How to Start a Paid Campaign on Amazon Like a Pro
Now that we are done with listing our products, and optimizing them I’m sure you are doing great with the sales. To boost your sales lets dive in, to a new aspect of promoting your products on Amazon, “THE PPC “. Before we get into when, how, and why of PPC lets check “What is PPC.”
AMAZON PAY PER CLICK
The Amazon Pay Per Click is basically an advertising method that helps you to promote your product. It is an easy method to boost your sale anytime on Amazon. Here, you simply choose the product you want to advertise, assign keywords, and then BID!
If you decide to go for a Sponsored ad with Amazon make sure you have the BUY BOX.
(It’s a compulsion).
Once, you enter the desired product, Amazon returns the product that is most deemed to satisfy users’ desire, which is organic results. Also, displayed are “Paid Ads”, sometimes below the organic results and, sometimes in the right column.
Is this the right time?
Now, once we have decided to go for sponsored ads the next big question is, “Is it the right time to go for Paid ads?”
Well, the answer is YES. Always.
You can choose to go for the sponsored ad as soon as you are done with the listing on Amazon. There is no hard and fast rule about when to go for Sponsored ads on Amazon. You can choose to go for a paid ad as soon as the product goes live. Even if you don’t have any reviews yet, paid ads can help boost sales.
You can run an auto campaign where Amazon suggests you with some keywords to target and potential sales.
Let Us Begin
Before we get into the details of Paid Campaigns, there are a few important terms that we must know:
- Advertising Cost of Sales: The percentage of recognised sales spent on advertising.
This is calculated by dividing the attributed sales to the money spent on advertising.
For example, if we make a sale of $40 and spend $4 for advertisement then the advertising cost of sale is 10%.
- Attributed Sales: The total sales generated within a week of clicks on your ads represent your Attributed Sales.
- Impressions: Number of times your ad was displayed.
- Clicks: Number of times your ad was clicked.
- Advertising Cost of Sales: The percentage of recognised sales spent on advertising.
- Now, since we are done with the basic terms and introduction, we move to arranging YOUR AMAZON SPONSORED ADS.
It’s as easy as a three-step procedure:
- Launch the Campaign
- Generating keywords
Launch the Campaign
- To begin with, come up with a campaign name. You are free to decide what name you want to use. For example, you can use Spring Special, if you intend to start a campaign for merchandises that sell during spring.
- Set your budget on a daily basis. Even if you intend to run the campaign for a long term, make sure you have an average daily budget, to make sure you do not drain your pennies.
- These campaigns are generally time bound. Especially, intended for a specific season or a specific festival. So, decide on the commencement and the concluding dates for the campaign.
- Once the campaign launch dates and other details are decided, we need to decide on how we want to run our campaign.
Automatic Campaign: Just enter the campaign-related details like your budget, start date, and campaign name, and let Amazon take the pains. Amazon will run a campaign on your behalf, under your budget after crawling through your listings. Amazon decides the keywords and match-types to bid on, based on your listing information on Amazon.
Manual Campaign: Put in a little effort. Manually upload the Keyword list that you made while researching or through an Automatic campaign. Structure your ads; however, you want, with ad groups for a set of keywords.
This lets you decide how broad or narrow your customers can search for a targeted keyword.
Once we launch the automatic targeting campaign, we generate a list of keywords from the results. These keywords can broadly be categorised in three different ways:
- Exact Match Keyword: If the keyword is grouped under exact match, the ad is displayed only when the exact match is found. That is, if [Boys Casual Shirt] is the keyword, then your ad is displayed only when the buyer searches for a boy’s casual shirt.
- Phrase Match Keyword: Considering the above example, if we want to expand our search vicinity we go for this kind of match. Here, if buyer searches for Boys Casual Shirt your ad will be displayed then also and also if the user searches for Girls Casual Shirt.
- Broad Match Keyword: Here all the relevant searches are displayed. Here’s how this works:
Now we have the data that works. So the final and never-ending process of optimisation begins. Since running campaign on Amazon is very straightforward, the process of optimisation is also very easy. For optimization we must consider the following points:
- Filter Keywords: Make sure you keep removing the Keywords that don’t sell. Or, better to say promote keywords that generate sales and conversions. DO NOT spend for keywords that do not reflect your sales.
When you know what products sell, simply invest in promoting them more. Also, analyze why your other products in the same domain cannot generate expected sales.
- Negative Keywords: For remotely relevant ads this would work. Like, if you bid for “Shirts”, then your ad may be shown for “t-shirts”, “casual shirts”, and others in the related domain. That only reflects irrelevant search and paying for the clicks. To avoid this situation use Negative Keyword that blocks the irrelevant keywords and makes your ad more precise.Using PHRASE match keyword would be a better option, if you want to go for a broader audience but it does not helps much.
It may boost sales but won’t reflect in gains.
- New Keywords: Find new keywords that may reflect sales. The trick is to invest a little higher on these keywords and once Amazon has built a history for these keywords lower your bid and enjoy the sales.
- Bid Optimisation: So, the question is what is the ideal budget?
And the very obvious answer is it depends. Your budget is guided by advertising cost of sales, aka ACoS. To calculate what amount works, you need to know the p products selling price, cost of goods sold, FBA fees, and other charges.
ACoS is calculated simply by subtracting all the charges and costs from the selling price of the product.
If you want to check your ACoS you can find it in the Advertising Tab of Keywords Tab.
A few tips to keep your finances under control:
- Keep a track on product performance based on your PPC. For similar products are registered under one ad group. If your product is not performing well, STEP1. REMOVE THE PAID CAMPAIGN. STEP2. ANALYSE THE REASON FOR YOUR PRODUCT NOT ` PERFORMING
- Make sure average cost of sale for the sponsored product is 5% to 15%. The result is 100% for the organic search.
- Bid on several keywords and then move ahead with the most performing bids.
- Do not make changes or adjustments to the campaign for at least a week.
- DO NOT FUSS! Patience is the key here. If you find no results for a few days, in the beginning, wait patiently. Amazon takes time to report conversions.
Amazon cares for the sellers as much as it does for the buyers. Amazon PPC is a medium through which, Amazon boosts the morale of new sellers, and helps them invest in the right direction without draining their money. Amazon knows its brand value and understands the sellers that intend to join hands EXPECT PROFITS. And with its various schemes, Amazon has been serving the purpose over the time.
- We at Designomate are happy to help you with Amazon marketing and Promotion consulting services. Contact Us
We have created a detailed guide to get you started with Amazon and all you need to succeed on Amazon
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