When it comes to digital advertising, you can argue that Amazon Pay Per Click advertising is as effective as it gets. If you were to advertise on Instagram, TikTok, or Facebook, you would not be putting your ads in front of people who are necessarily looking to make a purchase. When it comes to Amazon, ads are being seen by people who already have their wallets in their hands and are more likely to buy what you are selling.
Being an effective Amazon seller means that you are constantly working on your PPC and making adjustments as time goes by. An important thing to know is that the Amazon algorithm doesn’t seem to differentiate between an organic sale and a sale that came from an ad. This means that the more items you sell using ads, the higher your organic ranking is going to go, which in turn leads to more sales that don’t come from ads.
Today we are going to go through the process of creating a single sponsored product campaign and explain how to make it as effective as possible.
Step One: Find Keywords
First let’s pick a product – let’s say we are selling weighted blankets. The very first step is to search for keywords. For example, we can use the AMZScout keyword explorer to get all the relevant keywords that contain the keyword weighted blanket:
You can export a .csv file containing all the keywords, and proceed to remove keywords that are not directly relevant to your product, such as the dimensions or the color.
Step Two: Create the Campaign
Now it’s time to actually create the campaign:
The first step is to name a campaign, set a daily budget, and pick the type of targeting. In this case we are creating a basic manual keyword targeting campaign. Manual targeting means, as the name suggests, that you will be hand picking the targets yourself. The other option is automatic targeting, where you let the Amazon algorithm choose your targets for you. It does so based on the contents of your listing, the keywords that are included, as well as your category and subcategory.
Next up is the type of targeting, and we have 2 options:
Keyword targeting – as the name suggests, you are targeting searches containing certain keywords, and your ads are going to be displayed just like a normal listing. This is the option we are using for our example campaign today.
Product targeting – ads of this type will be displayed below a product listing from another Amazon product. You can choose individual ASINs or have broader targeting using entire subcategories.
Step Three: Сhoose a Bidding Strategy
For starters, it’s best to choose the “bids down” option. You can switch to the other strategies depending on how aggressive you want to be, but that’s better once you filter out less effective targets over time. The “bids down” strategy means that your Cost Per Click will be at a maximum the price you set, and the algorithm will adjust according to performance and efficiency.
Step Four: Select Your Products and Name Your Ad Group
The next step is to put in your targets and set up a bid for each one.
Here, you should input all the keywords from the list you’ve compiled and pick out the bids. If this is a fresh campaign, it’s best to go with a default bid. However, following the suggested bid with a dynamic bidding strategy can pay off. Depending on how granular you want to get, it’s best to put the same bid across the board and then adjust the bids on a regular basis according to performance.
You also have the option of adjusting bids according to placement. For example, you might want to overpay your bid to be displayed on the top of the search, however, it’s still best to look at the data and adjust the placements accordingly.
In this instance, we are making an exact campaign, so there will be no need to use negative keywords in order to limit the campaign. This is a straightforward, exact campaign that is meant to get you organic rankings on the searches that are most relevant to your product, which in this case is a weighted blanket.
Now that you have a running campaign, you need to monitor it and make adjustments based on performance and the data from the reports.
5 Tips for Success with Amazon PPC
Keep an auto campaign running at all times – an auto campaign can be one of your best friends when it comes to Amazon PPC. What you should do is create an auto campaign while putting all the targets that you have in your manual campaigns as negatives. As time goes on, you should extract the positive hits you get from the auto campaign and target them more precisely with your manual campaigns. There are 4 types of targeting you can do in auto campaigns :
Close match and lose match are related to keywords. As the name suggests, close match would be more relevant to searches that are “on point”, while lose match may include searches that are not necessarily directly related to your type of product. Most likely, those searches will be related to the general interest surrounding it or complementary products.
Substitutes and complements targeting are related to products. The first targeting type will display your ads under the listings of direct competitors. The complements target displays the ads under the types of products that are in your subcategory, and can be of interest to people who would like to buy your type of product.
Extract search term reports regularly – your Amazon PPC structure requires regular maintenance, and you need to know what is going on with your campaigns. Every campaign that isn’t manual exact keywords or single ASIN product targeting is impossible to manage without reports. You need to get reports at least once a week and identify the targets that are working to target them more precisely, as well as to identify poor performing or irrelevant targets and add them as negative targets.
Use negative targets – to ensure there is no wasted spending caused by multiple campaigns bidding on the same targets, it’s important to use negative targeting. Once you extract a keyword or an ASIN from an auto campaign and move it to a precise manual one, add that target as a negative to avoid double spending on it. If you are creating a new campaign with precise targeting, make sure that all those targets are negative in any campaign which might contain them under a broader targeting.
Use keywords that you are indexed on in your PPC – the basic rules of Amazon SEO is that you cannot get indexed on a search term if you don’t have the corresponding keyword in your listing copy. Being indexed means that you have an organic rank on that search. Using those keywords in your PPC over time will increase your organic ranking, so make sure that you target them.
Neatly organize your PPC structure – using proper nomenclature will save you a lot of time when it comes to identifying problems or moving and removing targets. Amazon allows you to organize your campaigns into portfolios, which comes in handy if you have a large catalogue. Also, naming your campaigns and separating them by products and targeting types can make reading reports and making decisions a much more pleasant and effective process, if you put some effort into it. This depends on your specific circumstances and your product catalogue. The most important thing is that the structure is organized in a way you can understand and manage it the best.
In conclusion, Amazon Pay Per Click advertising is very effective and requires constant attention. Knowing how to handle PPC on Amazon and how it functions can be the difference between a successful product and a failure. Your organic rankings depend on it. PPC is necessary for both increasing rankings and maintaining them. You do not have the luxury of not learning how PPC works in general, as well as which aspects, campaign types, and individual targets work for each of your products. Good luck sellers!