Amazon is now the third most popular advertising platform in the US.
With the average PPC conversion rate of 9.47%, the platform’s paid ads convert almost three times more leads than search, owing to the user base with high purchase intent.
And speaking of users, 66% of US consumers now search for new products on Amazon. However, 44% of them never go past the second page of search results.
What this means for brands is that their revenue on the platform depends on their ability to land on the first page of the results and capture the buyers’ attention.
Enter Amazon PPC optimization - best practices aimed at improving ad performance, including placement and conversions.
In this article, we discuss Amazon PPC strategies and best practices with the industry leaders - the award-winning Amazon agency Awesome Dynamic.
Jon Freeman (JF): Awesome Dynamic has been in business for over 10 years (since 2009).
Over 5 years ago we saw a shift in eCommerce and a need - there were not many Amazon consultants available to help Amazon sellers navigate PPC optimization or help with Amazon SEO, optimizing listings with keywords, appealing content, quality images, shipping or any of the behind-the-scenes intricacies Amazon presents to sellers.
We took that opportunity to fill the void and have been growing since.
Shawn Cassinelli (SC): We helped a small but thriving fishing tackle company decrease their advertising spend by 52%. In August of 2018 they reached out to our team at Awesome Dynamic with the goal of decreasing their overall Amazon advertising spend of about $18,000 per month.
Their concern was that decreasing the spend would have a corresponding negative impact on sales. They did not have the time to develop a level of expertise in PPC optimization. We decreased the spend and kept the same sales volume.
JF: The best campaigns we run are when we work hand-in-hand with our clients.
We strive to make a personal connection with our clients to learn everything we can about their business and products. This puts us at an advantage in today’s climate, where excellent customer service is hard to come by.
The client’s knowledge of the product combined with our expertise in PPC creates successful campaigns every time.
We combine our human expertise with a bidding algorithm that ensures the best possible sales with the least amount of spend.
Continuously monitoring the campaigns and checking them at least once every week and sometimes more if necessary.
SC: We view every client account as a unique opportunity. The strategy can change depending on the client category, product and unique challenges in the specific marketplace in which the client is doing business.
To get started we perform an assessment, conduct keyword research specifically targeted for Amazon and create a strategic plan for the unique needs of the business and product listings.
One of the areas we focus on is optimizing their listings. It is important to send buyers to listings that are delivering the best possible buyer experience.
We can ensure that’s the case by taking the time to write compelling copy, backed by keywords, providing professional images and doing the behind-the-scenes work to ensure proper optimization.
SC: People are looking for different things. Primarily in Amazon you are looking for a product. Both Google and Facebook have different primary purposes so the audience reflects that.
JF: Typically users come to Amazon not to search or connect with friends and family but with the intent to make a purchase. Google is more for questions and Facebook is more for social interaction.
SC: Amazon PPC ads don’t feel like ads. They often blend in with the other products in the organic search results, creating a more seamless and less intrusive experience for shoppers. This approach has helped advertisers see an increase in clicks and conversions.
JF: Amazon does not allow for targeting specific audiences the same way we see Google and Facebook use targeted ads.
For Amazon PPC we focus on keywords and the groups that use those keywords to identify and focus on the best-matched audiences.
SC: Look at your competition and see what they are ranking for, but don’t focus all of your attention on them.
Try for keywords that don’t have ads on them, so you can start organically ranking in more places.
JF: Find all of the possible keywords that buyers are using to describe the product. Auto campaigns also work great for this.
JF: There is no point that a campaign is “fully optimized”. What buyers are looking for continuously changes and you need to adjust your campaigns to these changes.
SC: The main points that ensure quality content include:
JF: The biggest mistake I’ve seen is when the advertiser only runs auto campaigns or does not run matched auto and manual campaigns.
Having both campaign types allows us to generate new keywords based on Amazon search results and keep control over the bids.
SC: Another mistake is setting up the campaigns and walking away. Amazon campaigns benefit from frequent bid adjustments and constant evaluation of the results.
JF: Negative Keywords - Many agencies do not use these negative keywords to the fullest extent they can. Irrelevant terms and terms that spend too much of the campaign budget should be added here.
SC: Amazon is combining the Seller Central and Vendor Central interfaces.
We expect to see the cost of advertising to rise as it has in the past. Especially with so many new sellers trying to join the marketplaces.
JF: COVID-19 has been a game-changer for some clients and for others it has not affected sales at all.
SC: Every client and situation is different and unique. Even clients who are in the same category may need to use different tactics to achieve their PPC goals. There really is no “one size fits all” approach to PPC.
Thank you, Jon and Shawn!
Want to take your Amazon game to the next level? Get in touch with Awesome Dynamic via contact form or call (800) 238-1811