4 Do's and Don'ts When Using Amazon Product Ads

October 3, 2020
Written by Jayce Broda

Consumers' trust on Amazon skyrocketed when it hit the $1-trillion market value threshold in 2020. As a result, more manufacturers and retailers have joined the platform to take advantage of its growing market. 

Being a neophyte to the Amazon marketing niche may be overwhelming at first glance. Still, it's a secure way to generate revenue as long as you know how to utilize Amazon Product Ads.

So, what are Amazon Product Ads?

Amazon Product Ads are pay-per-click (PPC) ads that generate sales by increasing your brand's visibility on the Amazon platform. Since ads are billed according to the PPC model, advertisers need to submit a bid for their ads. Businesses can enjoy this exposure through the Amazon Ad System.   

As an advertiser, you usually have to take into account the Amazon CPC (cost-per-click). A CPC is what you pay every time a customer goes through your ad, and on average, it costs around $0.80 to $0.97 per click. 

If you want your first advertising PPC campaign to drive substantial traffic and boost sales, this article has listed down some do's and don'ts that can give you a headstart to the game. 

Do: Utilize the Amazon Advertising Console

The Amazon Advertising Console is a compelling learning resource made by Amazon professionals to kickstart your way into a PPC Campaign. Whether it's your first time placing Amazon product ads or you want to refresh your memory, the course will guide you into online advertising basics and help you navigate your way through the Amazon advertising platform. It will subsequently walk you through Amazon's different sponsored ad types, which will help you determine the best model for your marketing strategy. If you decide to complete the Console, Amazon even offers the possibility for you to obtain an official certificate. 

Many online sellers have praised the Console's modules for the in-depth but straightforward learning structure that makes it almost essential for any Amazon e-commerce business looking into Amazon product ads

Don't: Start By Depending Too Much on Auto-Campaigns.

Auto-campaigns on product ads can be suitable for beginners, but relying too much on them may minimize your Amazon PPC campaign's end potential, and here’s why.

An auto-campaign is essentially an advertising feature that allows Amazon to automatically display your product ads by analyzing the keywords on your product titles and descriptions. This feature is especially convenient for those who are just starting out with Amazon advertising, since keyword research and bidding is already taken care of.

However, depending  solely on auto-campaigns, is an entirely different subject. Auto-campaigns do not analyze keywords based on profitability and relevance, and Amazon tends to present ads using unrelated keywords. Since you don't control the keyword bidding process, Amazon equally bids on high-converting keywords, low-converting keywords, and completely irrelevant keywords, what would this lead to for the seller? Does this mean that the ad could flop, it means their product could end up on irrelevant pages? Just add what that means for the seller..

We instead recommend conducting test runs for both automatic and manual campaigns for Amazon, since you can get the best of both worlds. After all, manual campaigns allow sellers to identify and choose their keywords, resulting in product ads that target their desired audiences.

Do: Be Smart About Your PPC Campaign Structure.

This may sound like we're stating the obvious, but investing time, effort, and resources on a robust PPC Campaign structure pays off for businesses  every day.

PPC campaigns are built upon formulating a strategy that works to your long-term advantage, and these are based on your goals as an e-commerce seller. On Amazon, your basic goal should be to successfully match the best keywords to your products, which subsequently lets you reach your desired audience. 

As a beginner, being smart about your PPC strategy means carefully calculating your keyword bids, determining your target advertising cost of sale (ACoS), and adjusting your keywords based on their profitability. We recommend moving profitable keywords to  the top of your tier list, identifying negative keywords that don't generate many results, and optimizing any other Amazon CPC bids.

Don't: Make Rash Budget Changes to Your Product Ads.

We understand that beginners usually get a free pass for their PPC campaign mishaps. Still, we also see how many sellers over manage their campaigns by making impulsive budget decisions and making their situations worse. 

