A good Amazon PPC management strategy is critical in boosting sales and conversion rates. You don’t just set up automatic campaigns and hope for the best – you’ll likely waste a ton of money if you don’t develop strategies that consistently outperform the automatic campaigns.
In this post, we’ll discuss how we helped our client, Dr. Kellyann, improve their sales performance using PPC. Their problem was that they were not making enough sales per month, even though they were putting some money on Amazon ads. When we started handling their account in June 2020, their average monthly sales was only between $550–$3,500 (11–88 orders per month), and they were spending about $60–$3,000 monthly. While they were willing to allot more budget, they weren’t sure where to start, so they relied largely on automatic campaigns.
We audited their account and came up with different strategies to help boost their overall PPC management and sales performance by:
- Pausing all campaigns that were not performing well
- Harvesting search terms with good conversion rates and high RoAS
- Launching 100+ campaigns for all the SKUs
- Targeting brand keywords/defensive campaigns
- Targeting highly relevant non-brand keywords
- Launching some automatic campaigns
From then on, their sales and overall performance steadily improved with every month. In under a year’s time, they are now getting orders from 1,400–6,000+ per month. On average, they’re spending about $15,000–$86,000, and their sales have gone up to $67,000–$460,000 per month.
We continue to optimize their campaigns and help make sure they have enough inventory for the rising demand, as well as for any upcoming sale event on Amazon. We also continue to scale the advertising by harvesting the converted search terms and targeting new keywords/ASINs.
Having an effective PPC advertising strategy is essential for Amazon businesses of all sizes; after all, there are millions of products on Amazon, and listings can easily become lost in the oversaturation if you don’t invest time and money to advertise them.
So, how can you develop a great Amazon PPC strategy?
Basically, your strategy needs to include the following: profitability, sustainability, and customer reach/exposure. A PPC campaign is properly optimized if it reaches the desired number of customers for an extended period and then converts to sales.
While creating a good PPC strategy varies depending on business goals, most brands still follow basic concepts to optimize their campaigns. Here are some simple yet fundamental tips that will help launch successful campaigns.
Do your calculations ahead of time – Analyze your keyword bids, determine how much you are willing to spend for the campaign, and adjust/change your keywords based on their profitability. Take the time to assess how much your default bids and ACoS will be.
Do proper keyword research – Invest enough time and effort into doing your keyword research. Carefully choose which keywords are best suited for your product listings. Don’t immediately invest in expensive, high-volume keywords, because they aren't always the most effective keyword options for your campaign.
Balance automatic and manual campaigns – Use automatic and manual campaigns in a systematic way. While a manual campaign takes more time to launch, it allows your ads to target a specific audience group.
Amazon PPC is an essential part of an effective marketing strategy. However, it’s only a piece of the puzzle, and you should implement other optimization strategies as well.
Need help optimizing your product listings and PPC campaigns? Book a call with us!