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How to Set Up an Automated Amazon PPC Campaign?

Are you overwhelmed by Amazon PPC advertising? Are you losing money running PPC?  Do you realize that you need to have your PPC automated but don’t know where to start? This article will walk you through the steps of setting up your automated PPC campaign.

 

Step 1: Know the Basic Principle of Automated Amazon PPC Campaigns

The basic principle is to create rules that optimize your Amazon PPC campaign in the background while you sit back and watch your sales grow.

We highly recommend using Trendle Analytics, the most customizable automated Amazon PPC solution. It has an extremely flexible and customizable set of rules for all your ads automation needs (Works with Keywords, Search terms and Product targeting).

 

You can also download our template that you can use to create and monitor the performance of your campaign.

 

Step 2: Prepare your Data

It is important to ensure that you know all the things you need in setting up your automated Amazon PPC campaign.

Margin/Target ACOS

Your Margin/ Target ACOS measures the performance of your PPC campaigns. It’s calculated as a ratio of ad spend to sales. Know your profitability and set your Margin/Target ACoS for the short- and long-term period. You may want to adjust this based on your individual product strategy.

ACOS is critical to measure because it directly impacts your profits. To make a profit, your ACOS has to be lower than your profit margin. You will incur a loss if your ad spend exceeds your revenue. We recommend you to use Trendle Profitability Calculator to know your product profitability.

 

 

Ad Group Name

For efficient campaign management, we recommend using similar names for your ad groups. Especially if you are running campaigns that move keywords between ad groups (automatic, broad, phrase). We recommend the following:

  1. Exact/broad/phrase (depending on match type of that keyword)
  2. Name of the product/SKU

Example: 

  • Pineapple slicer-EXACT
  • Pineapple slicer-PHRASE
  • Pineapple slicer-BROAD

For the ad group to which you move keywords, we recommend naming them:

  • EXACT keyword from PHRASE
  • PHRASE keyword from EXACT

Conversion Rates

It is the percentage of product page visitors who buy your product. Once you calculate your conversion rate per product, you can assess how many visitors do you need to make a sale and how many clicks you need for an order.

There are 2 ways to calculate your conversion rate:

  1. The formula is Orders / Clicks * 100

 

2. The formula is Orders / Sessions * 100

 

Max CPC/ Min CPC/ Default Bid

Use your profit margin and conversion rate to determine your bid price and your Max CPC.

  • Maximum Cost-per-Click (Max CPC) is the highest sum an advertiser will pay for each click-through obtained by their advert.
  • Minimum Cost-per-Click (Min CPC) is the lowest CPC that you are willing to bid for a keyword that is not converting profitably (alternatively you can Negative exact unprofitable keywords).
  • Default bid is the starting bid you want to use when you start your campaign.

Based on Click Rate (CR), how much can you afford to spend per click on average to hit your profitability target? Ideally, you want to place a bid that is high enough to win, but low enough to keep your profit margin healthy. With these factors in mind, we have laid out a formula for calculating your default bid for PPC ads.

 

Min CPC vs Negative Exact

Which strategy to use for non-converting keywords?

  • The advantage of Min CPC is you allow the keywords to continue to get low costing bids that hopefully will convert.
  • If you use negative exact, you are stopping any future clicks for that keyword. It can work well for keywords which may not have been as relevant but is very blunt instrument to use.

 

Placement Performances

Placements are places across Amazon where your ads may appear. You can differentiate your bids and view performance of your sponsored products ads by three placement groups: top of search (first page), rest of search, and product pages. 

If you do not have any data, start your adjustment bid with both of these at zero, but then adjust them based on which one performs best. If you have data or if you know that your product converts better on one of the placements, then you can adjust the placement performance from the start.

 

  • Number of Clicks before you judge if a keyword converts 

Depending on how profitable and aggressive you want to be, you need to decide how many clicks you are willing to give a keyword before you decide if it converts or not.

 

  • Number of Clicks before you adjust ACOS

Depending on the strategy for your product, you need to define how many clicks you are willing to accept before you adjust your bid based on the ACOS performance.

 

Weighted ACOS

Trendle’s PPC engine works by defining a period of time and adjusting the performance of your keywords. We use weighted ACOS in order to give different weights to different periods of time. You have up to 5 periods available and in the last period, we recommend that you use the lifetime performance of that keyword.

 Reminder: Understand the Relationship between Impressions, Clicks and Orders

 

Step 3: Setting Up a Rule Group

Follow the below steps in setting up a rule group using Trendle Analytics:

  1. Go to Trendle
  2. Click Advertising
  3. Click Ads Automation
  4. Then click Add Automation Rule Group

     5. Enter a Rule Group name (e.g. Product Name-Exact)

  • We recommend you name the Rule Group with the same name as the campaign it will be used for. This will make it easy for future searching and analyzing results

     6. Choose the country

     7. Choose the campaign 

  • You may not find if you have just created the campaign or the ad group. It refreshes every 24hrs so if you have not created it in the last 24 hrs, then that will not work

     8. Choose Ad group: choose EXACT

Step 4: Setting Up a Rule in a Rule Group

Click the  >    icon and then click +ADD RULE

 

At Trendle, We Recommend 4 Types of Rules:

