What is a PPC Strategy
With this current Amazon PPC strategy you get the best out of your advertisements
Amazon PPC (Pay-per-click)
In addition to the positioning in the classic search results through SEO, a product can also be found using paid ads via Amazon PPC campaigns. The central question is: How does a typical buyer proceed? First, a potential customer looks for a product. He types in a certain keyword in the Amazon search bar, which probably shows his desired result. This customer will only see the listings in the first 3 to 7 positions. Since an Amazon seller often has a lot of competition, there is the possibility of “buying” the best positions in a targeted manner and increasing sales. With the help of Amazon PPC campaigns one can do this with the most common method “Amazon Sponsored Products”.
What are the advantages of the Amazon PPC?
While in the classic Amazon SEO optimization, due to the restrictions in the length of the description, the targeting to keywords is limited in Amazon listings, this is in principle unlimited with Amazon's PPC ads. The PPC variant allows Amazon sellers to bid on any keywords. For example, the keywords from the competition.
This type of advertising can be very profitable, even if there are initially costs for reach. So what are the advantages of Amazon PPC Ads?
The visibility and awareness of the products towards potential customers will be greatly increased and your product will appear in the first positions in the search results
An individual selection of the keywords per product is possible, depending on the campaign type
The products are more frequently displayed in the key positions of the search results pages of the potential buyers
The products are targeted towards the specific searches, customer expectations are met
Turnover and sales figures are immensely increased with clever campaign and advertisement design, well thought-out control of the budgets used and the right keyword selection through PPC
How should you best set up your Amazon PPC campaigns?
1) PPC campaigns and their structuring
Each campaign has its own specific goal and should be planned and implemented accordingly. There are already big differences, depending on whether you want to optimize for increasing sales, increasing brand awareness (= branding), sales (= clearing) or cross & upselling. Each individual campaign has only one single, specific and overarching goal. Therefore, it is best to choose meaningful, meaningful and unambiguous keywords, as well as names that can be assigned to the product.
2) Create campaigns either automatically or manually
With automatic campaigns, Amazon (and not the seller) decides independently about the selection of keywords for your PPC campaign, including the target of Amazon Product Ads, by independently selecting the search terms and linking them to the product. These keywords usually come from your product description, which is evaluated by the Amazon algorithm, as well as similar products. With the manual campaign, on the other hand, the sellers themselves determine the selection by defining the appropriate search terms by defining keywords. Manual campaigns are much more advantageous when it comes to targeted broadcasting of Amazon ads, as the seller can determine the right strategy depending on his goals. Automatic campaigns can be helpful for generating keywords. Manuals are, however, much cheaper and more effective if they are well thought out and continuously optimized.
3) Setting up the ad groups
A successful strategy is to group products in the respective ad groups that can be searched for with the same keywords. This can be, for example, products that serve the same purpose for the customer or products that are from the same category. It is also possible to use different ad groups for keywords with different degrees of generality.
4) Add products and keywords in the ad groups
Now comes one of the most complex and intensive steps: The targeted and extensive keyword research for the PPC campaign. A targeted selection of keywords ensures a successful advertisement through the link with the product. All relevant keywords need to be selected and added. After that, you need to check your listings to make sure that all ads are showing for the relevant search queries. In the end, you should make sure that the unwanted search queries are explicitly excluded, otherwise you will have unnecessary expenses. By entering a keyword, ASINS (Amazon Standard Identification Numbers) of the competition can also be included as a keyword. This way your product will be featured prominently every time someone searches for the competing product.
PPC is a bidding process. This means that your bid has to be higher than that of the other bidders in order to climb to the top of the paid ads. The best thing to do is to enter a value that is higher than the value suggested by Amazon. Later you can adjust the click prices if the expenses are too high and the sales are too low. The relevance of your product in relation to the keyword also plays a major role in the ranking. But be careful: If you set your bid too high, the margin may be significantly lower or even completely used up. Here it is important to manage the trade-off between high placement and profitability of the bid amount.
6) Monitoring and optimization of the campaigns
This part is directly linked to the optimization of the campaigns. Simply setting up the campaigns is not enough to efficiently sell products through Amazon PPC campaigns. You have to regularly adjust the keywords and bids and evaluate the products and sales. Without proper monitoring and reporting, unnecessary money is quickly burned.
