[This is a guest post from Sellics]
Running Amazon Sponsored Product ads can be a very powerful method to accelerate sales growth on Amazon. Amazon PPC ads enable sellers and vendors to ‘buy’ visibility for their product listings in Amazon’s search results page.
More product visibility = more sales on Amazon. However, the number of new products and merchants selling on Amazon continues to grow. For many sellers, it is becoming harder to run profitable ads. Especially without a defined PPC strategy in place to optimize advertising performance on Amazon.
Below we’ve shared our top 5 tips to running effective Amazon ads. These include finding the best PPC keywords, strategies to lower your PPC costs, and more.
1. Optimize your product listings for Amazon SEO
Before you start with Amazon PPC, it’s important to first make sure your product listings are optimized for Amazon SEO. Without this, the click-through rate (CTR) & conversion rate (CR) of your Amazon PPC ads will suffer.
Amazon SEO is a two step process:
- Optimize your keywords: You need to include all relevant keywords for which your product should be found in the product listing content. Having a keyword in your listing ensures your ad is shown for this particular keyword and can generate impressions.
- Optimize your listing content: High-quality, relevant pictures and engaging copy will improve the CTR and CR of your listings.
2. Research Amazon PPC keywords
To maximize your PPC ad visibility, you should perform comprehensive keyword research. You can use Sonar, our free Amazon keyword research tool to build your PPC keyword list.
Sonar has a comprehensive Amazon keyword database (52 million keywords) which pulls the search queries used by real Amazon shoppers.Importantly, Sonar is able to display the search volume for all Amazon keywords. So you can prioritize the most relevant keywords for your PPC campaign.
Keywords with a high search volume on Amazon (‘short tail keywords’) have a high sales potential and are, thus, lucrative for advertisers. With Sonar, you can sort keywords by search volume, allowing you to immediately identify the short tail keywords you want to add to your PPC campaign.
3. Calculate your KPIs: Break-even ACoS and Target ACoS
Your break-even ACoS (‘Advertising Cost of Sale’) is your profit margin before ad spend. Knowing your break-even ACoS tells you how much you can afford to spend on Amazon PPC, before you start losing money.
If you want to understand how much you should spend on Amazon PPC, you will also need to calculate your target ACoS. Your target ACoS is your target ad spend, i.e. how much you should spend on Amazon PPC based on your net profit goals.
Your break-even and target ACoS values are automatically displayed in our PPC Manager. You can use Sellics to track how your actual ACoS develops against your target ACoS and break-even ACoS:
4. Use Negative Keywords to lower your Amazon PPC costs
Negative keywords are a very useful tool that can help you lower your Amazon PPC costs. When you run an Automatic Campaign or use the Broad/Phrase match type for your Manual Campaign, you are relying on Amazon to find and match relevant search terms to your keywords.
However, by relying on Amazon to find and match new search terms to your keywords, there will always be:
- Irrelevant search terms in your campaigns and/or
- Relevant search terms that are, however, permanently cost-prohibitive.
Negative keywords can be used to exclude these keywords to lower the cost of the ad campaign. When filtering out unprofitable search terms from your campaigns and ad groups, your aim is to remove:
- Irrelevant search terms that are clearly not relevant to your product.
- Unprofitable search terms that may be relevant to your product, but don’t generate enough sales.
Tracking search terms in your Auto Campaign and Broad/sPhrase ad groups that are get clicks without sales will limit costs. When utilized correctly, negative keywords will help you achieve a lower ACoS.
5. Day Parting: Schedule your ad visibility on Amazon
To increase the efficiency of your ad spend on Amazon, you can use Day Parting software to control when your ads are active on Amazon. This feature is very useful if you want to schedule your ads to be switched on/off to target your high and low shopping peaks on Amazon.
You can setup and automate when you want your ads to appear on Amazon. And you can optimize your ACoS by automatically turning off ads for when you think sales probabilities are low.
About the author:
Franz Jordan is the CEO of Sellics, the leading All-in-One software used by brands and agencies to manage and grow their business on Amazon. Sellics evolved from Franz’s first company Marketplace Analytics, a German data analytics company that was the first of its kind to focus on Amazon SEO back in 2014.