If you’re running ads on Amazon, you need to be on point with your pay-per-click. If your Amazon PPC isn’t optimized, it is going to cost you money. How much you spend on your ads should be relative to the price of your products. If it isn’t, and you’re spending too much, your profit margins will shrink. This blog can help show you how to avoid a situation like this.
Optimizing Your Amazon PPC – 10 Easy Steps
If I’m advertising services like COX Bill Pay Online, there are certain things to account for. One of these is how much money I spend on advertising for each successful conversion. The lower the cost of advertising, the higher my margins. The same applies to Amazon ads.
As a general rule, Amazon sellers aim for advertising costs below 25% of the selling price. However, this number can vary, especially if you sell in a very competitive niche. Regardless, the idea is to get the most out of your advertising budget by optimizing your Amazon paid campaigns. These 10 tips can help you do just that:
- Organize Your Campaign
- Optimize Your Product Listing
- Eliminate Irrelevant Keywords
- Identify Less Competitive Keywords
- Test Different Variations
- Campaign Diversity
- Use Amazon-Identified Keywords
- Use Long-Tail Keywords
- Experiment with Match-Types
- Don’t Cannibalize
Let’s take a quick look at these tips below so you have some actionable information to begin optimizing your campaign.
Organize Your Campaign
It is usually a good idea to organize and run different campaigns for different product categories. There are several ways you can organize your campaigns. For example, you could base your campaign on how well a certain product category performs. You could also base your campaign on testing new keywords or new products. The idea is to keep things organized so you know what your campaign is and why you’re running it.
Optimize Your Product Listing
You need to use the keywords you use in your ad campaigns when you optimize your Amazon product listings. This increases the relevancy of your product listing. The way Amazon works, a customer won’t see an ad unless it is somehow relevant to them. This is why you need to optimize your product listings with the same keywords. Amazon’s algorithm will understand they are relevant and will display them in appropriate ads.
Eliminate Irrelevant Keywords
If certain keywords aren’t generating any sales or too few sales, there may be no point in spending on them. The Amazon search term report can tell you exactly which keywords are irrelevant to you. Simply navigate to the Reports tab on Seller Central, and choose Advertising Reports. From the list, select the Search Term Report and request a downloadable report. Identify the irrelevant keywords and add them to your negative keywords list to prevent ads shown to irrelevant visitors.
Identify Less Competitive Keywords
Keywords that are less competitive are easier and cheaper for you to optimize your PPC for. These are usually the keywords with the lowest advertising cost of sale. Make a list of them and try out a campaign with a higher budget dedicated to these keywords.
Test Different Variations
You should constantly test different variations of your existing keywords as well as new keywords. The idea is to determine which of these may be more profitable to you. Setting higher bids will help you understand this quicker because it will generate more data in a shorter space of time.
Ever heard the saying “don’t put all your eggs in one basket”. One of the best ways to get the most out of your advertising campaigns is to run diverse campaigns based on how well your products perform. Identify your top-selling products and create an ad campaign around them. At the same time, create a separate campaign with a smaller budget for your less successful products.
Use Amazon-Identified Keywords
An automatic Amazon campaign can give you a list of keywords. This allows you to add to your keyword library, once you download the Search Report. For the best results, you should let an automatic campaign run for some time so it can gather more data on search terms for you.
Use Amazon-Identified Keywords
Long-tail keywords are easier to get visibility on. There is usually less competition on long-tail keywords. At the same time, they are specific and have more qualified intention behind them. Your ads may be able to satisfy the intent behind such search queries, so use them.
Experiment with Match-Types
Testing out different match-types for your current keywords can help you get more out of your Amazon advertising campaign. There are 3 types of matches Amazon lets you choose from. Broad, exact, and phrase. Set your match-type to broad and let the campaign run on a high budget to gather more data on customer search terms.
Don’t use the same keywords for different campaigns. I ran two separate Google ad holiday campaigns on Cox WiFi plans, which ended up competing against each other. You don’t want that with your Amazon PPC. Carefully review all the keywords in each campaign and set negative keywords if you have to.