Amazon's revenue keeps increasing every year, but this quarter it saw a massive 139% increase. Several experts predict that by 2020, Amazon will become the third-largest digital ad seller in the United States, as its advertising power continues to grow.

Advertising on Amazon is growing much faster than before, and with that growth comes more competition. For these reasons, using the right strategy is critical to outperforming the competition in terms of sales and brand value.

With that in mind, we've compiled a comprehensive guide on how to optimize your Amazon PPC campaigns for better reach and sales.

9 Helpful Tips on How to Optimize Your PPC Campaign on Amazon

When building an Amazon Sponsored Products campaign (or performing Amazon PPC campaign optimization) , the question of how to organize your campaign and ad groups arises.

Depending on the size and homogeneity of the seller's choice, as well as his or her strategic goals, the right structure must be chosen. There are some guidelines you should follow when building your campaign. Listed below are our recommendations on how to optimize Amazon PPC:

1. Maintain a consistent campaign structure

Having a rough structure for your PPC campaign is a good starting point for any advertising campaign. Both good and bad news in this regard can be found here. Typically, an activity structure provides you with a set of characteristics that fit one or more of the following patterns:

Top 10 best sellers based on product category (eg men's shoes, keyboards, etc.) based on brand

Regardless of the organization method you choose for your campaign, it must be consistent. Changing your organizational structure may result in duplicate ads. When you create one campaign by category and another by brand, a brand campaign may appear in multiple campaigns.

2. Similar products should be advertised together

Products and keywords for each ad group are created individually. Because all of your products should be displayed for this keyword set, it is important to choose products that are contextually relevant to that keyword. Therefore, you should group all your products into an ad group that contains the keywords required for that ad group.

Be careful if you decide to use this method when analyzing Amazon advertising revenue. Although products in the same ad group may be targeted by the same keywords, their profit margins may vary – which affects the profitability of your ads. Before starting any Amazon PPC campaign optimization, make sure you know a good ACoS might work for your ad.

3. Create different ad groups based on how generic your keywords are

The more products you choose, the more different types of keywords you will have, with varying degrees of specificity.

Seller has a variety of jackets to choose from

The keyword "jacket" applies to all shoes.

Men's jackets are a relevant keyword for certain shoes

Certain men's shoes are relevant using the keyword "leather jacket"

Ad groups for leather jackets, denim jackets, bomber jackets, etc. will have difficulty tracking which ads appear for which keywords.

In this case, creating separate ad groups for similar keywords would be the easiest way to optimize (eg "men's shoes", "men's shoes"). For example, you can group your best-selling products into the following ad groups:

4. Use Amazon's automated campaigns to find out which keywords are relevant to your business

Implement automatically run activities and manually run activities, both using the same product. After a few days/weeks of campaign automation, you can evaluate which keywords are generating the most sales.

Then, create manual campaigns based on those search terms.

We recommend the following:

The campaign consists of 1 ad group and 1 automatic campaign The campaign contains three ad groups: broad (keyword), exact match (keyword), and ASIN targeting For category targeting, a manual ad was created with one ad group series.

5. Make sure your ad is shown for all relevant search terms

Amazon wants the ads that appear on its website to be relevant to its customers. Therefore, ads can often be displayed for keywords (title, attributes, description, search terms) that also appear in the product listing text.

Make sure your product listing text doesn't contain any keywords with no impressions. If this is not the case, keywords should be added to the listing text so that ads can be served against those terms. You will be able to reach a wider market of potential customers.

6. Reduce costs by eliminating unnecessary search queries

The keywords you're bidding on as a seller on Amazon don't always appear in your ads. Depending on the match type, the search query may differ from the query entered using keywords. To avoid unnecessary expenses, there are two options:

Keyword Types to Match Negative Keyword Settings Amazon offers three match types for Sponsored Products ads:

Broad match. Sponsored product ads can appear when all of the words that are part of the keyword are included in the search query. The order in which the words appear is not important. Additionally, the matching algorithm takes into account spelling variations, misspellings, synonyms, and morphological variations.

