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Negative Targeting on Amazon PPC has everyone eager to start. Today, we delve into the world of Amazon Pay-Per-Click (PPC) advertising, a powerful tool that businesses use to enhance visibility and drive sales on Amazon.
Although creating an Amazon PPC campaign might seem straightforward, it becomes more complex when we aim for efficiency and effectiveness. This discussion will focus on Amazon Auto PPC and the importance of properly running these campaigns. Our goal is to help you understand how to optimize your Auto PPC campaigns to achieve better Advertising Cost of Sale (ACoS) faster.
In this blog you will learn:
- How to run Amazon auto PPC properly and why it’s crucial
- Setting up an Amazon auto PPC campaign
- Setting up ad group
- Importance of negative keyword targeting
The Importance of Running Amazon PPC Auto Properly
Amazon Auto PPC campaigns are fundamental for sellers aiming to increase their product visibility, improve sales, and grow their Amazon business. However, merely running these campaigns won’t guarantee success. The key lies in running them properly.
Now, what does running an Amazon Auto PPC campaign properly entail? It means setting up and managing your campaign strategically and analytically to ensure that the campaign’s performance aligns with your business goals. One critical performance metric that Amazon sellers aim to improve is the Advertising Cost of Sale (ACoS).
ACoS is the percentage of your sales spent on advertising. It’s calculated by dividing your total ad spend by the sales generated from these ads. A lower ACoS indicates higher profitability. Therefore, the goal is to achieve a better (lower) ACoS quickly. This can be done through proper setup and continuous optimization of your Amazon Auto PPC campaign.
Setting Up an Amazon PPC Auto Campaign
Setting up an Amazon PPC campaign Auto involves several crucial steps. First, you need to set up the campaign name. It’s advisable to follow a specific naming convention for your campaigns. This will help you to easily identify and manage them, especially when you have multiple campaigns running concurrently.
Step 1: Set up Campaign Name
You need to assign the campaign to a portfolio. Portfolios are a way to group your Amazon PPC campaigns based on certain criteria, such as brand, category, season, or any other parameter that suits your business needs.
Assigning your campaign to a portfolio can help you better track and analyze your campaigns’ performance.
Step 2: Assign the campaign to a portfolio
The start date of your campaign is also essential. By default, the start date would be the day you create the campaign.
However, you can set it to start on a future date, depending on your advertising strategy.
Third Step:
- Choose start date and end date
The daily budget is the amount you are willing to spend on a campaign per day. It’s important to set a realistic budget that aligns with your advertising goals and overall marketing budget. Remember, Amazon will not exceed your daily budget.
Fourth Step:
- Set daily budget
Lastly, in the targeting section, you should select ‘automatic targeting.’ In automatic targeting, Amazon targets your ads to all relevant customer searches based on your product information.
Fifth Step:
- Select automatic targeting
Choosing the Campaign Bidding Strategy
The campaign bidding strategy is a crucial part of setting up your Amazon Auto PPC campaign. This strategy determines how Amazon will bid on your ads in auctions. There are three bidding strategies you can choose from: ‘Dynamic bids – down only,’ ‘Dynamic bids – up and down,’ and ‘Fixed bids.’
‘Dynamic bids – down only’ is the recommended strategy for most sellers. With this strategy, Amazon lowers your bids in real-time for clicks that may be less likely to convert to a sale.
‘Dynamic bids – up and down’ allows Amazon to increase your bids (by up to 100%) for clicks that may be more likely to convert to a sale and reduce bids for less likely clicks.
‘Fixed bids’ strategy means that Amazon will use your exact bid for all opportunities and will not adjust your bids based on likelihood of a sale.
Choosing the right bidding strategy depends on your campaign goals, budget, and risk tolerance. For beginners or those with a limited budget, ‘Dynamic bids – down only’ may be the safest choice.
Setting Up Ad Groups and Products
Setting up a proper ad group structure is a pivotal component in creating an efficient Amazon Auto PPC campaign. Ad groups contain one or more ads that share similar targets. When setting up ad groups, it’s important to group related products together. This not only allows for better management but also enables Amazon’s algorithms to target your ads more effectively.
Product selection is another crucial aspect. The products you choose to advertise in your campaign should align with your advertising goals. Whether you aim to promote your best-selling products, increase visibility for new products, or boost sales for underperforming items, your product selection should reflect that goal.
Moreover, ensure that the products you select are competitively priced, have high-quality images, and detailed and compelling descriptions. These elements enhance the likelihood of conversion once a potential customer clicks on your ad.
The Importance of Negative Targeting
Negative targeting plays an essential role in refining your Amazon Auto PPC campaign. It enables you to exclude specific keywords that may not be relevant to your products or profitable for your campaign. This is crucial as it prevents wastage of your advertising budget on clicks that are unlikely to result in a sale and improves your campaign’s overall ACoS.
A practical tool to identify irrelevant keywords for negative targeting is the AMZ Suggestion Expander. This tool can provide a broad range of potential keywords related to your product. By reviewing these suggestions, you can spot and exclude keywords that are not relevant to your product.
Taking negative targeting a step further, you can search broader parent keywords and potential irrelevant keywords. This allows you to preemptively exclude keywords that could trigger your ads but are not relevant to your products.
Additionally, analyzing competitor listings can also provide insights into irrelevant keywords. Keywords used by competitors that are not pertinent to your product can be added to your negative keyword list.
Finalizing the Negative Targeting and Launching the Campaign
Once you’ve identified and compiled a comprehensive list of negative keywords, the next step is to add them to your campaign. Amazon allows you to add negative keywords at the campaign or ad group level.
