What Is Amazon PPC and How Do You Optimize It?
 |
| What Is Amazon PPC and How Do You Optimize It? |
According to Statista
The marketplace has maintained an incredible growth pattern—it is currently the fourth most visited website in the US—that only picked up speed in 2020:
Traffic Analytics tool (2019–2021 traffic trends for Amazon.com)
The pandemic encouraged many people to shop online, and this growth pattern is still present in 2021 despite a decline in digital traffic (since offline shopping has indeed made a comeback).
Now that more individuals are purchasing online, Amazon is the most well-known e-commerce platform. And as the population increased, so did advertising spending.
But even as Amazon's appeal as a venue for advertising grows, the average CPC (cost per click) is also increasing:
According to Statista
Therefore, you've come to the perfect place if you want to make the most of Amazon PPC's full potential while keeping your PPC expenses as low as possible.
This article will outline the most practical methods for improving your Amazon PPC campaigns and show you how to handle it wisely.
Hi! This post is brought to you by Sellzone, a blog designed by Semrush to help your ecommerce business grow. Semrush is the online visibility platform platform trusted by seven million users and 30% of Fortune 500 companies. Take advantage of Semrush's ecommerce tools by entering Semrush AppCenter.
Follow us on social media to read the latest strategies from the ecommerce community, and don't miss new opportunities to increase your profits:
Instagram
Facebook
Twitter
What exactly is Amazon PPC? A Brief History
Make sure to brush up on your understanding of the marketplace before you launch your first Amazon pay-per-click (PPC) campaign and consider your product options carefully.
We now assume that you have a successful product and wish to improve your presence on Amazon. Organic growth techniques may not be sufficient to stand out from the marketplace's over 350 million product listings, and this is where advertising comes in.
Amazon offers its own platform, Amazon Advertising, which enables vendors to publish advertisements on the marketplace. In essence, it's an auction-based system where you place bids for particular target phrases that launch your advertisement. If that bid is accepted, your cost per click will be that amount.
Budget;
Keywords;
Competition;
Ad placement and ad kind.
You have complete control over the budget, keywords, and ad type/placement, but you can't do much about the competition (although a wise choice of keywords will help you get around this; we'll address this later).
Amazon PPC Optimization Can Help You Improve Your Campaign Results
Make sure to read through this comprehensive tutorial explaining how Amazon PPC functions before reading our Amazon PPC optimization suggestions because it will help you choose the best ad type and location.
Improve your product listing
Although the process of setting up your Amazon PPC campaign does not directly include your product listing, you don't want to squander money by sending traffic to a listing that has a low conversion rate (i.e., doesn't result in sales).
To learn the structure of a top-rated Amazon listing, read this page carefully and adhere to all of our suggestions.
Consider your keyword strategy carefully
Long-tail keywords should be your focus because they are longer phrases with a high conversion rate yet may be less competitive.
Your ads should target keywords that have the biggest sales potential; therefore, your keywords must convert.
Identifying hidden "long-tail" gems for selecting top-converting keywords
Although Amazon keywords have a wide range of indicators, you can only obtain two of them before launching any campaign: search volume and competitiveness.
Your task is to identify keywords that receive a lot of searches yet have few advertisers or organic listings targeting them.
You must use outside resources like Keyword Wizard for Amazon because Amazon won't allow you to view this type of information.
The campaign you can develop can be more specifically targeted the longer the phrase. Additionally, you may make sure that your Amazon PPC keyword strategy is centered on the most profitable terms by using long-tail keywords.
With your product ad campaign, you may use the keyword "red socks" as a target; there are more than 6,800 searches for it and more than 11,000 competitors. Instead, if you use the long-tail strategy, you can bid on the term "red knee high socks girls," which has lower search volume but less competition. People who input this kind of inquiry are more likely to buy your specific product because it matches their more focused search.
Design your ad campaigns
There is no one-size-fits-all method for organizing your advertising initiatives.
The ideal way to organize your ad campaigns given the importance of keywords is to designate a distinct campaign for each major product category. Your campaigns can then be separated into ad groupings.
See if we can make this work.
