Why you don't have to suffer from Amazon PPC Ads FOMO

campaign structure ppc mindset product targeting sponsored products May 12, 2020

When it comes to advertising on Amazon it's easy to suffer from FOMO (fear of missing out). 

Amazon’s culture of innovation has resulted in the introduction of new ad types, notably Sponsored Brands and Amazon DSP (demand-side platform).

It's tempting to dive in believing it will immediately translate to revenue and that you'll be at a serious competitive disadvantage if you don't.

Trouble is, if you don't know what you're doing you're just firing blindly, hoping to hit your target. Simple mistakes can affect the long-term performance of your PPC.

Not only that but it’s easy to lose focus on your PPC strategy, and more critically, drain your budget. 

That's why we firmly believe that maximizing your opportunity on Sponsored Products before investing in other ad types is key to long-term success.

Sponsored Products is still the most powerful tool for driving discoverability on Amazon and accounts for 80% of PPC sales.

Setting aside a small portion of your budget specifically for testing the various targeting options in Sponsored Products is a great way to find new ways of lowering your ACoS on your advertising.

And given the recent drop in Cost Per Clicks (CPCs) due to many sellers pausing or stopping their campaigns as a result of COVID-19, now is the perfect time to find new keywords at a lower cost.

Here are three ways to ensure you are maximizing PPC sales with Sponsored Products:

Take action if you receive 'Out of budget' notifications

Amazon notifies you once a campaign is out of budget. Your campaign is paused and ads will not be served until the following day or until the budget is increased. 

If your campaign is at, or near break-even ACoS (which is the point where your advertising cost is equal to your profit margin), you should increase your budget to drive extra sales volume and velocity at little or no cost. 

By leaving your budget as is, you're simply leaving money on the table and gifting PPC sales to your competitors. 

Use Automatic Targeting 

Amazon now offers 4 default targeting options with automatic campaigns: 

  • Close Match – Ads are shown to users using search terms that are closely related to your products.
  • Loose Match – Ads are shown to users whose search terms are loosely related to your products
  • Complements – Ads are shown to users who viewed pages that are complements of your products
  • Substitutes – Ads are shown to users who viewed pages that are substitutes of your products

If you are still using one Automatic campaign, what you'll usually find is that one match type eats up all the budget, thus preventing you from being able to discover new keywords using the other match types.

That's why we recommend breaking the automatic campaign out into 4 separate campaigns, one for each of the match types and giving each campaign its own budget.

Use ASIN Targeting

ASIN Targeting allows you to target individual product pages and increase visibility and market share.

If ever there was a time to utilize this targeting capability, it's now. Before COVID-19, you would typically use this to target competitor ASINs with fewer reviews, lower star ratings, higher prices, etc.

Now you can go one step further and target ASINs that have a longer delivery time than you do so you can promote your in-stock ASINs with a shorter delivery window.

These are just 3 ways you can leverage Sponsored Products to maximize PPC sales.

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