How to Optimize Amazon PPC Campaign?

ayaz yasin January 3, 2022

How to Optimize Amazon PPC Campaign? Step-by-Step Process

PPC advertising on Amazon has become more popular than ever before, whether it is PPC ads or product display ads. Reports indicate that Amazon’s ad sales exceeded 2 billion dollars in this quarter, which is a record. This quarter, Amazon grew by 139%, which is the highest growth rate in a year. Amazon, as the power of its advertising grows, is predicted by many marketing experts to become the third-largest digital advertising firm worldwide by 2022 only behind Facebook and Google Ads. The competition is becoming more intense due to the growth of Amazon’s advertising business. All of these stats attract businessmen to learn more about how to Optimize Amazon PPC campaign. Hence, for a company to outrank its competitors in terms of sales and brand value, using the right strategy is important.

This article provides an in-depth overview of Amazon PPC and useful tactics to optimize your PPC campaigns.

optimize amazon ppcWhat Are Amazon Ads?

An Amazon ad is a piece of advertising that appears on the results page of an Amazon search. Advertisements are usually described as “sponsored.” Sometimes they are called “sponsored ads.” They are mostly paid to third-party sellers.

Using Amazon seller central, third-party sellers can create and pay for these ads through a service known as Amazon PPC.

What is Amazon PPC?

As a result of Amazon sponsored ads, advertisers are charged for each click on the product advertisement and every time a buyer views it. This system is called Amazon PPC (Pay per Click).

How Does An Amazon Ad Work?

The top ad positions for specific keywords are available to advertisers who wish to increase visibility for their products. As a result, not only does Amazon become more visible in SERPs, but it also increases revenues and overall sales.

The advertiser is charged when a buyer or customer clicks on their ad. Even if the clicked ad does not generate a sale, each click is charged. Advertisements are placed across the entire website by Amazon, they are even included in product detail pages.

How to Optimize Amazon PPC Campaign with keywords:

The answer to this question is keyword targeting. Your PPC campaign will help you gain results that you got from paid strategies. You mustn’t forget the organic mode of gaining traffic and optimization, i.e. through using effective and ranking keywords. You need to know which keywords will prove beneficial and are related to the niche of the products you are advertising. These Keywords need to be recognized before your run your campaign so that you have an idea of what the contextual structure of your PPC ads is going to be.

How Does Advertising Your Products on Amazon Benefit You?

Amazon is, without question, the largest e-commerce site on the internet. By advertising your products on Amazon, you can expect five key benefits:

  • Product visibility is improved
  • Increase your revenue and sales
  • Enhance your reputation and gain more trust
  • Reach out to a wide range of target audiences of your products
  • Make sure you target the right audience

It’s still very important for a seller to reach out to the world, even if they do everything right and select low-competitive/high-demand products on Amazon. Without this step, your products will appear on the third or fifth pages of the Amazon SERP results, and you don’t want that to happen. With Amazon PPC advertising, your product can be recognized by its search engine algorithms.

9 tactics on how to Optimize Amazon PPC campaign

Without further ado, let’s start with tactics on how to Optimize Amazon PPC campaign:

1. Identify long-tail keywords

Typically, long-tail keywords consist of several words that are directly related to one subject. Uncovering these may seem counterintuitive to some individuals. The more targeted your campaign, the better its chances of success. Long-tail keywords are good because they often indicate a high intent to buy.

They generate fewer impressions per month than short keywords, but if they generate higher sales from a lower ACOS, it is wise to pay attention to them. Use a tool such as Helium10 to identify long-tail keyword bids that are lower than the short keyword ones you identified.

2. Use a combination of automatic and manual campaigns

Those who are just getting started on Amazon can benefit from automatic campaigns, as well as sellers who are interested in researching additional keywords to target. Amazon handles the rest of these campaigns; you simply have to name your budget. You should take your highest converting keywords and put them into a manual campaign after letting your automatic campaign run for about a week (or you may have identified keywords in another way).

An individual can customize a campaign and make it very targeted with a manual campaign. They require sellers to select the keywords they are interested in bidding on and allow anyone to make a name for themselves.  The use of both types of ads can result in much higher returns for Amazon PPC optimization. This is why you need to understand the dimensions of how to Optimize Amazon PPC campaign and focus on manual campaigns once you understand the keywords for a specific product listing because they will yield better results.

3. Optimize your listings

It is Amazon’s goal to provide the most accurate search results to its users. Your listings should be optimized around three main categories.