Phrase match . An advertisement may appear when an entered keyword is included in a search query (ie, whether one or more words are entered in a specified order). Words that are spelled similarly (eg singular/plural) are considered the same.

Totally Suitable. Ads will only appear if the given keyword exactly matches the search query. The same applies to singular and plural keywords.

Negative keywords. Can also be defined on Amazon. This will prevent your ad from appearing in front of users searching for these terms. There is no negative equivalent of the broad match feature available for negative keyword matches, but there are different types of negative keyword matches:

7. Analyze your PPC spend based on your product performance

Typically, an ad group consists of multiple products that share the same keywords with each other. Over time, as you run your campaign, it becomes apparent which products are selling best in an ad group.

By slowly removing underperforming products from an Amazon PPC ad group, your goal should be to maximize sales through that ad group. As a result, clicks and impressions are concentrated on these products, which will increase conversion rates and discourage money from going to low-converting products.

8. Determine what your advertising cost of sales (ACoS) should be

You should at least roughly state your expected cost of ad sales (calculated by dividing your ad spend by your ad sales). The purpose of your campaign may determine the exact advertising cost of a sale. If your main goal is to maximize profits, then the target number will be determined by your profit margin.

9. Optimize your CPC bids with tracking and tracking

Depending on the keyword, the optimal target bid will vary. Therefore, each bid can be controlled individually in a manual campaign for each keyword. As a basis for evaluating bids, a large amount of detailed information is required. That's why you should wait at least a week during the bid price adjustment.

We've discussed how to optimize Amazon PPC campaigns, now let's discuss how PPC ads work and why you need them.

How does an Amazon PPC campaign work?

Sponsored products on Amazon are offered through a system called Amazon PPC campaigns (pay-per-click). Every time a buyer clicks and views an ad, it charges advertisers for the ad.

What does Amazon Advertising do?

Advertisers can bid on top positions for specific keywords to gain more visibility for their products. So, in addition to increasing visibility in Amazon’s search engine results pages, it also helps increase your organization’s sales and revenue.

Every time an advertiser receives a click from a buyer or customer, he or she is charged. Every click incurs a cost, whether or not a sale is generated. Amazon ads are prominently displayed throughout the site. These ads also appear on individual product detail pages.

What are the benefits of promoting your product on Amazon?

Clearly, Amazon is the best e-commerce hub on the web, and you can use Amazon to advertise your products in the following ways:

Increase product visibility Maximize sales and revenue Improve your reputation and credibility Promote your business to a wide range of customers Think more carefully about your target audience

Despite the progress, Amazon Advertising and Marketing Services remain an effective way to expand your product reach. Since Amazon has millions of products from a variety of well-known sellers, it can be a bit difficult to make your mark on the marketplace.

While you may have done everything right and picked a low-competitive/high-demand product to sell on Amazon, going out into the world is still an important stage. Your product listed on Amazon will only appear on the third or fifth page of search engine results, and you don't want that to happen. Amazon PPC ad campaigns allow its search engine algorithms to recognize your products, whereas paid search ads do not.

This is a relatively simple concept. As the rankings go up, so does the audience. Because of this philosophy, more people see your product, which directly translates into more clicks. High CTR translates into higher sales.

Frequently Asked Questions

What is PPC Amazon

PPC campaigns on Amazon are like advertising on Amazon. Pay-per-click, which means advertisers only pay Amazon when their ad is clicked.

How Amazon PPC Campaigns Work

To bid on keywords or pay-per-click in Amazon PPC campaigns, advertisers use a method called an auction system. Amazon's ad placement is determined by a seller's highest bid on a relevant keyword during a product search.

That's all you need to know about how to optimize your Amazon PPC campaign ads. Follow these 9 tips mentioned above and you will definitely get the results you want.

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