"My ads do not work very well and what should I do?"
"My ads' ACOS has been out of control, how to set my sales target? "
"My ads did not generate any traffic, what's going on?",
As Amazon sellers, Do you often also have this or that question? This article summarizes some of the mistakes that sellers often make when setting up PPC (Pay Per Click Advertising) ads, which are the culprits affecting the performance of your PPC ads:
Error 1. Do not clear their own profit and loss point
Many sellers just started pay-per-click advertising when they still not clear what the goal they want to reach and gain how much profit. Suppose you have a 30% profit margin, which means that if you want to make the ends meet, your maximum ACOS or ad spend must remain within 30% of sales, and you lose money whenever ACOS is above 30%.
So, assuming that your spending limit is 30%, how much is the most suitable ACOS? There is no absolute answer to this question, depending on where your product is in its life cycle, and ACOS goals change as the life cycle of your product changes. For example, if you are launching a new product with a 30% margin, you may be willing to spend 30% of your sales on advertising to maximize product exposure and boost sales. But if your product is already very mature in the market and your focus is on profit, you may want to set ACOS between 15-20% to keep the balance between sales and profits. In any case, you need to have a clear goal, and then follow this goal to determine the strategy.
Error 2. Poor conversion rate of listing
More than half of the poor performance of PPC ads is resulted from the seller's product listing did not optimize well. Before starting advertisement, you should at least make sure that:
(1) the product main map of the listing is of good quality, ensuring that your product stands out from the competition;
(2) using all the image space properly and presenting your product from a different perspective;
(3) bullet points of product should be clear, to clearly communicate the product value proposition;
(4) keep the product title clear so that potential consumers could know the type of product you sell at a glance. If you are not sure whether your listing is in a good state, the easiest way to confirm is to look at your conversion data.
Enter your Amazon Seller Center and turn to
Business Reports> Detail Page Sales And Traffic to see the percentage of product traffic.
If the percentage of product traffic is less than 5%, then your conversion rate may be a problem, if more than 5%, then your listing should be OK; more than 10% means your listing is in good condition. According to the specific data, analyze their own listing to develop effective strategies.
Error 3. Advertising campaign lacks of orderliness
Many seller sell in many product categories, when setting ads, they often lack of orderliness, a bunch of products are put into a basket through the same campaign. Suppose you have a linen shop, sell a handkerchief, linen napkin, aprons, etc. in your store. When setting up a campaign, sellers should not palletize these products in the same campaign. Instead, openning ads for handkerchiefs, linen napkins, Apron and other products separately, each of which has a different keyword to match. Seller also note that you can run multiple campaigns for each product category.
(1) Automatic advertising
With this campaign, you can use Amazon to explore potential keywords for you, and your product will appear below your competitor's product.
(2) Using broad-matched campaigns
First, you can use keywords tools like Sellerspirit to understand the keywords that generate sales in your listing. Then, apply these keywords to your campaigns to see how they behave. Finally, select the top performing keywords in both campaigns to apply to your exact match campaigns. These keywords will ensure you get a high conversion rate, and you can raise the bidding for those keywords accordingly.
Mistake 4: Not enough data collected before advertising strategy changes, advertising adjustments are not reasonable
Most Amazon pay-per-click ads novice are lack of impatient, running profitable advertising is an iterative process. Before making any changes to your ad, you have to gather enough data. Everyone has a different definition of enough data, and some sellers will insist on running ads for at least two weeks to get the keywords that has over 1,000 impressions, which is enough data for them. Sufficient data can help you identify negative keywords. If a keyword is very relevant to your product, but the conversion rate is not high, then you can lower your bid to meet your ACOS goal. If you are not sure about the performance of a keyword or do not understand the given data, the Sellerspirit keyword tool is what you need and it will automatically recommend keywords to you based on the machine algorithm.
In any case, do not easily change your ad without any valid data support. For changed ads, try not to view it daily, you can summarize the data weekly.
Error 5. Select too many keywords or keywords are too broad
Amazon PPC advertising novice often meet a problem that the choice of keywords are too descriptive or less descriptive. Suppose you sell linen napkins, the term "napkin" is inappropriate and too broad. After all, there are a variety of napkins on the platform, such as cotton napkins, napkins, polyester napkins, etc., which are nothing to do with what you sell. Another thing to be aware of is to avoid using too long phrases such as "set of 12 linen napkins with hemstitched edges". Not only does such a keyword not get traffic for you, The term linen napkins overlaps. Choosing the most representative keywords from 2 to 3 may make your campaign look different.