Amazon attracts all types of E-commerce businesses that want to reach more valuable leads, boost product sales, and earn more revenue. If you haven’t already started running an Amazon advertising campaign, now is the time to help your business get more people to buy your products.
In today’s blog post, we will be discussing ways to optimize your Amazon advertising budget.
Let’s start by saying that it may take some time to see any campaign results. Be patient and hold on to see results before making any changes or optimizations.
Using Amazon advertising settings such as budget allocation, will allow you to stay within a specific budget to avoid spending too much while waiting for results. The key results you should look at are impressions and keywords bids.
Make sure your ads have enough budget to actually get impressions. Otherwise, your ads won’t show as often as needed to generate conversions which could hurt your campaign performance and lower your chances to overcome the competition.
Keep in mind, that bidding amounts will change according to the target cost of sales and profit margins of different products. Once you’ve identified the most suitable optimizations, test your modifications by modifying one variable at a time and leaving it for a few days to analyze its results.
If you’re currently using Google AdWords or managing an account, then the concept of using match types will be easy to understand. Likewise AdWords, Amazon advertising uses broad, phrase, exact, and negative match types to optimize targeting.
The key to this, is to use a combination of these match type options to get the most targeted and reach the buyers that have highest chance of purchasing. By using broad match type, you’ll be able to get the greatest net of users possible. Words can be added in the front, middle, or after your target keywords. This is the least targeted match type, but it can be useful to boost campaigns and find out new possibly convertible keywords.
For example, if your keyword is sunblock and tanning sunscreen, then your ads can show for searches such as eco tanning sunscreen, sunscreen for makeup, or sunscreen for tanning. Phrase match will allow you to narrow the searches that retrieve your ads. Words are usually added in front or after your keywords, and they can include misspellings or plurals. Using the previous example, if your keyword is tanning sunscreen, your ads can be shown for searches such as normal sunblocker, but the words in your keyword will not be separated. Exact match is the most constraining match type of all. It will allow you to show your ads for misspellings of your keywords or plural variations , but it will not separate your words or add additional ones.
As with other advertising platforms, the best thing to do is to keep as much control over campaigns as possible. This will allow you to take the most optimal decisions for your business. However, there are some situations where automatic features can come as helpful. This is the case of keyword research. By creating automatic targeting campaigns, you’ll be able to test the market and find out what search terms people are using to find products like yours.
You could start by creating your automatic targeting campaign similarly to the way your manual one was set up, by deactivating the targeting mode. This is going to be your “test” campaign and, therefore, should run with a minimum budget to prevent wasting money. Once you let it run for a couple of days or longer, check out your results to find the search terms people used to improve your ads. Then, put those search terms in your manual targeting campaigns.
Organic and paid traffic among platforms share one thing: they all want to provide the best user experience. The best way platforms accomplish this, is by providing relevant results for any user search.Therefore, it’s expected that Amazon and other advertising platforms would avoid displaying ads that don’t seem to be correlated to their respective landing pages. To avoid your ads from not laying out, you need to show and prove Amazon your product listings are relevant to your ads by adding your target keywords in the copy of your product listings. Remember, this addition has got to be strategic and can’t seem as obvious. Otherwise, your listings will not be nice and easy to read by potential customers, and our main priority is to convert them.
An organized campaign structure is crucial for successful and cost-effective campaigns. If your campaigns are messy, you’ll be risking to waste money for unqualified clicks from ads triggered by the wrong keywords or else you could end up spending more money than you should on clicks or wasting more money than initially invested. The same principles apply to group products with related keywords.
On top of that, you can organize campaigns by top sellers, product category or by brand. Keep in mind, that products within the same group may have different product margins which means that they can’t have the same bids. Hence, you should allocate your bids deliberately according to profit margin and performance.
If you know what exact keywords your competitors are using for generating traffic for product related searches, you can understand your competitors performance and also get to see a new set of keyword opportunities which you can easily implement to current campaigns. You can find out the answer manually, or by using an online tool.
As expected, the manual approach can get very dull, especially when dealing with multiple campaigns.
On the other hand, the tool approach can provide many helpful insights, without the boring work. The tools to look into are the ones that offer opposite ASIN lookups such as Keyword Inspector. Basically, what it does, is to use only product ASINs to collect thousands of keywords in a matter of seconds. Each keyword will have an approximate Amazon volume allocated. You just need to select keywords with the most potential and put them into your campaigns.
Amazon seems to be a bit messy when it comes to manual data collecting. If you use the following steps, you will optimize your workflow and find the best opportunities to boost your sponsored product campaigns.
To get started, download your search term report to find out which keyword searches made your ads trigger. How often this needs to be implemented depends on the magnitude and maturity of your campaigns. New campaigns may require more of a recurrent analysis to create a solid base and drive results. Then, organize the data in your report to easily picture and sort out search terms that are not performing well enough. Last, from there, you’ll also want to analyze keyword bids, add matching types, and add long tail keywords as discussed previously.
Not all your products have the same profit margin; therefore, you should not bid the same amount for all keywords. Otherwise, you’ll be risking losing money in products that provide low profits.
Choose the keywords that can actually bring in the most value and bid higher on them while selecting the keywords related to low-profit products to lower their bid. After all, your goal is to have a profit, not to lose money or break even.
Last but not least, always remember that if your campaigns are new, you’ll need to set higher bids to gain some search history, otherwise, Amazon will prioritize other much more advanced competitor campaigns that have shown to truly be generating sales.
Then, once you have gained search history and sales, then you’ll be able to set your bids back to normal.