Complete Guide to Run Amazon Target PPC Campaigns in 2022
Amazon target campaigns are a widespread practice Amazon sellers use to target specific keywords to create advertisements for their products and appear in the top search results.
According to Jungle Scout, three out of four Amazon sellers use Amazon PPC to maximize their market share. The figure below illustrates the remarkable revenues generated by Amazon advertising services, which accounted for 31 billion US dollars in 2021.
Still, most sellers struggle to optimize their Amazon target campaigns. Developing and launching a campaign is easy; the real struggle is behind optimizing them to ensure efficiency and performance.
At this point, sellers make decisive mistakes that increase their advertising cost of sale (ACoS) and disgruntle returns on investment.
Even if you have introduced innovative products with exceptional listing copy, you still need prolific stratagems to extract maximum financial gains out of your Amazon PPC ad campaigns.
How to Run Amazon Target Campaign Strategically?
Considering the above points, we have prepared a valuable guide for Amazon sellers to provide proven Amazon advertising approaches to succeed in 2022. These tips can increase your traffic influx, sales, and brand exposure. Let’s get started!
Organize Your Keywords Structure
If you are a new seller on Amazon, start your PPC journey by adding long-tail keywords. After getting significant success in sales and brand recognition by using long-tail keywords, go after the generic, most searched keywords. Now you must be thinking, why is this so? Here are the reasons:
- Firstly, as a new Amazon seller, you can’t compete with the potential players on Amazon by using highly searched keywords. If you spend money by bidding on high competition keywords in the initial stage of your business, the result will be losing money without getting any positive results.
- Secondly, suppose you manage to receive ad impressions. In that case, the probability of getting sales volume is low as your competitors are enjoying a good reputation in the market for those highly searched keywords.
Hence, the plan is simple: go after the long-tail keywords in the start to face little resistance from ranking your Amazon seller account on those phrases. Once your brand awareness increases and you start driving sales, move towards the advanced step of adding next-level keywords.
Suppose you decided to sell Pets Collar on Amazon. Start your campaign by adding a long-tail keyword like “handmade Pets collar with symbols” or another long-tail keyword depending on the specification of your product.
When your brand exposure escalates using these long phrases keywords, start adding a few sets of generic keywords. Like “Pets Collar Cats” or “Handmade Pet Collar.” Every step taken after receiving effective responses leading towards business scale, adding next-level keywords will improve your visibility among consumers.
In the end, go for the most searched keywords like “Pets Collar” or “Cats Collar.” You can launch multiple Amazon targeting campaigns to determine which keywords perform best for your business growth.
Interesting Fact: Recent Jungle scout survey report of 3500 sellers revealed that almost 97 percent of them are using specific or multiple types of Amazon PPC ads for their business.The below-listed fig elaborates the usage of PPC ads among 1P sellers/Agencies and 3rd Party sellers.
Group Product Variations Together to Enhance Brand Performance
The products having multiple variations are itemized as child ASINs. If you develop ad campaigns for each variation separately, it will eat your maximum budget, and your variant products may end up contending among each other for the advertisements. It is also termed product cannibalization, which should be avoided in Amazon PPC campaigns.
An excellent strategy that can be prolific in such conditions is to group individual product variations into a single package and sell them on Amazon under a unique ASIN.
For instance, you are selling a pickle jar with five different flavors at 10$ per each. It’s better to combine these pickle flavors and sell them under one single pack of 5 for 50$. After practicing this strategy, you can achieve:
- Increase brand visibility in the Amazon market.
- Your PPC budget will be saved by focusing on a single product rather than individual variations.
- People love package deals on Amazon, which increases the chance of conversions.
- The average order value (AOV) will increase.
Targeting Indirect Keywords Increase Brand Exposure
Are you confused with this point? Most Amazon sellers don’t know that your product presentation significantly impacts your ranking. Highlighting features and advantages of the product uniquely and compellingly can grab the audience’s attention.
You can win the ranking race to the top if you target indirect keywords for your products in your Amazon PPC advertisements. Sometimes Amazon customers are looking for solutions rather than products. They don’t know what to buy unless they find the one they desperately want.
What can you do here? Look for the solutions your offered product can resolve and include them in your targeted campaigns.
For instance, you are selling roasted coffee beans on Amazon. Besides adding relevant keywords and long-tail ones inside your Amazon targeted campaigns, use alternative keywords like “weight loss remedy” or “coffee beans for diabetic patients” and many more.
The above list is an example. You have to conduct systematic research to find solutions that customers are trying to find regarding your products and incorporate those accordingly in your ads.
You can analyze your competitors’ listing who is in the leading position and extract strong points that you can use to your advantage in ads.
Important Point: The points or benefits you have included in your targeted campaigns, ensure to mention them in your product listings.
These points are essential to convince visitors to motivate their purchase intention—your brand exposure on Amazon upsurges by adding a broad potential range of keywords.