Making a budget change 2 to 3 days after launching your first PPC campaign does not help you understand the full extent of your ads' potential, and in turn, limits your understanding of how your product ads can be optimized.  

We recommend giving an Amazon PPC campaign at least 1 to 2 weeks before making any budget changes, to ensure that an adequate amount of data is available for your budget analysis. For manual PPC campaigns, it may even take a month before keyword optimization data shows up, so make sure to allow any relevant PPC data to mature.

Do: Read Through the Amazon Brand Guidelines. 

The Amazon Brand Guidelines are a set of rules created by Amazon for sellers who are looking to venture into Amazon product ads. As a newbie on PPC Campaigns, you'd definitely want to read through this document before starting.

The document outlines several rules that any Amazon PPC Campaign should follow, specifically for typeface and sizing, logo and imagery graphics, as well as technical specs. For instance, a seller is highly discouraged from including Amazon logos on any of their ads, nor are they allowed to promote any discounts without an Amazon legal review.

In general, this rule book allows Amazon to maintain a certain level of standard for any product ad that appears on their platform, so sellers should take a peek at it before launch, to avoid any issues later.

Don't: Randomize Your Product Titles and Ad Groups.

Now that you've finished reading through the Amazon Brand Guidelines, it's time to focus on your product ads.

How a seller creates product titles and places products in ad groups can be a determining factor to a PPC Campaign's success. This process can take a while to finish, as every product title and ad group should be carefully curated depending on the seller's goals.  Random selections can be detrimental to analyzing a campaign's performance later on. Imagine how confusing and time-consuming it can be for you, especially if you're just a beginner. 

This train of thought also applies to how certain businesses launch campaigns using different ad types, with different targeting options and keywords. we simply recommend PPC beginners to take the time and figure out the best titles and ad groups for your products, so you simplify your performance analysis and potentially maximize your returns.

Do: Focus Your Efforts on Keyword Research

As previously mentioned in this article, a smart way to unleash the full potential of your PPC campaign is to carefully calculate keyword bids. This means doing research on which keywords best target the products that you plan to sell and advertise on the Amazon platform.

To ensure that your ACoS remains at a manageable level while increasing your sales growth potential, we encourage you to take advantage of Amazon's keyword testing feature. The test allows you to determine which keywords have the best product conversion sales, and the ideal PPC strategy is to test at least 50 keywords for a single ad group.

Another smart tactic would be to test some keywords that don't necessarily match your product types. Most Amazon PPC businesses focus on bidding for either general high-volume keywords or the exact keywords to their products, but this may not always be the best route. Experimenting with other keywords can be a stepping stone to gain unprecedented traffic for your ads for beginners. 

Don't: Overspend on Expensive, High-Volume Keywords.

The most expensive keywords on the Amazon ad platform may look like they're the go-to options for a PPC Campaign to flourish, but it's not always the case.

Some Amazon businesses have had this mindset for some time and end up having a less-than-satisfactory PPC campaign because they realize that "expensive" doesn't automatically equate to "efficient." This approach is a sign of poor keyword research on a manual campaign that all PPC neophytes should strive to avoid.

Instead of using only expensive keywords for your campaign, we recommend testing out different keywords that are most relevant to your products or try different match types. You may still attempt to test a few expensive keywords from time to time, and then adjust accordingly depending on their performance. If you see 15 clicks and zero conversions, it might be time to reassess your keyword bidding strategy.

Our Final Verdict

Placing Amazon product ads for the first time can be daunting, particularly because the platform can be difficult to navigate. However, what really sets a PPC Campaign apart from others is the seller's ability to create a strategy before and during a campaign's launch.

Striving to be the cream of the crop on your first attempt at a campaign may be impossible, but at least these do's and don'ts might help get you on the right track.

If you're looking into placing product ads on Amazon and seeking assistance from a team of reputable Amazon PPC specialists, we at Seller Interactive can help you out. You may schedule a call with us by sending an email to [email protected]. Book an appointment today!

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