Today I’m going to go over some Amazon advertising strategies that will help you not only increase your sales, but also simultaneously lower your ACOS.
Let’s go ahead and get into the training.
What I wanted to show you guys first was basically the progression of true Amazon PPC optimization, because a lot of sellers think that in the first 30 days that they’re going to hit their sales target at their premium price.
And that’s just not realistic.
What’s realistic is planning for the long term.
So we got this client back in February. And you can see in the video, when we got them, the sales were around $181.
And that first month that we had, we basically 10x-ed their sales for March. And so what I wanted you to pay attention to was this sort of linear direction of the sales and the return on ad spend.
And what you can notice in the video regarding the sales numbers is that as the months progress all the way till today, the growth is going up consistently and strongly. You don’t see any spikes or any sort of fluctuations that indicate that this has been a fluke; this has been slow and steady. And this is actually winning the race for this particular client.
And it’s actually winning the case for most of our clients, who are also thinking long term.
The next thing I wanted to show you was the actual ACOS.
Now when we look at the ACOS, you can see that again, month after month, it’s continually going down with the starting point at 34%. Fast forward to today, we’re at 8%.
And again, as the months progress, it’s continually going down, which is the direction we want the ACOS to go. Simultaneously, the sales are actually also going up.
So I wanted to demonstrate that it’s actually possible for you to get that “V,” that sideways “V” of sales going in one direction, which should be up; and ACOS going in the other direction, which should be down. It is possible.
It’s not a quick turnaround though.
These Amazon advertising strategies take long term planning and long term optimization processes.
So now let’s go ahead and get into how we’ve been able to accomplish these variables and this performance for our client.
Improve CTR: Optimize your listing
So one of the first strategies that I want you to pay attention to when it comes to Amazon advertising, would be to first improve your click-through rate. This is one of the first things we did for this client: we optimized their listings and improved their click-through rate. This was because with a low CTR, you’re gonna get less impressions and the clicks you do get are going to get very expensive.
With a high click-through rate, on the other hand, you basically have a higher relevance on the specific product placements and keywords that you’re targeting. So if you see that the CTR is high, odds are that you’re going to be performing much better on those placements than if the CTR is low. So the very first thing you want to do is have a base generalization on the listing or improving your CTR.
And the fastest way to do that would be to optimize your listing.
That means doing keyword research and ensuring that you have the necessary keywords inside your listing.
Also make sure that your price is competitive.
If you have a competitive price point, it’ll be much easier for you for you to get a higher click-through rate, because you’re going to be more competitive relative to some of the other prices that your competitors have.
The third thing that will help you improve your click-through rate would be your images. So also make sure your images are professionally taken.
When people are looking for products, the first thing they’re looking at is the image really, then they look at the title and then everything else.
So the image is also crucially important to improving your click through rate. And one of the first things we did for this client was optimizing the listing fully in the very first month. This allowed us to improve the click-through rate; because when customers now land on the listing, they see the relevance, so they know it’s selling to them.
So now they’re like “Okay, this solves my needs. Let me go ahead and purchase this product, because the images look great, the sales price is competitive, and it has the things I’m looking for.”
So make sure you have the right keywords that your ideal client is looking for.
Test different bid levels
The second Amazon advertising strategy that we implemented for this client was consistently testing different bid levels.
So the very first month that we started with this client, we had the bids 30% below Amazon’s suggested bid, because the client’s goal was to get the lowest ACOS.
First, they wanted to just to see if we could get a super low ACOS; and then they wanted to focus on amplifying that success by boosting their sales.
So our number one priority was first lowering the ACOS for the client. The fastest way to do this in your business would be to look at what your bids are, and just take them down 30% below what Amazon’s suggesting.
So if Amazon is suggesting a $1 bid for a particular keyword, I would drop that bid to 70 cents, which is that 30% drop, and focus on seeing what results you get for 15 to 30 days.
So for this client, in the first two months, I would say we had the bids 30% below Amazon’s suggested bid. And then once we were able to get the ACOS to a satisfactory level for the client, then the client wanted to focus on increasing their sales.
So at that point, what we did was we transitioned the bids to Amazon’s suggested bid. So after the second month, we put the bids from 30% below to Amazon’s recommended bid. So in this case, it would be $1 for example.
We did that for about three months. And now what the client wanted to do is they really wanted to capitalize on more impressions for Q4 – so they wanted us to be a little bit more aggressive.
