9 Tips to optimize Amazon PPC campaign
Amazon PPC campaign advertising has now become more important than ever before, whether it is PPC advertisements or product display ads. According to reports, Amazon has experienced record ad sales this quarter with over two billion dollars.
Amazon has consistently increased its revenue each year, but this quarter it saw a significant growth of 139%. Many experts predict that by 2020, Amazon will become the third-largest digital advertising seller in the US, as the advertising power keeps growing.
Advertising on Amazon is growing much faster than it did previously, and with this growth, the competition is getting even fiercer. For these reasons, utilizing the right strategy is critical for outperforming your competition in terms of sales and brand value.
In light of this, we have compiled a comprehensive guide on how to optimize Amazon PPC campaigns for better reach and sales.
9 Useful tips on how to optimize PPC campaigns on Amazon
The question of how to organize your campaigns and ad groups comes up when building an Amazon Sponsored Products campaign (or performing Amazon PPC campaign optimization).
Based on the size and homogeneity of the seller’s selections, as well as his or her strategic objectives, the right structure must be chosen. You should follow a few guidelines when structuring your campaigns. Listed below are our recommendations on how to optimize amazon PPC:
1. Maintain a consistent campaign structure
Having a rough structure for your PPC campaigns is a good starting point for all your ad activities. Both the good news and the bad news about this can be found in this. Generally, a campaign structure provides you with a series of characteristics that conform to one or more of the following patterns:
- Based on product categories (such as men’s shoes, keyboards, etc.)
- Based on brands
- According to the top 10 best-selling products
Whatever organizational method you choose for your campaign, it is imperative that it is consistent. Altering your organizational structure may result in repeated advertising. A brand campaign may appear in multiple campaigns when you create one by category and another by brand.
2. Similar products should be advertised together
The products for each ad group and the keywords are made separately. Because all of your products should be displayed for that key phrase set, it is important to choose products that are contextually relevant to that key phrase. Therefore, you should group all products into an ad group that contains the keywords required for that ad group.
Be careful if you decide to use this method when analyzing your Amazon advertising revenues. Although the products in the same ad group might be targeted by the same keywords, their profit margins may differ – which impacts the profitability of your ads. Before starting any Amazon PPC campaign optimization, make sure you know what a good ACoS might be for your ads.
3. Create different ad groups depending on the level of generality of the keywords
The bigger your selection of products, the more different types of keywords you will have with varying levels of specificity.
There is a selection of jackets available from the seller
The keyword “jackets” is appropriate for all shoes.
Men’s jackets are relevant keywords for some shoes
It is relevant to use the keyword “leather jacket” for certain men’s shoes
Ad groups for leather jackets, denim jackets, bomber jackets, etc., would make it difficult to track which ads for what keywords appear.
In this case, creating separate ad groups for similar keywords would be the easiest way to optimize (for instance, ‘men’s shoes, ‘shoes for men’). As an example, you could group the top-selling products into the following ad groups:
4. Find out which keywords are relevant for your business by using Amazon’s automatic campaign
Implement a campaign that runs automatically and a campaign that runs manually, both with the same products. After the campaign has been automated for a few days/weeks, you can evaluate which keywords have generated the most sales.
Then, create a manual campaign based on these search terms.
We recommend the following:
- The advertisement campaign is composed of 1 ad group and 1 automatic campaign
- The campaign consists of three ad groups: broad (keywords), exact match (keywords), and ASIN targeting
- For category targeting, one manual campaign was created with one ad group.
5. Ensure that ads are displayed for all relevant search terms
Amazon wants the advertisements that appear on its site to be relevant to its customers. Therefore, ads can generally be displayed for keywords that also appear in the text of the product listing (title, attributes, descriptions, search terms).
Make sure that your product listing text does not contain any keywords that have no impressions. If this is not the case, then the keywords should be added to the listing text so that advertisements can be run for these terms. You will be able to reach a broader market of potential customers.
6. Reduce costs by eliminating unnecessary search queries
The keywords for which you have bid on Amazon as a seller don’t always appear in your ads. According to the type of match, search queries can differ from those entered using keywords. In order to avoid unnecessary expenditures, two options are available:
- Types of keywords to match
- Negative keyword setting
- Amazon offers three types of matches for Sponsored Products advertisements:
Broad Match. When all words that are part of a keyword are included in the search query, the Sponsored Product ad can be shown. It is not important in which order the words appear. Additionally, the matching algorithm takes into account spelling variations, misspellings, synonyms, as well as morphological variations.
