Amazon PPC Campaign: Tips and Tricks on How to Measure Its Performance

February 2, 2022
Written by Jayce Broda
amazon ppc campaign

An Amazon PPC campaign can get pretty challenging to plan, implement, and maintain if you do other Amazon-related tasks. The ordeal to optimize PPC campaigns in Amazon can be daunting, but with enough resources, it can be feasible. You may use Amazon's PPC campaign strategy to set your advertisement in place and improve your current campaigns.

Not all Amazon sellers have all the energy and time in the world to learn, strategize, set up, and optimize PPC campaigns in Amazon. So how do you actually do Amazon PPC campaign management? Still at a loss with all the technical terms in Amazon PPC campaign strategy? Fret no more because this article will give you an overview of how to measure your Amazon PPC, a part of managing your Amazon PPC campaigns. 

Amazon mobile on cart

What is the Amazon PPC Campaign?

Amazon PPC is the advertising platform of Amazon, giving sellers and advertisers a chance to increase their brand awareness, improve organic ranking, reach audiences, and reach profit goals. When executed perfectly, it will outperform competitors in the same product type. 

Amazon PPC campaigns are categorized into Sponsored Product, Sponsored Brand, and Sponsored Display ads. Sponsored Products are ads that contain a product listing. On the other hand, Sponsored Brands are ads that showcase a whole brand and three products that it is currently selling. Shoppers can find these ad types in product pages and the Search Results page in Amazon when a shopper inputs a keyword. Meanwhile, Sponsored Display ads are product listings that audiences can see on and off Amazon.

Amazon PPC stands for Pay-Per-Click. True to its name, Amazon charges the advertiser or seller the bid value declared when a shopper clicks an ad. Now, for the shopper to hit that Buy Box after clicking the ad, the product listing should capture what the shopper is looking for - exquisite graphics, excellent reviews, and effective product description. Because online selling does not let the customers see and feel the product in person, they should be enticed enough by how product listings are laid out.

When choosing which type of Amazon PPC ads to use, keep in mind that you will have to consolidate all the factors you are considering and the goals you want to achieve. The factors include the nature of your products, the demographics of your potential buyers, the season of the year, the budget you can allocate, and many others. In addition, the goals may refer simply to generating sales and profit or to producing brand recognition. 

Whatever your factors and goals are, try listing them down at first. This action can give you a clear idea of which type of PPC campaign you should go for. At this point, you may do this all by yourself, or you may ask for a professional opinion from PPC specialists from your Amazon sponsored ads management.

PPC Campaign - Setting Up

Now that you have chosen your PPC campaign, you need to set it up. Here is a simplified list of steps you can take in setting up:

  1. Go to your Amazon Seller Central account, hover over Advertising. There, you will see Campaign Manager. Click on it to customize your PPC campaign.
  2. You will have to fill up the Campaign name, Average daily budget, Start and End Dates, and Targeting Type (automatic or manual).
  3. Next is to input the ad group name. You can have multiple ad groups in a single campaign.
  4. Then, choose the product to advertise for this campaign. 
  5. After that, you will have to declare your bid
  6. The next step is to choose the keywords. You may either check the suggested keywords by Amazon or provide your own keywords.
  7. Click Save and Finish.

... And ta-da! That's how you set up your PPC campaign. Simple and easy, right? Keep in mind that it takes an hour before new campaigns start being visible in searches.

With setting up your PPC campaign, you will have to see to it that they are performing well and are actually hitting your goals. That's the main reason why you put up advertising, right? Well, Amazon PPC management can be a little tricky. So, let us look at the next section of this article. 

Amazon logo on laptop screen

Key Performance Indicators for Your Amazon PPC Campaign

Sales

Like its definition, sales refer to the total amount of money you generate while running a PPC campaign. However, take note that sales do not refer to revenue because those are not synonymous with each other.

Spend

Spend means the amount of money you have paid Amazon for a certain keyword or ad campaign. Therefore, ad spend is vital in measuring whether you are actually profiting from your PPC campaign after Sales are taken into account.

ACoS (Advertising Cost of Spend)

Arguably the most important key metric in Amazon PPC is ACoS. ACoS refers to the amount of money spent per $1 revenue. In calculations, it is represented as: (ad spend ÷ ad revenue) x 100. So, for example, if you spent $0.1 in advertising to gain $1 of revenue, your ACoS is 10%.

Impressions

This data is reported to you by Amazon and is used to calculate CTR, also a valuable key metric in assessing Amazon PPC campaigns. The number of impressions is how often your ad is shown to the shoppers when they search for a keyword. Generally, the higher the impression, the better.

CPC (Cost-Per-Click)

CPC refers to the amount of money the advertiser pays to Amazon every time an ad is clicked using a certain keyword. The general rule of thumb is that the more popular the keyword, the higher the CPC due to the competitiveness of bids declared by advertisers of the same keyword. 

Just to clarify, bids are not synonymous with CPC. Advertisers declare bids as the maximum amount of money they can spend in order to get into a better placement on the Search Results page. 

CTR (Click-Thru Rate)

CTR is the metric for the correlation between clicks and impressions. For example, this may say how appealing your product listing or PPC ads are to the shoppers. CTR can be calculated using (number of clicks ÷ number of impressions) x 100.

Amazon PPC Management

Shifting between automatic and manual targeting.

Both manual and automated targeting of keywords have their pros and cons, and you may find one better than the other. For example, an automatic campaign is a great option for beginners in Amazon PPC campaigns as it lets Amazon take care of everything related to keywords. On the other hand, manual targeting gives more customization when it comes to keywords. Furthermore, shifting from automatic to manual targeting is common to see which keywords and negative ones perform well.

Regularly check how your PPC campaigns are performing.

See to it that you visit your Campaign Manager at least once every week to check which keywords are costing you the most and the ones driving in a lot of sales.You have to factor in the task of monitoring the important key metrics shown above. Important calculations may be needed depending on which techniques you use. 

Keywords that generate a lot of sales using strong impressions are generally good. If the conversion rate is too low and the ACoS is too high, even higher than your breaking point ACoS, that's the sign that you should turn off the keyword.

Master the art of keyword research

There is nothing wrong with knowing more. And in the case of Amazon PPC, keyword research is the solution to excellent execution. Knowing all the four types of keywords - broad, phrase, exact, and negative - you will be able to harness the reach of your ads.

Bids vs. CPC

One of the reasons advertisers get shocked with how much they are spending with their ads is that they forgot to adjust some settings. If your bid is significantly higher than the CPC and your sales are not doing relatively well, yielding you a high ACoS, maybe that is the time to adjust the bids to a lower amount. 

Apply actions from data-reading

What's the use of reading the performance of your PPC campaign if you will follow the appropriate strategy, right? Different methods that are proven to be effective have been used. Like above, lowering the bids by setting up a target ACoS is an excellent way to save money on PPC. You will have to think about your profit margin and hitting your goals.

Amazon webpage on laptop with credit card

Final Thoughts

The days of you trying to figure out things related to Amazon PPC campaigns are over. It is not too late to optimize your Amazon advertising campaigns. It would be best if you had a partner with an excellent track record in PPC management, and Seller Interactive is the right choice for you. Seller Interactive has been handling multiple Amazon PPC accounts with its teams of qualified Amazon PPC specialists. The reviews all say for themselves. 

Excited to take your PPC campaign to the next level? Or do you simply want to know more? Go ahead and send us an email at [email protected]!

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