So for the past couple months, we’ve had the bids 30% above Amazon’s suggested bid, so there were actually three phases to this entire bid strategy:
- the first few months 30% below;
- then we move to Amazon’s suggested bid;
- and now we’re a little bit more aggressive, and we’re doing 30% above Amazon’s suggested bid.
In some cases, we’re doing 50% more than Amazon’s suggested bid, it just really depends on how well certain keywords are performing. But the fastest way for you to implement this in your business is to see what keywords have an ACOS that’s above your breakeven point. So those are the first keywords that you want to focus on dropping the ACOS.
If you’re still getting sales, but you just want to drop the ACOS, I would start with a 30% reduction in the bid level from what they’re currently at, then test that out for 15 to 30 days. Then you can move back (depending on how the sales have been) to Amazon’s suggested bid, and then 30% above Amazon’s suggested bid.
Low ACOS keywords: Bid 50% above Amazon’s suggested bid
Now if you have some keywords that are doing extremely well (let’s say below 10%), we’re usually a little bit more generous with the bid that we use for those particular keywords, and will usually do 50% above Amazon’s suggested bid.
So if you go through your keywords, go ahead and do a brief audit, and for all of the keywords or product targets that have an ACOS below 10%, try experimenting and increasing the bids on those particular placements by 50% to see if you can maximize the sales for those keywords, because what you’re seeing is that that’s a highly relevant search term or competitor’s ASIN that you’re targeting.
So what you should do is amplify the ad spend you’re allocating to those top producers so that you can continually drive higher sales, and you won’t necessarily be paying top dollar for them.
Diversify your PPC campaigns
And the third Amazon advertising strategy that we implemented for this client was actually diversifying their campaigns.
Ideally, you want to target each match type per keyword. Amazon offers ‘Exact,’ ‘Broad,’ and ‘Phrase’ match types for keywords.
Depending on what your budget is (and if this is one of your first campaigns), you can put all three of those match types into different ad groups under one campaign.
And then once you start to see what particular ad group is performing better at that point, you can build out a second campaign and just target that particular match type’s keyword.
So if you see one campaign has all of the keywords at the different match types (so one ad group is ‘exact,’ one ad group is ‘broad,’ and the third ad group is ‘phrase’), and you see that the ‘phrase’ ad group is performing the best, then after about 30 days, I would build a second campaign and only set up one ad group, and all the keywords in that ad group would be the ‘phrase’ option. So that way you can maximize the impressions and ad spend for that particular match type.
However, a lot of sellers actually don’t diversify their campaign structure. You can see in the video that we have about five Amazon advertising campaigns for this client:
- PRODUCT targeting,
- and BROAD.
And we basically tested them for a few months.
We started to see that the ‘Auto’ and the ‘Exact match’ type were performing best; so we decided to pause the other ones, and are letting them run.
In the video you can also see the results for these particular campaigns. What usually happens is that all three of these will perform really well, and in that case, you see them all highlighted.
The particular client I’m showing as an example, however, had really specific ACOS targets for us to hit, so we just went ahead and turned some of these other campaigns off.
So what you need to do is diversify your Amazon advertising campaigns, because you have impressions available, but you won’t necessarily know which one will perform best until you implement all of them, and then start to see which one starts producing the best results. I would recommend waiting between 30 to 60 days before you start turning off campaigns.
Instead, what you’ll want to do is open up the campaign and just start turning off keywords or lowering bids.
But the main thing I want you to focus on is testing all of these different match types, and finding a few winners and then basically feeding the winners.
In our case, the future will probably turn some of these other campaigns back on, but for now I just wanted to show you how the actual diversification of Amazon advertising campaigns looks, and how you should also implement some sort of structure like this for your own business.
And that’s it!
Need A Little Extra Help Advertising On Amazon?
If you need a little extra help bringing your Amazon advertising campaigns to profitable levels and accelerating your sales, consider partnering with ZonRush. The best Amazon Advertising Management Service that combines the power of artificial intelligence and human optimizations for off the charts sales growth.
If you want to listen to each one of these Amazon advertising episodes on the go, go to the Savvy Amazon Sellers podcast by ZonRush – that’s another way for you to get some of these awesome new trainings directly to your phone on the go.
I hope you found this post resourceful. See you next time! 🙂