Amazon sellers are always hoping to boost their PPC performance. Sellers need to fully capitalize on the potential of Amazon PPC by consistently fine-tuning their campaigns for optimal outcomes. Optimizing Amazon PPC campaigns is an ongoing process that requires careful planning, strategic execution, and continuous refinement.
In the previous blog on we discussed a step-by-step guide on effective Amazon keyword research for PPC campaigns, importance of targeting the right keywords, Uses of Helium 10 for keyword analysis, setting up manual targeting campaigns. Conducting thorough keyword research, utilizing different match types, continuously optimizing campaigns, and staying competitive with competitor analysis for successful Amazon ad campaign
In this blog, we’ll explore the key strategies on Optimizing bid and budget and uses of search term report for negative targeting for optimizing Amazon PPC campaigns to achieve maximum efficiency and effectiveness.
The Goal of Amazon PPC Campaign Optimization
The main aim of optimizing Amazon PPC campaigns is to make them work better and get more efficient. There are two main goals
Scaling: Making your campaigns bigger and reaching more people at initial state
Optimization: Making your campaigns work better and spending money more wisely while you’ve been running campaigns for a long time.
It’s important to know the difference because each goal needs different actions to reach it. The primary objective of scaling is to expand the impact of your PPC campaigns by increasing ad spend and targeting a broader audience to generate more sales and revenue. When scaling your Amazon PPC campaigns, the following actions may be necessary:
Scaling of Amazon Advertising Campaigns
When we start doing PPC campaigns for any products we focus on scaling at initial state, Amazon campaign scaling is like making your ads bigger. It means spending more money to reach more people or sell more stuff. You might increase your budget, target different words or products, or try other tricks to get more people to see your ads. The goal is to grow your Amazon ads in a smart way to sell more or get more people interested.
The following criteria we can focus on while we set goals for scaling of products.
Increasing Bids: Raising the bid amounts for your keywords to compete more aggressively for ad placements.
Increasing Budgets: Allocating more budget to your campaigns to extend their reach and exposure.
Increasing Bids By Placement: Adjusting bid amounts based on the placement of ads to prioritize higher-converting positions.
Launching New Campaigns: Introducing new campaigns to target additional keywords, products, or audiences.
By implementing these scaling strategies, Amazon sellers can effectively expand the impact of their advertising campaigns, leading to increased traffic, improved visibility, and ultimately, higher sales for their products on the platform
Amazon Advertising Campaigns Optimization
After running PPC campaigns for 4-6 weeks, we need to focus on the optimization part. The primary objective of optimization of PPC campaigns is to enhance the effectiveness of your advertising efforts by maximizing ROI, improving targeting, and refining ad creatives. When optimizing your Amazon PPC campaigns, the following actions is necessary
Lowering Bids: Adjusting bid amounts to improve cost efficiency while maintaining or increasing performance.
Adding Negative Keywords: Excluding irrelevant or underperforming keywords to focus ad spend on more relevant search terms.
Pausing Targets: Temporarily halting underperforming targets to reallocate budget and focus on top-performing areas.
Lowering Bids By Placement: Adjusting bids based on ad placement performance to optimize cost and conversion rates.
Turning Off Ad Types that Don’t Work: Discontinuing ad types or formats that yield poor results to concentrate resources on more effective ad formats.
By understanding the distinction between scaling and optimizing, advertisers can tailor their actions to align with their specific goals, whether it’s expanding reach and sales through scaling or refining performance and efficiency through optimization.
Understanding Amazon PPC Metrics
While working on Amazon PPC campaigns it’s important to know all the metrics and KPI, that will help you to reach your goal, either it’s on scaling or for optimization steps. Here are the few metrics that we can use generally for Amazon PPC.
Impressions: This Amazon PPC metric measures the number of times your ad has been displayed to Amazon shoppers. When anyone searches on Amazon using a keyword, and if your ads pop up, it means you receive an impression. This is how impressions are counted.
Top-of-search impression share (IS): The percentage of top-of-search impressions the campaigns received out of all the top-of-search impressions they were eligible to receive.
Clicks: The number of people who clicked on your ads after they were displayed.
Click-Through Rate (CTR): CTR is the percentage of ad impressions that result in clicks. It is calculated by dividing the number of clicks by the number of impressions and multiplying by 100. A high CTR indicates that your ad is relevant and engaging to shoppers.
Spend: The amount spent on your advertising campaigns after people clicked on your ads.
Cost-Per-Click (CPC): CPC is the average cost you pay each time a shopper clicks on your ad. It is calculated by dividing the total cost of clicks by the total number of clicks.
Orders: The number of orders you received after people clicked on your ads. Here are the figures.
Sales: This metric represents the total sales generated from ad-attributed clicks within a specific timeframe. Sales is the total value of products sold to shoppers attributed to your ads. It provides insight into the direct impact of your ad campaigns on sales.
Advertising Cost of Sales (ACoS): ACoS is a crucial metric that represents the ratio of ad spend to attributed sales. It is calculated by dividing the total ad spend by the total attributed sales and multiplying by 100. A lower ACoS indicates more efficient ad spend and higher profitability.
Additionally, there are other Amazon PPC Metrics available in the columns, which you can modify through customizing columns. You can find other important Amazon PPC metrics there.
You can filter all the campaigns by enabling active campaigns, paused campaigns, archived campaigns, All but archived, and all campaigns. These options allow you to filter the campaigns. Additionally, there are other filter options available where you can filter any metrics according to your preferences.
Amazon PPC Campaigns Optimization Strategy
When we have run PPC campaigns for 4-6 weeks of time, after that we need to start focusing on the optimization part based on the performances of your Amazon PPC Campaigns.
Optimizing your Amazon PPC campaigns is essential for maximizing their effectiveness and ensuring a strong return on investment. An effective campaign optimization strategy helps sustain your Amazon business in the competitive marketplace and enhances your brand visibility.
The most top three campaigns optimization strategy are given below:
Budget Optimization
Bids Optimization
Analyze the Search Term Report
Let’s discuss in detail the most important campaign optimization strategies below to provide you with a clear understanding of them.
Amazon PPC Campaign Budget Optimization
While Optimizing your PPC campaigns the first approach should be to utilize our budget fully on good performing campaigns to get the best outcome of Amazon PPC Campaigns.
At first You can review the campaigns with the highest ACoS and reduce their budget. Conversely, you can identify the campaigns with the lowest ACoS and strong sales performance, and then increase their budget based on performances
