7 Best Practices for Amazon Sponsored Products PPC

October 5, 2020
Written by Jayce Broda
amazon ppc optimization

When Amazon first launched its Pay-Per-Click (PPC) advertising engine in 2012, third-party sellers on the platform were given a powerful tool to reach customers more efficiently. And in such a competitive eCommerce retail space, the only way Amazon sellers can be ahead of other businesses is by investing in a full-fledged PPC campaign. What better time to launch a campaign than now, when the average number of clicks increased by 46% and cost-per-click rates have significantly decreased? If you’re an entrepreneur hoping to launch your campaign in the future, you’ll need a fleshed out Amazon Sponsored Products PPC strategy to position yourself towards eCommerce success.

Of course, Amazon PPC campaigns don’t work to your advantage unless you know how to utilize them properly— customers are only enticed to buy products from the best ads on Amazon, so you have to ascertain that you launch effective campaigns. If you fail to yield results, you will end up losing time, money, and a customer base that will prefer your competitors over your business. 

At the same time, Amazon’s Performance Team works 24/7 to ensure that the Marketplace only has high-quality advertising materials. If you don’t strategize and plan well, your Amazon PPC campaign will not be very profitable for your business. 

Are you prepared to launch your Amazon PPC campaign? Allow us to help you formulate a game plan that will skyrocket your eCommerce sales to a whole new level and expand your customer reach in no time.

Strategy #1: Outline a PPC strategy that works for your business.

When you try launching an Amazon PPC campaign, the first thing that should be on your checklist is creating an outline of your PPC Strategy. This outline serves as the backbone of the campaign. Without a stellar PPC strategy outline, your campaign will be disorganized and less cost-effective. You don’t want this scenario to happen, especially if you’re a first-time seller on the Amazon platform. 

Within your PPC strategy outline, you must keep your structure consistent. For instance, you can group your campaigns using this template:

  • Brand
  • Product Category
  • Top-Selling Products
  • Other Related Keywords

And while each structure is different depending on a variety of factors (demand, industry, types of products, etc.), your ultimate end-goal would be to choose the right keywords and group your products accordingly. The best Amazon PPC Strategy is made by distributing your bids and calculating your outline carefully before launching your campaign.

Strategy #2: Learn the art of keyword research.

Since Amazon PPC campaigns function using an auction-style system, sellers with the highest bids can use these relevant keywords for their ads. Therefore, you would need to make keyword research a focal point to unleash the full potential of your PPC campaign early on. 

For one, you can try utilizing Amazon’s Keyword Testing feature. This tool is available for all Amazon advertisers to try out and determine which keywords have the best conversion rates for their products. We recommend testing between 25 and 50 keywords for each ad group and sorting them out based on profitability and relevance. 

Another good idea is to place higher bid prices for new keywords. Since new keywords won’t have any available history regarding its performance, the Amazon algorithm won’t have anything to factor in when displaying your product ads with these keywords. A significant increase in bid keywords would allow you to have first dibs on new impressions and clicks. As soon as you have essential data on these keywords, you can then place bids at a lower price and try to find the perfect level. 

Strategy #3: Learn how to use Amazon’s automated functions (but don’t overuse them).

The Amazon platform released an additional feature for sellers to launch campaigns instead of setting them up automatically. In essence, auto-campaigns relieve you of the headaches that come with outlining strategies, researching keywords, and bidding against other entrepreneurs. And while auto-campaigns are especially useful for beginners who have little idea how PPC campaigns work, overusing them is not lucrative for a new business. Here’s why.

You have to note that Amazon’s auto-campaign features do not analyze keywords based on how profitable or relevant they are. Heck, they don’t even analyze keywords at all! They only choose a variety of random, general keywords that are sometimes inappropriate for your campaign. Remember, your customers won’t see your product ads if you don’t understand how the PPC system works, and so a manual campaign is more beneficial to target the right keywords for your campaign.

On the other hand, Amazon’s automatic features can also be beneficial in specific ways. You can still run auto-campaigns for a few days or weeks, collect which keywords work best for your product, then use them for your manual campaigns. Auto-campaigns are better to collect relevant information about Amazon PPC but stop the campaign, so you don’t waste extra money.      

Strategy #4: Monitor and adjust your spending.

The most resourceful eCommerce entrepreneurs know that the game doesn’t stop when a PPC Campaign is launched. They understand that tracking and adjusting ad spend is crucial to ascertain if keywords lead to higher conversion rates or if they need to be changed. On Amazon Seller Central, you can determine which products perform better in an ad group.

By monitoring and adjusting your ad spend accordingly, you can drive customer clicks to your best products and increase your conversion rates in the process. You will also be able to identify how/where your ads should be placed. Overall, recalibrating your spending strategies from time to time will help improve your PPC campaign’s efficiency level.

Strategy #5: Make competitive research a focal point in your PPC preparation. 

Competitive research is beneficial for businesses to identify market gaps, troubleshoot any problems, and address any loopholes that could make product offerings stand out. Amazon Sponsored Products PPC is no exception.

One brilliant technique you can utilize when doing competitive research for your PPC campaigns is to identify keywords that work wonders for your competitors. Use these keywords for your campaigns and see if you make them better by matching other relevant keywords to your product ads.

Most Amazon sellers today avoid doing competitive research manually, as it can be stressful and time-consuming. Instead, they utilize several software programs that can track common keywords used within a specific industry. This way, you will have direct insights into the best possible keywords you can bid for and utilize for your campaign.

Strategy #6: Understand the importance of targeted long-tail keywords.  

Amazon entrepreneurs with experience in launching PPC campaigns understand that keywords need to be diversified to be used at an optimal level. This basic formula means utilizing both short-tail (one word) and long-tail (two to five words combined into a phrase) keywords. But did you know how critical long-tail keywords are for your PPC performance?

Long-tail keywords are, well, supposed to be longer than standard keywords by default. They provide advantages for multiple eCommerce businesses because they can minimize competition. By being more detailed, longer keywords should decrease the number of bidding companies for those keywords.   

On top of that, customers on the Amazon Marketplace also tend to know what they want. They can be very specific with their searches, so the right long-tail keywords will undoubtedly lead your customers to your page. 

Strategy #7: Strategize your usage of negative keywords.

For the uninitiated, negative keywords are a set of words used to ensure your ad doesn’t pop up on unwanted search queries. These keywords are primarily utilized, so advertisers don’t spend extra money on irrelevant ad placements and instead start focusing on suitable searches that lead to conversions.

There are two general types of negative keywords:

  • Exact negative keywords. This type of keywords will not show your product ads when they are entered in search results exactly. You can apply both short-tail and long-tail negative keywords for these searches.
  • General negative phrases. If a negative keyword belongs to a phrase, an ad won’t show on its search results entirely.

Learning how to use negative keywords will help keep your ad spend at a minimum and allow your PPC campaign to concentrate on ad placements that turn into sales.

A Final Word: Amazon Sponsored Products PPC works wonders when utilized the right way.

Many entrepreneurs on the Amazon platform have expressed stark interest in Amazon sponsored products PPC because it is an effective way to boost organic sales and be a step ahead of the competition. If you know how to set up PPC on Amazon and create a structured strategy for your business, your conversion rates will improve in no time. 

If you’re interested in hiring a professional Amazon team to take care of your PPC campaign, we at Seller Interactive can help you prepare for your launch. Schedule a free appointment with us today!

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