A Beginner’s Guide to Structuring Your Amazon PPC Campaign

Nothing’s changed the way sellers on Amazon drive for discoverability and incremental sales quite like Amazon PPC has managed to. Ever since it made its debut on the platform 4 years ago, Amazon PPC has seen massive uptake from sellers and it is easy to see why.

Amazon PPC not only offers flexibility in terms of advertising budget, sellers only pay for services that are likely to directly contribute to more profit for their business. Amazon PPC drives traffic to a product and increases chances of a potential consumer seeing the ad and buying it.

For Amazon PPC to take full effect though, one has to invest a lot of time and resources to ensure that the campaign yields the expected results. This is however easier said than done. A lot of sellers, especially beginners, struggle to even set up PPC campaigns and don’t even have any understanding of how they should structure the same campaigns to increase the chances of the campaigns being profitable. So how you should you structure your Amazon PPC campaign?

Here is a beginner’s guide on how to structure your Amazon PPC campaign, to help the relatively new sellers and even experienced sellers to come up with better PPC campaign structures;

How to Structure your Amazon PPC Campaign

Create auto targeted campaigns first

The first step is to create an auto targeted campaign first. It is important to start with Auto targeting because the Amazon algorithm does the targeting for you. Based on the products that people are searching for, Amazon will suggest relevant products and this increases chances of the people buying the products.

Let your Auto targeted campaign run for a minimum of two weeks. From the Auto targeting, you can easily collect data on the keywords that are working and those that are not as effective. This information will be very useful in the next step of structuring the campaign.

Create a separate manually targeted ad campaign

Unlike automatic targeting where the computer does all the targeting for you, in manual targeting, you get to choose the keywords that you wish your ad to be advertised with. The beauty of using manual targeting is that you get to dictate the nature of keywords that you intend to use in your advertising campaign.

You will need to create three ad groups each with a different type of keyword. In one, use broad match keywords, the other use phrase match keywords and finally exact match keywords. For comparison purposes, it is advisable to set the period to be similar to that you used in automatic targeting. This way, you’ll be able to tell which of the two campaign techniques is more effective.

Research for keywords

There are very many tools that you can use to research the most effective keywords for the product that you have on offer. Using Amazon’s Search Term Report, you can get long tail keywords. Long tail keywords are very effective in that they narrow does the search to specifics and they therefore increase the chances of making a sale as the customer is more likely to get the specific item they are looking for.

The other tool that you can use to get effective keywords, is the Sonar tool which is provided for free by Amazon. All you need to do is to type the name of the product that you have on offer and there will be lots of keywords suggested for you. Choose the most relevant for your product and use them in the manual campaign.

Use ACoS to determine the right amount of money to use for the campaign

ACoS

Advertising cost of sale is a measure of how much money your ad helped you to earn. It is a very important metric that helps you to remain on track and avoid overspending on ads. You want the ACoS percentage to be as low as possible to increase your profit margins.

Pro tip: Sometimes, the ACoS percentage might be very high but the resulting profit will still be reasonable. Don’t concentrate too much on the percentages so long as at the end of the day, you make a good profit.

Need more help structuring your Amazon PPC campaign?

Need some help structuring your Amazon PPC campaign to increase the chances of getting positive returns from the campaign? Well, look no further than our way here at PPCHire. We offer high quality PPC services to both small clients and multinational companies at competitive rates.

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