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#1 Amazon Advertising Strategy To Increase Profits

  • November 6, 2020

Today I’m going to show you a simple Amazon advertising strategy that’ll boost your profits.

Creating Amazon PPC split tests is one of those essential skills that you’ll need to have as an Amazon seller. If you want to grow your revenue month after month while continually lowering your ACOS, I’m going to show you step by step exactly how to do that.

Let’s get started.

PPC split testing is the surefire way to accurately gauge if your Amazon PPC strategies are working or not.

For any sort of Amazon PPC optimizations that you do for your Amazon account, you’ll need to keep track of what the before and after results were. That way you can have tangible data to know if your strategy is in fact working or not.

Make sure you’re also watching the video to see live how I’m showing you the optimization process itself.

An Amazon Advertising Strategy Split Test Example

So let’s say that your 30-day split test begins today.

Let’s go ahead and keep track of how you’re going to be optimizing your Amazon PPC campaigns with this section.

I made a super simple document, which you can make too: I put Week 1Week 2Week 3, and all the way to Week 4 into it. And then what I did was put Actions into it for each week.

Week 1: Record your data

Firstly, I put Ad spendStarting PPC revenue, and Starting ACOS for Week 1 into my document.

And then, for the end of Week 1, I also included Ad spendEnding PPC revenue and Ending PPC ACOS.

So right now, just look at your Amazon PPC account, and look at the past seven days. This is going to be your Week 1. And this is where you’re going to put that data for the past seven days.

Okay, so you’re going to look at your ad spend currently.

Let’s say you’re at your account right now, and you’re looking at the last seven days, and then you see that for the last seven days, your ad spend has been $250; PPC revenue is 500. And let’s just say your ACOS is 50%.

Actions are your optimization variables.

So now you’ll need to go into your Actions section. This is where you’re going to put your optimization variables for the first seven days.

You can do more than one action; but I suggest waiting until you have at least 30 days worth of PPC data after you’ve begun Amazon PPC split testing before you start doubling up on the actions. 

That way, you cannot get convoluted with the data; because it’s going to be a lot of data, and it will be hard to pinpoint what optimization action has indeed led to a higher sales result or lower ACOS (or even both) if you have two or three actions at a time.

So I always recommend, especially for beginner Amazon sellers: do one major action every seven days, and after your first month, you can start doubling the variables that you put into your optimization process.

How do actions work?

Let’s break down how this action works.

Let’s say that for the first seven days, your first optimization action is lowering your price by 20%. So you’ll have to put that into your Actions section (in the video, I highlighted it in red, just to show that you’ve already used this action).

And let’s say that after those seven days, PPC spend was the same (so also 250), but your PPC revenue increased by $150 – just because you lowered the price by 20%.

Let’s also say that your new ACOS is 35% after those seven days are up, so you can clearly see that just by lowering your price by 20%, you increased your sales by $150. Moreover, you lowered your ACOS by 15%.

So that’s that – you just have gone through your first seven days of Amazon PPC split testing.

Week 2

Let’s have a look at Week 2.

Now what you’re going to do is add a second action to follow Week 1.

For Week 2, your task is to record your Ad spend from the previous ending seven days. So in this case, ad spending stayed $250, and the revenue was 650. So write 650 into your document, and your Ending ACOS was 35%.

Now you’re going to do a second action.

You already know that lowering the price made an impact on your sales in a positive way – now let’s see if we can continually raise the bar to increase your sales on Amazon.

Time to look at the action for Week 2. For Week 2, you are going to increase the bids by 30% on low ACOS keywords. This can be whatever you’d like: you can have a threshold of 30%, 20%, or whatever makes sense for you in your own Amazon business.

In this example, I’m putting 20%< ACOS, so for any product placements or keyword targets that have conversions and the ACOS is below 20%, we’re going to increase the bids by 30%.

Let’s see what this is going to look like when you’re looking at your own Amazon account.

Once you’re logged into your Seller central, just go ahead and go to the Date range, and make sure you’re looking at the last seven days with the data.

Then, go into the campaign level to see how to make these optimizations work. Once you have the campaign open, let’s see what the bid optimization process looks like in our Week 2 example.

In my example, I was raising the bids by 30% on the top performers. To do that, simply go into your campaign, and for all of the keywords and product placements that have an ACOS below 20%, your e.g. 75 cents bid is going to be raised to $1 now. 

You continually have to raise the bids on your top performers, simply by looking at what you’re already at in your bid, and just raising it by that 30% in order to test the results for Week 2.

The point of this action is to basically fuel your top performers with more ad spend in order to see if you can also boost your sales at a low ACOS. If your ACOS is low, it means that the keywords or the product placements themselves are good, so you just basically want to put more ad spend to what you know is already working for your account.

After you have your results for the second week, just go ahead and put the results into your document to the Ending measurements. So that way you’re tracking as you’re going along the weeks.

Week 3

Let’s move to Week 3.

For Week 3, let’s say you want to lower your bids by 30% on all high ACOS keywords and product placements.

For example, let’s say a high ACOS for your account is 60%. So go into any product placement and keyword that has a 60%> ACOS, and lower the bid by 30%. After that, you have to measure your results. 

Let’s see how to lower the bids by 30% on your top performers.

It is also super easy: Just open your campaigns, and look at all the placements and keyword targets that have an ACOS above 60%, and lower those by 30%. For these placements, the new bid would be around 40%.

Again, this is going to be the Amazon advertising strategy test that you’re going to want to implement for Week 3, and then, of course, record it on your document. Don’t forget to put your Week 3 results in the Ending section for Week 3. And that will also be the Starting section for Week 4.

Week 4

Let’s start Week 4.

This week, you want to add 10 new keywords to your Amazon PPC campaigns.

Now you’ve already lowered the price. You’ve already raised the bids on your top performers, and you’ve also already lowered the price on your under-performers.

So this time you’ll want to find new opportunities to stay profitable, and increase your sales on Amazon while keeping all other variables constant.

And I have a great video for you on Week 4: go and watch this video where I show you how to do Amazon PPC keyword research.

The video will explain to you step by step how to track your keywords in your Amazon PPC campaigns. 

So for Week 4, we want to add 10 new keywords. Therefore, you have to go to your keyword list, copy 10 keywords that you’ve already done research on; and then place those keywords inside your Amazon advertising campaigns.

Once you do that, change the color of the actual keywords to red, indicating that they’re now being used in the campaigns themselves.

Remember, success on Amazon does take long term thinking and long term commitment, and you’re going to need to do some sort of a split test in order to accurately measure if your optimization strategies are working. Just make the necessary adjustments, and see which actions are actually contributing to high ACOS, low ACOS, high sales or low sales.

You can mix and match these, but tracking the variables for any Amazon advertising split test is necessary in order to get optimal results.

I hope this article was helpful!

Before you go, please join my private Facebook group to check out a community of like-minded individuals coming together and sharing what’s working today in the Amazon advertising world.

Of course, if you need any extra help optimizing your Amazon Advertising Strategy, or need to set up a more advanced Amazon PPC split test, ZonRush can take a look at your account, and see if we can help you take your sales to the next level.

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