Amazon has created a wonderful space for establishing a substantial business. If your selling processes are proper on Amazon, it can get you the greatest return on investment. With a little knowledge of how Amazon works, you can take your business from rags to top.
However, selling on Amazon is not an easy task. Ever-increasing competition has affected the market heavily. No matter what product you sell, outranking your competition is a must. For this, the surest way is Amazon PPC advertising.
PPC makes you stand out from the competitors and increases your products’ visibility. It is a great way to increase positive reviews and generate more sales.
But it takes a decent amount of time to master the art of structuring a successful PPC campaign. When your business scales up, you need to manage a massive set of ad campaigns.
Amazon agency like Olifant Digital has collected all that you need to learn about structuring your PPC campaign.
How to Structure Amazon PPC Campaign?
Before we dive into the detailed structuring of PPC campaigns, let’s have a look at general definitions and terms.
1. Automatic Campaign:
As the name shows, you do a little in an automatic campaign. Amazon itself picks out keywords from the title and description of the product. There’s not much need for campaign management and keyword research.
However, since product ad targeting is not much on-point, it costs a lot. It is recommended to bid low on automatic campaigns because of non-converting clicks.
You can leverage it best by identifying high-performing keywords and use them as a broad match in a manual campaign.
2. Manual Campaign:
You need to invest efforts in keyword research and bidding in a manual campaign. However, it drives more sales because of precise ad targeting.
You can create one or more ad groups in a campaign containing related ads and keywords. The keyword you put in for an ad group will target your ads to the customers.
There are multiple groups based on each match type’s benefits- broad, phrase, and exact.
3. Match Types:
- Broad Match:
In broad match type, your ad appears for your keyword and its close variants. It is mainly used to expand the reach of your campaign.
- Phrase Match:
Phrase match type shows your ad when someone searches for your exact keyword. It also shows up when other words follow or precede your keyword.
It is a little more targeting than a broad match while reaching a wider audience.
- Exact Match:
With exact match type, your ad appears when a customer’s search query matches your exact keyword. It is a highly restrictive method, targeting a specific set of audiences.
With exact match type, the keyword is highly relevant to customers’ search terms. Thus, bid higher for your keyword.
4. Negative Keyword:
Negative keywords are those that prevent your ad from displaying whenever a customer uses them. They help you reduce the cost of your advertisement and increase your profit.
You can search for non-performing keywords from your search term report and convert them into negative keywords. Save money by not showing your ad on irrelevant keywords.
Steps to Structure Your PPC Campaign
You can set up various campaigns for a product (ASIN)-Automatic, Manual, or both.
- Set up two campaigns for each product; one automatic campaign and one manual campaign.
- First, set up your automatic campaign. Let it run for around two weeks.
- Collect all sorts of data these days. Download your search term report and analyze it to find out your high-performing keywords.
- Using these keywords, set up a manual campaign.
- Create three separate ad groups for each keyword match type-broad match, phrase match, and exact match.
- Decide the duration and budget for your automatic and manual campaigns. For the manual campaign, set daily bid as well. Set it the lowest Amazon offers and customize accordingly.
Amazon Keyword Research
There are multiple keyword research tools available, such as Sonar, Seller prime. Use them to find out the relevant keyword for your product search. Just type in your keyword, and it will show you a list of relevant keywords with their search volume ratio. Choose the one with the highest search volume ratio.
Go through your search term report to find out long-tail keywords. Long-tail keywords usually indicate specific search intent. Thus, they help you narrow down your target audience further. The competition is little for long-tail keywords, so their CPC cost is decreased while increasing your conversion rate.
After 4 to 6 weeks of observation, it becomes certain which keyword is generating profit for you. Decrease the bid gradually for non-performing keywords. It is recommended to decrease the bid gradually; not too sudden, not too drastic.
Optimize Your PPC Bid
PPC optimization is a must for keeping in check your ad budget. It helps you stop investing in low-performing keywords. Testing bids is essential for optimizing your PPC. Search thoroughly and collect enough data before changing the bid cost.
First, calculate your target ACoS (Average Cost of Sale) and compare it with your actual ACoS. This way, you can easily find out how well your ads are performing.
- If your actual ACoS > target ACoS, it means you are spending too much. Try to reduce bids on keywords without affecting your ad visibility, hence your sales.
- If your actual ACoS < target ACoS, it means you are on the profit margin and can spend more. Try to raise your bid and test if you can increase your ad reach substantially.
- Mark the keywords that do not generate any profit over a while. Eliminate it from your keyword list, and add it to your negative keyword list.
- If a keyword is not receiving enough impressions, make sure to check that the product category is correct and your keyword is included in the list. If all these criteria are checked, try increasing the bid to make the keyword ‘active’.
