PPC Advertising is a powerful technique for retailers to increase traffic and sales on the Amazon marketplace. The premise is simple: when running a PPC campaign on Amazon, sellers can target certain items and phrases, and they only have to pay Amazon whenever a user clicks on their advertisement. Sellers may reach millions of prospective customers and increase sales of their items by making use of Amazon’s enormous customer base and unmatched targeting capabilities.
However, we have some bad news for sellers who are dreaming of instant riches through one-time PPC campaigns: starting an Amazon PPC campaign alone won’t guarantee success. Optimizing your campaigns for greater performance is crucial if you want to maximize the impact of your advertising budget.
Let us show you the advantages of optimizing your Amazon PPC ads and offer recommendations and tactics for using the world’s biggest E-Commerce platform to your advantage.
Understanding Amazon PPC Metrics
Understanding the key performance indicators of your advertising efforts as an Amazon seller is crucial for success on the site. Here are a few of the most crucial PPC metrics for Amazon:
1. ACoS (Advertising Cost of Sales)
ACoS is a crucial indicator of the success of your advertising operations. It shows the advertising spend (budget) that is linked with the sales. The formula for calculating your ACoS is very simple:
ACoS = Total Ad budget/Total sales generated through ads x 100
A lower ACoS is typically preferable since it shows that you are making more sales with each dollar you spend on advertising. On the other side, a high ACoS may be a sign that your campaigns are not successfully focusing on the people you want to reach or that your bids are excessive.
Impressions are the total number of times customers have seen your advertisement on the Amazon marketplace. This number is significant since it gauges your advertisement’s exposure and prospective campaign reach. In general, more impressions mean that your ad is being seen by a bigger audience, thus the more impressions your ad gets, the better.
Clicks are, quite literally, the number of times people click on your advertisement after seeing it on the Amazon platform, as simple as that. Knowing the number of clicks tells a seller how well their ad is doing and how well their targeting and ad language are working with the target audience. A larger percentage of clicks shows that the advertisement is successfully attracting the interest of your target market.
4. CTR (Click-Through Rate)
CTR is the proportion of customers who click on your advertisement after viewing it. This indicator assesses how well your advertisement succeeded in generating consumer interest in and involvement with your brand. Generally speaking, a higher CTR shows that your advertisement is more enticing and relevant to your target demographic.
5. Total Spend
Total spend really is the total money (or budget) that you spend on advertisement campaigns. This indicator is critical since it calculates THE most important aspects of a business: the cost of your advertising overall as well as the investment you have made in your campaigns. Sellers should allocate their budget more wisely and optimize their marketing campaigns by having a clear understanding of the entire cost.
6. Overall Sales
The entire number of sales that were produced as a result of your marketing efforts is referred to as overall sales. This is a crucial metric to keep an eye on, since it assesses how well your marketing initiatives are generating income for your company. Increased total sales show that your efforts are successfully attracting and converting your target market.
7. Conversion Rate
The percentage of clients who buy from you after clicking on your advertisement is known as the conversion rate. This indicator captures the outcome of your advertising campaigns, which is to increase sales of your goods. A greater conversion rate shows that your advertising is successfully persuading consumers to buy your goods.
It is very important to comprehend and track these critical indicators for an Amazon PPC advertising campaign to be successful. By analyzing these metrics and making informed decisions about campaign optimization, you can improve the effectiveness of your campaigns and drive more sales for your business.
How to Optimize PPC Campaigns on Amazon?
PPC campaign optimization on Amazon is a lengthy process, which requires you to take into account many factors and variables and use that insight to make the PPC campaign more effective. Here is how you do it:
- At first, you’ll need to download your advertising report. Start by logging into your Amazon Seller Central account.
- Under the ‘Reports’ drop-down menu, select ‘Advertising Reports’.
- On the next window, click on the yellow ‘’Create report’ button on the left.
- Provide any name you want to give this report in the ‘Name’ section under the ‘Reporting settings’ menu. You may also send this report directly to an email by providing an address in the ‘Recipients’ section, and you can also tweak other settings such as report period (the timeframe you want the report to encompass). When you are satisfied with the settings, press the ‘Run report’ button near the top-right of this screen.
