The #1 Amazon ads mistake almost every seller makes

ppc mindset Sep 03, 2019

Amazon PPC. Get it right, and it can be the secret weapon to getting your product in front of more shoppers, make more sales, and generate more profit.

But get it wrong, it can cost you a lot of money, to the point that you can lose money and your business can run aground.

One of the main reasons sellers come unstuck when it comes to PPC is because they jump straight into running ads without taking the time to set clear goals.

Knowing what you want to accomplish with Amazon PPC is critical because it determines the underlying strategies you should use.

It also influences how aggressive, or conservative, you can be with your bids so you can have greater control over how much you spend on PPC.

Below are four PPC goals along with the key metrics you need to pay attention to so that you can achieve them:

Goal #1: Brand awareness

This is all about maximizing visibility by choosing to bid on specific, high traffic keywords, even if they are not profitable in the short term. The key to success here is to identify which campaigns are the most effective for driving awareness, which means impressions.

Key metric: impressions.

Goal #2: Maximise sales

Maximizing sales means ensuring your ads are showing for relevant keywords, maximizing your ads conversion rate and increasing your sales velocity until you break-even with zero net profit (after advertising costs).

Running Amazon PPC using this approach will also help boost your products' organic rankings in Amazon search results.

Key metrics: break-even ACoS (profit margin before ad spend); Click Through Rate (CTR)

Goal #3: Achieve profit

If you want to run profitable ad campaigns, chances are you need to reduce your ACoS.

Just know that by aiming for a low ACoS with a pre-determined target profit margin (after advertising costs), you are effectively capping how much you spend on PPC and reducing your visibility.

Key metric: target ACoS (break-even ACoS - target profit margin)

Goal #4: Maximise profit

The goal here is to maximize your total profit (after deduction of all costs including advertising costs), across all units sold (margin per item x total number of sales.)

This is generally the ideal, long term goal, and one that sellers planning to sell their Amazon business especially aim for.

Key metric: total net profit

Once you’ve established your PPC goal, you can evaluate your current bid strategy and campaign performance so you can determine whether or not you need to make any adjustments.

After all, without knowing what your goals are, all you are doing is spending money and simply hoping for the best.

It's like going on a road trip. If you don't know where you want to go, how are you going to get there?

What is your PPC goal? And what adjustments do you need to make to help you achieve it?

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