Amazon has become an e-commerce titan over the last decade. Following the start of the pandemic, the sales on Amazon grew by over 40%. And with its increased popularity come never seen before levels of competition, which affected the FBA businesses across all the Amazon marketplaces. In order to succeed, you must choose your strategies carefully, even when using third-party software. To this end, the Sponsoreds Team would like to share the best Amazon advertising strategies we’re using in 2022 and tips on optimizing your PPC campaigns.
How Amazon PPC can accelerate your business growth
In regards to FBA business, two primary means of its growth come to mind: organic growth and PPC. There are many Amazon Sponsored Ad strategies to bolster both, as Amazon PPC, apart from the short-term boost in sales, is also an investment into the future of your business.
Here’s how it works. Amazon itself wishes to promote its most reliable sellers, i.e., those who bring Amazon the most profit via the most sales. Amazon’s algorithms are tailored to redirect more traffic to more successful (with higher CVR) listings. The more effective your PPC is – the more organic traffic you receive, and as a result, your business grows faster.
Does your business need Amazon PPC?
To put it diplomatically, doing business on Amazon without Amazon PPC is like driving a car with bicycle pedals: perhaps you could manage that; however, there are many more productive and quick ways to achieve the same goal. One of those is using professional AI-based software to stay competitive while managing your daily operations.
It is nearly a must to use Amazon PPC to advance your business. Yet there are several things you should attend to before launching your PPC campaigns:
- Visuals. Show your product at its best. For example, use infographics, figures, charts and HD pictures of your products; upload a video detailing the bare minimum the shopper needs to buy your products or utilize other forms of A+ content to improve the buyer’s experience with your listings even further.
- SEO optimization. Firstly, integrate your keywords into your listing, especially the title and product description. Then, make the description itself easily readable and concise. Finally, consider emphasizing the main points using different fonts or highlighting important parts of the description in other ways.
- Reviews and score. Launch a PPC campaign only after you get approximately 15-20 reviews and a rating of 3.9 or higher. These are psychological breakpoints after which the buyers are more likely to trust the contents of ads shown to them. People are social beings and much more willing to make a purchase when seeing social proof from other customers.
Semantic Core: how to work with Amazon keywords
Prior to starting any Amazon PPC campaign or devising an Amazon advertising strategy, you have to collect search queries soon-to-be keywords for your Semantic Core. We recommend using specialized software like Google Adwords or Amazon PPC management software for this purpose.
After gathering the required keywords and structuring them in Google Spreadsheet (in case you use PPC software, this is done automatically), you should check every search term for its relevance. You can do that by simply putting the keywords in the browser and checking whether the search results correspond to your products. The sorted out search terms shall constitute your negative keywords table.
As market conditions change, you should update your Semantic Core periodically. That is achieved via Automatic campaigns with your existing keywords put into the Negative match type.
Creating a winning campaign structure
Having created your Semantic Core, it is time to start your PPC campaigns. Of course, in order to succeed, you must structure them in the most efficient way possible. Here’s why our Zero to Hero tool utilizes a uniquely effective campaign structure consisting of four parts presented below.
Control Part encompasses campaigns bringing up to 70% of your traffic. These campaigns use only the Exact Match type since it gives you more control over specific keywords, ensuring that when you want to turn off certain keywords, they are indeed turned off and won’t appear elsewhere.
Growth Part uses Automatic Campaigns to discover new keywords for your PPC campaigns. The keywords present in other parts are set as the Negative Match type to prevent keyword cannibalization.
Negative Part’s primary goal is to boost the CVR of your campaigns and save your financial resources by finding out poorly performing or irrelevant keywords and putting them into the Negative Match type.
PAT Part aims to target your competitors’ ASINs and categories to attract even more traffic to your listings. This part also uses Category Targeting with Automatic Campaigns, similarly to the Growth part: the campaign searches for new ASINs for use in the PAT Part.
Why you need constant optimization
Due to record-high competition levels, you can’t just launch a PPC campaign. Amazon constantly checks your CVR and redirects organic traffic to your listing accordingly. Since PPC influences said CVR, suboptimal performance isn’t an option. You should use different Amazon PPC optimization software to facilitate day-to-day PPC management.
The Amazon advertising strategies may vary significantly depending on the goals of a particular campaign. To this end, the Sponsoreds team has invented eight strategies for optimizing a PPC campaign for different variables when using the PPC Automation tool or for manual optimization.
ACoS Targeting. This Amazon ad strategy is straightforward. You calculate the target ACoS and modify the campaigns, bids, and budgets to achieve the desired ACoS. Be mindful of the correctness of your AcoS calculation.
Overall Profit Growth. This Amazon advertising campaign strategy affects organic sales with Amazon Advertising. Therefore, you should maximize ads to get as much organic ranking as possible while not going beyond break-even ACoS.
PPC Profit Growth. Once 70% of keywords rank at the Top of Search, or you are a Best Seller far beyond the nearest competitor, you should move the traffic from the Top of Search placement to the Rest of Search and Product Pages preventing cannibalization of organic sales. This strategy balances minimal ACoS with sufficient sales to keep the high result.
Product Launch. This strategy starts with extensive keyword research by discovering keywords via Automatic campaigns. You should have at least 150 reviews to start running advertising in this. Coupons and discounts are also welcome.
New Keywords Ranking. This strategy allows you to gain more market share. We have three campaigns that are designed specifically for harvesting new keywords. Auto CTA, Auto Negative, and Broad Negative campaigns are akin to a “black box”. We’re aggressively pushing these campaigns to gain ranking juice using Top of Search placement.
Low Inventory HPLS. When the product risks running out, you should swap to a more profitable Amazon advertising strategy by significantly decreasing bids for all keywords and targetings and turning off high-frequency keywords.
Get the Best Seller Tag. To get the Best Seller Tag for your products, you should redirect all the traffic to the Top of Search placement for all campaigns. Failing that, you should strive to receive more traffic from the product page or the rest of search placements.
Defend Best Seller Tag. This aggressive strategy uses unique PAT campaigns of all types to defend your Best Seller status. That is achieved by showing ads on your competitor’s listings. You should pursue this strategy only when the gap between you and your competitors narrows.
As we repeat time and again, the sky-high competition levels on Amazon demand that only sellers with the best products and the most outstanding advertising strategies stay afloat. This can be rather disheartening for the newer sellers who have just recently discovered the Eldorado that is Amazon. Fortunately for them, they need not complete this journey alone. Find out how Sponsoreds can help accelerate your Amazon advertising with the 14-day free trial!