amazon ppc acos

The process of running an Amazon PPC campaign can be an extremely profitable method for sellers to generate substantial sales for their items and increase the chance of more reviews and enhance the visibility of their new products.

However, it demands Amazon sellers put in considerable time to make sure that their advertising campaigns are well-planned at the beginning. 

As a seller, this is essential as your company grows and you discover yourself managing an ever-expanding set of advertising campaigns.

We will guide you through our suggested approach to structuring an effective Sponsored Products campaign. We will also share our recommendations to help you start the process of Amazon PPC optimization.

How to Structure Your Amazon PPC Campaign

  1. In each item (ASIN), you’ll create two campaigns, one automated campaign, and another manual campaign.
  2. Make your first automated campaign and then let it run for a couple of weeks at the most.
  3. Once you’ve gathered a decent amount of information then take a look at your Search Term Report and go through it to identify the top-converting keywords that you can incorporate into your manual campaign.
  4. To run a manual campaign, you’ll need to set up three distinct ads Groups (for each match type) One to cater for Broad Match, Phrase Match, and Exact Match.
  5. Determine the time and budget for your manual or automatic campaign. For your manual campaign, you’ll also need to determine the daily bid. Start with the estimated price provided by Amazon and then adjust as needed.

Tips: Be sure to look over your search Term Report to find longer-tail keywords. They are the ones that are used by customers who have specific search intentions which means you’ll be targeting customers further along the funnel to conversion.

Amazon Long-tail keywords can be highly profitable for sellers as they typically are more profitable in terms of conversion and less CPC cost since they are less competitive.

Amazon Keyword Research Tool

Utilize SellerApp’s Amazon keyword tool for research to speedily increase your list of keywords that are relevant to your business. Input a keyword relevant to your product, and select those keywords that are most pertinent to your product from the search results.

You may also copy and paste the long-tail keywords that you’ve found within the Search Term Report into Sonar to create a comprehensive list of keywords that are relevant, that you’ll be able to export using Excel and then add to any manual marketing campaign.

After about 4-6 weeks, it’ll appear to be obvious the keywords that perform better over others. In this stage, you’ll want to reduce your bids gradually for the keywords that don’t convert as well as the ones you’ve discovered.

Learn to Optimise Your CPC Bids

After you’ve launched an advertising campaign for your Amazon product, you’ll be required to improve the effectiveness of your CPC bids, ensure that you keep your advertising budget in check, and stay clear of buying terms that aren’t likely to make a profit for you.

Sellers must understand that testing bids are at the heart of CPC optimization. And you can improve your bids if have enough information to be able to make an informed decision on the need to lower or increase the bids for keywords.

In the beginning, you’ll need to determine your goal Amazon ACoS. If you compare your actual ACoS to the desired ACoS, you’ll be able to measure the extent to which your advertisements are performing about your desired profit margin.

Guidelines for Amazon CPC Optimization

  • If your ACoS is higher than that of your target ACoS, this suggests that you’re paying too excessively, i.e. you need to lower the price to see if you can reduce your ad expenditure without impacting your sales significantly.
  • If your ACoS actual is a target ACoS, that indicates that you have more funds for spending, i.e. you need to increase your bid and determine if the reach of your ads (and consequently the sales) could grow exponentially.
  • If your keywords aren’t getting any clicks, look at the category of your product and ensure it’s correct and you’ve included the keyword in your listing or the backend keywords. If your product’s category is correct, and the keywords are included in your listing, then you’ll need to begin increasing the bid to determine whether a higher amount of bid could bring the keyword to ‘active’.
  • Keywords that don’t result in any sales over a prolonged time frame, and are not profitable even after the bid is reduced to a lower level, should be eliminated from your campaign manual and included in your negative keyword list.

To be successful as an Amazon seller, it’s crucial to spend the time required to understand how to organize your PPC campaigns to be successful on Amazon.

This is essential as the volume of your products increases and you’ll need to establish a perfect advertising campaign structure that you can easily scale up to accommodate the expansion of your Amazon business.

Recommended Guide: 7 eCommerce user experiences in 2022.

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