazon seller, it’s essential to spend the time required to study how to design your PPC campaigns to be successful on Amazon.
This is essential as the volume of your products increases and you’ll need to create an effective advertising campaign structure that you are able to easily scale up to meet the expansion of your Amazon business.
