- The Importance of Running Amazon Auto PPC Properly
- Setting Up an Amazon Auto PPC Campaign
- Choosing the Campaign Bidding Strategy
- Setting Up Ad Groups and Products
- The Importance of Negative Targeting
- Finalizing the Negative Targeting and Launching the Campaign
- Wrapping Up
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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.
- 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.
- 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.
- 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.
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.