6 Actions Steps for Amazon PPC Optimization decrease ACOS
Amazon PPC campaigns are a great way to increase sales, but they aren't always easy to optimize. In fact, many sellers find themselves spending more and more on Amazon sponsored ads without seeing any improvement in their ROI. But with the right approach—and a little patience—you can optimize your Amazon PPC campaign so that it provides an excellent return on investment (ROI).
One of the biggest challenges for Amazon sellers is that they don't know what will work best until they try it. While this "experimentation" approach may be fine for some businesses, PPC marketers need to understand how their campaigns are performing so that they can optimize them quickly and effectively.
Here are six actions steps for optimizing Amazon PPC:
Review Amazon Sponsored Ads Performance
Review your Amazon Sponsored Ads performance on a regular basis to ensure that you are making the best decisions for your campaign. You can review your performance by checking the Amazon Sponsored Ads reports. In the reports, you will find information on your keyword bids, ad performance and other key metrics. It is important to understand these metrics so that you can make the right decisions for your Amazon PPC campaigns. The reports will also help you identify keywords that are not performing well and ensure they don’t get more impressions or clicks than they deserve.
To get started, review the following:
- The status of your ad and which type it is (text or image)
- Audience type(s) that you have bid on. Look at their performance over time and determine if they are still relevant to your business goals. If not, consider removing them from the account until you can reallocate the budget to more appropriate audience targets.
Monitor Keyword Performance
Monitoring keyword performance is an important part of optimizing your Amazon PPC management services because it helps you to understand how each keyword performs and where to focus your efforts. You can use the below steps to monitor a single keyword or all of your keywords at once.
- Go to Keywords in the left menu and select “View All Keywords”
- Select a specific campaign, ad group or keyword name from the drop down menu and click “View Details”
The information that appears on this page will help you determine what's working with your current campaigns, as well as spot any errors and areas for improvement.
Tweak Your Campaigns
To optimize your Amazon PPC campaigns, you’ll need to review your current ads and make sure they are set up correctly. This includes reviewing your headline, description, and images. You can also adjust your bids to find the sweet spot that optimizes profit and ROI for each campaign. We recommend starting with broad match keywords first and then moving on to phrases and exact matches later. If you have a small budget and multiple campaigns, it’s best to start with broad match keywords first. Once you get those up and running, you can start focusing on specific phrases and exact match terms.
Check the following:
- Is this the right product? Are my keywords relevant to what I am advertising? If not, remove them!
- Do I have too many keywords in my campaign? The more keywords in a campaign, the higher ACOS will be because of increased competition.
- Have I run out of ad groups? There is no point in having too many ad groups as it can make it harder for Amazon to understand what your product is about and therefore might decrease CTRs (clickthrough rates). You can do this by amazon product listing optimization
Introduce Negative Keywords
Negative keywords are used to exclude specific search terms from your ads. You can add negative keywords at the ad group level, keyword level or product level. You can also choose whether you want to add them manually or automatically. If you choose to add negative keywords manually, Amazon will suggest a list of related search terms for each ad group that might be relevant. You can then decide whether you want those search terms included in your campaign or not. If you choose to add negative keywords automatically, Amazon will add them based on the search terms used most often by customers who click on your ads.
There are two types of negative keywords: exact and phrase. Exact words match exactly what a customer searches for, while phrase matches include those words in close proximity with each other (e.g., "blue dress").
Add New Keywords to Your Campaigns
The next step to optimizing an Amazon PPC campaign is to add new keywords to your campaigns. The easiest way to do this is by using the keyword planner tool, which can be found on the left-hand side of the screen under "Tools". Simply enter in a few of your competitor product titles or categories and it will generate a list of related terms that would be good for you to consider adding into your campaigns.
Once you have identified some keywords that could potentially increase conversions, copy them over into any existing ad groups or create new ones.
Monitor Product Cost
Monitoring product cost is important. If you are not monitoring your product cost, you may be losing money. You can use the Amazon Sponsored Ads Product Cost report to monitor product cost. This report provides you with the gross profit margin for each product in your campaigns. You can use this information to make informed decisions about which products should be included in your campaigns and at what price point. You can also use this information to determine if it is worthwhile continuing to promote certain items that aren’t converting well or are underperforming.
The report will show you:
- Average Cost-Per-Click (CPC) for all keywords in a campaign
- Product CPC for each keyword (this is calculated by dividing the amount spent on Google ads by clicks on ad copy that included that keyword)
- Average product sales price (Amazon makes this calculation by averaging an item's sale price over time).
At the end of the day, Amazon PPC optimization is a game of numbers. As long as you’re hitting your ACOS and ROAS goals, all other metrics will fall into place. By following these six action steps for optimizing Amazon PPC ads, you’ll be well on your way to setting up campaigns that are optimized for success!