Why is traffic decreasing when advertising investment doubles? Why is the Acos of a product increasing from 30% to 50% while competitors overtake it?

1. I increased the budget for my product and raised my bid, which increased the share of advertising orders. Why did my total traffic and organic ranking decrease?
   
2. What am I doing wrong in improving the natural ranking through advertising? What do I need to modify and adjust?

"Wonderful Reply"

My former edge has been smoothed away by life - knowledge is like the sea, and I am just a shell on the beach.

Agree with: 23344, enthusiastic citizen Mr. Zhou, twin prime numbers, special people, gulugulu35 more »

1. First of all, through the traffic charts of you and your competitors, we can see that your advertising traffic and natural traffic are basically 50-50, and your competitors have obviously been advertising more aggressively recently.

The analysis is: your original advertising traffic is divided by competitors, and natural traffic is determined by many factors. If the order volume does not increase significantly, there will not be much change. However, the orders of competitor ads have been increasing, and their pit production rate will be higher than yours. If their sales volume is higher than yours, their natural position will be higher than yours.

2. Your automatic ads are the best performing, but your keyword ads have a very poor conversion rate, and long-tail precise keywords have the worst conversion rate. This is very abnormal. One is that competitors click on your ads, or your placement is very bad. You can observe whether your automatic ads are mainly placed in search positions or product page positions, and you will know your current best conversion position. It is not the best way to get to the top of the homepage.

Anonymous user • Hefei • 2024-02-01 16:10

I originally wanted to add the data of ad positions, but it has already been published. Sometimes my ad position is 13 and his is 17, and sometimes his is 17 and my is 20. I looked at my ad position. Some of them are at the top of the search results, but the rest of the search results have more orders, and the CPC is not as high as the CPC at the top of the search results. In terms of order volume and conversion, the rest of the search results are a little better. Today, I set the percentage of the top to 0 and increased the percentage of the rest of the search results.

Life has smoothed out the past • Guangzhou • 2024-02-01 16:15

@Anonymous Poster: I have worked on many categories, so I don’t know much about your current product market. Generally, accurate advertising has the best conversion rate. But if your automatic advertising has good conversion rate, you can allocate budget to automatic advertising, regularly reject keywords, and increase the number of orders first.

Anonymous user • Hefei • 2024-02-02 11:38

@昔日锋茫生活磨平: You can refer to the two categories of earring stud. It is similar to this one, very curly.

Then who is the security guard? • Jinhua • 2024-04-09 11:42

I often see big guys say that if an ad performs poorly, you should pay more attention to re-examining the listing’s embedded keywords. So I would like to ask, is the optimization of “embedded keywords” for the links to new products on the shelves or are all old products in their life cycle suitable for adjusting listing embedded keywords?

Puss in Boots Catworm • Quanzhou • 2024-07-09 11:45

@那谁安全来下: For new products, you can compare the keywords. For old products, just a small update will suffice.

Evelyn666 -A newbie

Agree with: Sanbeli, Bodili, kk228, Fat Cat 001, Yawn Xiaoyu More »

Learned a new knowledge (pit production):
Pit output is a concept in domestic e-commerce, which means the output of a certain pit position. The pit position is what we sellers often call keyword ranking. For example, you are naturally ranked first under the word Shower Head. Assuming that this position can bring in sales of 10,000 US dollars per day, then your "daily output in this pit position" is 10,000 US dollars.

The higher the pit production, the more efficient you are in monetizing traffic. Under the condition that the total traffic remains unchanged, the platform can earn more commissions from you. At this time, your natural ranking is less likely to be surpassed by others, unless the pit production of other competitors is higher than yours.

How to calculate the pit production? --- Pit production GMV = number of orders * average customer price

Morning breeze and waning moon

Agree with: Leonardo1, Our Lady of Paris More »

Judging from the traffic change graph, you did not advertise before the 7th or the intensity was relatively small, and began to increase advertising after the 7th, while your opponent has been advertising all the time and the proportion of natural traffic and advertising traffic is relatively stable. His natural traffic also began to show a significant increase on the 7th and has been maintained.

Your natural traffic has been declining since the 7th, which means that the ads you added on the 7th brought a lot of junk traffic and lowered the traffic that was originally performing well. If your competitors do some other promotional actions during this period, it is easy to surpass you.

This is when an ad group was originally stable, but you injected too much traffic, causing the ad group to become unstable. Once this is discovered, you must make timely adjustments and restore it to its original state. If you inject too much traffic for a long time, it will be difficult to save it.

Generally speaking, if you want to increase orders, just increase the budget in the original ad group. Don't increase the budget and bid too much at once, but increase it little by little, because different budgets and bids represent different order environments and order times. Once adjusted significantly, the original order environment will be destroyed, that is, the weight of the ad group will be destroyed. If the ad weight has been disrupted for a long time, it is recommended to turn it off and restart it.