Phrase Match. When the keyword(s) entered are included in a search query (i.e., whether one or more words are entered in the order specified), the advertisement can appear. Similarly spelled words (e.g. singular/plural) are regarded as being identical.
Exact Match. Only when the keyword given exactly matches the search query will the ad appear. This applies to singular and plural keywords alike.
Negative keywords. Can also be defined on Amazon. This will prevent your advertisement from appearing for users searching for these terms. There is no negative equivalent of the Broad Match feature available for negative keyword matches, but there are different kinds of negative keyword matches:
7. Analyze your PPC spend according to the performance of your products
Generally, ad groups consist of several products that share the same keywords with each other. Over time, it is evident which products sell best within a certain ad group as you run your campaigns.
By slowly removing products with poor performance from an Amazon PPC campaign ad group, your goal should be to maximize sales with that ad group. As a result, clicks and impressions are concentrated on these products, which will increase conversion rates and keep money from going to products with low conversion rates.
8. Decide what your advertising cost of sales (ACoS) should be
You should at least generally state your intended advertising cost of sales (calculated by dividing your advertising spend by your advertising sales). Your campaign’s purpose may determine the exact advertising cost of sales. If your primary objective is to maximize profit, then the target figure will be determined by the margin of your profit.
9. Optimize your CPC bids by tracking and tracking
Depending on the keyword, the optimal target bid will differ. Therefore, every bid can be controlled separately in manual campaigns for each keyword. As a basis for evaluating bids, a substantial amount of detailed information is required. This is why in the period between adjusting bid prices, you should wait at least a week.
We have discussed how to optimize Amazon PPC campaigns, now let’s discuss how exactly PPC ads work and why you need them.
How Does the Amazon PPC Campaign Work?
Sponsored products on Amazon are offered through a system known as the Amazon PPC campaign (Pay Per Click). Which charges advertisers for their advertisements each time a buyer clicks on them and views them.
What Does An Amazon Ad Do?
It is possible for advertisers to bid for top positions for specific keywords in order to gain more visibility for their products. Thus, in addition to creating greater visibility in Amazon’s search engine results pages, it also contributes to increased sales and revenue for the organization.
Each time an advertiser receives a click from a buyer or customer, he or she is charged. There is a charge associated with every click regardless of whether the sale is generated. Throughout the website, Amazon advertisements are prominently displayed. These advertisements are also displayed on the detail pages of individual products.
What are the benefits of advertising your products on Amazon?
Obviously, Amazon is the best e-commerce hub on the web, and you can benefit from using Amazon for advertising your products in the following ways:
- An increase in product visibility
- Maximize sales and revenues
- Improve your reputation and trustworthiness
- Promote your business to a wide range of clients
- Consider your target audience more carefully
Despite its advancements, Amazon Advertising and Marketing Services is still an effective approach to increasing the reach of a product. Because Amazon hosts millions of products from a wide range of reputable sellers, it is somewhat difficult to make a mark in the marketplace.
Although you may do everything right and choose low-competitive/high-demand products to sell on Amazon, reaching out to the world is still an important phase. The products you list on Amazon will only appear on the third or fifth page of search engine results, and you do not want that to happen. Advertisement on Amazon PPC campaign allows its search engine algorithms to identify your product, whereas paid-search advertisements do not.
It is a relatively simple concept. As the ranking rises, the audience grows larger. As a result of this philosophy, more people see your product, which directly translates into more clicks. A high click rate translates to a higher sales volume.
What is PPC Amazon
A PPC campaign on Amazon is just like an ad on Amazon. Pay Per Click, which means advertisers pay Amazon only when their ad gets clicked.
How does Amazon PPC campaign work
In order to bid on keywords on Amazon PPC campaigns, or pay-per-click, advertisers use a method known as an auction system. Amazon’s ad placements are determined by the sellers’ highest bids on relevant keywords during a product search.
That’s all you need to know about how to optimize Amazon PPC campaign ads. Follow these 9 tips mentioned, and you will surely get desired results.
With my vast experience in the e-commerce industry, I have successfully helped more than 250 e-commerce businesses worldwide to reduce their operational cost with cutting-edge e-commerce marketing services. My experience includes strategy, addressing daily issues, developing, delivering training, and supervising staff at multiple levels.