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Although Google is considered the most powerful search engine in the world, nearly 47% of American consumers search for products on Amazon, while only 34.6% of consumers search for products on Google. In comparison, Google's monopoly position is not that obvious.
Amazon is searched millions of times each month and the trend continues to rise. However, it’s not just consumers who are affected by Amazon. Online sellers around the world can feel the thriving Amazon. In fact, 20% of Amazon sellers have annual revenues exceeding $1 million.
Given the influence and diversity of the Amazon platform, sellers of all sizes and in all markets must learn to maximize their use of Amazon advertising if they want to achieve a higher return on investment. With this in mind, let’s take a look at how to increase your ROI (return on investment) when running Amazon PPC ads.
1. Use synonymous keywords
Researching keywords takes a lot of time and effort.
Since keywords are an important part of Amazon SEO optimization and an important element in placing keyword advertisements, keyword research is an indispensable task for sellers.
There are various methods and tools for researching Amazon keywords on the market. Sellers may have mastered the core methods of researching keywords. However, most sellers are likely to ignore the usefulness of synonymous keywords. Using synonymous keywords can improve the return on investment of advertising. For example, if a small shop selling corn chips places an ad, it will be very disadvantageous to bid on the keyword tortilla chips, because this kind of broad keyword is obviously more likely to be won by well-known brands in the same industry. However, if a keyword with a similar meaning like tortilla wraps is used, there is a greater chance of winning the ad and making a profit.
But to do advertising well, it is not only important what keywords to place, but also the matching type of keywords.
2. Set negative keywords and other matching types
Adding negative keywords can reduce the number of clicks that don't convert, thereby increasing your advertising return on investment. For example, if you sell paint brushes and you set the match type for the keyword “brushes” to broad match or phrase match, the person seeing your ad may not be looking to buy your product. Once the number of such consumers increases, sellers will have to pay a lot of costs, and the ads will not convert, which will eventually lead to a decrease in the ROI of the advertising campaign.
Therefore, sellers need to carefully choose keyword matching types and set negative keywords, which will help improve the relevance between ads and audiences and minimize irrelevant clicks.
Generally speaking, small sellers should set accurate matching and phrase matching effective keywords, and try not to use broad matching. Accurate matching and phrase matching can help target the right audience, while adding negative keywords will help filter out those irrelevant searches.
3. Run ads similar to your competitors’ products
There are two strategies you can use to position competitor products to improve your Amazon PPC advertising performance.First, when doing keyword research, study your competitors’ product pages to determine your title, long description, bullet points, reviews, and other important parts of your listing.
Second, sellers can target products that competitors want to promote. For example, Dark Iron Fitness commissioned the SEO agency Visiture to improve advertising performance. The measure Visiture took was to provide products that were almost identical to those of its competitors.
As shown in the figure below, you can see: - Ad click-through rate increased by 100%
- Return on investment increased by 364%
To sum up, studying the products that your competitors want to promote and launching similar products can bring ideal benefits to your advertising. 4. Use keywords in automatic ads to place manual ads
In the above example, Visiture helped Dark Iron Fitness improve its advertising performance. Another strategy is to use automatic ads to automatically find effective keywords and apply them to manual campaigns.
When placing Amazon ads, sellers can set up automatic ad delivery mode. Leave the decision of finding keywords and deciding placement to Amazon's algorithm. Although sellers cannot control ads, the budget will be spent quickly. However, opening an automatic ad campaign can test effective keywords and solve the keyword research work that makes sellers headache. You can also set negative keywords to avoid invalid conversions and waste advertising costs.
Sellers can take advantage of automatic advertising, filter out effective keywords, add them to automatic advertising, and bid on these keywords.
At this time, remember to take into account the two points we mentioned above: synonymous keywords and keyword matching types to ensure that you can get the highest return on investment. 5. Use dynamic bidding strategies to adjust advertising bids
The new version of Amazon Advertising introduces two dynamic bidding features: - First, only price reduction is allowed . That is, only the price of keywords with low conversion rates is reduced;
- The second is to allow automatic adjustment of bids , which will automatically increase bids when the conversion rate is high.
In addition, Amazon has also launched the Adjust Bids by Placement feature to replace the previous Bid+ feature. Compared with the original Bid+, the Adjust Bids by Placement feature has been upgraded. It is mainly divided into two aspects: - Sellers can bid on product detail pages. The previous function can increase the price by up to 50%, but now it can increase the price by up to 900%. In other words, if the bid is $1, it can be raised to a maximum of $10.
- In addition, sellers can also bid for preferred positions on the search results page.
However, please note that using this feature will result in an increase in impressions, which may ultimately have a negative impact on the ACoS of your campaign. This feature can increase product exposure, but it cannot guarantee an increase in conversion rate.
6. Optimize your creatives
Sellers should continuously improve advertising performance by constantly testing keyword effects, bidding strategies, and ad creatives. Using high-quality product pictures can better highlight the product and enhance its advantages. In addition, if the seller is running a deal (flash sale), remember to mention the relevant information in the advertising copy.
For flagship store sellers who use SB ads, it is necessary to direct consumers to the same landing page as the ad copy, because not adding a landing page will reduce the conversion rate and thus reduce the return on investment.
More than 49% of American consumers use Amazon to shop. If sellers want to improve their ROI, they must learn to effectively manage advertising expenditures and spend money wisely.
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