Let's say you offer shoes of all kinds to different demographics.
You might initially create a few distinct advertising campaigns for "men's shoes," "women's shoes," and "children's shoes."
You can have a few additional ad groups under the "women shoes" ad campaign, such as "loafers for women," "sneakers for women," "high heel stilettos," etc.
This methodical strategy will enable you to conduct wise keyword research for each ad grouping and ensure that your ad campaigns cover the broadest possible range of your products.
Avoid focusing on unimportant terms
Even if you make every effort to keep your ad campaigns and ad groupings as orderly as possible, the likelihood is that you will run into one of the most prevalent problems faced by Amazon advertisers: self-competition. This can occur if you use two different ad campaigns to target the same term, making two of your ads fight for that phrase.
Make sure there are no repetition keywords in your complete keyword list for your ad campaigns in order to prevent this. Once you find one, you must add it to a list of phrases that should be avoided under one of the campaigns.
When you don't want to restrict your ad to an exact keyword in the exact wording, you may be targeting a broad match keyword phrase, but you know for sure that one term would be an irrelevant match for your product. Therefore, you may add that keyword term to the list of negatives and relax knowing that your advertising cash won't be wasted by showing your ad to the wrong people.
Examine your statistics to avoid promoting underperforming items
When your campaigns are running, you must pay great attention to the statistics. You will have certain products that sell better than the others in each ad category. In order to ensure that all clicks and impressions are directed to products that convert clicks into sales, this is where you may and probably should intervene and delete the failing products from your advertising efforts.
Define how much money you want for your buck, or what ACoS is and why it is vital?
This means, in terms of Amazon, that you should establish your objective Average Cost of Sales (ACoS), which specifies in advance how much you are willing to spend for every $1 of income generated by your advertisements.
A subjective metric is ACoS. If you want to maximize your profits, you should take the profit margins for each marketed product into account and adjust your cost of sale. You can raise that percentage to 100% if you absolutely must have visibility.
Lower the bid and try to obtain your ideal ad spend-to-sales ratio if the CPC for a term exceeds your target ACoS value.
You can raise your bid if your ACoS is below the goal figure to see if you can boost the visibility and sales of your advertisement.
If a keyword generates little to no clicks, impressions, or sales, try increasing your bid to determine whether it has any potential.
Simply eliminate that keyword from your advertising if you experience prolonged lack of traction.
Make use of high-quality photos
Although you can't usually choose which image is used in Amazon ads, they usually show the main product image.
This indicates that you should spend money on obtaining professional photos of the item you wish to market. First of all, even when you are only trying to increase conversions of your product listing, high-quality pictures often play a critical role in developing buyer confidence in you and your dependability as a vendor.
It's much more crucial in the case of advertising because each ad costs money, so you need to make sure it's optimized for maximum effectiveness. Therefore, don't be reluctant to work with a professional photographer who can choose the ideal angles for your product.
Test your advertising to determine the most effective method
Like anything else, you must test everything to see what actually works. This implies that you should divide your advertising budget across several campaigns that experiment with different Amazon PPC characteristics, such as keywords, pricing, and so forth.
Yes, this could potentially result in you waste money on ineffective advertisements, but to put it another way, your money is being used to optimize your advertisement for maximum effectiveness. Even if it takes a while, the adventure will be worthwhile, especially if you decide to handle Amazon PPC manually.
Easy Amazon PPC Management
You can find it difficult to monitor keywords, ad campaigns, ad groupings, their success, and ongoing optimization whether you're a novice or even an experienced seller.
Here, the PPC Optimizer for Amazon can completely automate the procedure so that you don't have to worry about keywords, campaign organization, or management at all. All that is required is:
your Amazon Advertising account connected;
Choose the products you want to promote;
Set the start and end dates for your daily budget.
The tool will then:
Choose the most profitable keywords with the largest potential for sales;
For each product, create 4 advertising campaigns, and drop the ones that don't work.
Everything is carried out automatically without requiring your input. You may monitor the effectiveness of each campaign at any time by looking at its ACoS, revenue, clicks, and impressions.
Comments
Post a Comment