Amazon PPC is undoubtedly the best way to improve your sales on the platform, and it is here to stay. While the fundamentals of Amazon sponsored ads can help you create profitable campaigns, you need a few advanced strategies to take your business to the next level.
So, how do you extract as much revenue as you can from Amazon sponsored ads? We asked a few industry experts to reveal their strategies.
These are the strategies used by the veterans to hit the seven-figure mark.
Look Beyond Amazon With Sponsored Display Ads
Did you know you can remarket and target customers interested in your product (or similar ones) with Amazon PPC? Many sellers stick to using just Sponsored Products and Sponsored Brand ads. However, these campaigns only target customers who are actively browsing the Amazon marketplace.
What about everyone else? What about customers who have shown an interest in your product or a similar one?
Amazon Sponsored Display ads allow you to target customers even when they are not browsing Amazon. How does this help?
● Allows You to advertise your products to a larger audience
● Allows targeting based on customer interests
● It allows You to retarget potential customers on and off Amazon
Display ads are only available (for now) to professional sellers enrolled in the Amazon Brand Registry, vendors, and agencies.
Utilize Negative Targeting
You’ll be surprised to know how many sellers ignore negative keyword targeting when using automatic campaigns.
What is negative targeting?
When a keyword (or an ASIN if you are using product targeting) is marked negative, your sponsored ad will no longer be displayed when a customer uses that search term.
Why is this important?
When you are running amazon PPC campaigns, you are bound to run into keywords that are not relevant or perform poorly for your product. Essentially, they drain your ad budget without bringing in any revenue. When you mark those keywords as negative, you stop advertising for those keywords. This ensures that your ad budget is utilized by keywords that ensure returns.
In summary, it minimizes your ad spend and reduces the ACoS.
Harvest Keywords With Automatic Campaigns
Many industry veterans run automatic campaigns to discover long-tail keywords with great conversion rates. The idea is straightforward.
Automatic campaigns discover relevant keywords for a campaign based on its history and based on the listing. Amazon’s algorithm is constantly scouting for new ways to improve campaign performance, and this includes testing out new keywords.
Some of these keywords tend to be highly profitable. Move them to manual campaigns for further optimization.
Keep in mind that the same strategy works for product-targeted campaigns as well. Automatic campaigns are a great way to find profitable ASINs that you can target.
Execute the Long-Tail Keyword Bidding Strategy
Even the biggest sellers struggle to compete when launching a new ASIN in a new niche. It is much more difficult to get to page one when you are trying to compete with established brands and products. They have a head start – more reviews, better sales history, better organic ranking, and more!
The long-tail keyword strategy is incredibly useful in this exact situation. It is reckless to start bidding on highly-searched and highly-competitive keywords when you have no reviews or sales history. Customers are much more likely to prefer listings with tons of positive reviews. To make matters worse, the cost-per-click of these keywords is usually high.
So, what do you do?
Take long-tail keywords with less competition. The CPC is usually lower, and the customers who use detailed search terms usually have higher purchasing intent. However, while this strategy will reduce your ACoS, total impressions will likely drop.
Leverage Dynamic Bidding
There are 2 types of dynamic bidding strategies that will adjust your bids depending on the conversion probability. The bids can be increased or decreased by 100%, depending on the bidding strategy being used.
1. Dynamic bidding – down only: If you use this setting, Amazon can lower your bids by up to 100%. Your default bid is the highest possible bid. This is a great way to control your ad budget and maintain your target ACoS.
2. Dynamic Bidding – up and down: In this case, Amazon can lower your bid by up to 100%. Amazon also can increase the bid by up to 100% for top-of-page placements and by 50% for all other placements. This is the setting you should use when you want to target increased sales. It is not as ACoS efficient as ‘down only’ bidding.
3. Fixed bids: Amazon always uses your default bid. A good choice if you want to improve visibility and maximize impressions. However, fixed bidding is usually less cost-effective than the other two options.
Play Defense By Bidding On Your Brand Name
Your competitors will always look to play offense. So, to conquer your niche, you need a solid defense. That’s where this strategy comes into the picture.
You bid on your brand keywords. Sounds stupid?
Here’s why this is important, especially for private labels who are the market leaders in their niche. Your competitors will usually bid on your brand keyword. This means their listing will start showing up (as sponsored ads) when your loyal customers look for your products using your brand keyword.
Eventually, it will tempt them to try out the competitor’s offering. If they like it, you will lose a customer. Even if they don’t like it, you lose a sale. By bidding on your brand keywords, you ensure that your competitors do not eat into your market share and customer base.
Play Offensive By Bidding on Competitor Brand Keywords
The last trip was all about making sure you are protected from sellers who follow this strategy. There is a good reason why everyone tries to use this strategy – it is effective. So, if you have competitors with established brands, you should try to catch them by surprise.
Bid on their brand keywords to steal their market share and gain valuable customers. If your product is superior, then you will get life-long customers!
If they are playing on the defensive and driving up CPC prices, then you have to analyze your margins and make a judgment call. Either you try to compete with your competition, or you force them to spend money on sponsored ads while you back out and maintain your margins. That decision is up to you.
Target Your ASINs Using Product Targeting
If you have a few products that are not selling well, you can advertise them on your listings with higher demand. This will ensure that your underperforming products get enough visibility through your top ASINs.
This is a way to give your underperformers a slight boost. Keep these campaigns running for a couple of weeks and then assess their performance. If sales have picked up, then you can continue with the strategy.
However, if sales are still poor and if you are losing money, then it might be a better idea to stop the campaigns and evaluate other aspects of the underperforming listing. The problem may be an under-optimized listing or the problem might be the product itself!
Outsource and Automate Your Campaigns
Managing multiple PPC campaigns is a full-time job. That is why many veterans choose to outsource or automate a large chunk of their campaigns.
If you have managed campaigns, you’ll know many tasks are monotonous and routine. If these are the ones holding you back, then automating them is an option.
I recommend using SellerApp’s amazon PPC automation tool, which follows a rule-based automation system. What this means is that you set the parameters that the tool has to follow while accomplishing certain tasks. Since you set the rules, your targets and goals are kept as a priority.
If you have a large catalog and are struggling to hit your ACoS goals, you should consider hiring third-party amazon PPC experts. This will open up more time for you to focus on other aspects of your business while dedicated account managers deliver optimal results.
Tried Digital Marketing? It Works!
Looking beyond Amazon also means that you need to diversify your marketing efforts. Don’t stick to Amazon PPC. Explore the potential of social media marketing. Contact influencers to promote your products. Start a blog to drive traffic to your website and raise awareness about your products. There is plenty of stuff you can do online to promote your products and many of them won’t cost you a cent.