Optimization of keywords:

The searchers’ products are the ones Amazon shows in the product listings and PPC ads that contain the keywords. Hence, you should make sure you include your target keyword in your listing title, followed by the bullet points, the description, and the backend search terms. Keeping keywords natural is best here, don’t overdo it. Your listing should sound natural and not overloaded with keywords.

Make sure the keyword you entered in your product listing is the same one you use for your PPC campaign’s keyword targeting tab.

Reviews:

When you first begin, getting reviews for your products isn’t easy, but there are two great ways to obtain them. A user group on Facebook reviews a product in exchange for free items, known as a Facebook review group. Whether you want to start your group or join one already established, you have two choices.

Having an email autoresponder that encourages your customers to write reviews is another way to increase reviews. It’s super easy to make use of Helium10’s tool, which integrates directly into your seller account.

Professional photos:

Customers can only view photos of a product, but they will never be able to hold it before buying it, your photo must therefore be ‘Perfect’. We recommend hiring a professional photographer who can speak your language and who lives in the same country as you do to get high-quality photographs

4. Reduce costs by setting negative keywords

Negative keywords are primarily used to prevent two campaigns from competing against one another. Two campaigns competing for your audience will increase your ad spend.

Negative exact and negative phrase keywords are the two types of negative keywords.

  • Negative phrase: Any portion of your keyword in the searcher’s query will obstruct your ad from being shown.
  • Negative exact: Searchers’ queries that match your negative keyword exactly will not display your ad.

You should add a negative keyword to the list if it has a lower performance than the related keywords. Adding the keyword under a negative exact search will ensure you do not compete with yourself if you are running multiple campaigns for the same product listing.

5. Maintain a consistent campaign structure

Campaigns can be structured in three ways. There is a likelihood of overlap if you run different campaign structures. Repeated ads are likely to appear if you do. This wastes your advertising budget.

You should choose an organizational structure and stick to it. You can structure a campaign around these characteristics:

  • Based on brand (Dell, Toshiba, AOC, Mitsubishi, Sony)
  • Categories of the product (hats, shoes, pencils, shirts, sweatpants)
  • Based on top sellers (whichever products generate the most sales is recommended)

6. Identify Your Target Blended ACoS

You should have an idea of your target ACOS even when you’re just starting. In this way, you’ll be able to calculate how much you’re paying for the sale and how much margin you have. The primary factor that will allow you to determine whether a keyword is profitable is by reviewing your ACOS.

Taking a small loss with every sale is acceptable if you are advertising a product to improve its organic rankings, you should never pay more than the actual cost of a product for a sale.

7. Discover New Keywords With ‘Search Term Report’

After that, you can set up an automatic campaign to let Amazon generate relevant keywords based on the optimized listing for your PPC campaign. It collects keywords from titles, bullet points, descriptions, back end, as well as the category your product falls under.

As an introduction, it’s great for giving you an idea of what keywords you’re advertising for, but it’s a bit limited. A better method is to analyze the search terms in the automatic campaign. You can do this under the ‘search term report’ heading under the ‘seller central’ tab. Put your highest converting keywords into a manual campaign by taking them from the automatic campaign.

6. Optimize your Amazon PPC campaign by researching the top converting keywords

To find the highest converting keywords, there are a few tactics that can be used, but determining what keywords are most likely to have a high conversion rate is another strategy. A healthy balance should be struck between volume and CPC, keywords that have a large volume but a high CPC is unlikely to be profitable. It could be an excellent keyword for you if the volume is low and the CPC is fair.

Further, you can do a competitor analysis to discover what keywords your competitors are targeting, chances are their store already has some great keywords that you can also bid on if the store has traction. From their automated campaigns, you can pick the most converting keywords.

9. You should experiment with your ads to find out what works

Sponsored ads typically yield the highest returns on investment, the trick is in discovering which one works best, it is worth experimenting with different strategies to find out what works best for your product. You should distribute your budget again based on the results of your campaign once your stats paint a clear picture.

Conclusion

One of the excellent ways to promote a product is through Amazon Advertising and Marketing Services, which has evolved over the years. There are millions of products listed on Amazon from different reputable sellers, which makes it somewhat tricky for a new company to break into the market.

These are some useful tips on how to optimize the Amazon PPC campaign. We hope this post helps you in achieving your desired results, but remember: getting sales through PPC takes time and patience, and don’t try to rush with your strategies.

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