How To Launch A New Product In Amazon Using PPC - Part 2

launching sponsored products Aug 24, 2020
launch product on amazon

Welcome to part 2 of "How To Launch A New Product In Amazon". In last week's post, we talked about how Amazon ranks products, how that relates to PPC, and how you can use that information to prepare for a successful product launch on Amazon.

In this week's post, we are going to dive into the 'how-to' part of our launch strategy. This straightforward strategy can be used to launch a brand new product or, with a few adjustments, to re-launch an existing product using PPC. In both instances, you'll want to ensure that your product listing is well optimised for conversions.

Brand new products with little or no PPC data

The most valuable data we have at our disposal is from Amazon itself; actual sales data in the form of Search Term Reports. For brand new products we may have little or no search term data so we have to use a little common sense (and patience!) when it comes to launching a product on Amazon.

Most of us have a pretty good idea what our main keywords are likely to be without any sales data so that's a good place to start. That said, we suggest you use a keyword research tool to find the most highly relevant seed keywords related to your product. We recommend Magnet and Cerebro from Helium 10

A Quick Word About Seed Keywords

Your seed keywords, which are short-tail keywords, are a starting point only. As you will see, the goal is to use these to find more cost-effective, high converting longer tail keywords that we can target and rank for.

Many sellers target these high volume keywords as a long term strategy. Not only can this be extremely expensive but when you are starting out, your relevancy and conversion are going to be low, so even if you get to page one for these keywords, it's highly unlikely you will stay there.

Instead, we are going to use data from your Auto campaign to identify high converting long-tail keywords which you can bid on more aggressively to secure top ad positions thereby making it easier to rocket up the rankings. 

Another added benefit of this strategy is you that you will convert better on those high volume, high traffic seed keywords over time, and won’t pay as high a Cost-Per-Click (CPC) for them as you would have done if you targeted and stuck with them from the outset.

  1. Using 'The Core 4' campaign structure, create one Auto campaign and 3 manual campaigns, one for each match type (broad, phrase and exact)
  2. Identify 5-10 highly relevant seed keywords and add to all 3 manual campaigns.
  3. Use “Fixed Bids” bidding strategy rather than the default “dynamic bids down only”.
  4. Bid aggressively. We recommend starting at the suggested bid +50% and adjust from there to obtain top of page one ad positions.
  5. ACoS should not be the focus when you launch product on Amazon; we are trying to drive maximum sales through our chosen keywords. We recommend targeting 100% ACoS at first. 
  6. After 7 days week, download a Search Term Report 
  7. Identify and list the search terms that have had multiple conversions at above-average CTR AND CVR. For new Seller Central accounts, we recommend a min. of 3 sales; more for aged accounts. *
  8. Once you have compiled this list, these search terms become your primary targets to push for higher organic rankings.
  9. Starting with the best 1 or 2 performing search terms, ensure they appear in your product listing (ideally at the start of your title). If you are in a fairly competitive category, we suggest starting with a couple of lower volume, less competitive keywords initially and gradually build-up to the main more competitive keywords once you have more sales history and can be more competitive on reviews etc.
  10. Follow the same process as outlined above, shifting the focus from your existing keywords to your new target keywords identified in the Search Term Report.
  11. Monitor your keyword rankings until you reach your desired position. We recommend Keyword Tracker from Helium 10  
  12. Once you reach the desired rank, start gradually dialling back the ad spend so you can start working towards hitting your break-even ACoS. For example, target an ACoS of 75% for 7 days, then 50% for the next 7 days etc. You don’t want to go straight from 100% ACoS to say 30% as the drop off in sales is likely to result in a drop in ranking too.
  13. Optimise your campaigns weekly as normal
  14. Rinse and repeat this process for additional target keywords that you wish to rank for.
  15. Periodically, say every 1 or 2 months, repeat this process to identify any new ranking opportunities.

* Note: If you have no data after 7 days, this suggests one or all the following: you have chosen the wrong keywords; your daily budget is too low, or your listing and ads are not converting. You will need to check your metrics to identify the cause. 

Key Takeaway

Rather than launching 'blindly', use the first week (or however long it takes) as an opportunity to gather data to see which keywords are converting into sales. You can also use this time to gather a handful of reviews before you dial up the spend on ads.

This is a far more cost-effective approach to launching versus trying to spend your way to page one because unless you have deep pockets, you won’t stay there. 

The harsh reality is your ads won’t convert against the top sellers with hundreds or thousands of reviews when it comes to high volume, high traffic keywords - at least not initially - so target them at your peril! Big money, high traffic keywords are nothing more vanity keywords. 

Re-Launching Products With Existing PPC Campaign Data

When we talk about 're-launching products' in the context of PPC, what we are referring to is the use of PPC to rank or re-rank a product for targeted keywords.

As already mentioned, the most valuable data we have at our disposal from Amazon in the form of our Search Term Reports.

As discussed in last week's post, there are 2 metrics that directly relate to PPC that we can use to influence ranking; they are Click-Through Rate and PPC Conversion Rate. 

By utilising the data in our Search Term Reports, we can identify which search terms we are likely to be able to rank well for organically (if we aren't already).

  1. Download a 60-day Search Term Report
  2. Identify and list the search terms that have had multiple conversions at above-average CTR AND CVR.  For new Seller Central accounts, we recommend a min. of 3 sales; more for aged accounts. 
  3. Once you have compiled this list, these search terms become your primary targets to push for higher organic rankings.
  4. Starting with the best 1 or 2 performing search terms, ensure they appear in your product listing (ideally at the start of your title) and add them to your broad phrase and exact match campaigns.
  5. Use “Fixed Bids” bidding strategy or if the campaigns already have a good sales history, use “dynamic bids up and down”
  6. Bid aggressively. We recommend starting at the suggested bid +50% and adjust from there to obtain top of page one ad positions.
  7. ACoS should not be the focus; we are trying to drive maximum sales through our chosen keywords. We recommend targeting 100% ACoS at first. 
  8. Monitor your keyword rankings until you reach your desired position. We recommend Keyword Tracker from Helium 10.
  9. Once you reach the desired rank, start gradually dialling back the ad spend so you can start working towards hitting your break-even ACoS. For example, target an ACoS of 75% for 7 days, then 50% for the next 7 days etc. You don’t want to go straight from 100% ACoS to say 30% as the drop off in sales is likely to result in a drop in ranking too.
  10. Optimise your campaigns weekly as normal
  11. Rinse and repeat this process for additional target keywords that you wish to rank for.
  12. Periodically, say every 1 or 2 months, repeat this process to identify any new ranking opportunities.

Key Takeaway

Amazon PPC is a long term growth strategy so you will be far better off looking for new, viable keyword opportunities that you can afford to be aggressive with, as opposed to simply trying to 're-launch' on expensive big traffic keywords if you cannot convert on them. 

Conclusion

Whether you are launching a brand new product in Amazon with little or no PPC data or re-launching an existing product with existing PPC campaign data, you need to take a robust, laser-focused and strategic approach to keyword discovery and expansion.

That's why we always recommend using real sales data from your Search Term Report, not search volume, to win at Amazon PPC - including PPC Product Launches.

Focusing on a good Click-Through Rate and PPC Conversion Rate to systematically target high converting keywords when you launch a product on Amazon ensures you will rank and stick - every time. It will also help to reduce your ACoS faster over time too so you can get to break-even quicker for better profitability. 

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