Your natural traffic also increased after the 7th. This is probably because the extensive advertising brought in long-tail keyword traffic. Because too much traffic was injected, the normal natural traffic was affected, causing competitors to grab this part of the natural traffic. Then the performance within a week on the 7th was originally good, but the orders were not stable enough, so the advertising structure was adjusted again. I guess it was because the precise traffic caused by the heavy investment in traffic and the conversion of precise big keywords to extensive advertising at the beginning was diluted, and the order environment was disrupted.

IreneLee • Shijiazhuang • 2024-08-12 11:45

If I only launched one or two campaigns initially, is it a bad idea to launch more campaigns now? Because I only had two secondary keywords that converted initially, I want to launch some long-tail keywords to increase conversions.

Heroes of the Sui and Tang Dynasties • Shijiazhuang • 2024-08-20 10:58

@IreneLee: How long have you been using the big keywords? It has exceeded the attribution cycle. The general process for new products is to select one or two big keywords within ABA 40,000 names and hit them accurately, and at the same time, turn on automatic close running of keywords. Now, it depends on your budget and the performance of the previous big keywords. If the performance is good, open the phrases and broad of these two big keywords, run and deny keywords at the same time to improve conversion.

two three three four four   - Post-90s 996 Operation Dog

Agree with: Mr. Zhou, a caring citizen, and the hard-working man who can be helped. More »

There are many big names in the forum, so I would like to share my own views: First, take a look at the recent customer complaints and returns of your own advertisements, and whether there are any obvious changes in the feedback and star ratings of direct competitors. Secondly, consider whether the search popularity of the main keywords of ASIN has decreased.

Question 1: After increasing advertising efforts on the 18th, the number of orders increased, the conversion rate did not change, and the total order and sales rankings during the period increased and exceeded the benchmark, but the natural ranking was falling.
The top position has a better conversion rate but the bid is slightly higher. The number of orders in other search results is similar to that in the top position - the advertising is not a big problem

In fact, your organic ranking score has started to drop since the 13th. Did your competitors have better orders than you from the 13th to the 18th? You increased your advertising budget from the 18th, and the overall order volume exceeded that of your competitors. This is probably due to more orders from advertising. The actual organic conversion rate and overall conversion rate should not be as good as those of your competitors. In other words, the pit production has achieved the conversion rate but not the

Question 2: When the weekly report was released on the 28th, I saw that the profit loss was very large, so I reduced the budget and slightly lowered the advertising bid. So should I have persisted for a while?
If it were me, I would not reduce advertising costs. Turning off advertising would most likely result in worse results. I would lower the bid and try floating bids. The overall conversion rate of fixed bids in our categories is lower than that of floating bids. After confirming that the quality of the advertising copy is ok, I would consider doing a one-week promotion to improve conversion rates.

Question 3: Can this effect be achieved by increasing the percentage of remaining positions in the search results?
The cost is affordable. I personally think this is possible. Whether it can achieve the desired effect depends on whether the conversion rate is better than that of competing products.

Question 4: What are the mistakes I made in improving the organic ranking through advertising? What do I need to modify and adjust? I prefer to directly increase the budget on the original group. Your new group is obviously not as good as the old group. The longer the ad group runs, the more data it accumulates, and the better the performance will be. Let's see if there is any bad traffic introduced.

Anonymous user • Hefei • 2024-02-02 11:44

OK, thank you very much. I split the old group to see the performance of each word in detail. The budget of the original group has also been restored to normal. Another old product in my account did not perform well at the beginning, but later the performance was good. It may be that the old product's counterpart was not promoted much at that time. My current counterpart is also competing with me, so the process is more difficult.

Amazon Hashu • Guangdong • 2024-02-08 18:25

It is generally reasonable to control the advertising ratio below 50%. If it exceeds 50% or requires advertising orders to maintain for a long time, it directly indicates that the natural traffic is insufficient. It may be a problem of natural location, or you can start with associated traffic. You can use associated positioning ads to operate to attract some associated traffic at the beginning, and then post more, so that the posts have the opportunity to appear under the same high-traffic products of Damai. At the same time, remember to use more bundled promotions and bundles to associate products. The acquisition of natural traffic is actually uncontrollable. There are actually many influencing factors. In the early stage, it is mainly driven by advertising, and with some associated traffic, there is a chance to slowly obtain it through orders.

Stealth Pilot - Six years of operation, welcome to communicate

I took a look at the pictures you posted and noticed that in some places your overall traffic has declined sharply since mid-December. However, I see that the total traffic of your competitors is higher than yours. Is this the off-season for the market?

Since January 23, your traffic and advertising campaign data have fluctuated greatly. Did you make any major moves on that day?

For old products, it is not recommended to split the keywords of the original advertising campaign and run them separately. A new advertising campaign needs at least one week to start running slowly. During this period, it is normal for your ads to perform poorly and affect the natural traffic. If you want to split it out, do not change the original one, do not close it or lower the bid, and then create a new one and put the keywords in it and run them at the same time. Because your new one may not be able to outperform the old one, even though the old one’s broad and precise keywords are in one ad. For old products, if you want to stabilize traffic, it is safest to do less.

