Amazon PPC advertisements are an integral part of any Amazon marketing strategy.
While Amazon SEO helps establish your brand’s presence, search rankings and success over time, Amazon advertising can help boost initial sales of new products and fight off competitors.
An Amazon management agency can help manage these tasks if your business lacks the time, resources or expertise. The most effective marketing plan uses a combination of both, but for now, this article outlines best practices for setting up a successful Amazon advertising campaign.
7 Simple Steps to Creating an Effective Amazon PPC Ad
To set up a PPC ad, you must create a campaign. Each campaign will use one type of ad and allow you to tailor it to your business goals. For instance, during set-up, one can manage ad groups, budgets, dates and themes to fine-tune the purpose of an advert. The main types of Amazon ads include Sponsored Products, Sponsored Brands, Sponsored Displays and Stores.
Choose a Useful Campaign Name
To future proof your campaigns, pick a campaign name that is easy to remember and will help you to differentiate from future ads. You may want to avoid generic names and come up with a descriptive title that describes the purpose of the ad. For example, you may include the name of the product you’re promoting or what product categories you’re targeting. It can also help to improve data organisation when you come back to evaluate the progress of various ads.
Set a Monthly and Daily Budget
It’s essential to set a monthly budget for Sponsored Products and Displays. As you only pay when someone clicks on your ad, costs can rack up quickly. For instance, if you set your daily limit at £25, after just 2 weeks, your advertising expenses will become £350. Think carefully about what budget you set. Setting these limits prevents you from going over your allocated spending.
Furthermore, you need to choose a budget that will bring sales and results. For example, within each campaign, you can set up multiple ad groups and target numerous keywords. You have to decide the individual budget for each keyword. Setting the daily budget and keyword bid determines the number of clicks per day. For example, a daily ad spend of £10 and a keyword bid of £1 will only generate 10 clicks per day (if the bids cost £1) on that ad. An agency is experienced with all these variables and knows how to find a happy medium that produces the maximum effectiveness for your PPC campaign. This process can be confusing for many newcomers, so it’s essential to consider if you would benefit from outsourcing some tasks related to Amazon marketing and having an Amazon agency manage your advertising efforts.
Always Set an End Date for Campaigns
Don’t leave campaigns open without an end date; otherwise, you can quickly burn through your allocated advertising budget. With so many marketing tasks to manage, it’s easy to forget to end a campaign manually. It’s also essential to set a date for the campaign to end because it could improve how you compare data. Remember, you can always extend the campaign by changing the end date.
Choose Between Manual or Automatic Targeting
If this is your first campaign, automatic targeting is the easiest way to set up an ad. That said, if you’re choosing this option, you must optimise your product listing for Amazon SEO. To generate the automatic keywords, Amazon will pull terms from your product title, bullet points and description; therefore, previous SEO research and keyword optimisation is a must.
On the other hand, PPC campaigns using manual targeting are likely to see better results, providing you have done the proper keyword research. The manual setup gives you more control over marketing so you can fine-tune your ad. Manual targeting also allows you to choose if your ad targets keywords or products. For example, keyword targeting will show your product to people searching for relevant keywords. On the other hand, product targeting shows your product on similar product detail pages.
This is where many businesses decide to hire an Amazon advertising agency to manage their PPC campaigns. An Amazon agency has access to professional software and resources to carry out in-depth keyword research. Doing this will ensure your ad targets the right consumers, such as those who have an intent to purchase your product.
Select One Product Per Campaign
Only select one product to promote per campaign. If the selected item has variations, such as colour or size, you can create multiple ad groups within one campaign. This allows you to target different keywords for different variations. In addition, creating focused campaigns makes it easier to analyse your data and determine what advertising methods work best.
Choose Keywords that Fit Your Budget
Once again, it’s crucial to consider your budget when bidding for keywords in your niche. Low traffic keywords don’t have as intense bidding competition as high-demand search terms. This makes it easier to win the auction with smaller bids. To make the most of your ad spend, an Amazon advertising agency, like nuoptima.com, can help you choose appropriate keywords with a high enough search demand that they still generate results but not too high that your ad doesn’t make an impact.
Learn the Difference Between Bidding Strategies
Sponsored Product campaigns give you the option to choose between 3 bidding strategies. Successful Amazon sellers understand the difference between each type and pick the most appropriate option for their business goals.
Dynamic Bids (down only)
Amazon will reduce your set bid in real-time if it determines the search’s intent to purchase is low. Consequently, you save money on clicks that are unlikely to convert to a sale.
Dynamic Bids (up and down)
In the same way as the previous option, Amazon adjusts your bid in real-time. Your bid will decrease if the searcher is less likely to purchase. However, up and down dynamic bids also increase for clicks that are more likely to convert to a sale.
Amazon uses your exact bid and any adjustments you’ve set manually, but it won’t change in real-time.
Amazon PPC campaigns are an excellent way to stay ahead of your competition, get new products in front of potential customers and increase sales. However, the way you set up an advertisement determines its success. Nuoptima, an Amazon advertising agency, has expert teams with years of experience building Amazon brands. With their expertise, they carry out thorough keyword research, manage budgets, optimise PPC ads with keywords and appropriate copy, and use the best bidding strategies for your niche.
Integrating PPC ads into your Amazon marketing strategy complements your growth efforts by improving product visibility and fighting off competitors.