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How to Manage an Automated Amazon PPC Campaign?
One of the biggest mistakes Amazon sellers do is they think that because they have automated the PPC campaign, they can just sit back and do nothing. What the automated PPC will do is, it will allow you not to focus on the nitty-gritty of changing each and individual keyword based on their performance. They are taking more of a top-level holistic view and adjusting the whole campaign rather than the individual keyword.
These are the important things to look at in reviewing your campaign:
Check your Campaign Management Excel
Before you start, you need to review your Campaign Management Excel to make sure that when you go and check it, you’re getting the same results and you’re seeing the same assumptions which you made before starting your campaign. And obviously, if they differ, that’s when you change it.
Understand the structure of your campaign
The first thing to look at is the overall ACOS of the campaign to see if it’s above or below your target ACOS because then, you will immediately know whether the campaign is profitable or not. That allows you to focus on the next stages and the action to take.
Check whether your ACOS is above or below your target ACOS
If ACOS is below your target ACOS:
- Check the keywords where most of your sales are coming from
- Check if there are any bad keywords getting clicks but no orders
- Check if many keywords are getting impressions and clicks or just a few
- Consider increasing the traffic in order to grow the number of sales
If ACOS above your target ACOS:
- If you are getting impressions and clicks but no orders, check the relevancy of the keywords. If the keywords are relevant, then change the conversion rate in your initial excel to reflect this new data and changing environment of your product.
- If you are getting impressions, clicks and orders, then your CPC is too high for your conversion rate. Check the suggested bid in Seller Central to see if your main keywords are too expensive and will never be profitable
- If your campaign is not getting enough traffic, you may need to increase the bid. However, be careful if the competition is too high, this makes your campaign unprofitable
Tip: Check what your competition is doing to see if that has changed the market.
Check the structure of Individual Ad Groups
This is a quick overview to make sure that you know what’s going on within your campaign and to check if there’s any keyword which is performing badly has the bid being reduced to a Min bid. Also you need to understand that profitable and unprofitable ACOS can occur in different ways:
In understanding the structure of Individual Ad groups, you need to check the following key metrics:
- Check if a lot of keywords are getting impressions
- Check if a lot of keywords are getting clicks
- Check if a lot of keywords are getting orders
- Check if some of keywords are getting bad ACOS
- Check if any keyword have been reduced to Min bid
Check if your campaign has enough budget
Another thing you need to check (maybe once or once every 2 weeks) is your budget. Does your campaign have enough budget? It happens every often that sellers don’t realize that they are going over budget and they haven’t worked out why they go out of sales or their sales slow down, this usually linked to the budget.
Check how the campaign is evolving by analyzing the conversion rates
You’re looking for trends in how the campaign is evolving. Are you getting enough sales? It is important for you to calculate your conversion rate to check and compare it with your initial assumptions when you started the campaign.
Adjust the data in your Campaign Manager Excel
Check if the initial assumptions you made in your Campaign Management Excel were accurate and make necessary adjustment. Go to Trendle, change the rules you’ve set. Adjust the Max bid to 0.49, so that the software will adjust the bids and maintain the performance of your campaign.
Check if the Placement Performances are balanced
We’re looking to have all these key metrics balanced and that your campaign set up is correct and if not, adjust the different leavers.
- Check the placement performance conversion rates
- Check the placement performance ACOS
- Check the placement performance Orders
- Check the placement performance CPC
Tip: Don’t be afraid to play around with the bid amount and placement percentages
Guidelines for different scenarios for Placement Performance:
- If the rest of the search is performing well, you have to keep a high default bid. Adjust the placement percentages depending on the conversion of the top of the search and the product page.
- If the top of the search and/or product pages performs well, you want to have a high placement on them. But you cannot put negative percentages.
- If the rest of the search perform badly, that’s when you can have a low default bid and a high percentage in the placements that are performing well.
- If the rest of the search and one of the other placements performs well then you have to either sacrifice the rest of the search by having a low default bid and a high % on the placement that is performing well or accept a higher default bid that will increase the loss on the placement that is not performing well.
Check your Change History
The Change History allows you to review all the changes your automation has done. This tool has 4 options which includes bid changes, target changes, search term changes and the automation error log.
- Bid Changes: This option helps you to see what the changes have been made on the keywords. One thing to be aware of is, it covers both the changes made within Amazon Seller Central and the changes made within Trendle.
- Target Changes: This option shows all the changes at the keyword or product level.
This includes two sets of changes:
- Displays changes where you move the keyword or product from one Ad group to another
- Displays keywords, search terms or products that have been set as negative in an Ad group
- Search Term Changes: This is basically moving search terms around and you can revert the changes that you made if your assumptions have changed or if conversions are not what you are expecting.
- Automation Error Log: Most of these (roughly 95%) will be caused by different rules that are conflicting. For example, if you have told the software to do something after 5 clicks and do something after 10 clicks without using the kill rule option. The others (around 5%) are caused by Amazon saying that we cannot make the change, so you need to check if the campaign is set up properly.
Check your Change History Chart
This acts like a historical data of the changes made within your campaign. This helps you visualize what’s going on in your campaign and it will produce 2 types of graph:
- One showing how the revenue has increased or reduced. You can choose different features whether it’s revenue or ACOS, to see how the campaign is performing overtime.
- And the other one is the change history chart that shows which days these changes were made for that specific ad group or specific campaign you are looking at.
Summing it up:
You now have a solid foundation of knowledge how to manage an automated Amazon PPC campaign. Lets summarize the 10 important things to check when reviewing your automated PPC campaigns:
- Check your campaign management excel
- Understand the structure of your campaign
- Check whether your ACOS is above or below your target ACOS
- Check the structure of Individual Ad Groups
- Check if your campaign has enough budget
- Check how the campaign is evolving by analyzing the conversion rates
- Check if the initial assumptions you made in your campaign management excel were accurate and make necessary adjustment
- Check if the placement performances are balanced, that your campaign set up is correct and if not adjust the different leavers
- Check your Change History which includes bid changes, target changes, search term changes and the automation error log
- Check your change history chart