Introduction to Amazon Sponsored Products ADS –
A well-established name Amazon; it is a big killer in the online retail sector.
Where ever your eCommerce store is, whatever your marketing plan is, at some point Amazon is there. Amazon continuously upgrades its features for the better use and an amazing experience for its users, which may be the store owners or the Amazon customers. A new feature launch by Amazon is Amazon Marketing Services (AMS) or Amazon PPC.
What AMS did is the retailers had to bid on the keywords and according to that bid their product (for the product for which they did) starts appearing on the top of the organic search results. Amazon Ads are very essential for the store managers to boost their sales on this online platform. No customer will scroll down if they get better at the top, so it’s a chance to show them that you are the best. It was somewhere similar to Google Adwords.
According to the experts Amazon Marketing Services is a little bit same as Google Adwords as there are some similarities between them:
Both the platforms are based on keywords. If you select the best keyword at best possible bid, it will prove to be a golden move.
Both the advertising platforms have some issues/drawbacks with them and therefore chances to innovate something for their expansion.
Both tried to make the users focus on the Automatic – Campaign program.
Amazon PPC requires a huge amount of detailing per product as if we choose a manual, the campaign it requires to detail each keyword in three categories, i.e. in Broad, Phrase and Exact match which requires a lot of optimization, testing work.
Amazon is a land where you and your direct or indirect competitor fight. Amazon allows you to take a loop in the face of Amazon sponsored product ADS which enables you to be on the top of your competitor’s product page. But for a beginner, it’s difficult to understand how to run an effective Amazon sponsored product ADS.
Here, are some tips which will help you to run effectively your Amazon PPC AD:
Components Of Amazon Sponsored Product Ads:
Before Amazon Sponsored Product AD Creation you should know its components very well. It will help you to build an effective campaign without wasting your time and money as well.
Basically, you have only two types of the campaign to run in Amazon PPC. The first one is Automated Targeting option and second is a Manual Targeting Option.
But what does this targeting means? And what is ACoS?
Automate Targeting: In this type of targeting the Amazon’s algorithm selects the keywords as per the upload of product and their description and also consider your close competitors’ wall of product uploading. This targeting type is fast and easy to set earlier. But the disadvantage of this type of targeting is that in Amazon automatic targeting it doesn’t consider the negative list option, and bid on the keywords which can be wasteful for you and will not generate the appropriate amount of revenue.
Manual Targeting: In this type of targeting the Amazon’s algorithm doesn’t select the keyword by itself. The keywords to be selected are done manually. This needs a lot of research work. Manually you have to have three match for every keyword category, three match are: Broad Match, Phrase Match, Exact Match
Broad Match: The keyword is taken in a broad sense, i.e.the algorithm shows your ad whether your bided keyword is in any order or maybe a close competitor of your product.
Phrase Match: In this type of match your ad will be shown if the bided keyword appears in the search tab, maybe other words before or after it. The bided keyword should be in the search as a phrase. Then your ad will be published and visible to the desired customers. It allows the spelling mistake & plurals.
Exact Match: In this match, the keyword should be searched exactly on what bided only the spelling mistakes are acceptable. No other term in the search bar will be accepted.
ACoS: It is the key matrix through which you can observe your ad campaign performance. It is the ratio of Total Ad Spent and Attributed/Targeted Sales. You can ensure through ACoS that you are not making a loss through running a sponsored Ad.
Bidding On The Keyword:
Same as Adwords do, Amazon PPC also charges you if someone clicks on your ad, regardless whether they buy the advertised product or not. As Adwords do for a new campaign, AMS also suggest you the bid amount in starting of the campaign for your keyword. What a bid means is that amount which you want to spend on one click on your product.
The experts also talk about the Bid+ option, what it means that the Amazon algorithm will automatically higher your bid up to 50% to make your ad visible to the buyers on top of the search page result. It doesn’t raise your daily budget (since it was fixed for per day) but higher up the bid on a single keyword will make an upstairs for your cost per click.
Search Result Utilization:
Amazon PPC also provides the search result as Adwords do. It provides you the information that which keyword is worthful and which is just eating up your daily budget without any result. It is good to keep a check on the working of your ad campaign, i.e. what are the result of it whether you are getting it appropriately or not. This analysis provides a list of negative keywords on which you should not work anymore. This makes your CPC lower and daily budget will spread for the meaningful keywords.
How To Find Best ACoS:
What ACoS actually means is the division of Ad expenditure by the total sales generated through it.
For example – your Ad expenditures are about $100 and you generated $2000 revenue from it.
ACoS will be- $100/$2000=. 20 or 20%
But the question is how to find this $100?
We can understand this with an example:
Cost of Product + Other Expenses = $1500 (Other Expenses include FBA cost, Shipping cost, Packing Cost etc.)
Selling Price of your Product = $2000
Net Revenue = $500 ($2000-$1500)
So, to find the exact margin of ACoS you have to know the ratio of net profit & selling amount.
$500/$2000 = .40 = 40%
So, you will be still in profit if your ACoS margin is equal or less as compared to other campaigns.
So, if you are a seller on Amazon, AMS or Amazon Sponsored Product Ads is an opportunity to boost your revenues. As every online store manager knows that the customer will never scroll too down for their requirement, and if their listing is not on the top of the search page it is very difficult to earn revenues. So, the solution is nowhere, to do sponsored ads for your product.
If you want professionals for Amazon PPC Ad Creation, you can hire our experts who have expertise in making catchy Ads, running Ad campaigns, conversion/traffic calculation & right Ad posting time to target maximum audience on Amazon.