We all know the rule, the deeper the well the sweeter the water. This same strategy applies to your Amazon business, the more time and money you spend on your Amazon PPC Campaign, the greater will be the rewards in the form of sales and conversion rates.
What Is Amazon PPC?
Amazon PPC Campaign is an advertisement feature introduced on this biggest e-commerce shopping platform to help all businesses running across the site grew faster.
Using this feature, a third-party seller can produce and run ad campaigns for their products. Bidding on the targeted set of keywords is where the wisdom lies. Amazon PPC that is Pay-per-Click defines that you have to pay for every click of a potential buyer.
Because huge traffic has now been diverted to online shopping sites, we can clearly see a fiercely competitive environment among online sellers. Being a beginner, you must check out our Amazon PPC Guide so, you would have a clear picture of your ‘to-do’ list at Amazon. This Amazon PPC Campaign article is one of the series of 5 articles we have compiled for the newbies in the Amazon marketplace. As a beginner, you can extract a lot of knowledge and useful information from here to polish your skills.
Which Type of Ad Should I Choose?
You can find different types of ad campaigns offered by Amazon but there is no need to rush to try all of them at the moment. Each campaign has its tips and tricks and strategies to apply and make the most out of it.
We recommend you start with Sponsored Products Campaign. Below we have discussed all the things about this type considered to be fruitful for a beginner’s guide.
Sponsored Product Ads
It’s a popular ad campaign among the majority of third-party sellers of Amazon.
Let’s start with the basics to run an effective ad campaign.
There are 2 types of keywords targeting strategies:
- Automatic Campaign
- Manual Campaign
Setting up both of these campaigns one after another for each product will give you an analysis report of the keywords with high conversion rates.
How to Start?
- First, create your automatic campaign and wait for a couple of weeks until this campaign runs.
- After that, you can download your Search Term Report where you will find sufficient data of your targeted keywords and their converting rates.
- Now, using the above-collected information you can select keywords with high conversion rates for the manual campaign.
- Set a standard budget and duration for both campaigns to keep a check on whether your investments are bringing the desired revenue.
Suggestion: For the first-ever ad campaign, you should set up a daily budget of $10.
Also, don’t miss out on the long-tail keywords as they can help you narrow down the customers with more specific intentions to buy the related product. Another advantage is it has a higher conversion rate and lower CPC cost.
Sonar – Amazon Free Keyword Research Tool
This free search tool comes in handy to search for and filter out the relevant keywords for your manual campaign.
- Type in a keyword closely related to your product
- Sonar will present a list of all the relevant keywords against their search volume
- Pick up the most relevant keywords for a manual campaign
4 weeks later when you will be able to identify all profitable and non-profitable keywords, simply reduce your bid on non-converting keywords.
Pro Tip: Don’t change your bids frequently. Take time to understand the data collected from Search Term Report, do proper analysis, and then decide to make any adjustments in bids.
There is a general rule of thumb that states, “Collect at least 1000 or 5000+ impressions because the typical Click Through Rate is obtained at 0.2% (i.e., 100 clicks).”
How to Optimize Your CPC Bids?
Optimization of CPC Bids is a vital thing you must learn after selecting your ad campaign type. It enables you to keep track of your bids to know whether you are spending on the lucrative keywords or not.
The foremost step is testing and analyzing those keywords that are playing role in boosting your sales with higher conversion rates. When you know that this is a set of keywords you have to use for your ad campaign, you will ultimately reduce bids on others with low conversions and make an optimized CPC bid.
Calculation for Optimization
Here we have a simple calculation to keep in practice so, you can see through the figures and recognize if your ad campaign is going the right way.
To see if your ads are driving the expected sales, you can calculate your Target ACoS (Average Cost of Sale) to compare it with Actual ACoS. It helps you to know how nearer you have come to your profit goal.
Guidelines for Amazon CPC Optimization
✓ If your actual ACoS is less than the target ACoS, it indicates you can spend more on your ad campaign to raise the bid and test if it is further multiplying the sales.
✓ If your actual ACoS is observed to be greater than the target ACoS then you should reconsider your strategy and budget. As it shows that your ad spend is greater than your target profit margin so, you must lower the bid and observe if it’s affecting your sales or not.
✓ Sometimes your keywords don’t get impressions. If it happens, check out the product category and keywords in the listing to ensure that you have put it correctly. If everything is correct and even then, the problem occurs, you should think about increasing your bid to activate your keyword.
✓ You have done everything but the keyword has not been generating any sales for a longer time. What should you do now? Simply remove that keyword from your campaign. You can add it to your negative keywords list to avoid using it mistakenly next time.
As a beginner, we hope this Amazon PPC Guide will help you learn the basic skills and strategies. To learn more about running a productive Amazon PPC Campaign, visit our Olifant Digital and go through the informative articles they have arranged for you.