6 Advanced Amazon Ads Strategies for Higher ROI

6 Advanced Amazon Ads Strategies for Higher ROI

Understand Amazon Ads (Amazon PPC)

What is Amazon PPC Advertising?

Amazon PPC, or Pay-Per-Click advertising, is a key component of the platform's advertising ecosystem. It operates on a simple premise: advertisers bid on specific keywords, and their ads are displayed to shoppers when those keywords are searched. When a shopper clicks on the ad, the advertiser pays for that click. This model allows sellers to reach potential customers at the moment they are actively searching for products.

How Amazon Ads Works?

Amazon PPC works by allowing sellers to create ad campaigns that target specific keywords related to their products. When shoppers search for those keywords, the ads appear in prominent positions on search results and product detail pages. Sellers only pay when a shopper clicks on their ad, making it a cost-effective way to promote products.

Understand Amazon Ads Bidding

Bidding plays a crucial role in determining when and where your ads will be displayed. By strategically setting bids for relevant keywords, sellers can increase the visibility of their products and drive traffic to their listings.

The Fundamentals of Amazon Ads Bidding

When it comes to choosing the right keywords, it's essential to conduct thorough research to identify the most relevant and high-performing terms for your products. These keywords should accurately reflect what potential customers are searching for, increasing the likelihood of your ads being displayed to interested shoppers.

Advanced Ads Strategies for Enhanced ROI

Now that we've covered the fundamentals of Amazon PPC and the importance of mastering bidding strategies, let's delve into advanced techniques to further enhance your advertising performance:

  1. Prioritize conversions with eCPC
  2. Don’t neglect low-performing keywords
  3. Allocate budgets for Top of Search placement
  4. Utilize dynamic bidding for optimal results
  5. Utilize your Competitor Keywords
  6. Choose between manual or automated bidding

Leverage Enhanced Cost-Per-Click (eCPC)

What is eCPC and How Does It Work?

Enhanced Cost-Per-Click (eCPC) is a bidding strategy that allows Amazon to adjust your manual bids in real-time to increase the likelihood of conversion. When a shopper is more likely to make a purchase, Amazon may raise your bid by up to 100% to maximize the opportunity. Conversely, if the likelihood of conversion decreases, Amazon will lower your bid accordingly.

This dynamic approach optimizes your bids based on actual user behavior, ultimately increasing the efficiency of your ad spend and driving higher-quality traffic to your product listings.

When to Use eCPC in Your Campaigns?

eCPC can be particularly effective when you want to prioritize conversions and maximize the impact of your advertising budget. By allowing Amazon's algorithm to dynamically adjust bids based on user behavior, you can ensure that your ads are being shown to shoppers who are more likely to convert, leading to a higher return on investment.

Optimize Bids for Top of Search Placement

The Importance of Top of Search

Securing Top of Search placement is highly coveted as it positions your products at the top of search results, increasing visibility and click-through rates. This prime real estate provides an opportunity for increased exposure and can significantly impact sales performance.

Strategies for Winning Top of Search Bids

To win bids for Top of Search placement, it's crucial to strategically allocate budgets towards high-performing keywords and products. Conduct thorough research to identify keywords with high search volumes and strong relevance to your offerings. Additionally, consider leveraging dynamic bidding strategies such as adjusting bids based on device type or time of day to optimize for Top of Search placement.

Don’t Neglect Low-performing Keywords

Amazon Negative keywords are used to prevent your ads from showing when certain keywords or phrases are searched by users. This helps avoid wasting money by preventing your ads from appearing in places where they might not be relevant or effective.

For example, if you're selling furniture, good keywords might include "office furniture," "home decor," or "modern furniture." However, some keywords like "DIY furniture" or "furniture plans" could result in clicks from users looking for tools to make furniture rather than buying ready-made pieces. Adding these words as negative keywords can reduce irrelevant clicks and improve the effectiveness of your ad campaigns.

Sometimes sellers will also neglect low-performing keywords as well, bcz they couldn’t generate enough sales while spending budgets on them. But Many sellers underestimate the power of those low-performing keywords. By neglecting them, sellers might miss out on potential opportunities for growth and optimization in their advertising campaigns.

So we then tracked these "low-performers" to see how they impacted Amazon ads campaigns over time.

We ran a simulation for brand WonderBox ES over a nine-month period. The test simulated the removal of low performance search terms every 15 days to mimic the impact of eliminating "bad traffic.” The study then simulated what would happen if these low-performing keywords were negated from the start.

performance when we neglect those low performing keywords

The results were surprising from the image provided. Negating these terms led to a significant loss in sales (€478,376) even after a full 285 days, with an average ACOS of only 17%.

Why Low-Performing Terms Shouldn't Be Ignored?

Search trends can fluctuate over time, and what might be a low-performing term one day could suddenly become relevant due to changes in consumer behavior, seasonality, or external factors. And new users who hadn't previously interacted with your ads might discover them later. These users might have different search intents or be in different stages of the buying journey compared to your initial target audience.

Utilize your Competitor Keywords

Suppose you're selling headphones and notice that your main competitors outperform you in terms of sales and keyword relevance. In that case, it's beneficial to analyze your competitors PPC strategies. Take note of the keywords they use in their titles, descriptions, bullet points, and other areas, then incorporate them into your own product.

Especially if you have very similar products, these keywords can be directly copied into your advertisements, effectively boosting your ROI.

Utilize Dynamic Bidding for Optimal Results

Additionally, consider implementing dynamic bidding strategies to adapt to varying market conditions and shopper behaviors. Dynamic bids - up and down can automatically adjust bids in real-time based on factors such as device type, time of day, and shopper demographics. This flexibility ensures that your bids remain competitive and responsive to changes in the advertising landscape.

Combine Manual and Automated bidding

Sellers have the option to utilize manual bidding or automated bidding strategies. Manual bidding provides greater control over individual keyword bids, allowing for precise adjustments based on performance data. On the other hand, automated bidding leverages machine learning algorithms to adjust bids dynamically, optimizing for clicks or conversions based on your campaign objectives.

Amazon's automatic ads tend to reach a wider audience compared to manual ads because they automatically match ads with potential buyer searches. This means they can tap into more buyer groups, including those that might slip through the cracks of manual ad targeting. However, not all automatic ad placements are as effective as manual ones since they sometimes match with irrelevant or low-converting searches.

Additionally, automatic ads usually come with lower bids because they're determined automatically by Amazon's system, which predicts potential buyer clicks. On the other hand, manual ad bids are set by advertisers and can be higher, especially for valuable keywords.

By keeping an eye on automatic ad performance, you can uncover potential high-quality keywords or search queries that may have been missed. Moving these keywords to manual ads and setting higher bids can provide more control over ad placements and boost conversion rates.

How m19 Help You With Automation PPC

Leveraging automated Amazon PPC software can be a great solution. Take M19 as an example: by leveraging AI automation and machine learning, we support sellers in managing daily budgets and achieving desirable ACoS targets without manual management. Additionally, you can track your keywords, ASINs performance and ad reporting in real time, so you can improve performance while saving time and effort.

Final Thoughts

In conclusion, mastering advanced Amazon Ads bidding strategies is an ongoing journey that requires continuous learning and adaptation. By staying informed about industry trends, experimenting with different bidding approaches, and analyzing performance data, sellers can refine their strategies to achieve optimal results. Lowering costs and increasing conversions is achievable through strategic and informed bidding decisions that align with campaign objectives.

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Xuan Xie
May 10, 2024
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