How To Optimize Your Amazon PPC Campaign
5 min read
If you start selling on Amazon, you will be able to understand that organic traffic is not enough to acquire new customers. So the only way to stand out is by running a successful PPC campaign. With the Amazon PPC campaign, you will be able to have consistent, reliable, and measurable traffic.
According to a survey carried out by Statista, 61% of Amazon sellers spent between 40 and 80 thousand dollars per month while 24% of respondents indicated that they spent more than 80 thousand dollars per month on Amazon advertisements.
Just running an ad campaign cannot bring you traffic, instead, you should know how to execute a profitable PPC campaign. With the help of Amazon PPC campaigns you should be able to show your products to the customers effectively and efficiently. This is where optimizing your PPC campaign comes in.
Why you should optimize your PPC campaign
By optimizing your PPC campaigns on Amazon, you can improve your ad performance and generate more sales. By improving your ad campaigns you can get more clicks, impressions, and conversions.
How to optimize your Amazon PPC
The next step is to know how to optimize your Amazon PPC. It is important to learn Amazon PPC optimization and to develop an ad strategy in order to keep your revenue high and your expenditures low. These are five Amazon PPC optimization methods to maintain the profitability of your ads.
You should block the bleeders
In Amazon PPC optimization, the first thing to do is to block the bleeders. Bleeders are campaigns, ad sets, and advertisements that drain your resources due to excessively high costs and low returns.
There is no chance your business will be profitable if you spend $100 per week on it but only generate $50 in sales.
Before they consume your whole advertising budget, you must get rid of these bleeders. The simplest approach to accomplish this is to go to your ad campaign and pause all of the advertisements and campaigns with ROAS values below 1.
You should decrease the bid of high ACoS
You should lower the bid for campaigns with a high ACoS.
The ACOS metric shows how much you spend on advertising for every dollar of revenue you get in.
Formula to calculate ACoS, Total ad spend / total ad sales X 100.
Your campaigns will be more profitable if the percentage of your ACoS is lower.
In order to maximize your campaign, you need to identify all the products with high ACOS and lower your bid to 50%.
You can reduce your overall ad spend by decreasing your bids. This implies that if you start to generate sales after reducing your bids, you may potentially break even or turn a profit.
Increase bid of over-optimized keywords
The purpose of this is to ensure that the keywords that are actually generating sales at a low cost receive a bid that is closer to the market. By doing this, you can be confident that you’ll win the keyword bid auction.
In order to ensure that you would win the keyword bidding auction, you should raise your bids. You can win more bidding auctions if you raise your bids a little bit. This will enable you to boost your profit margin, drive more sales, and receive more impressions.
You should use negative keywords
Adding negative keywords increases your click-through rate and conversions by filtering out unnecessary searches.
Negative keywords are used to tell Amazon to stop displaying your ads for unprofitable keywords in your PPC campaigns on Amazon. Your company won’t make any sales using these keywords. Therefore, you can use these unprofitable keywords as negative keywords.
Add high-performing keywords
Keep track of these high-performing keywords over a specified period of time to see whether they need more investigation.
If these keywords are having a positive impact on your PPC campaigns, you should keep using them to improve the product listing page and to make the most of your PPC campaign.
Use the keywords on the product listing page to highlight certain sections, such as the bullet point or the product feature. Include keywords that have a very high search rate to your title.
With these high-performing keywords, you can also add relevant keywords in order to improve visibility. You can also include them in the listing or in the backend search terms.
By now, it should be clear from the above-mentioned optimization process that expanding and applying it across several campaigns and marketplaces will take a lot of effort. In order to ease up your work you can use SellerApp’s advertising feature to optimize your PPC campaigns. This can save you time for other business work.
Three things that you should consider in PPC optimization
These are the three things that you should consider in your PPC optimization
Consider your keyword match type
With regard to Amazon Advertising, keyword match types let you choose which customer search queries your ads can be displayed for. There are three different match types available for manual targeting: broad, phrase, and exact match.
Each has its own use cases. With bids depending on the expected impact, these PPC ad kinds can use a variety of keywords on all three match types. Use a data-driven optimization solution to take advantage of automatic keyword actions. This can increase your chances of success.
Always track your budget
Keep an eye on your advertising costs at all times if you want your campaigns to be profitable.
Pay attention to the bleeders that drain your money and don’t spend more than your budget allows.
Make a daily audit of each ad group at the beginning of your campaigns. Before they start to ruin your campaign, identify the low-performing ones and optimize them.
Set your goals
The best way to succeed is by setting up your campaign goals with your PPC strategy. You have to set your goals like exposure, retargeting old customers or getting new customers, etc, before running your campaign.
PPC campaign optimization includes evaluating the effectiveness of your current campaign and making adjustments to improve your adverts. This may involve adjusting budgets and bids, including adding or eliminating keywords. By using the right Amazon PPC agency, you can boost Amazon sales and increase the success of your campaigns.
Author’s Bio:
Arishekar N is the Senior Director of Marketing and Growth at SellerApp, an e-commerce data analytics solution. He is responsible for overseeing the development and implementation of marketing strategies, as well as increasing process efficiency by executing cutting-edge Search Engine Optimization strategies at SellerApp.
Arishekar has over 10 years of experience in marketing analytics and SEO. He has worked as a Digital Specialist for the tech giant IBM and most recently as the Senior Marketing Specialist for ZioTive Technologies where he enhanced their site structure by increasing website and mobile usability. Previously, he worked as a Senior SEO Analyst for Star Group where he was responsible for managing SEO Audits and analytics.
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