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You’ve probably already considered selling on Amazon but its way easier than you think.
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With millions of products selling on Amazon, investing in Amazon PPC campaigns is one of the most effective ways to stand out, increase company sales, and grow revenue with Amazon.
Today, Amazon advertising has progressed much faster, and the competition has become even tougher.
This is why Amazon PPC optimization is important.
If you're new to Amazon PPC advertising or even if you've been in the game, it's important to take the time to understand the best PPC optimization strategies that will work best for your products. This will help you reduce advertising costs and improve your Return on Investment (ROI).
At ePlaybooks, we help our clients design, manage, and optimize their Amazon advertising campaigns to achieve measurable growth. Our team combines both data-driven insights and hands-on experience to ensure your ads reach the right audience and deliver real results.
Read on as we dive into the top Amazon PPC optimization strategies that work.
Before we dive into Amazon PPC optimization strategies, let's look at what Amazon PPC is all about.
Amazon PPC Ads, also known as Pay Per Click Ads, is an internal system on the Amazon marketplace where sellers advertise their products and pay for the ad each time a buyer clicks on the product. A seller will pay for every click, regardless of whether the buyer eventually buys the product.
Without Amazon PPC, even the best products may never get out to potential customers.
Advertising also helps your product to be recognized by search engine algorithms. The higher you rank on search engines, the larger your potential audience and potential sales.
There are three types of Amazon PPC ads you can access from your Amazon Seller Central account:
To start advertising, simply go to your Amazon Seller account, click on Advertising > Campaign Manager > Create Campaign, and then select the type of Amazon advertising.
Amazon PPC ads help sellers gain greater visibility and ultimately increase company sales. Here are a few benefits of Amazon PPC ads:
Amazon PPC optimization involves all the steps employed to improve advertising performance. To outrank the competition, maximize your ad spend, and increase Amazon sales, you need to optimize your Amazon PPC campaigns. Here's how to increase your conversion rate on Amazon through these effective Amazon PPC optimization strategies:
Creating structured ad campaigns is an effective way to maximize your ad spend and increase your overall ROI. But what exactly do we mean?
Structured ad campaigns involve creating pre-established patterns with specific objectives, budgets, and timelines.
More practically, it will involve creating individual campaigns for different product categories and then creating ad groups under each campaign. This is similar to using Google Ads.
For example, if you sell men's pants, underwear, and men's accessories, you can create individual campaigns for each product category. Next, create ad groups under each campaign. Craft relevant ads for each ad group and include significant keywords for each group.
While you utilize Amazon advertising, it is important to pay attention to your product listing. Optimizing your product listing will improve your search relevance and also increase your potential customer base.
Here are simple ways to do this:
In an information-rich world, to get the attention of potential customers, you need to be more precise with your ads. For example, writing a long, vague email copy will only make your ad just one of those emails left unopened. Being precise and clear will help you properly target the right audience.
You also want to be as convincing as you are precise. You need to create a convincing ad copy with quality images and videos that sell your product alongside its benefits. If you sell clothing, you want to make sure you create video content and include high-quality images that reveal the clothing’s quality, fit, size, and dimensions. To create a convincing ad, you need to start with research and also segment your ads based on various target groups.
Your Advertising Cost of Sales (ACoS) is your ad spend divided by sales from the campaign, expressed as a percentage. This metric is an indicator of the success or failure of an ad campaign and can differ based on the purpose of your campaign.
Your ACoS will help you analyze your campaign performance and ultimately your Return on Investment.
Depending on your objective, it is important to set a target ACoS. Doing this will help you monitor your ad performance and ensure that your ad spend is proportional to your direct sales and revenue.
To make the most out of your ad campaigns, you may want to use both automatic and manual campaigns. Automatic campaigns are great for uncovering new search terms. Start with automatic campaigns when launching new products and review the Search Term Report regularly to find high-performing keywords that generate conversions.
Manual campaigns, on the other hand, give you precision control over keywords and bids. So, move the profitable keywords to manual campaigns for tighter control. Focus your spend on high-performing keywords and adjust bids based on keyword performance. Increase bids for profitable ones, and lower bids for underperforming keywords.
When you input keywords into the keyword targeting window, Amazon shows you keywords with match types and suggested bids. To capture more sales, it is important to adjust your bids. To do this, you need to work with data. So, it's best to wait for at least one week before adjusting your bids.
Here are some general standards for bid adjustments:
Overall, you need to constantly track and optimize your bids to ensure your ad spend and sales are at a balanced ratio.
Different match types serve different ad goals. Exact match gives your ad precision and conversions. You can use the Exact match type for niche products or products searched for using standard keywords. Phrase match allows you to target keywords without losing modifiers and qualifications. Lastly, Broad matches are great for keyword discovery and allow your product to show up in the highest number of searches.
Running all three separately allows you to adjust bids according to performance rather than blending them.
Amazon Advertising is an entire process that involves getting the attention of your audience, educating them, and then convincing them to buy your product. This may not happen within a short time.
To succeed in the Amazon marketplace, it is important to find out your advertising budget. This will help you reduce costs and ineffective marketing.
Draw out a plan and figure out how much it will cost to advertise your product and reach your target audience.
