Amazon PPC advertising best practice
This article is step 3 of our step-by-step guide to Amazon PPC Advertising
This is a condensed guide to creating and managing your Amazon Sponsored Products Campaigns.
This guide will explain some Best Practice to follow as well as how to use Trendle Analytics to optimise and automate your campaigns.
You do not need to follow our best practice if you don’t want to. There are many ways to manage successful campaigns, you are free to choose your own way.
Top quality listing
Before you even begin on the PPC advertising journey, you need to ensure your listing is the best it could ever be. This means:
- High quality images that perfectly illustrate what your product is. Most shoppers will decide in a split second whether your product is the right one by looking at the pictures. Most won’t read the description if the images don’t already explain your product clearly.
- Your top 4 keywords should be at the start of your title. Do not place your brand name at the start of your title unless you are world renown brand like Nike or Coca-Cola. Place your brand name at the end of the title
- Make sure your title is readable by a human! Do not cram all your keywords in the title turning it into an unreadable jumble
- Make your bullet points attractive by showing emotion and why your product is solve key pain points, or add great value to the shoppers life. Use some bullet points to give clear technical information (e.g. size, dimensions, colours etc) and others to explain the benefits. Use emoticons to bring imagery to your bullet points
- If you’re brand registered then use EBC/A+
- If you’re not brand registered, then use basic HTML to make your description stand out and be easy to read. These 2 simple tags will make a huge difference to how your description looks.
- </br> to create a breakline
- </b> to make something bold
- Do not repeat keywords. There is no added benefit with regards to the Amazon algorithm in repeating keywords.
Advertise only one product per campaign
There are several reasons to do follow this second best practice rule:
- If you have a variation, advertise the most popular one as this is the one that will be most successful in advertising. Even if a customer ends up buying a different variation, this purchase will still be counted as a PPC sale.
- Each product has different keywords that customers will search for. Putting ‘walking shoes’ and ‘dancing shoes’ in the same Advertising Campaign will return very different keywords and customer search terms.
- In addition, filtering through keywords to understand which are relevant and which are not, is easier when you know to which product they refer to. The data we gather from Amazon does not allow us to determine down to keyword level which SKU it relates to. We can only do this at Campaign and Ad Group level. Also, one keyword may be relevant for two slightly different products in your portfolio. By splitting your SKUs into individual campaigns will help you gauge for which product the keyword works best.
- Each product has a different cost and selling price. If you set yourself a target ACoS for each keyword, you can only achieve this if you know the exact spend per product. And this is only possible if you include only one SKU per Advertising Campaign or Ad Group.
- More importantly, the more granular you are, the more data you have and the more control you have. You can allocate your budget with much more ease and flexibility across your products. With one product per campaign, you can increase or decrease your daily spend budget for specific products. For example, if your walking shoes have had a big increase in sales and you will run out of stock, you may want to immediately lower your daily budget until you get more stock in, but without impacting your bid price. But if you have your walking shoes and your dancing shoes in the same campaign, you will have to go through each keyword (note: you could do this at the Ad Group level, but we strongly recommend against doing this).
Note: If you have size variations or colour variations, you may include these SKUs into the same Advertising Campaign as the search terms the customer will use will be very similar. However we still recommend creating a different Ad Group per colour/size variation, or even a different Campaign per colour/size variation. You need to decide how closely related the items are.
As mentioned above, we recommend that you advertise only the SKU that has the most sales from your variation as the goal is to drive traffic to your listing.
Key Stat: 35% of the time, shoppers end up buying another SKU from your catalogue than the one they initially clicked on. In other words, over 1 in 3 of your PPC sales are not even for the product you were advertising! This emphasises the need to only advertise your leading SKU variations that will drive you the best traffic and conversations.
Do your own keyword research
Use the many available keyword research tools out there (free and paid) to get an extensive list of keywords related to your product and your competitor’s products. Use these to add directly to your manual campaign with Exact match only. This will save you much more time and money than running an Automatic campaign. For a more detailed explanation, see this article.
Don’t have more than 250 Keywords per Ad Group
There seems to be a limit to how many keywords the Amazon algorithm can process, and if you have too many keywords in an Ad Group then some keywords will simply never get an impression. The limit seems to be around 250 keywords per Ad Group. But we recommend staying around 100-150 keywords per Ad Group.
If you have hundreds of relevant keywords in your campaigns, you may want to consider increasing the Daily Budget of the campaign to ensure there is enough budget for all keywords to get impressions and clicks.
Use 1 Match Type per Ad Group
For better results only use one Match Type (e.g Exact) per Ad Group. This will make it easier when applying rules to change bids or make changes to keywords.
There are different campaign structures you can use. In Step 6 of this guide we will go into details of 4 setup types and include some automation rule that you can use to manage these campaigns.
Well done, you’ve made it! Now proceed to Step 4 “Know your profitability!”!