Trying to figure out how to optimize Amazon PPC Campaigns? Let us help you. With this comprehensive guide to Amazon PPC optimization, you can get your ad campaign ready in no time!
Amazon is expanding its dominance in online commerce. In 2018, Amazon overtook Microsoft to become the third-largest advertising platform in the United States, behind Google and Facebook. Advertising makes up the bulk of Amazon’s income. This category was the fastest-growing part of Amazon’s total business in the 2021 Q2, with profit growing 87% from a year earlier to more than $ 7.9 billion.
Amazon’s advertising business is progressing much faster than before, making competition even tougher. Still, with the right ad campaign structure, you will be able to keep afloat and make money. When it comes to making a sale, it’s the paid ads that really matter. That’s why it’s so important to optimize your ad campaigns so that you can generate sales from the organic rankings you work so hard for.
One of the most well-known strategies to advertise is pay-per-click advertising method where sellers pay when users click on their ads. If you’re selling on Amazon, you want to take some time to navigate the waters of Amazon PPC optimization and to find keywords that work best for your products.
Now, let’s deep-dive into how to optimize Amazon PPC Campaigns.
Optimize Your Product Listings for Organic Rankings
The more often your product appears organically on the Search Results Page, the more often people will see it. Before you jump into advertising, you should first be sure to optimize your product listings for organic rankings.
- use correct keywords in your product titles
- use product titles that describe the product well
- make product descriptions detailed and informative
- use only high-quality product images.
Use Potential Keywords in the Title
Keywords are important for good SEO, but more importantly, they are crucial for converting more of your traffic. The importance of adding keywords in the title when publishing content is often overlooked when it comes to Amazon PPC optimization. If you want to be ranked higher than your competitors, you need potential keywords in your title, too. When it is added, the title becomes more sticky.
You can use Search Term Report on Amazon to understand the different terms that define your product category.
Figure Out Your Profit Margin
Many people, especially entrepreneurs and small business owners, struggle to understand what their profit margin is and how to manage and calculate it. Profit margin is a key metric that helps to determine your business’ performance and profitability.
Not good enough is to have a rough estimate of the profit margin of your products or services. It is imperative for you to determine all of the costs, overheads, taxes, and the amount of net profit margin you have on all products. This vital piece of information will help you understand how much you will be spending on Amazon PPC Ads.
Know Your Ideal ACoS
The metric that indicates success or failure is found in the form of the ACoS metric. The ACoS metric is important in analyzing your Amazon PPC ad campaign performance, specifically your Return on Investment (ROI). ACoS helps provide a sense of how your ad campaign is performing on Amazon.
Knowing your ideal ACoS on Amazon PPC Ads, you will be armed with all necessary info to keep your return on ad spending proportionally to your revenue from on-site clicks on your ads.
Focus on Customer Feedback and Reviews
If you want to sell more products, ensure frequent, positive reviews and high product ratings. Consumers trust sites with high ratings. PwC conducted a survey of more than twenty one thousand online consumers in 27 territories. 32% of surveyed stated that positive reviews and higher ratings from other customers could help convince them to purchase a product.
So, positive reviews and ratings (3.5 stars or more) are likely to result in higher conversion rates and provide lower ACoS and higher revenue.
Invest in Branding
When you need to sell products on Amazon, you can become one of the thousands of resellers with a seller account. But if you want to stand out from the crowd, you need to start building a brand. A brand can be expensive to build, but it can also pay off in terms of visibility, loyalty, and more.
Amazon is an excellent platform for brands to build their customer base. But it’s important to be consistent in your branding strategy on Amazon or you risk looking like an opportunistic, fly-by-night brand.
Get to Know Your Customers
The art of customer acquisition is fluid, and many marketers are still struggling to define what works and what doesn’t. But what’s clear is that generating customer insights is the most efficient way to add value to your ad strategy.
You’ll only truly know your customers if you engage them in digital conversations where you can learn about their needs and goals in a personalized way. You need to ask them who they are, what they like about your products, what they don’t, what they would be willing to change, etc. Then you can optimize PPC campaigns on Amazon according to the insights you’ve collected.
Use High-Quality Photographs
Have you considered the power of images in your PPC campaign? Advertising your products with text ads may not generate the high-quality leads you want. It’s not difficult to improve the quality of your PPC campaign though. Just make sure you are doing everything you can to attract the right kind of customer.
There are a variety of ways that you may use photographs within Amazon PPC optimization. You can use photos to help your customers focus on your ad, attract their attention, or simply improve their experience of interacting with your store.
