Sellers should know where Amazon’s on-site traffic comes from. The traffic of sellers’ products generally comes from the following six channels, namely search keywords, product category nodes, filtering conditions on the left side of the page, coupons/promotions, on-site activities, and on-site advertising. A data released by the Cross-border Report shows that more than 50% of Amazon sellers will actively promote product pages, and more than 70% of sellers use Amazon CPC advertising to promote. Proper use of advertising can not only increase product sales, but also improve return on investment.
CPC advertising is charged based on the number of times the ad is clicked. CPC advertising allows products to receive more exposure and views by placing advertisements to the target audience. This is a form of on-site promotion that Amazon sellers need to master. Sellers place Amazon CPC advertising for three main purposes: to increase product page exposure opportunities and attract more consumer attention; to increase brand awareness; and to create momentum for new product launches, which helps to create and form popular products.
The operation method and steps of CPC advertising are as follows.
(1) In Amazon Seller Central, select “Advertising Campaign Management” under the “Advertising” column, and then click “Create Advertising Campaign”.
(2) Follow the prompts to select the type of advertising campaign you want to promote, including product promotion and brand promotion.
Product promotion includes two parts: automatic delivery and manual delivery.
①Product promotion – automatic delivery. The operation of automatic delivery is as follows: fill in the name of the advertising campaign, set the start date and end date of the campaign and select automatic delivery, then set the default bid, negative keyword positioning, select the bidding strategy of the advertising campaign, set the ad group name and add products.
②Product promotion – manual delivery. The steps of manual delivery are as follows: fill in the name of the advertising campaign, daily budget, and the start date and end date of the campaign and select manual operation. Manual delivery is divided into keyword delivery and product delivery. Among them, if you choose keyword delivery, you need to add keywords under keyword positioning.
If the seller chooses to manually deliver products, you need to enter the default bid amount under product delivery and select products and categories for delivery.
(3) Further select keywords. Currently, Amazon has two ways to select keywords, namely automatic generation and manual entry. Automatic generation will match all relevant search terms according to the product, which can increase the exposure and click-through rate of the product, but the accuracy will be relatively weak. Manual entry requires sellers to enter bidding keywords themselves, which requires sellers to have a high understanding of their own products and local consumer search habits.
(4) Complete the settings, click Save and Submit. After the operation is completed, the advertising campaign will be available for consumers to click on within the specified date.
After CPC advertising has been running for a period of time, sellers should regularly check the data of the advertising campaign. Under the advertising report column, sellers can select the required data and create reports. By further analyzing the advertising campaign data, the ACoS indicator of the overall advertising can be reduced.
The ACoS indicator is a key indicator used to measure the performance of sellers’ advertising investment in Amazon. In addition, the report contains many keyword indicators, such as buyers’ actual search keywords, keyword corresponding display, selection and conversion rate, etc. According to the performance of different indicators, sellers can delete and adjust keywords to further improve the conversion rate of advertisements and increase the return on investment (ROI), thereby maximizing profits.