What Is Amazon PPC Strategies
In Amazon, every 6 out of 10 different sellers usually struggle with Amazon Products’ Campaign. It is straightforward to curate as well as launch a campaign. However, the real challenge with Amazon PPC Strategies comes while optimizing the campaign holistically. With optimization, any campaign will have improved efficiency, visibility, and at the same time, it will perform well in any marketplace.
In addition to this, this is one of the few places where people tend to make grave mistakes. Further, they also increase their overall ACoS (Advertising Cost of Sale) in Amazon while missing out on sizable ROI. Even if your product is top-notch and you have got an excellent listing copy, you’ll still need to focus on robust Amazon Pay-Per-Click strategies to make the most out of any ad campaigns all around the year.
Considering the challenges that sellers face while executing Amazon PPC strategies, this comprehensive Amazon Pay-Per-Click Guide will aid sellers, marketers to strong-arm their PPC Strategy. Moreover, these tips would assist in the exposure of brands to drive traffic and sales to the products’ listings. Without any further ado, let’s dig in!
How much does it cost to integrate Amazon PPC?
There are always moments when sellers wonder how much they should spend on Amazon Pay-Per-Click. The answer still varies, person to person, goals to goals. In the beginning, people seem the world is perfect, where all ads are exponentially profitable. Then you’ll have to spend as much as you can to get the visibility you want. However, the definitive version of a perfect world doesn’t exist. Moreover, the world is not all black or white; it’s rainbows, greys, and everything in between.
While you launch a new product, you will always keep in mind that you could lose money. Your primary keyword alongside long-tail, generic will aid you to get the appropriate ranking.
Before moving forward to learning Amazon PPC, let’s ponder on the importance of keywords and descriptions.
Using organic keywords to make descriptions
The tip is exceedingly essential for making your product visible on Amazon. When you’re about to launch a brand new product on the world’s largest eCommerce platform or merely beginning your career as a seller, launching a PPC with long-tail keywords is essential.
In the beginning, this might look very much challenging to you. However, as you understand the ins and outs of PPC in Amazon, you’ll master how to use the long-tail keywords as a seller moving up in pecking order and venture into the most-searched and generic keywords.
Strategies for PPC Keyword in Amazon
There is a sole reason why the Pay-Per-Click strategy works because new sellers have a tough time competing with the leading players in Amazon’s ecosystem. If new sellers target highly effective and searched keywords, they will be benefitted. These keywords often come with high competition & Cost-Per-Click where you’d spend an awful lot of money without even getting exposure for the brands. Moreover, this will not allow you to garner many conversions and traffic.
By any chance, if your listing does get notable ad impressions, your chances of getting more sales would be low as the competition is already in a better position. These generic keywords are your ticket to make profits and earn a place in the market.
The plan is quite simple and straightforward; all you need to do is go after long-tail keywords in the beginning. You’ll indeed face a little bit of resistance to acquire ranking, but it would be worthwhile. There will always be competition, but proper planning, in the beginning, will increase your purchase intent. Additionally, you can also land sales and boost them seamlessly.
The moment consumers are aware of your brand, products; then you’ll immediately achieve a superior ranking in Amazon’s SERP. You’d also learn to target next-level keywords and gradually climb the ladder.
Long-Tail Keywords, Next Level Keywords, and Generic Keywords
Let’s consider that you’re selling kitchen Chopping boards. You can kickstart your campaign via a specific query, such as a handmade wooden chopping board or resin cutting board, among others. These are the long-tail keywords that you use at the beginning of the campaign.
Once your initial sales begin, you can target the following set featuring generic keywords. The keywords will be placed right after the long-tail keywords. These keywords are crucial to enhance your product’s visibility right along with the search results. In simple words, Amazon’s algorithm teaches sellers and marketers to rank products whenever and wherever somebody searches for the keywords.
In the final phase, you’ll have to venture into popular and generic keywords. To acquire better results, you can incorporate several campaigns with similar intent and then experiment with distinctive match types to which the campaigns and keywords work in your favor.
Keywords must always be relevant to the product as well as the brand. If you use the keywords which align with your products, only then you’ll be able to drive conversions significantly.
Technically, there isn’t a perfect answer to how much you must invest to gain more traffic even if you scale up your ad campaigns, which would be profitable for you. There are always chances that Amazon doesn’t give more traffic just like that. The core idea is to break even when it comes to acquiring new sales for driving keyword ranking & garnering organic sales.
What is the ideal Amazon PPC Strategy in 2021?
A robust strategy would always require a solid Pay-Per-Click strategy for Management. By the looks of it, this is one of the crucial ways to garner excellent results via Amazon Ads. Generally, what people do is opt for automated campaigns and leave out everything to fate. So far, this is a completely wrong move.
Making you use Amazon Pay-Per-Click optimization methodologies and strategies by consistently outperforming others is something that everyone must try. However, this doesn’t mean auto campaigns are bad; they are indeed essential but a holistic advertising strategy.
Determining Amazon Pay-Per-Click Goals
It is essential to ponder the different types of ads you must run alongside strategies for each campaign. There are several types of ads that you need to know before you invest in Amazon PPC, such as:
Sponsored Product Ads
These are the most sought-after ads that look like the usual organic listings. However, there is a significant yet subtle difference that is a sponsored badge. These ads sometimes appear in both Amazon and carousels would add more placement for products over time.
With sponsored ads, marketers can either run manual or auto campaigns. By the looks of it, auto campaigns are solely based on the product page. It is Amazon’s in-house algorithm that ultimately determines whether the ad seems relevant or not. Moreover, the ad’s relevance is also based on the search query and product page with relevancy. On the other hand, the manual ad campaigns are based on keywords you use to bid on several match types. The ideal way to use auto campaigns is by gathering the search term data that you can use while using manual campaigns.