Advertisement Group Adjustments Based on Pricing
Suppose you are selling three similar products on Amazon with separate ASINs. Assume these products are A, B, and C with prices of 15$, 20$, and 55$.
Let’s hypothetically assume that you launched Amazon sponsored product ads with all three products added in the same advertisement group. What if you are spending 5$ to generate sales of each product. Under this scenario, your ACoS will be as follows:
ACoS Formula = Total Ad spending / Total sales
- Product A = 33 %
- Product B = 25 %
- Product C = 9 %
The lowest ACoS holds for product C among all of them. However, overall group ACoS appears to be around 22.3 % because of the high advertising cost of sale for A and B products.
What should you do now? Consider placing products utilizing high ACoS (A and B) in the same ad group and that with low ACoS (C) in another. Resultantly, the ACoS of product C will not be impacted, and it will provide you more control over your advertising budget.
A similar strategy holds for child ASINs having varied prices. Run the campaign separately for the high price variant having low ACoS and providing you high returns. Ensure to run maximum advertisement of these peak profit-making products.
Developing Ad Campaign Structure According to Product Performance
Primarily ad campaigns are structured based on keyword performance. Any keywords bringing conversions in an auto campaign are adjusted to include performing keyword match types to control the overall budget.
It’s an excellent strategy to improve product ranking on Amazon, but at the same time, it becomes tricky to manage ACoS because few products sell after many clicks than others. So, rather than structuring your campaign based on keywords, create them according to the product performance.
Assume you have included six products in your ad campaign, three of them have ACoS 55 %, and others have 10 %. The three products with high ACoS are increasing your advertisement expenses. What should be the practical approach here? Develop a separate campaign for those products having low ACoS.
The benefits of this step are:
- Overall, ACoS will be reduced by containing separate campaigns for better and low-performing products.
- Your ad budget will be reduced, and your amazon target campaigns performance will improve.
Important Note: A9 algorithm of Amazon analyzes the click-through rate (CTR), conversions, product sales, and many other factors to decide the ranking of products. If you place all the eggs in one basket (putting all products in the same campaign), the algorithm will analyze the average performance of overall products. Structuring campaigns based on product performance can provide exceptional returns.
Understanding Targeted Audience Buying Behavior
It’s a remarkable statistic that 63 percent of the consumers start their shopping journey from Amazon. This means that Amazon has a vast customer base, and being an Amazon seller is the most rewarding career business opportunity. Therefore, understanding the consumer behavior of such a vast audience can provide unprecedented advantages.
Understanding your targeted audience is the fundamental catalyst for urging them to click on your advertisements. Understanding their demographics (gender, age, location, etc.) can enable you to craft prolific campaigns.
Suppose your targeted audience is people aging 20 – 35, then the best time to showcase your product advertisements can be at night time in which they have time to search on Amazon.
If you target an aging group of 35-55, the best time to run ads can be midday. However, it depends on your selected location. It’s just a hypothetical example to let you understand the concept.
To have generalized experience, run campaigns at different time intervals to look for the potential timing in which maximum conversions are coming. Once you have identified that specific time interval, bid aggressively on that particular time to get the maximum benefit from Amazon targeted campaigns.
Taking Assistance from Marketing Agencies or PPC Management tools
Multiple tools in the market are used to manage your PPC campaigns. You can search online for top Amazon PPC management tools. These tools help automate your bidding, block non-performing keywords, etc. They can increase your return on investment dramatically in advertisement campaigns. These are intelligent tools specifically designed to help you in running Amazon PPC campaigns.
Suppose you want to divert your focus on thinking about some significant business perspectives other than handling PPC campaigns and hand over this job to reliable marketing agencies. Handing over your PPC Management Services to a leading marketing agency can provide you with extraordinary benefits on your return.
Why Invest in Amazon PPC Campaigns?
The sponsored products target the exact audience searching for your products through relevant keywords. It’s not an expensive option unless used by following above listed potential approaches to run Amazon target campaigns.
Don’t worry; it’s not playing a gamble by investing in PPC campaigns because you only have to pay when someone clicks on your ad. It enlightens your product visibility among fresh buyers, and you have an excellent opportunity to make them your regular customers.
You can witness the usage of Amazon target campaigns in almost every product category offered by Amazon. The picture below shows the product category share of advertising spent on the Amazon marketplace.
Even leading Amazon brands are extracting significant benefits by taking Amazon advertising services. Depending on your goals and budget, you can use any ad type for any product category.
In the End
Well! We have gone through a lot of productive information regarding proven Amazon advertising approaches to succeed in 2022. You can practice these tactics, and the results will be exceptional in generating sales, reducing costs, high product ranking, and increasing brand awareness.
What are Amazon target campaigns?
Amazon ad campaign is working on an auction-based model where advertisers bid on their relevant and high search keywords for their offered products.
What is Amazon ASIN targeting?
ASIN targeting allows you to display your PPC ads on other ASIN pages and within category search results.