Before doing an Amazon Sponsored Ad (paid click advertising, also known as Amazon sponsored advertising, PPC advertising, hereinafter referred to as PPC advertising) campaign, you need to make sure you are ready. Next, Seller Home will share with you several important things you must do before preparing for a PPC advertising campaign.
1. Optimize your listing
Re-examine your product title, consider adding additional pictures, modifying keywords, creating feature-rich bullet points, and customizing your product description to make it attractive. This is especially important if you are advertising during the holiday shopping season. You can add corresponding holiday or event elements to the title, picture, and description to make your listing more attractive to consumers.
2. Avoid promoting additional items
If you add additional items to your Amazon PPC campaign, you are promoting a product that already has a sales barrier-buyers can only buy it if they buy other products to increase the number of shopping carts. Consider excluding additional items from your advertising campaign, or changing the product format to multiples to increase the order quantity so that it can be shipped as a single product purchase.
3. Attract product reviews
Product reviews have an impact on conversion rates, so the more product reviews you have, the more successful your ad will be. There are many automated services that can encourage buyers to leave reviews for your products. If you plan to promote a product with few or no reviews, consider developing a plan to get reviews before doing an Amazon PPC campaign. Many people may collect reviews by brushing orders and reviews. Although this is a faster method, the risk is not low and it is not advisable to do it too much.
4. Win the Buy Box
Your ad campaign can only be better delivered if you win the Amazon Buy Box. If you don’t win the Buy Box, your ad campaign will not be displayed, at least for a period of time. Choosing to use Amazon FBA can help with this. Product pricing and seller performance indicators will also affect your chances of getting the Buy Box.
5. Make sure you have enough inventory
Make sure there is enough inventory for the products included in your campaign. Ideally, you have at least 30 days of inventory on Amazon and a way to reserve inventory or replenish it when it sells. If you are using FBA, make sure you ship in advance. Amazon likes products with high sales rates, but if you are often out of stock, your campaign performance will be greatly reduced.
6. Find the best time to run ads
When you know when your buyers are most active shopping, you can customize your campaigns for the day, weeks, and months. For example, if you only ship to the UK, it makes little sense to run campaigns in the middle of the night. You may see more garden-related products on weekends and at the beginning of the work week. Also, if you may want to reduce or pause advertising for school-related products at the beginning of the summer vacation (if you sell such products), but when parents are preparing for the new semester (that is, the back-to-school season as we often say), you can increase your advertising efforts.
Based on these examples, you can combine your own brand products to develop a strategy for advertising time so that you can get better advertising results.
7. Understand your profit and ACoS
You need to understand your product’s profit margin after deducting product costs, storage and fulfillment costs, taxes, Amazon fees, and administrative expenses. Then calculate your ACoS, your advertising spend (i.e., advertising expenditure cost).
ACoS calculation formula
ACoS = Total advertising spend/Total advertising sales
That is: divide your total advertising spend by the total sales of the advertising campaign.
The lower your ACoS, the higher your profit from advertising, but you don’t want your ACoS to be higher than your product profit margin after considering all expenses. There are times when you may be willing to break even or even lose money on your ACoS, for example, if you launch a brand new product on Amazon, but at any other time, it doesn’t make sense to run advertising promotions and sell at a loss.
If your ACoS is very low, you may want to increase your bid rate to increase sales. If your ACoS is very high, then consider lowering your bid rate to maintain profitability.