It is essential to review PPC campaigns frequently to ensure that you stay just one step ahead ever-growing level of competition. How do you approach doing this? Find out more in our blog.
Amazon’s advertising business has experienced incredible growth in recent years as more people search for goods on Amazon and companies of all sizes have been turning to digital marketing.
Amazon Advertising services have seen an increase of 87.5 percent year-over-year1 The key factor in the success of this is Amazon’s PPC.
If a PPC campaign is well-managed and optimized properly it will significantly increase the visibility of your product and increase sales, as well as organic sales.
Therefore, due to its importance, it is essential to review PPC campaigns regularly to test assumptions, maximize your advertising budget and remain at the forefront of ever-growing competitors.
What are the best ways to do this? Here are some strategies and steps to aid you.
1. Re-evaluate your desired RoAS/ACoS
The RoAS/ACoS you choose to target is the center of your PPC choices. It’s crucial to ensure profitability but it also sets limits on the things you can do.
You can give yourself some flexibility if you are aware of your ‘break-even ACoS. This is the moment at which you can either make or lose money through advertising.
But do you be in any way able to influence ACoS as your ads are making money or they aren’t? This is how you figure it out.
Make sure you know your Customer’s Lifetime Value (CLV)
Along with altering the bid allocations you make and making sure you bid to get the best results and more on that later There is a way to make changes to your break-even ACoS when you are aware of the customer’s lifetime value (CLV).
Your ACoS/RoAS goals should be analyzed to make sure they are in line with the amount that a customer makes for you.
Be sure to check the timeframe you used for the CLV calculations. A longer timeframe is ideal, however too long of a timeframe could result in a catastrophe.
Consider the places where you could make use of CLV and even break-even ACoS
Understanding your break-even ACoS governed by CLV lets you beat the competition by increasing bids for products that perform well. Be sure to use this to its fullest.
You will require tools for analytics to do this and you should check your analytics often. The frequency of review will depend on the mix of your products however, at least every quarter is recommended.
2. Make sure you’ve identified your most effective keyword
From a business perspective, It is important to make sure you’re looking for the most effective terms to search for when you conduct your audit. They fall into two major groups:
- Search terms that have a high conversion rate: High-converting Keywords can optimize your advertising budget to make the most of where and when you put ads.
- Search terms with low cost as long as they can also provide an acceptable efficiency, these keywords allow you to achieve the results you want at the most affordable price.
The key terms to search for in your search are a combination of high-converting and low-cost terms. You might think they occur infrequently but they occur more frequently than you imagine.
Improve your search results
You must ensure that you have a methodical selection and acquaintance with your most relevant terms for search, which is search term optimization.
Make sure you have control loops
In the context of search term optimization, keywords should be incorporated in an exact match campaign. Make sure they’ve been added to the negative keyword list within your phrase and broad match campaigns.
This “isolates” the keyword, and guarantees that the next time a prospective customer searches for the term that the correct campaign will consider it.
3. Examine your use of various ad types
Amazon offers a wide range of advertising formats. To use Amazon PPC, there are Sponsored Brands, Sponsored Products, and Sponsored Display ads as well as a variety of targeting-specific and creative variations within each.
A thorough Amazon PPC audit will ensure that you’re using the correct advertisement type for your function.
Sponsored Brand and Sponsored Product advertisements use ASINs or keywords to attract the right audience.
Advertisements for Sponsored Displays primarily use audience demographics information to target prospective and repeat customers based on their purchasing behavior.
Check your funnel
Your funnel is likely to be laid out like this:
- Sponsored Displays for awareness at the top of the funnel and targeting.
- Sponsored Brands can be ideal for mid-funnel brand awareness.
- Ads for sponsored products typically play a role at the bottom of the funnel.
However, none of these are absolute guidelines – be sure to understand the reason you are employing these rules.
Try to balance your advertisements
Always review the range of your advertising and determine if Amazon has altered its options for targeting. It is important to ensure that using the whole range of options for advertising to maximize your exposure space on Amazon to increase the visibility of your business.
4. Reassess your bid allocations
The main goal of your audit is to verify that you’ve changed your bidding strategy in line with the search term optimization efforts.
Do your research and evaluate the effectiveness of your campaigns.
In order to implement search-term optimization, you will require at minimum two campaigns:
- A research and education campaign
- A performance-optimized campaign.
Based on your specific plan You must keep an eye on all research-focused initiatives to make sure they provide the correct results that you can incorporate into the optimization of performance.
You test if you have a combination of broad, auto, or phrase-match campaigns that feed optimization data to make the exact match campaign.
Check your balance
The audit will verify whether you are in the correct balance when you allocate your daily budget to match types to search manual terms. Examples:
- Research match types like Auto, Broad, Phrase
- Matching types for performance, like Exact or ASIN and ASIN
- Dayparting for distribution or scheduling your daily budget for ads on Amazon for specific periods during the day.
Be sure to spend your budget
It is best to spend the daily budget allocated to you.
- If you are spending too much, you may be missing out on sales opportunities that are incremental.
- If you’re spending your money on the wrong product You could be not maximizing your opportunities.
- One of the main reasons to use dayparting is that it helps ensure that you don’t overspend your budget for the day.
Find out which products are performing poorly and which are overperforming.
If you find over-performing products, you could focus on boosting the effectiveness of your budget, and take the same approach for products that are not performing.
It doesn’t mean you shouldn’t take care of the other PPC campaigns. It’s just something to think about when you decide what products to promote.
Make sure you are aware of your bid floors
Check if your bids could be lower to determine the actual floor for every keyword. Are you manually altering those bids to ensure that you’re reducing your expenses?
PPC tools that can perform features like dayparting or AI-driven bid calculation can help you extend your budget more.
Be sure to stay focused on aligned goals for both your business and PPC objectives
Conducting an audit of your PPC campaigns should not be overlooked and spending money on the wrong channel and not utilizing opportunities isn’t an acceptable or feasible option. However, this isn’t so simple when the world of e-commerce changes constantly.
PPC campaigns generally carry “baggage” from the change in individuals or strategies. Also, you must be aware of the constant advancements on your Amazon platform.
Large-scale campaigns are often heavy and complicated. Advanced and essential functions will always be at risk of being implemented in a piecemeal fashion and not properly configured.
Achieving alignment between your business and PPC objectives is based on knowing your data. As Amazon creates more data accessible, it is crucial to utilize analytical audit tools that can assist you in understanding that data by automating.
Analytics tools link information from traditional silos to offer comprehensive audit capabilities. Advanced data analyses, often made using AI or machine learning, can uncover the most relevant information for all your campaigns.