For products with lower prices, advertisements tend to be deficient and its input-output ratios are not worth the money. Therefore, we can generally drive sales at a low price and drive the entire operation (as I wrote in the previous article); however For high-priced products, station advertising is undoubtedly a drainage weapon, station traffic is accurate, while the high profit value of high-priced products is also enough to cover the cost of advertising.
However, the current Amazon's operating environment is highly competitive and presents an increasingly fierce trend. Advertising is not a simple game to run, however. In order to maximize the effectiveness of advertising, after the ads are placed, the seller needs to further optimize the advertisements according to the advertisement data report status and the advertisement conversion rate and other parameters.
There are many dimensions of advertising optimization, details even more, but to sum up, in order to optimize the effectiveness of advertising, advertising must be "plus" and "minus" , we can simply referred to it "additions and subtractions Advertising Optimization law".
After the ad is served, we can get a lot of data, which is not only a reflection of the advertisement itself, but also a reflection of the performance of Listing details. Based on these data, we need to do "addition"
1. When our Listing Optimization is done well, but the advertising exposure is very low, it shows that our ads has low bidding, at this time, we should appropriately increase the bidding of ads in order to make our ads more exposure, has access to sell to more potential customers;
2. When an ad program has a good conversion rate with a low percentage of ACOS, but a daily ad budget that is always Out of Budget, it indicated that we have a limited daily budget and in order to be able to get more orders at this time, you need to improve our advertising budget;
3. If some of the keywords in your ad are under-exposed, but have a high volume of clicks, its CTR is higher than other word terms, and the order conversion rate is high, the ACOS value for that term is low. or some keywords are exposed , Click traffic is also large, CTR value is high, the conversion rate is also high, then we can increase both on the ad bid and budget, in order to increase exposure and strive for more orders;
4. During the ad delivery process, if we find some high-visibility, well-transformed product keywords through automatic ad reporting, which we neglected and did not edit it into the product details (title, Search Terms keyword, five elements, product description Etc.), at this moment, it is very necessary to apply these words to their Listing details in the following Listing Optimization.
When ads should be subtracted:
1. Do keyword "subtraction": In the manual ads, if some words in the pre-set keywords have very low exposure, low click, poor order conversion rate, or high exposure, high the clicks, but the low conversion rate of the order, its ACOS percentage is much higher than the product gross margin, and CTR and CR are far lower than other keywords, then you should do "subtraction", these keywords should be deleted or lower your bids from the advertising plan ; In automatic ads, if you see some words that are high-exposure, high-click, low-conversion, or no-conversions in your data reports, you should do a "subtract," add them to Negative Keyword list in order to reduce invalid traffic, reduce waste and save advertising costs;
2. Make a subtraction of the advertising budget: According to the advertising report, if an advertising plan generates a certain number of orders, but ACOS has been high (higher than the product gross margin), while the orders which advertising brought in is relatively small proportion in the total orders, and after a variety of optimized, advertising conversion rate has not been effectively improved. This time, sellers can adjust the advertising budget, both to reduce the advertising bid, but also reduce the advertising budget. Then, keep advertising running, because the system will reduce your listing weight once you stop the advertisement. at the same time, because of the small number of orders brought by the ads, both the bid and the budget are reduced, though click and direct advertising orders will be reduced, but the cost of advertising saved, the overall profit margin and total profit have risen.
In short, the optimization of advertising must focus on reducing costs and improving the conversion of two indicators,reducing costs while the conversion is improving, this is a good advertising optimization program.