No matter what you sell, chances are high-quality pictures will align your product or service with the ideal customer. That’s because good photography speaks to your audience in a different way than text does. The real magic is that good photography allows you to reach your audience in an organic way. Additionally, good photography can supercharge your reputation, gain brand loyalty, and lead to more purchases.
Figure Out Your Advertising Budget
Budgeting for advertising is all about finding the right balance of volume and market impact, as well as avoiding overspending on ineffective marketing. Draw out your plan and figure out what you can afford with your advertising budget.
Succeeding in Amazon Advertising may not happen in a short amount of time. It is important for you to first capture the attention of your target audience, educating them and convincing them that your products are better than the competitors’. Find out how much it will cost to advertise your business to reach your target audience, which can be done by using tools like Google Adwords or SEM Rush.
Come up With a Convincing Ad
Do you know how to write ad copy that people will respond to? It boils down to this: create an appealing and targeted ad copy. To better optimize PPC campaigns on Amazon, you want it to be enticing and also match up with your business. For example: if you’re selling hats, you need to create videos of people wearing them and make high-quality photos show off all colors and sizes.
If you’ve got a good product, with an appealing and targeted ad copy, you’ll be able to win the customer’s attention and effectively sell it focusing on its benefits. You also need to know your audience that will most likely click on your ad so it is vital to do preliminary research and segment your ads based on the target audiences.
Set up a Structured Ad Campaign
Structured advertising is advertising that follows a pre-established pattern, has clearly defined objectives and timelines. It is like budgeting for ad spend in that you plan in advance what you want to achieve out of the campaign before you start investing in it.
If you’ve been working with AdWords and Amazon marketing campaigns before, you can use your skillset to set up your account and create new ad groups and campaigns. The best way to approach this is by creating campaigns for each individual product category. Next, create specific ad groups under each campaign. Find out what are the most important keywords for every ad group and craft relevant ads for each group.
Be More Precise with Your Ad
Marketing operates at the intersection of creativity and precision. If you send a marketing email that’s too long and convoluted, or if your ad copy is filled with vague platitudes, chances are your marketing campaigns don’t end up where you want them to be. However, context and clarity go a long way towards inspiring greater action. In our digital world, being more precise online is vitally important for the proper targeting of your audience.
Sometimes advertisements just don’t work the way they should, especially in a world of information-rich environments. Blogs, forums, and social media networks have a greater impact on a consumer’s buying decision than ever before, and a lot of companies are learning that in order to inspire a consumer to take a particular action, they need to be very precise with their advertisements.
To figure out the correlation between the PPC ads average metrics and the other factors in 2021, we have collected the most valuable data in this report.
Create Enhanced Bids For Ad Groups
Group bids let advertisers create default bids for all keywords in an ad group. Make sure to set a strong bid for your keyword in the ad group with the option to change the specific values manually. This helps you capitalize on auctions despite the competition, even if you are not actively processing or tracking individual bids.
Test Your Ads to See What Works
If you don’t want the audience to tune you out, you’ll need to step it up a notch with your advertising. Add a personal touch with a “Sent from a starry-eyed fan” message. This will drive a sense of authenticity and will make your audience more likely to see who you really are. It’s about being honest and building trust with your buyers as increased visibility and trust have a direct correlation with a higher conversion rate.
Keep your Ads Profitable with Automation
Although advertising can produce high returns, it does place a considerable financial burden on you, as an Amazon seller. You’ve spent hours on your ad layouts, you’ve crawled through your markets for the ideal prospects, you’ve even tested the campaign itself. Great. But you still might need a hand keeping your ads profitable long-term.
One way to lessen the burden is to automate the entire process of posting ads and generating leads. When you optimize PPC campaigns on Amazon, automate campaigns via A/B tests and content optimization, you can focus your effort on other parts of your business and content marketing. If your ad needs regular refresh rates to maintain its lead with your audience, this best practice will help you minimize the number of manual clicks with which you have to interact.
Hopefully, the ads of the future will run themselves to a greater extent than they do now. Machine learning is automating Facebook’s ad algorithms with the help of artificial intelligence. IBM believes that machine learning provides many advantages for retail companies’ advertising efforts. These include better personalization, better advertising decisions, and even more personal interactions.
Amazon’s relentless focus on customer experience has helped it earn the unrivaled loyalty of many shoppers. But the marketplace also cares a lot about the sellers.
Advertising on Amazon is a boon for sellers of all types. With so many ad tools and opportunities, it is easy to set a successful strategy and start earning money. You only need to put your time and effort into learning the different facets of Amazon PPC optimization.
If you need more information about Amazon PPC optimization, contact us and we’ll gladly help you!