To improve your advertising and sales, it is important to pay attention to your product reviews and feedback. Positive product reviews and customer feedback can increase buyer trust and convince customers to purchase your product. Higher ratings and positive reviews can increase conversion rate, lower ACoS, and increase revenue.
More than 60% of Amazon purchases are made via mobile. So, you want to ensure your ad and product listing are well optimized for mobile. Make sure your images, bullet points, and titles look clear on mobile screens. Keep the most important information visible in the first few lines and test how your ads and listings appear on mobile devices regularly.
Wasted ad spend often comes from irrelevant clicks. To avoid wasted ad spend and maximize your budget, add negative keywords regularly to block unprofitable searches. Use your Search Term Report to identify keywords and search terms with high clicks but no conversions. Apply negatives at both campaign and ad group levels to improve the efficiency of your ad.
As we mentioned earlier, Amazon Advertising is a process that takes time. To unveil the right strategy that yields the quickest possible results, it is worth it to keep experimenting with different strategies that work best for your product. Don't limit yourself to using a single ad group. You can experiment with as many to find out which works best for generating sales.
Keep in mind that not all hours of the day perform equally. To make the most of your Amazon ads, analyze your conversion data to identify peak shopping times. Use dayparting tools (like in Helium 10 or Pacvue) to pause ads during low-performing hours and boost bids during high-converting windows. This will help you maximize ROI while cutting wasted ad spend.
As you run your Amazon PPC campaigns, you want to keep an eye on them. Regular monitoring of your campaigns allows you to identify areas that need improvement and make necessary adjustments. Go through Amazon’s campaign performance reports to track your ad spend, clicks, and conversions.
Understanding and optimizing Amazon PPC metrics can help you improve your campaigns fast and get a positive return on ad spend. Let’s look at a few Amazon PPC metrics you should keep an eye on:
Impressions refer to the number of times your ad was displayed on Amazon search results or product detail pages. A high number of impressions shows that your ad was displayed to a broad audience. Monitoring impressions helps you understand the visibility of your Amazon PPC ads.
Clicks measure how often users click on your ads. It shows you how effective your ad copy, image, and targeting are to potential customers. It helps you understand user engagement with your Amazon PPC ads.
Your CR measures the percentage of clicks that translate into a sale. It's calculated by dividing the total number of sales by the total number of ad clicks, then multiplying by 100 to get a percentage. The higher your CR, the more efficient your Amazon PPC campaign. A high CR suggests that your ads are effectively driving purchases.
CTR is the ratio of users who click on a specific link to the total number of users who view your Amazon PPC campaign. It's calculated by dividing the total number of ad clicks by the total number of ad impressions, multiplied by 100. A higher CTR means your ads are more engaging and compelling to viewers.
CPC represents the cost incurred every time a user clicks on one of your Amazon PPC ads. This is a crucial metric for understanding the efficiency of your bidding strategy. Lower CPC values typically indicate more cost-effective campaigns.
ACoS reflects the proportion of sales influenced by your Amazon PPC campaigns. It's calculated by dividing the total ad spend by the total sales revenue, then multiplying by 100. A lower ACoS suggests that your ads are contributing positively to your sales, indicating a profitable campaign.
RoAS is the inverse of ACoS, measuring the revenue generated per dollar spent on advertising. It is calculated by dividing the total sales revenue by the total ad spend. A higher RoAS indicates a more profitable advertising strategy.
Guess what? You may not see instant success with your Amazon PPC campaigns. So, resist the temptation to change your strategy a little too soon. Give your Amazon PPC ads some time to run without making any drastic decisions. Collect data as your Amazon PPC ads run and fine-tune along the way.
Amazon Advertising is a sophisticated tool that provides ad opportunities to reach a wide range of customers and increase sales. However, you need to understand the dynamics of Amazon PPC optimization to be successful with Amazon advertising. The strategies outlined above will help you build a strong foundation and set your campaigns on the right path. But if you’re just getting started or looking to refine and scale your advertising efforts, you don’t have to do it alone.
You can partner with experts at ePlaybooks to create, manage, and optimize Amazon PPC campaigns that deliver measurable growth.
Amazon PPC (Pay-Per-Click) is Amazon’s advertising model that allows sellers to promote their products directly on the platform. With PPC, you only pay when a shopper clicks on your ad. These ads appear in search results, on product detail pages, and even off-Amazon.
Amazon PPC management is the process of planning, running, and optimizing your Amazon advertising campaigns for the best return on investment (ROI). Some PPC management tips include structuring campaigns strategically, selecting and refining keywords, adjusting bids and budgets, and continuously testing and optimizing campaigns.
Amazon PPC works on a bidding system. Sellers select the keywords they want their ads to appear for and set a maximum bid, which is the highest amount they’re willing to pay per click.
When a shopper searches for a product, Amazon runs an auction. The ads with the most relevant keywords and competitive bids get displayed. You’re charged only when someone clicks on your ad.
An Amazon PPC specialist manages and optimizes advertising campaigns to ensure they deliver maximum performance. Their role includes but is not limited to conducting keyword research to find profitable and relevant terms, setting up campaigns effectively, monitoring metrics like ACoS, CTR, and conversion rate, testing different ad types, and analyzing performance data and adjusting bids accordingly.
You’ve probably already considered selling on Amazon but its way easier than you think.
Call Us Now