Amazon is a great platform to sell products and increase the reach. Pay-per-click (PPC) advertising at Amazon is a great opportunity for the brands to be able to reach potential customers easily. Just by buying PPC spots might not get you to the position where you want to be.
Various factors affect the PPC performance and not always visible in the raw PPC metrics. One needs proper knowledge to be able to make changes which are perfect for your PPC campaign. The right steps can help you in a steady growth rate as well as success.
Advertisers often come up with questions like, “How to get the best performance out of their Amazon PPC campaigns” or “What are the best ways to do it?” Here, we will not only discuss optimization tips but even commonly missed opportunities that advertisers have no idea about This will help them the next time to target while building Amazon sponsored ad campaigns.
Opportunity #1: Do Avoid Underbidding
Many times, we come across under performing campaigns with low cost-per-click (CPC) bids (which is generally below $0.25, but this could vary by product category). By starting your campaign with a low bid as suggested by Amazon can limit your chance to have your ads shown to the shoppers. In other words, the lower the bid, the less likely the chances of you winning an auction. This implies that your ad won’t be served in an impression. A competitive bid can rather you help to secure an ad placement, which could lead to more impressions, clicks as well as sales of your product.
Just by setting a high bid doesn’t essentially mean that you’ll have to pay that price for every click. Whatever you pay is based on your bid and relevancy of your ads and keywords as compared to your competitors. Although a higher bid still has the possibility to give you a competitive advantage but do remember to never bid for a price which you’re not ready to pay for a click.
In below case:
The advertiser is getting a really good number of impressions but very few clicks which mean the ad is not at the top position of the 1st page. Hence, the advertiser should increase the bid up to the Amazon suggested bid. And test it for few days and then he/she should take the next step.
Opportunity #2: Be selective with your keywords
Once you start creating Amazon PPC campaigns, it is important to decide which keywords to target as it can impact the campaign performance. While selecting keywords do avoid the given below points:
If the numbers of keywords for your campaign are few then it would be limited to only those particular searches. You have to add all relevant keywords to your products to target your ads in a better way. Next, evaluate your keyword reporting metrics to find out which is actually performing the best. Now, you can optimize keyword performance based on this evaluation. You can start with something between 20 and 30 keywords.
At Amazon, the process starts with the customer and works in a different manner altogether. This implies prioritising a shopping experience for our customers that is helpful as well as relevant. The idea is to ensure that whenever a customer searches for something on Amazon.com, the search results does meet their expectations and even the advertising shown should be able to improve their shopping experience.
Blindly Copying keywords from other PPC campaigns:
Despite being a pay-per-click tool, shoppers actually come to Amazon to search for products and make purchases, which is different from how they use traditional search engines. Amazon searches in a different way, the focus is on product categories (e.g., “Home Appliances”), brands (e.g., “Philips”), or product characteristics (e.g., “leather”). The keywords added in the campaign should be based on what one can type into Amazon.com to find the product that they are looking for.
Opportunity #3: Don’t set a limited daily budget
By using the minimum daily budget could limit your campaign’s performance. When the budget is low, it could get easily spent in a few hours and eventually lead to losing customers who might come in later. This can be avoided by checking on your campaigns at the end of the day to make sure that the daily budget set has lasted throughout the day. You should also take a look at the average CPC and calculate the no of clicks your ad may make on a given day as per your daily budget. For example, if the ad’s average CPC is about $1 and you have set it a $20 daily budget, you could expect your ad to get about 20 clicks (20/1) on a given day.
We hope each of these points helps you to take the best corrective action for your PPC campaigns. Tell us your experience of advertising on Amazon and if these points did help you in improving your performance. For any doubts or queries mention it in the comments section below. Do not forget to subscribe to our newsletter and share it on Facebook, Twitter, Google+ and LinkedIn.