Secondly, I personally think that the total orders, sales rankings and traffic scores may not necessarily correspond completely; but in the end, they all have to return to the trend of organic traffic increase - advertising traffic increase - organic traffic increase;

Do you do other types of advertising? At this stage, you can use competitive product placement and SD advertising to increase conversions on product pages and other search locations. These costs are also low. As for increasing the percentage of other locations alone, I personally don’t think it has much impact (this feature was very useless when it was first released)

Anonymous user • Hefei • 2024-02-02 15:00

December is the off-season, and January is the start of the growth phase, so I didn’t do much before. After January 23, I increased the advertising budget and gave it enough every day.

Enthusiastic citizen Mr. Zhou   -Send

Approved by: Puss in Boots

If the previous link has performed well, but has fluctuated recently, it means that the link quality is OK. It's just that the market has fluctuated. The market here refers to the entire environment, including but not limited to new sellers entering the market and low-price spirals. I heard a new method that you can try. So far, the effect I have tried is still very good.

Keep the existing budget unchanged and lower the bid. How to lower the bid? Lower the bid little by little. As long as there are clicks on the keywords or ASINs in this ad group, lower the bid until there are no clicks on this keyword or ASIN. Then raise the bid to ensure that this keyword or ASIN always has a click.

Why? The advantage of this is that the keywords or ASINs in each ad group will be clicked in, and there will not be a situation where only a few ad campaigns have the most orders, and only a few ad groups in these ad campaigns have the most orders. Now it is evenly distributed.

You can give it a try. Then make a record every day and a summary every week. The feeling of seeing the advertisement is different from the feeling of typing in the form with your fingers to do analysis.

Anonymous user • Hefei • 2024-02-02 11:49

This is the first time I heard of this method. I will try it immediately.

Aaron azon • Germany • 2024-02-07 11:17

It is effective. The basic logic is to give the link's keywords effective exposure (i.e. exposure that can be clicked)
But this method is not suitable for all categories. I have now joined a new company. This company sells blue ocean products. Only the conversion rate of big words is normal, while the conversion rate of other small words is terrible. The most amazing thing is that the CPC of small words is as expensive as big words!

Amaz on Uncle Ha • Guangdong • 2024-02-08 18:34

My understanding is to first lower CPC until we test that there is no click on each keyword or ASIN in all ad groups in all campaigns, and then gradually increase the bid to ensure that each keyword or ASIN has one click (how to ensure this? How to ensure that each keyword and ASIN has only one click? This is uncontrollable). So I don’t quite understand this. How to ensure that each keyword and ASIN only gets one click? Finally, there is another question: what is the purpose of doing this? What effect will it have?

changS

Agree from: KY is getting stronger and stronger, 1easter

I suggest that your first step is to classify your advertisements by type. The most basic one is to have one campaign each for broad, phrase, and precise advertising. If you mix them all together now, it will be difficult for you to control the segmentation.

Take the budget for example. You only have so much budget, and if you mix it up in the group, it will definitely lead to over-biased focus on certain words, while other words will not have enough traffic exposure. The data base is too small for you to judge whether other words are good or bad.

The same is true for ad positions. Different ad types have different main targets and different ad position performances. If you are targeting precision, you will definitely want to try to get to the top. If you are targeting broad, you may not be able to perform well at the top. Maybe your word or category performs better in other positions, but if you put them all together, once you adjust, everyone will adjust together, and you can't adjust them separately. So the overall suggestion is to divide the ad structure first and then adjust it.

Anonymous user

Agree with: Let the wind blow, wanfenhaoyi, Zhang Zhiming123, Heroes of the Sui and Tang Dynasties, Renshen123

My product has encountered the same problem. There is nothing wrong with the overall idea of ​​using advertising to improve natural positioning, but there is a prerequisite: the overall conversion rate of the product must meet the standard.

If there is nothing wrong with your ratings and reviews, and the placement of your ads, it is possible that your product is inferior to similar competing products in terms of price-performance ratio, or that your keywords are not compatible with your product. Imagine that Amazon gives you traffic, but the effect is very poor, whether it is the click-through rate or the conversion rate, and it cannot bring him continuous and stable pit production. Why should he give you more exposure?

Jiangshan Inkstone

Agree from: JosephGan

I was very touched by one of the comments from the original poster (I guess it’s because if you don’t do well in the first few months after the product is launched, it will be difficult to move forward in all aspects. So some products should either give up the ranking or keep a stable mentality and don’t panic). I have compared products of different categories, and basically all of them are in this situation.

If a product can get a good ranking in the early stage of its launch (the first month or two), then if there are no other unexpected problems, the product will continue to move forward.

Jing Lanqing • Jiangmen • 2024-08-28 12:03

In the end, it all depends on the product. If the product is good enough, it will automatically take off. If the product is bad, no matter how many advertisements you run, it will be useless.