5 Profitable Amazon Advertising Strategy for Sponsored PPC Ads

Amazon sponsored product ads are among the most popular form of Amazon PPC. These ads assist help your product get higher visibility through the ads that are displayed on top of the search results and product description pages. Amazon sponsored products are available for professional sellers whose products are listed among the eligible categories and hold the buy box.

How Amazon Sponsored PPC ads Works?

Basically, in these ads, you chose the products that you want to advertise. Furthermore, you pick out the keywords to target and how much you wish to bid on the clicks. Based on the bids you pay the money when shoppers click on the ads. When you purchase Amazon Sponsored Product Ads, your selected products are displayed on top of the search results. Moreover, you can also pay for the products to appear within your competitor’s listing under the “related products” category. Such ads are reckoned as Amazon Product Targeting Ads.

Effective Amazon Advertising Strategy for Sponsored PPC Ads

Following are some of the profitable advertising strategies for sponsored PPC Ads –

1. Deciding Between Automatic and Manual Campaigns

To build effective sponsored PPC ads campaigns, it is imperative that you understand the difference between automatic and manual campaigns.

Automatic Campaigns are the ones that allow sellers to target all relevant searches based on your product listing. These campaigns ensure that your products are displayed on a wilder search queries. Additionally, these are the only campaigns under sponsored products that are eligible to be displayed on product detail pages. Automatic campaigns are ideal for new sellers on the Amazon marketplace as they are easy to implement.

Manual campaigns, on the other hand, require sellers to make more precise decisions with regards to their sponsored PPC ads. They are required to manually set targeted keywords, meaning they have to invest in a lot of work before they can start the campaign. However, sellers get a more refined and focused control over their search terms. Manual keyword searches have become easy with automated Amazon PPC tool that helps sellers get an extensive list of keywords based on their niche and goal. Manual campaigns are suitable for experienced sellers as it gives them the opportunity to bid on search terms more aggressively.

2. The Keyword Implementation

Determining relevant keywords is one of the imperative factors that determine the success of your Amazon Sponsored Product Ads. Investing in extensive keyword research will enable you to understand the terms that your target audience is searching, and then optimize your products based on that search terms. You should also gather search query data through initial Automatic ad campaigns. Using this customer data and insight will enable you to understand your products from buyer’s perspectives.

When you enter keywords in sponsored products, Amazon provides you with three types of matches to select from –

• Broad – In this, the product is displayed if the query includes all the terms that have been saved as the keywords, irrespective of the order. Misspellings, spelling variation, and synonyms are also considered in this category.
• Phrase – In this, the ads are displayed when the query includes the keywords in the exact order. Moreover, close variations are also considered matches.
• Exact – In this category, the ads are only displayed when the search query matches the exact keywords given (including singular/plural forms).

3. Figure Out Your Target Average Cost of Sales (ACoS)

ACoS is an important metric to measure the performance of your Amazon PPC campaign. The ratio of the amount you spend on Amazon sponsored products to ad revenue is expressed in percentage. The advertising cost of sales differs based on the objective of your campaign and you should be clear about that. If your campaign goal is to optimize profit, then your target ACoS should be based on the profit margin. In this case, the cost of sales is positioned between 20% and 30%.

If, on the other hand, your objective is to market a new product and generate higher visibility, then you have to invest more for the sale or even bear short term loss in order to secure long term profit. In this situation, your target cost of sale would touch up to 70%. In order to calculate ACoS, you should divide your ad spend by ad revenue and multiply the result by 100.

4. Proper Bid Management

All your optimizations efforts influence your performance; however, the maximum bid possesses the closest correlations with the profitability of your Amazon sponsored PPC campaign. Competition in this market is ever-evolving and anytime the cost of your most popular search terms can drive up. Therefore, it is imperative to consistently monitor the performance of your campaigns. And based on the budget and profitability targets, you can increase the bid on popular terms to optimize your revenue and decrease the bids on unpopular terms to reduce your cost.

For successful big management, you have to determine ideal cost-per-click by calculating your revenue per click. You can calculate RPC by dividing total sales from a keyword by total clicks from the same keyword. You can calculate RPC for different durations like 15 days, 30 days, 60 days, and so on. This will help you understand the shift in RPC and how a keyword is performing. Once you have determined the RPC you can multiply it by target ACOS and you will get the ideal bid you should make for that keyword.

5. Optimize the Listing to Increase Ad Visibility

Amazon displays the ads on their site that are relevant for their customers. So the ads can be displayed for keywords that are also in the product listing including title, description, search terms, attributes, etc. Moreover, check whether or not the keywords that don’t contain any impression are included in your product listing. If not you should include them into your listing text to ensure that ads are run for those search terms as well, reaching a wider spectrum of audience. Read Amazing.com Review – (Amazing Selling Machine) to build a business

Whether you are a new Amazon seller or an experienced one, investing in Amazon Sponsored Product ad campaign can be highly valuable for your business. Above are some effective strategies that will help you run a successful Amazon Sponsored Product ads campaign.