Contrary to popular belief, you shouldn't run ads for all products. At least not right away.
Here at Sponsored Profit, we are big believers in 'less is more'. For example when it comes to keyword research, and how many keywords to start with in your manual campaigns.
We start small and focus the entire daily budget on just one keyword in two campaigns - one broad and one phrase. This allows us to discover multiple keyword variations, and see which ones convert, at the lowest cost, lightning-fast.
As a result, we are able to rank quickly for those converting keywords and avoid wasting ad spend on lots of irrelevant keywords straight out of the gate.
Another example is when it comes to deciding what products to run Sponsored Products ads for. We get asked this question every time by sellers with multiple SKUs who want us to manage their PPC campaigns for them.
The criteria we use can be applied to any seller looking to prioritize their PPC efforts in order to get the best possible results. Determining which products, or rather which PPC campaigns have the greatest potential for improvement, comes down to three things, what we call 'the key three':
Conversion is the ultimate low hanging fruit when it comes to Amazon PPC. The higher the conversion, the greater the opportunity with PPC. So start with these PPC campaigns first.
There are two main reasons for this. First, these products are generating the most sales from your current traffic levels. When you dial up the traffic, you'll dial up the sales.
And second, Amazon favors the ad for the product (for a given keyword) with the highest historic conversion rate because it knows it is highly relevant and has a greater likelihood of converting into a sale.
PPC is all about data and historic data trumps brand new data - every time. That's why building a consistent sales history is one of the best ways to optimize your campaign performance. But in order to do this, you need to avoid stockouts.
Not only that, having sufficient inventory is essential if you want to secure the top ad positions. After all, why would Amazon give you the most prominent placements if you're about to run out of stock?
We typically advise all potential clients to have approx 3 months worth of inventory in stock so we can test, optimize and scale their campaigns without fear of running out of stock and losing momentum.
Just like keywords, focusing your ad budget on fewer products or PPC campaigns, yields faster results. Rather than spreading your budget thinly across multiple products or PPC campaigns, focus it on those that show the most potential, 'the low hanging fruit', using the above two criteria.
That way, you can start making gains and increase PPC sales as quickly as possible so you can start investing the increase in sales revenue into other products' campaigns.
When you take the above three factors into consideration, you will pay less for your PPC and see faster results so you increase your investment in PPC across more products to scale your business.
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