Amazon advertising bidding is unattainable. How can novice sellers play advertising?

As the internal competition among Amazon sellers becomes more and more serious, more and more seller friends have noticed that the current advertising bidding is out of reach, and the advertising ACOS cannot be higher. Some sellers even joked that they envy the ads of sellers with ACOS (meaning that their ads only burn money but do not generate any orders, and do not even have ACOS).

The soaring cost per click of Amazon ads has made waves of novice sellers the ones to be harvested. They spend a lot of money but don’t get many orders. Faced with such a situation, inexperienced novice sellers have a hard time on the battlefield of Amazon.

As the most important traffic channel on the Amazon platform, advertising space is a treasure trove of traffic that every seller must compete for. At the same time, advertising expenses account for a large percentage of every seller’s store costs, so good advertising is crucial for both new and old sellers.

So what is Amazon Advertising?

Amazon CPC advertising is a paid advertising method within Amazon. It is a method of actively attracting traffic to sellers and increasing sales through paid means. It helps increase product sales, stabilize rankings, help occupy shopping carts, increase brand exposure, and cooperate with product promotions.

  What is CPC?

CPC stands for Cost Per Clicks, also known as PPC (Pay Per Clicks). CPC (Cost Per Click) is charged according to the number of ad clicks, known as "pay per click". An IP is only counted as a click payment once within 24 hours. CPC is also one of the indicators for evaluating advertising effectiveness. The higher the CPC, the worse the advertising performance is to a certain extent.
 

Understanding of advertising terminology

Advertising Architecture

The above three are in a hierarchical inclusion relationship. There can be multiple advertising campaigns in one advertising combination, and there can be multiple advertising groups in one advertising campaign.

1. Advertising campaigns for the same product are placed under one advertising portfolio to facilitate search and subsequent data analysis.

2. Include the SKU in the name of each advertising campaign to facilitate data analysis later.

3. Reduce variables as much as possible. It is best to put only one keyword in each ad group. Otherwise, the budget will be tilted towards keywords that performed well in the early stage, resulting in keywords that performed poorly in the early stage not getting enough budget and unable to test the real effect.

The basic role of advertising

1. Traffic generation: Advertising is the most direct and main way to generate traffic for products on the Amazon platform, and traffic can be quickly obtained through advertising.
2. Testing: Quickly test the market acceptance of new products through conversion rate and click-through rate.
3. Listing inspection: Check the quality of listings by checking the relevance between the buyer’s search keywords and products in the advertising report.
4. Promote ranking: In theory, increasing the advertising budget can increase the chances of placing orders, thereby boosting the product’s keyword ranking.
5. Increase Brand Awareness: Brand awareness can be increased through brand advertising.

There are currently 3 ad types:

1. Product promotion: commonly known as SP advertising in the circle, it includes two delivery methods: automatic and manual. Manual advertising is further divided into: precise delivery/phrase delivery/broad delivery/Asin delivery.

2. Brand promotion: commonly known as SB advertising in the industry, it includes 3 types of advertising formats: product collection, brand flagship store focus, and video. There are two ways to place ads: keyword placement and product placement.

3. Display promotion: commonly known as SD advertising in the industry, it includes two types: product placement and audience placement. Product placement can be based on "category" or "each product"; audience placement has three directions to choose from: "browsing remarketing and Amazon consumers", "search content" and "purchased products".