- The next screen will show a ‘Processing’ status for some time, so just refresh after a while until you see a black icon under the ‘Download’ section on the right-hand side. When that icon appears, click on it to generate your advertising report in MS Excel format.
With Advertising report generation taken care of, let’s head over to the real deal: optimization of PPC campaign through the campaign manager.
- From the Seller Central account, hover the cursor over the ‘Advertising’ menu and select ‘Campaign Manager’.
- We would want to optimize the campaigns that are currently active. Go over to the ‘Filter by’ menu and click on ‘Active status’.
- Under the ‘All’ menu that now appears, select ‘Enabled’ and then click on the blue ‘Apply’ button.
- While you can optimize any active PPC campaign, it is generally a better idea to optimize campaigns with a higher ACoS. You can easily figure that out by sorting all campaigns with respect to ACoS in the campaign screen. Once you have decided which campaign you want to optimize, simply click on it or open it in a new tab.
- You can see all the different metrics regarding that particular ad campaign on this screen. Proceed to click on the ‘Campaign settings’ option on the left-hand side screen.
- Head over to the ‘Campaign bidding strategy’ option. There are 3-4 types of bidding strategies you can utilize for your ad campaign. If your campaign has a higher ACoS, then you clearly need to change things up as the current strategy doesn’t seem to be working. Try out a new bidding strategy among the available options (Down, Up & Down, Fixed, and Rule-based bidding). Check the performance of the new strategy for 2-3 days to see if it improves upon total impressions, CTR, and conversion rate or not. If yes, then stick with it, if not, then switch things once again.
- Another way to give your struggling ad campaign a boost is through ‘Adjust bids by placement’. This option is found directly below the ‘Campaign bidding strategy’ option. You can increase your bids by a certain percentage (through the up and down sliders) to increase your campaign’s chances of appearing on top of the Amazon search page, or the top of Amazon product pages for a short while.
This is how you can optimize your PPC campaign through campaign settings. Now, let us tell you how you can optimize an ad campaign by analyzing keywords:
- Head back to the Campaign screen. Click on the ‘Ad group’ option on the left-hand side menu, and then the number under the ‘Total targets’ option.
- The next screen shows you the number of active keywords in the campaign. It is generally recommended that an ad campaign only contain 10-15 keywords in it, because it is not possible to get orders for each keyword, and some of the keywords might cost you extra spend. The lower number of keywords are easy to manage and analyze on a daily basis.
- For negative targeting on a keyword, choose a keyword that has been classified as ‘Broad’ on the ‘Match type’. These types of keywords can also cause irrelevant customers to view your product who are looking for something else entirely. Negative targeting will help eliminate some of those possibilities, and focus your keyword on finding the target audience only.
- In the ‘Ad group’ screen, select ‘Search terms’ on the left-hand side menu. This will show you the search terms that people have used to land on your product listing. Find out search terms that are not related to your product, and copy them.
- Now click on the ‘Negative targeting’ option, and hit the blue ‘Add negative keywords’ button.
- Paste or write down the keyword you want to eliminate from being searched to view your product listing, press ‘Add keywords’ button, and then click on the ‘Save’ button to say goodbye to this keyword you do not want people to be searching you with.
Although there are several other ways of optimizing a PPC campaign, switching between bidding strategies, analyzing keywords, and negative targeting are some of the most effective. These methods provide sellers with a great way of optimizing their ad campaigns in a way where they are able to generate more sales with less ad spend.
Your Pay Per Click campaigns must be optimized if you want to run successful campaigns on Amazon. You may increase the efficiency and overall appeal of your commercials and increase sales for your products by employing techniques like improving your targeting and ad language, keeping track of campaign performance, and making sure your campaigns are well-structured and organized.
You can also advance your Amazon PPC advertising and succeed even more on the platform by utilizing cutting-edge strategies like targeting particular audience segments, utilizing Amazon’s algorithm, scaling successful campaigns, and maximizing your ROI.
Amazon Pay Per Click advertising provides businesses with a potent potential to reach a sizable and interested audience and increase sales of their goods, and every seller should optimize their PPC campaigns with proven and unique strategies.
Don’t forget to leave your thoughts and suggestions in the below comment section. Bizistech is a leading Amazon PPC management services provider company in USA. Contact us for any personal query and get an instant quote!