The Ultimate Guide to High Performing Amazon Sponsored Ad PPC Campaigns
Unlike Google AdWords, Amazon Sponsored Products is simple to use, designed for the amateur rather than the professional marketer, and designed around selling products on Amazon. Sellers can also benefit in myriad ways.
Amazon Sponsored Ads allows you to increase traffic to your product listing, which inevitably will increases sales, which ultimately increase your Amazon Best Seller Rank, and increases your organic visibility and your organic sales. BOOM!
For small sellers just getting started on Amazon, they buy all this inventory only to find that their niche has a large amount of competition, and they are having trouble ranking their new products. Luckily for larger sellers and sellers with more experience (and capital), Amazon PPC allows you to pay for that increased ranking, so you get more exposure, and start driving traffic and sales right to your product pages.
Ponder this: Only 30% of Amazon shoppers make it past the first page or inversely, 70% of Amazon shoppers only purchase a product from the first page.
So if you’re in a crowded category on Amazon, you need to pay to get traction and exposure. Look at this example: Our search for Blenders on Amazon, we could see that Blenders have thousands of options in most categories.
Amazon sponsored ads to allow you to take control and ensure that you get exposure, traffic and therefore sales, for your Amazon product listings.
Serious Benefits of Amazon Sponsored Product Ads
Here’s the rub: Amazon’s PPC platform allows you to set up automatic product ads, which allows you to quantify your exposure, optimize your listing by checking the click-through rate and sale rate by keyword, and even find new keywords.
You don’t pay for impressions, only when someone clicks on the Sponsored ad, which allows you to judge conversion rates, quality of the ad, and the relevance of your product to the keyword.
Importantly, you shouldn’t use Amazon PPC unless you have well written and highly detailed product pages that are already optimized for conversion. You should also plan to keep optimizing your listing as you get more traffic and more data so that you can increase your conversion rate and lower your costs.
If you see Amazon customers searching for a product keyword and it’s getting a ton of impressions, make sure you include that in your title, features, description and the keyword back-end of Amazon Seller Central.
Using Amazon PPC
Setting up an Amazon PPC campaign should involve split testing, experimentation, and using multiple tools to find results and compare them. Amazon offers two basic options for sponsoring products and these include manual and automatic. Each of these has its own advantages and disadvantages.
Automatic Targeting – Automatic campaigns are available for sellers with a Professional seller account ($39.99 per month) and allow you to set your maximum bid and then hand Amazon the control to show your ads to keywords and phrases that they think are relevant. This can be extremely valuable for researching keywords, seeing what people are actually searching and clicking on, and testing the keywords you have in your listing. Amazon pulls keywords from your category, related listings, and the keywords in your product listing.
However, you get much less control and cannot control which keywords you are bidding on or the bid level. You can, however, add negative keywords to prevent Amazon from using a keyword that costs you money.
Manual Targeting– Manual campaigns allow you to set up individual keywords which you can research and test yourself, and then run them with group or keyword level bids set for each keyword. This offers you more control but can be risky if you haven’t put enough time into your keyword research. For best results, split your campaign up with exact, phrase, and broad match keywords, and then use that to see what people are actually searching for so that you can optimize over time. You can add up to 1,000 keywords per manual campaign.
Use both automatic and manual campaigns
Use automatic campaigns to handle keyword research and to experiment with new ideas.
Start out with a low budget and then increase your daily spends as you optimize your campaign and increase your conversion rate.
$5 a day is a good minimum after you have optimized everything. However, if you do have a decent ACOS for the keyword, a daily limit may simply be limiting your sales.
Sales in seller central can be delayed by 48 hours or more. For this reason, you should always edit the view by date to exclude the previous three days to ensure that you are seeing an accurate view of sales.
Ideally, you should split campaigns up by product for simplicity. While this can be a hassle if you have plenty of products, smaller e-commerce sellers can greatly benefit from it. If you do have a lot of similar products, a single ad group is fine, but it is more difficult to track.
Your primary goal is to choose products that are highly relevant to your keywords. You should also split up campaigns by where you got keywords from. Create specific campaigns for high performing keywords.
You can choose up to three types of keywords when setting up your Amazon PPC.