However, adding them at the campaign level ensures that they apply to all ad groups within that campaign.
It’s important to remember that negative keywords can be added as exact or phrase match types. Exact match negative keywords will exclude your ads from showing for that exact keyword, while phrase match negative keywords will exclude your ads from showing for searches that include the exact phrase in the order it is written.
After setting up your negative keyword list, the final step is to launch your campaign. However, launching the campaign is not the end of the process. It’s crucial to save the list of negative keywords for future campaigns and regular optimization. This list will be a valuable resource for refining future campaigns and enhancing their performance.
Wrapping Up
In conclusion, properly setting up and optimizing Amazon Auto PPC campaigns is pivotal for achieving your advertising goals and should be done along with negative targeting Amazon for better results. While the setup process may seem intricate, taking the time to do it right can result in significant benefits.
The use of negative targeting is especially important as it allows you to refine your campaign, ensuring your ads are shown to the most relevant audience. This, in turn, optimizes your advertising spend and improves your ACoS.
Remember, running an Amazon PPC campaign is not a one-time task. It requires ongoing monitoring and optimization to ensure it remains effective. Regularly review your campaign performance, adjust your bids, and update your negative keyword list as needed. With these strategies, you can maximize the effectiveness of your Amazon PPC Auto campaigns, reduce your ACoS, and increase your return on investment.
To identify terms for negative terms in auto campaigns, follow these steps: 1. Review Search Term Reports: Access your search term report in Amazon Advertising. This report shows all the search terms that triggered your ads and their performance metrics. 2. Analyze Performance Data: Look for terms with high click costs but low conversion rates. These are typically poor performers that are wasting your budget. Also, identify terms that consistently bring in irrelevant traffic. 3. Check for Irrelevance: Identify search terms that are not related to your product or are too broad. These might include terms that don’t align with what your product offers or are outside your target audience. 4. Use Conversion Metrics: Focus on terms with high click-through rates but low or zero conversions. These terms attract clicks but aren’t leading to sales, indicating they might be irrelevant or misleading. 5. Add to Negative Targeting: Once you've identified the irrelevant or underperforming terms, add them to your negative targeting list in the auto campaign settings. Choose between negative keywords and negative ASINs as needed.
Negative targeting in auto campaigns and manual campaigns is essentially the same in purpose but differs in how it’s applied: • Auto Campaigns: In auto campaigns, Amazon automatically selects the keywords and products that trigger your ads. Negative targeting here allows you to exclude irrelevant search terms or ASINs that Amazon might otherwise choose, helping you refine the broad reach of an auto campaign. • Manual Campaigns: In manual campaigns, you have control over which specific keywords you want to target. Negative targeting in manual campaigns allows you to exclude certain keywords or ASINs that you’ve identified as unprofitable or irrelevant, giving you more precise control over your ad targeting. In both cases, negative targeting helps you avoid wasting ad spend on terms that don’t convert well, but the key difference lies in the level of control you have over keyword selection.
Running an Amazon auto PPC campaign is crucial for new sellers because it provides an easy way to gain visibility and gather valuable data without needing extensive experience. Auto campaigns help you discover which keywords customers use to find products like yours, offering insights that can improve your listings and future ads. They’re simple to set up, allowing Amazon to handle the targeting, which frees you to focus on other aspects of your business. Additionally, auto campaigns help you reach a broad audience, building awareness for your brand, and they allow you to start with a smaller budget, making it a low-risk way to test and refine your advertising strategy.
To control costs of an Amazon auto PPC campaign, follow these simple steps: 1. Set a Budget: Start by setting a daily budget that you're comfortable spending. This limits how much you can spend each day, so you don't go over your intended budget. 2. Monitor Bids: Keep an eye on your default bids. If you notice that your costs are rising too quickly, consider lowering your bids to spend less per click. 3. Use Negative Keywords: Add negative keywords to prevent your ads from showing up for irrelevant search terms. This reduces wasted spending on clicks that are unlikely to convert into sales. 4. Analyze Performance: Regularly check your campaign reports to see which keywords and ASINs are driving up costs without bringing in results. You can then adjust your strategy or exclude those underperforming terms. 5. Optimize Listings: Ensure your product listings are well-optimized with relevant keywords. This helps Amazon better match your ads to the right searches, which can improve your ad performance and reduce wasted spend. 6. Adjust Over Time: As you gather more data, keep tweaking your campaign. Lower bids on high-cost, low-performing keywords, and allocate more budget to keywords that drive sales. By regularly monitoring and adjusting your campaigns, you can keep your costs under control while still reaching potential customers.
Using auto PPC along with manual campaigns is important because they work well together: 1. Finding New Keywords: Auto campaigns help you discover new keywords that customers are using to find your products. You might not think of these keywords on your own, but auto campaigns can find them for you. 2. Using Data to Improve: The keywords that work well in your auto campaigns can be moved to your manual campaigns. This way, you can focus on the keywords that actually bring in sales. 3. Covering All Bases: Auto campaigns give your ads broad exposure, while manual campaigns let you focus on specific, high-performing keywords. This approach helps you reach more potential customers while being smart about where you spend your money. 4. Smart Budget Use: You can use auto campaigns to test the waters with a smaller budget and then put more money into manual campaigns where you know the keywords will perform well. 5. Better Control: Auto campaigns handle the keyword matching for you, but manual campaigns let you take control of which keywords to target and how much to bid. This combination gives you both convenience and precision. Cutting short, using both auto and manual PPC campaigns together helps you find the right keywords, spend your money wisely, and get better results on Amazon.
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