Amazon Sponsored Products (or ‘PPC’) can be a great tool for sellers who want to increase their Amazon sales. The Amazon PPC landscape is becoming increasingly crowded, and expensive, as both brands and sellers leverage the Amazon ads’ sales potential.
Sellers need to optimize PPC campaigns to maximize their visibility and reduce their advertising costs.
These are our top tips to improve your Amazon PPC campaigns’ performance and increase your Amazon sales. Let’s first discuss what Amazon PPC is.
What are Amazon Sponsored Products?
Because Amazon.com is home to so many products for sale, they began the “Sponsored Products” program to offer paid visibility for sellers. Sponsored products will show up higher in Amazon’s search results.
This is because Amazon pays the seller for each click on their listing. Amazon and its sellers both benefit from the PPC program. Amazon makes a profit and sellers get more visibility than their competitors.
We have compiled a list of Amazon Sponsored Products Tips to help you get your products in front of potential buyers and increase your profit.
Pro Tip: Use amazon PPC management tools to optimize your Amazon PPC ads.
1: Research keywords
You must use the right keywords in product descriptions and titles to help potential customers find your products. First, you need to determine which keywords are most appropriate for your business. We offer several ways to locate them.
SellerApp allows you to search for PPC keywords
Amazon can only show product ads if your keyword matches the search term of the customer. You need to do thorough keyword research to maximize the reach of your PPC ads.
SellerApp, a free Amazon keyword tool, lets you pick the top 20-50 keywords for your PPC Manual Campaign. SellerApp lets you sort keywords by the search volume. This allows you to prioritize relevant keywords for each product.
Long-tail keywords are worth researching
Long-tail keywords are phrases that contain more than one keyword and which highlight the customer’s specific search intent. This means that you target customers further down in the conversion funnel. Long-tail keywords are more popular than short-tail keywords so your CPC should be lower.
Auto-targeting is a great option
Amazon offers automated targeting options for campaign setups if you don’t want to manually do keyword research. This is a time-saver if you have a product page that Amazon can use to search keywords.
2: Fine-tune your keywords
After your campaigns have been set up, you will need to continue your research. It is important to regularly run keyword reports and to add these keywords to your campaigns.
A manual campaign can contain up to 100 keywords. You can refine the keywords to improve performance. You will eventually be able to identify which keywords are most effective. Use them! Optimizing your keyword usage is all about being proactive and reactive.
Remove negative keywords (quickly)
Sellers must be proactive. You must remove negative keywords promptly and frequently. Advertising dollars can be wasted on keywords that are not profitable.
Monitor keywords that are not performing well and generate clicks but no sales. To avoid spending advertising dollars on keywords that don’t convert for your business, add these words to your negative keyword collection.
These keywords have a high click-through rate (CTR) but low conversion rates (CR) and are keywords that cost you clicks but don’t generate any sales.
3 – Budget for Amazon PPC
Budgeting is essential for every marketing strategy, including Amazon PPC. Do the math to determine how much money you can spend while not lowering your margins. Keep in mind the cost of goods, Fulfillment-By-Amazon (FBA) fees (if applicable), and any other costs, when you are deciding whether your budget can handle PPC fees.
4 – Optimize your keyword bids
After you have created a new campaign for your product, it is time to optimize your CPC bids and control your PPC expenses. First, you have to calculate your target ACoS (Average Cost of Sale). You can compare your ACoS with your target ACoS to determine how the ads are performing about your profit margin goal.
Monitor the right metrics
If you don’t plan to monitor and track the results of your paid campaigns, it is pointless. You may just be throwing away your money if you don’t fully understand and know what you’re paying for. These are some of the important metrics that many online inventory solutions can track:
- Spend The amount you have spent on the campaign so far. You can choose your time frame (daily/weekly, monthly, campaign-to date, etc.).
- Sales: This refers to the total sales you have achieved from your ad campaign. This is not profit, but gross sales.
- ACoS is the Average Cost Of Sales. Amazon displays the ACoS for each campaign, keyword, and group.
5 – Make the most of keywords data
Once you have data about your keywords, it is possible to use that information to improve your organic rankings. Although you have the option to choose which keywords you want to use, you will likely pick the most popular and highest-performing keywords.
This two-fold approach is a great way to maximize your PPC campaign and cover all bases.