5 professional tips from the Market Pioneers for a successful PPC campaign
1) Tools for extensive keyword research
A campaign can only be profitable if you can associate the right and appropriate keywords with your products. To make these keywords easier to find, there are several tools that can make your life easier.
- Google Keyword Planner
- Keyword IO
- Sonar tool
- Keyword Inspector
- Merchant Words
2) Keyword Isolation Strategy
Similar to Google AdWords, Amazon has various match types. These are:
- Largely suitable: The search term contains all components of the keyword in any order.
- phrase: The search term contains all components of the keyword in the same sequence.
- Exactly: The search term must match the keyword word for word (same order & same components).
Using these match types, you can specifically and specifically set which customer inquiries in Amazon trigger your ads. In the beginning, you could use “broadly matching” to get as much search volume as possible for your keywords. Then you can analyze which search terms trigger your ads. From this you take all search terms that were successful and profitable and set them to the match type "Phrase" or "Exact" in order to reach your potential customers in a more targeted manner. In addition, you copy any keywords that have not performed well in a “black list” of negative keywords. This means that these keywords will no longer trigger your ads.
3) “Long Tail” keywords for higher conversion rates
Specific or “long tail” keywords are keywords that consist of several words. Customers use such search terms when they are looking for a very specific product. As a result, these keywords have a higher purchase intention than generic keywords. For example, if a customer searches for “sports shoes” on Amazon, the likelihood that that customer is only at the beginning of the buying process is quite high. This person will most likely first want to look for different options and compare different products. Such keywords have a very large search volume, but conversions are rather low. On the other hand, if someone enters “black Nike running shoes size 43” in the Amazon search, then the probability is higher that they are almost at the end of the buying process and are ready to make the purchase decision.
4) This is how you can reduce your advertising expenses
Similar to Google, Amazon rates the quality of your PPC campaigns. In order to achieve a good campaign quality, the PPC keywords should also be present in the title, bullet points and / or description. As a result, your click-through rate and your conversion rate will be higher and your costs will decrease. This strategy focuses on the efficiency and profitability of the campaigns. The widely used method of including competing brands in the keywords is usually less efficient, but it can be a way of developing a larger potential customer base.
5) Adjusting bids using target ACoS
On Amazon you have the option to set the bid per keyword. It is possible that some keywords generate little or no sales and that you spend too much money on them or set the bids too high. In order to identify unprofitable keywords early on, one should use the “Average Cost of Sale (ACoS)” method.
If you have keywords in your campaign that have an ACoS above your target ACoS, then we would recommend lowering your bid a little. After a few days you check the ACoS of the keyword again and adjust the bid again if it still does not match the target ACoS.
ACoS = 100 * (Total Ad Spend ÷ Total Sales)
For example: You spent $ 25 on advertising and that generated $ 180 in revenue. This means that your ACoS is 100 * 25/180 = 13.88%. You can also see this in the Amazon Seller Central. You then compare the ACoS with your margin. The following is an example of a possible cost structure:
Using this example, your ACoS would be 13.88% profitable. Your target ACoS must always be lower than your profit in order to sell profitably.
On the other hand, if you have one or more successful and profitable keywords in your campaign, then you could for example increase your bids by a few cents to reach more potential customers and generate more sales.
But it is important that you regularly check the keywords. The performance of the keywords can change completely within a short period of time. Therefore, we would recommend that you analyze the performance of your keywords at least once a day.
If you are interested in professional advice on the topic of Amazon SEO, Amazon PPC, Amazon strategy, and other consulting offers, go to https://market-pioneers.de/ and get a free and non-binding initial analysis of your products on Amazon. For a quick and free SEO analysis of your listings, you can also use the ASIN Analyzer Tool https://analyzer.market-pioneers.de/de and get insights into the listing quality of your products. It's super easy, quick, and efficient. Your title, your bullet points, your descriptive text and Co. are analyzed by us in real time.
With this tool you can identify the first optimization potentials that are relevant for your Amazon presence. Of course, you can also use our tool to analyze and compare the ASINs of your competition. 😉
Have fun optimizing!
Your Market Pioneers team
This guest article was written by Arvid Zöllner, Amazon expert and managing director of the Amazon agency Market Pioneers.
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