Ensure that after converting the search term during the auto campaign, you can add the manual movement by setting up an individual bid for the designated keyword. The strategy is referred to as harvesting.
Headline Search Ads
You will find the headline search ads right above sponsored listings of the products. Headline Search Ads is typically a premium real estate that any customer would uncover in the first go. With this ad on Amazon, you could feature several products while curating unique and distinctive ad copy to link to a great landing page. These can be accessed from other places, not just an Amazon store.
The downside is that the additional feature does come at a typical higher CPC. However, it can drive massive sales and volume for any business.
Product Display Ads
Product Display Ads or PDAs do come with significantly less placement. You can make sure of PDAs for targeting competitors on their product pages, or you could also defend pages of your own.
Setting up goals:
Why do people want to run ads on Amazon? Why does Amazon PPC matter so much in the digitized world? What are you trying to accomplish by running ads? Is growing sales essential for you too? Or the only goal you have is to acquire customers without having to burn a hole in your pocket? Or is it everything that is mentioned in the lines above?
CPC strategy is an integral part of Amazon’s PPC. It is imperative to put the complete focus on two essential sides of Amazon’s advertising triangle. Volume and Speed are the go-to approaches. Let’s take a look at some of the critical scenarios.
First Scenario: Pushing sales volume
If pushing the volume is what you desire, then there is a highly likely chance that you’ll overlook efficiency. On the other hand, by increasing the bid almost by 150%, you’re most likely to acquire an utterly equal return in-terms of sales.
Second Scenario: Escalating efficiency
When it comes to improving efficiency, it also suggests lowering the overall advertising cost. For instance, if you’re most likely to generate $100 in terms of sales by just investing $10, not $20, this means the efficiency is improved. In this instance, your ACOS is 10% rather than 20%.
Remember, the less you’ll have to pay on advertising, the better it gets as it will certainly leave you with a significant margin. Further, making it quite efficient.
If you solely focus on the strategy alone, it will undoubtedly reduce the sales volume as the keywords that you think aren’t performing well are in a certain way generating sales for your products. The only time your sales are not going to be affected is when you spend money without receiving sales. Indeed, these are some of the great wins that would help you improve efficiency without sacrificing even a shred of volume.
Third Scenario: Increased volume & efficiency
When it comes to PPC and CPC, increasing both volume and efficiency would need time. The strategy is not meant for marketers with short-term goals. It would be best if you always kept your focus up and at the same time run them efficiently.
Also, there is always the need to make some tweaks while identifying keywords while bidding. Further, you also need to know how much you need to pay to ensure that they are indeed profitable. Even if you stumble across the perfect bids for the keywords, they become a target in the competitive landscape. Moreover, the landscape keeps changing, and it also requires updating bids to stay right ahead of seasonality and competition.
A basic understanding of the push and pull system is essential for developing Amazon’s PPC strategy for any business.
Best Practice to structure Amazon PPC Campaign
Generally, the Amazon Pay-Per-Click campaigns are further segregated in the following manner:
Ad Group 1
Ad Group 2
With this strategy, you could possess multiple products in an ad group of your choice. Moreover, these products will further feature for keywords in specific ad groups.
While structuring a campaign, when the campaigns are increasingly granular, they are better. On the other hand, most businesses must have a distinctive ad group for each SKU/Product. In case your catalog is small, let’s pretend that you have less than 50 products inclusive of the variation; you could choose to create an entirely different campaign. Moreover, this product will have a completely different campaign altogether.
If you want to unify several products and fuse them in a single-most ad or distinctive one. These are the questions that you must need answering to:
- Do products need unique keywords?
When the products are similar, you don’t require to have quite a distinctive ad group. Nevertheless, if products have unique keywords, you could easily separate them.
- Is it essential to control the aggressive pushing of a product over the other?
When you have distinctive ad groups for products, it will allow sellers to allocate very individual bids to product(s), which requires pushing more than ever. In case ads are placed in a similar ad group, they would utilize the very similar bid allocated to the ad group.
Moreover, this could be extremely beneficial when products come in different sizes, colors, etc. People also tend to use modifiers to compartmentalize their search.
More strategies are involved in breaking campaigns into Non-Branded, Branded, & Competitors have specific terms where the campaign comprises particular keywords that help them attain their goal. Breaking out the campaign would also allow tracking the overall performance of both branded and non-branded keywords because performance tends to vary between two distinctive categories.
Amazon PPC Strategies that work
- Optimizing the bids
It is very much essential to optimize bids is it generally takes forever to have them utterly optimized on Amazon. Proposals are often required to be adjusted continuously to stay ahead of the competition, grow sales, and decrease or even end a bid.
Bid optimizations are the only thing that guides the goals inside and out. Further, you’re required to keep the overall ACOS goal in mind while determining to increase or decrease and leave a bid for good.
- Keyword Harvesting
When it comes to Amazon’s PPC strategy, keyword harvesting is indispensable. It is very much essential to gather buying data for doing market research. The process of accumulating the search terms that customers use to find specific products via auto campaigns is inevitable. So far, this is why products need to have descriptive, strong content on the product detail page.
It is the ultimate prowess of Amazon\s Algorithm to understand the product for determining ads’ relevance for any search. You can make use of third-party tools to pull up the investigation from paying customers. It also shows the amount of money needs to invest into converting them. Moreover, the third-party research tools provide you with a proper estimation of what everyone on Amazon is searching for.
Remember, the third-party tools are quite beneficial if you want to jump-start with the Amazon PPC right away.