Amazon’s CPC will Continue to Rise in 2020 and Why you Need to be Running Automated PPC Campaigns
- 81% of Amazon Advertisers will Increase their Ad Spend in 2020–73% by a Minimum of 25%
- 87% of Advertisers are Running Sponsored Products — Video has Lowest Adoption and is Big Opportunity
- 45% say Optimization Tactics is the Biggest Problem
- Trendle’s Automated PPC Management tool is the Solution solution to Improve ROI
According to a recent survey of Amazon sellers by Marketing land, 81% will be increasing their spend on PPC in 2020. While this is great news for Amazon Shareholders it is less good for sellers who have seen their PPC cost skyrocket over the last few years.
In the survey, Marketing Land found that 41% planned on spending as much as 25% more in 2020 compared to 2019, 22% planned on increasing their PPC spend by 25 to 50% and 10% expect to increase their spend by 50% or more.
Most advertisers are running Sponsored Products (81%) and Sponsored Brand (68%) Campaigns which makes sense as these are the oldest forms of advertising that Amazon offers. However, there is a much smaller adoption of Video ads whether self-service (31%) or managed (28%), which presents a big opportunity for Amazon sellers in the future.
Smart sellers should start to look more seriously at these options, which while they remain used by a minority of sellers, should offer better ROI’s due to the lower competition.
The increase in the CPC means that it is more vital than ever for sellers to properly understand how to run sponsored product campaigns and to use the correct software to do so.
One of the easy wins is to avoid badly performing keyword and search terms that bleed your budget and increase your campaign ACOS.
For example, the following keyword should have had its bid reduced after a certain number of unprofitable clicks (for example, 5 to 10 clicks). This would easily be avoided using Trendle’s Automatic PPC Management tool that would have reduced the bid.
The same is visible for the following four keywords. Trendle’s Automated PPC Management tool would have reduced the bid on the first and second keywords after a certain number of unprofitable clicks (for example, 5 to 10 clicks) and reduced the 3rd and 4th Keyword because they were not converting.
This was reflected in Marketing Land’s survey by the fact that 45% said that their biggest challenge was Optimization tactics which again can be done very simply using Trendle’s Automated PPC Management tool.
The tool follows a set of rules that you define which manages the campaign in the background by both avoiding badly converting keywords from bleeding your budget and also making sure that good keywords have enough budget behind them to stay profitable and continue to generate sales.