Since you are taking time to read this article, you are most probably familiar with Amazon e-commerce platform and interested how your can grow your commercial success – either make it sustainable revenue stream over a long-term or look for additional innovation – or both, which is desirable.
We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. invent. And be patient.
Jeff Bezos, CEO, Amazon
Today we are going to have a closer look at Amazon sponsored products, which are also known as ‘Amazon PPC’ (Pay-Per-Click).
There are three distinct components of PPC:
- Structure – together with an organized overview of your PPC campaign is desirable and brings you closer to success.
- Keywords – it is important to determine what kind of traffic are you after, together with keyword phrase match types, which is a prime ingredient here.
- Bid Price – CPC (Cost-per-Click) is an area you want to optimize – it can vary across number of indicators, which will have a closer look at.
There are also a few fundamental layers of Amazon sponsored products:
- Campaigns: PPC options allows you to manage multiple campaigns concurrently. You can run a campaign manually by yourself or automate the process thanks to Amazon.
- Ad Groups: One specific campaign can contain more ad groups. So called ‘clustering’ might be a useful idea – put together related products for increased commercial outcome.
- Products and Keywords: Products and keywords are core elements of an Ad Campaign. Product is automatically created by Amazon and Keywords selection is automated as well.
Optimization part lies within organizing the structure of the components above – and organizing them well.
PPC Campaigns Consistency
Sponsored Products contain a mixed array of advertisements. The positive aspect about this is that you are in control, however campaign consistency can be a challenge at the same time.
Frequent changes in campaign structure might lead to erratic classifications and messing up with specific products between campaigns. Insights are always useful – thus, clear information dashboard in the Seller Central Backend might be handy.
Ad Groups Aggregation – Utilizing the Same Keywords
Once all the products for the keyword are determined, you might want to be cautious about their structure. Just to emphasize – make sure you aggregate/put together similar products, which belong to the same Ad Group.
Differentiate: Use particular Ad Groups for disparate types of Keywords
Number of keywords grows together with increasing product range – that means that general and specific keywords should be approached differently. Common sense would be to have general, broad keywords in one Ad Group and more specific, long-tail keywords in a disparate ad group.
Optimize: Keyword Types
Semantics = meaning of words, is an important realm in our lives in general. Even more so in Amazon Ads you are paying for – the right keywords selection is crucial to commercial success of your Amazon ads.
Erroneous keyword selection might lead to undesired ad spend = in the end, there would be people looking at your ads, who are very unlikely to buy.
Increase Keywords coverage: manage Automatic and Manual Campaigns concurrently
These two campaign types are synergistic – each has a set of advantages and when combined, you put so-called ‘convergence’ to your campaign practice.
They idea to manage these two simultaneously is to create long-tail and specific keywords from customers via automatic campaign – subsequently to be transferred to manual campaign.
Manually, you are in control of CPC (cost-per-click) bid for each keyword within an ad group.
There are multiple variables to be managed by you, as a proactive and progressive Amazon seller – do not forget to test one thing at a time – so that you can isolate, validate and evaluate results properly, withour any side-effect distortions.
After implementing some changes to your selling strategy = some experts say that you should allow yourself seven days before you carry on with any other changes.
CPC (Cost-Per-Click) Bids
Setting the CPC bid will determine where in Amazon search results will your offer appear. Thus, getting the CPC bid right is paramount – it will impact how many clicks you will get = strong correlation with your Amazon sponsored products revenue as an outcome.
As a general rule of thumb, higher bids drive better customer impressions and more frequent clicks – although your investment cost is rising accordingly as well, so bear that in mind.
The objective of CPC optimization is lower Advertising Cost of Sales (AcoS), which is what all sellers and marketers want – even beyond Amazon platform.
Hopefully you will find the tips above useful towards your journey as a Professional and successful Amazon Seller, getting your PPC optimization and strategy right.
And do not forget, Jeff Bezos said – be patient. We will conclude with the famous quote of Napolen Hill:
Patience, persistence and perspiration make an unbeatable combination for success.