Amazon has grown from a simple online bookstore to a global retail powerhouse. It’s one of the biggest eCommerce sites in the world, and its influence is only growing.
The eCommerce giant is where consumers go to buy products. According to Amazon’s data, Insight found that 70% of customers never go beyond the first page of Amazon’s search results.
This means that if your product isn’t on the first page, you’re losing out on sales. But it doesn’t stop there. Over the past year, the first page of search results has been increasingly packed with Sponsored Ads, Sponsored Brands, and Amazon’s brand highlights. This means that brands are competing against other brands for visibility in their category pages — a trend that will likely continue into 2019 as Amazon ramps up its focus on product advertising.
If you don’t have a plan for getting onto the first page of Amazon search results, you won’t win at eCommerce. And if you aren’t winning at eCommerce, then you might as well not be doing it at all!
The most important thing to remember when optimizing Amazon PPC campaigns is that there is no one-size-fits-all solution. Your optimization strategy will depend on your business and industry, as well as the types of ads you’re running. Whether you’re new to Amazon PPC Management or have been running campaigns for years, there are always ways to optimize your campaigns. Here are some tips on how to get started:
Structure Your Campaigns
- Have a consistent structure to ensure that your ads are related, not repeating, or costing you extra. Campaigns are usually structured according to product category, brand, or top-selling products.
- While there’s no one-size-fits-all approach for ad grouping, you can start by creating ad groups containing a few significant keywords that are related to or in the same product category.
Use Auto Campaigns to Identify Relevant Keywords
Amazon is a huge platform for advertising, but its ad platform can get complicated.
You might be wondering which type of campaign to use. Well, here’s some advice from an Amazon PPC Management firm.
Amazon Automatic Campaigns – The great thing about Amazon’s automatic campaigns is that you can use them to collect data on which keywords perform the best. Let initial automatic campaigns run for a couple of weeks, then transfer high-converting keywords into a manual campaign where you can regularly optimize them — starting with a higher CPC bid to generate some impressions and clicks. Once this starts to gain traction, you can gradually lower your bid price to find the optimal price.
Regularly Optimize CPC Bids to Find the Optimal Price
Optimizing your CPC bid can be done every week so you can gather enough reliable data. When finding your optimal CPC bid, try out these strategies:
- If your ACoS is higher than the target value (net margin), lower your bid to test whether ad spend and sales can be brought to an optimal ratio.
- If ACoS is lower than the target value (net margin), then test whether your ad’s reach and sales can be increased by raising the bid price.
- If your keywords aren’t generating enough sales or impressions, test whether a higher bid can increase traction.
- If your keywords aren’t converting and are only costing you over a long period, and they can’t be adjusted into a profitable price range, turn off that keyword
Paid advertising on Amazon is a serious undertaking and, if done poorly, will often cost you more than it helps you. With our extensive experience in Amazon PPC management and SEO, we’ll help drive your profits through the roof. Book your consultation with MarketplaceOps today and find out what we can do for your brand. Growing Your Business On Amazon? Read it now!