Do you sell on Amazon? If so, Amazon PPC (Pay-per-click) should be a part of your advertising strategy to drive better sales.
Success in PPC campaigns doesn’t come overnight. It’s a continuous process. Though the benefits are manifold, Paid Search Advertising is not a child’s play. You need to constantly optimize your campaigns with the right metrics to prevent click fraud.
Facts about Amazon PPC
When we dug deeper into the shopping behavior and advertising, we have found a few interesting things about PPC:
- Orders from Sponsored ads have increased by 54% from 16.3% during 2017-2018. (Source)
- 1 out of 3 advertisers shifts the ad spend from Google and Facebook to Amazon during the holiday season.
- More than 65% of the small to mid-sized companies opt for PPC campaigns. (Source)
- In general, businesses make $2 for every $1 spent on advertising campaigns. (Source)
And, the list goes on.
Why do you need Amazon PPC?
Every day new businesses are flooding into Amazon. Having a strong purchase intent is what makes Amazon more powerful than the others. Therefore, investing in Amazon PPC isn’t optional anymore.
With all the competition ramping up, advertising cost-per-click is increasing for every category. Now you may think that if it is even worth advertising on Amazon? Few of us might feel that it may not be a profitable option to look at. But let me tell you that more than 50% of the product searches start on Amazon. Considering this, you can’t afford to ignore these customers. Do you?
Amazon Advertising is one of the most influential factors driving your product sales. It is very important when you have a specific goal in mind, like a product launch, increasing brand awareness, boosting product sales, etc.
Best Practices to Manage Amazon PPC Campaigns
Sellers always face the dilemma about which products and which keywords to group under campaigns and ad groups. However, there’s no unique answer to this question. And, the structure of your PPC campaigns solely depends on your strategies and ad campaign goals.
Let’s take a look at the best practices to manage your PPC campaigns.
If you want to scale up your learning much faster, make sure you take a look at our PPC strategies video.
Tip #1 – Organize your Sponsored Ad Campaigns effectively
When it comes to structuring your PPC campaigns, the more granular, the better. Typically, a campaign structure will have a set of similar features based on:
- Brand
- Top sellers (top 10 products, top-selling products, etc.)
- Product categories or features (running shoes, men’s shoes, laptops, etc.)
If your product portfolio (including product variations) is limited, we suggest you create a separate campaign for every product. You can change the campaign structure based on your feasibility. However, it should be consistent enough.
Tip #2 – Optimize Your Bids
When you’re competing on Amazon, you’ll know that optimizing your bids is a constant process. Bids need to be adjusted for maximum efficiency and sales. While increasing or decreasing your bids, you need to keep two things in mind – one is your PPC goals which we mentioned earlier and the other one is your ACoS. Depending on these two things, the metrics you track may vary slightly.
Let’s take an example to understand it in a better way.
Example: If your goal is to improve your product sales with an ACoS of 10%, you need to look at the following metrics:
Bid – $1.80
Keyword: sports accessories
ACoS – 40%
Average CPC: $1.50
This keyword is definitely operating above target ACoS. So, you need to consider if this keyword is relevant to your product. If it is not completely relevant, you need to reduce the bid to below the existing average CPC.
SellerApp PPC Analyzer is designed in a way to increase your PPC effectiveness and reduce your ACoS with just a few clicks. Once you are familiar with the workflow, it hardly takes very little time to start optimizing your campaigns. Tracking PPC metrics can be hard at times. It becomes further harder to optimize the campaigns with the metrics you track. With SellerApp PPC Management software, this gets easy for you. You can track your campaign performance, CPC, PPC spend, orders, CTR, impressions, and other important ad metrics in the Trends section of our dashboard. SellerApp dashboard is quite insightful and makes it easy to analyze what you are trying to achieve with your campaign.
Tip #3 – Run Automatic Campaigns
While manual campaigns give you granular control over your ad spend, you need to create automatic campaigns too. The main benefit of running automatic campaigns is keyword research. Once you run automatic campaigns for a certain time period, you can compile the report and understand what keywords are relevant to your product. Add these keywords to your manual campaigns for better conversions.
Few important things to remember:
- While starting a campaign, define your goals, and set your target ACoS. Without these two, it’s hard to find a baseline for your campaign.
- Ensure you include auditing your PPC campaigns as part of your optimization process.
- Optimizing your campaigns is important. But don’t spend too much time on it every day. Just because you overspent for one or two days doesn’t mean that you need to pause that keyword. Track the metrics over a period of time.
- Include long-tail keywords in your PPC campaigns. Customers using long-tail keywords as search terms have high buying intent. So, they lead to better conversions.
Need help with Amazon PPC Management?
At SellerApp, with data-driven insights and expertise, we build PPC campaigns that drive your product sales by keeping your ACoS low. Sign up with our dashboard to try our 7-day free trial or you can get in touch with us to learn more about our services!
Tags: Amazon Keywords,Ecommerce, Competitor Analysis
Author Bio: Arishekar is the head of Marketing & Growth for SellerApp. You can find Arishekar on LinkedIn and Twitter