Launch Rules

The objective of launch rules is to make sure that your keywords are not just sitting there doing nothing. These rules always work by two (1 adjusting up, 1 adjusting down)

If you are getting no clicks:

  • You could use Clicks:

Keywords / Products if Clicks equal 0 after x days increase bid by x Value Max Bid x

  • You could also use impressions: 

Keywords / Products if Impressions equal or less than x after x days increase bid by x Value Max Bid x

  • Or Total Spend:

Keywords / Products if Total spend equal 0 after x days increase bid by x Value Max Bid x

 

If you are getting no orders:

  • You could use Clicks:

Keywords / Products if Order equal 0 after x clicks decrease bid by x Value Min Bid x

  • You could also use impressions: 

Keywords / Products if Impressions equal or less than x after x days increase bid by x Value Max Bid x

  • Or Total Spend:

Keywords / Products if Total Spend equal 0 after x days increase bid by x Value Max Bid x

Kill Rules

The objective of Kill rules is to make sure the two launch rules do not bounce back and forth between themselves.

 

 

For Example:

Keywords / Products if Order equal 0 after x clicks decrease bid by 10 Value Min Bid x

 

  • You could also use ACOS: 

Keywords / Products if ACOS Greater than or equal x after x clicks decrease bid by 10 Value Min Bid x

  • Or Revenue:

Keywords / Products if Revenue Less than or equal x after x clicks decrease bid by 10 Value Min Bid x

  • Rather than Clicks you can change the Timeframe to Total Spend:

Keywords / Products if Orders Less than or equal x after x Total Spend decrease bid by 10 Value Min Bid x

 

Stop Rule Option:

If you want certain rules to stop running once another rule is triggered, then you can specify this by selecting the rule number in the drop down menu

 

For Example:

Rule 1: If Clicks = 0 after 5 days 🡪 Increase Bid

Rule 2: If Orders = 0 after 20 clicks 🡪 Pause Bid

Once rule 2 is activated for a keyword, you do not want rule 1 to re-activate that keyword and re-enable it and increase its bid. You want that Keyword to remain Paused forever.

So within Rule 1 you would say “This rule will no longer run if the condition of the selected rule below was met : 2”

Performance Rules

The objective of Performance rules is to manage the performance of an individual keyword to keep it within your pre-set parameters.

These rules always work by two (1 adjusting up, 1 adjusting down)

For Example:

Keywords / Products if ACOS equal or less than x after x clicks increase bid by x Value Max Bid x

Rather than Clicks you can change the time frame to Total Spend:

For Example:

Keywords / Products if ACOS equal or less than x after x clicks increase bid by x Value Max Bid x

Rather than Clicks you can change the time frame to Total Spend:

Keywords / Products if ACOS Less than or equal x after x Total Spend increase bid by x Value Max Bid x

 

Moving Rules

These rules are used to move keyword in the case of Automatic, Broad or Phrase match PPC campaigns. The principal is once you have “discovered the keyword” you move it to an exact ad group. 

It is very important to define where you send the keyword to, preferably a new ad group so you can track the performance.

 

  • Moving Rules from Exact ad Groups to Phrase or Broad

 

For Example:

Keyword if Orders is Greater or equal 1 after 1 Days 

Move to another ad group:

Chose country / Campaign / New Ad group for these keywords ad group default bid (or set your custom bid)

And make it negative Exact in current ad group:

Chose country / Campaign / Current Ad Group Negative Exact 

 

The reason to do a negative exact is you have already discovered that keyword so you do not want it in 2 ad groups.

If you want to discover new keywords, you could have a moving rule that takes keywords from your Exact Ad group, once they get a sale, and moves them to your Phrase ad group to run it as a Phrase match.

 

  • Moving
  • Rules from Phrase or Broad ad Groups or Automatic Campaigns 

For Example:

Search Terms if Order Greater than or equal 1 after 1 Days Move to Another Ad group:

Chose country / Campaign / New Ad group for these keywords Exact Match from Phrase ad group default bid (or set your custom bid)

And make it negative Exact in Phrase ad group:

Chose country / Campaign / Phrase Ad Group Negative Exact 

 

Tip: Only 

use Search terms if you are moving the keywords from an Automatic Campaign or from Phrase / Broad ad Groups

 

The reason to do a negative exact is you have already discovered that keyword, so you do not want it in 2 ad groups.

You could also use these rules to move keywords that do not get clicks to a new ad group:

Keyword if clicks equal 0 after x Days, Move to another ad group 

Or to have all your best performing keywords in the same ad group (but I do not recommend that)

 

FINAL THOUGHTS:

We hope this article will be useful for Amazon sellers looking to automate their PPC campaigns. And we believe by applying the steps and the different rules we have shown above, will already be immensely useful to help you improve the profitability of your Amazon ads, and hopefully prove to be a huge time saver as well.

Trendle Analytics Automated PPC engine is here to help you run profitable Amazon PPC campaigns and simplify your life. You can now build scalable PPC campaigns with outstanding ROI that will maintain high ranking products and higher profit margins. Trendle’s PPC engine enables you to set the parameter of your campaigns so that the software makes these adjustments as and when required by your rules allowing you to sit back, relax and watch the sales come in. Start getting your time back to spend on the things that really matter by growing your business to the next level. So, if you are interested in using our Trendle’s PPC engine, start your free trial today!

 

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