10 Tips for Optimizing Amazon Ads

Failing to optimize your pay-per-click (PPC) ads is a costly mistake, whether you’re selling on an ecommerce site or selling on Amazon. If you spend too much on your ads relative to the price of your products, your margins won’t work out. Amazon sellers typically aim for an Advertising Cost of Sale (ACoS) of 25 percent, but this number can vary depending on how competitive your niche is. Here are ten strategies to implement if you want to optimize your Amazon Sponsored Products campaigns to make the most of your advertising budget.

1. Find a way to organize your campaigns in a manner that makes sense.

You might want to create a new campaign for each product category, organize your campaigns by function of how products perform, or create new campaigns to test new products or keywords.

2. Optimize your product listings by using the same keywords that you use in your ad campaigns.

Amazon won’t display an ad that isn’t considered as relevant to a customer. You can reach out to a broader audience by optimizing your product listings with keywords that will tell Amazon that your ads are relevant to the content a shopper is looking at.

3. Identify irrelevant search queries.

You can download your search term report from Amazon and look for the keywords that don’t generate any sales. Just navigate to Reports (at the top of Seller Central), choose Advertising Reports, click Search Term Report, and then click Request Report. Update your negative keywords with these irrelevant keywords to prevent your ads from being shown to the users who issue these search terms.

4. Make a list of the keywords with the lowest ACoS.

Boost your earnings by creating a new campaign dedicated to these keywords with a higher budget.

5. Test new keywords often.

When testing a new keyword, set higher bids for these searches so you can quickly generate enough data to determine whether a new keyword is going to be profitable.

6. Track product performance.

Think about organizing your campaigns by how products perform. You could create a campaign for your top-selling products and dedicate a large percentage of your PPC budget to this campaign while creating a separate campaign with a smaller budget for the products that don’t do well.

7. Test different match types for your keywords.

Amazon lets you choose from exact, broad and phrase matches. If you need to gather data on the search terms used by shoppers, set the match type to “broad” and dedicate a high budget to your campaign for a few days.

8. Use long tail keywords.

You will be less likely to compete against other ads for long tail keywords, and these keywords typically convey a very specific intent that one of your ads can satisfy.

9. Amazon can identify new keywords for you.

Create an automatic campaign, download the search report and take a look at the list of keywords generated by Amazon. Let the campaign run for a few days to gather enough data about which keywords are the most profitable.

10. Avoid keyword cannibalization.

Your different campaigns might be competing against each other if you use the same keywords. Go over the keywords you use for each campaign and set negative keywords if needed.

Optimize Your PPC Campaigns For Amazon Today

Optimizing your Amazon PPC campaigns will become easier as you gain more experience and gather more data about your industry.

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