What does PPC success mean to you?

ppc mindset ppc training Mar 03, 2020

At the end of last year, Jungle Scout surveyed 1,046 experienced Amazon sellers for their 'The State of the Amazon Seller' report. 

The report surveyed sellers from 93 countries, all 14 Amazon marketplaces, and all relevant Amazon product categories. 

One question in particular that jumped out: 'What makes a successful seller?' 19% of respondents answered 'Successfully or effectively using Amazon's PPC platform.' 

What does that mean? Here at Sponsored Profit, effective or successful PPC management comes down to one thing - realistic goal setting. 

Why? Ever heard the saying “What gets measured gets done"? In other words, setting goals get results.

PPC goal setting starts with setting your sales goal. To set a realistic sales goal, it should be based on your product category, or what we refer to as the 'page one opportunity'.

Using a tool like the Jungle Scout browser extension is a great way to get an estimate of the potential number of daily sales for any given product.

As a starting point, you might want to aim for 25% of the number of sales that the top sellers are making e.g. if they are selling approx. 80 units per day, your goal will be to sell 20 units per day. 

Once you have a sales goal in mind, you can now go one step further and break that down into a PPC sales goal.

PPC sales will make up a percentage of total sales but this percentage will vary depending on whether you are:

  • maintaining​ your sales, in which case PPC might account for 10–30% of your total sales; or 
  • launching a product, ​in which case the majority of sales might come from PPC, say around 70-80% of total sales.

Your percentage of PPC sales will fall over time as your ​goal will be to rank as high as you can for as many relevant keywords as possible to maximize your organic sales.

You can then use this data to determine how many PPC sales you need, to compete with these products (depending on your goals). 

Here's an example to give you a better idea of how to set your own PPC goal.

Let's say your goal is 10 PPC sales/day on a $10/product. If your average CPC is $1 and your conversion rate is 20%, then 50 clicks at 20% conversion would be 10 sales per day. Therefore, your amazon ppc budget will need to be $50 per day.

If your target was 20 PPC sales/day, using the same metrics, then 50 clicks would need to increase to 100 clicks. Therefore you will need to budget $100/day.

By going through this goal-setting process, you have also:

  • determined your daily budget i.e. how much PPC will cost to achieve your PPC sales goal, and 
  • identified two key metrics - Cost per Click (CPC) and conversion - to measure, and therefore, try to improve (through ongoing optimization).

You can now see which levers in your business - budget, CPC and conversion - drive PPC sales. Pulling on any of those levers, up or down, will directly impact the performance of your PPC campaigns and ultimately, your PPC sales.

We have created a brand new FREE training with PPC Budget Calculator that will show you how to set an ad budget that works for your business so you can accurately predict your PPC  sales.

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