On the Amazon platform, sellers who adopt white hat strategies usually rely on in-site advertising to increase product visibility and sales. However, many sellers have encountered the following problems in Amazon advertising:

Advertising costs money quickly but the effect is not good?

Unable to formulate a suitable advertising strategy based on the product situation?

Want to increase your profit margins but don’t know where to start?

…

Today, Zhaodanmao will share some sellers’ operation plans based on product conversion rate and profit margin, as well as some cause analysis and corresponding solutions for several common advertising problems:

The core of advertising strategy: conversion rate and profit margin

1.1 Conversion rate: the lifeline of advertising effectiveness

Conversion rate refers to the percentage of users who purchase a product after clicking on an ad. It is a key indicator for measuring the effectiveness of an ad. A high conversion rate means that your product can attract the target audience and lead to purchases, thus bringing a higher return on investment (ROI).

1.2 Profit Margin: The Cornerstone of Profitability

Profit margin is the remaining rate of return after deducting all costs and expenses from the sales revenue of your product. A high profit margin means that your product is profitable and brings you a considerable income.

1.3 Mutual support and indispensability

Conversion rate and profit margin are the core of Amazon advertising strategy. The two influence each other and jointly determine your advertising effectiveness and profitability.

1.4 Case Analysis: Operational Strategies in Six Product Situations

2.1 Strategies for high conversion rate products

For products with high conversion rates, you can ignore profit margins and invest fully in advertising to increase sales, obtain more organic traffic, and ultimately achieve profitability.

It is recommended to use advertising types such as Sponsored Products, Sponsored Brands and Sponsored Display to reach a wider audience.

Optimize product listings, increase product attractiveness and persuasiveness, and further improve conversion rates.

2.2 Strategies for Products with Low Conversion Rates

For products with low conversion rates, you need to place advertisements with caution to avoid losses.

It is recommended to formulate a reasonable advertising bidding strategy based on product profit margins.

Based on the product features, choose the appropriate advertising type, such as Sponsored Products or Sponsored Brands.

Optimize product listings and images, improve product quality, enhance user experience, and thus increase conversion rates.

2.3 Profitability analysis: careful budgeting and cost control

For products with low profit margins, advertising costs need to be strictly controlled to avoid losses.

It is recommended to use indicators such as ACoS (advertising cost to sales ratio) to measure advertising effectiveness.

Regularly analyze advertising data, adjust strategies in a timely manner, and optimize advertising effects.

Advanced techniques to improve conversion rates

Product quality: ensure product quality, reduce return rate and improve user satisfaction.

Official Vine Program: Apply for the official Vine program, get professional reviews, and enhance product trust.

A+ content and video: enrich product listing content and enhance product appeal and persuasiveness.

Product reviews: Encourage users to leave high-quality reviews to enhance product credibility.

Reasons and solutions for low ad impressions and clicks:

1. Few impressions: This may be because the keyword bid is too low.

2. Insufficient number of keywords: A large number of keywords that are highly relevant to the product need to be added.

3. Inappropriate keyword matching method: Generally, the impression volume of broad match is greater than that of phrase match, and phrase match is greater than that of exact match. Choose the appropriate matching method according to the product characteristics.

4. Inaccurate keyword selection: If the ad contains keywords that have low relevance to the product, it will lead to poor relevance.

5. Short advertising running time: Advertising requires a certain amount of time to accumulate data.

Judging criteria:

Run for at least 30 days and have more than 3,000 impressions.

Increase bids for keywords with low impressions, and continue to observe indicators such as impressions, click-through rate, CPC, and Acos within 3-5 days.

When choosing keywords, pay attention to indicators such as relevance and search popularity. Avoid choosing keywords with low search popularity, as this may result in insufficient display.

For core keywords (number of words ≤ 3), all three matching methods can be used.

For long-tail keywords (number of words > 3), it is more appropriate to use exact match.

Solution:

1. Use advertising reports to select keywords. 2. Use keyword tools to select keywords. 3. Use the A to Z method to select keywords.

Improvement strategy: 1. Increase the homepage bidding ratio of the ad space by 10%. If the effect is not good, increase it by another 10%.

2. Adjust the bidding strategy of the campaign to dynamic bidding - increase or decrease.

3. For keywords that need to increase display volume, gradually increase the bid, and control the range between 0.03-0.05.

4. You can combine two or three of the above methods.

Solution strategies for different situations of ad display click conversion

Ad impressions are high but clicks are low:

Reason: Although the keywords are popular, consumers do not click through the ad to enter the listing. There may be problems with the title, pictures, prices or reviews, or the product is not highly relevant.

Solution: Review and optimize the listing copy to ensure that the ad content is highly relevant to the product.

Ads with low clicks and conversions:

Reason: It may be that the traffic is not accurate, the product lacks competitiveness or the market competition is too fierce.

Solution: Optimize product pages to ensure that images, details, and selling points are clearly expressed; match core keywords; and maintain good product reviews.

Ad clicks are high but conversions are low:

Reason: The price may be set unreasonably, the keyword match is not high, or the product is not differentiated enough from competitors.

Solution: Pay attention to product exposure and avoid using unpopular keywords; ensure that the category selection and title keywords of the listing are accurate; increase the bid to get more exposure; check the completeness of the listing, including the title, brand, description, etc.

In addition, the following points should be noted:

The bidding and keywords of the advertisement need to be balanced. A bidding that is too low may result in insufficient exposure.

The pricing strategy should be reasonable to expand the target customer base.

Not all products are suitable for advertising. Advertising is more suitable for products with few competitors and high profits.

Before placing an ad, make sure the listing has been optimized and has a shopping cart.

Sellers need to realize that advertising does not bring immediate exposure and clicks. It takes a certain amount of time to produce results. If the ad position is not good or the keywords are too unpopular, it may lead to inefficient advertising performance. In this case, you can consider adjusting the keyword strategy or increasing the bid.

If the data shows abnormalities, you can combine manual matching and automatic matching advertising plans to monitor the performance of different keywords and optimize accordingly.

Finally, if the advertising effect is not good, sometimes it may be because of the problem of the product itself, not just the problem of the advertising strategy. When implementing the advertising strategy, it is necessary to consider a variety of factors and make adjustments according to the actual situation.