Promoting on Amazon is actually similar to traditional advertising
Promoting on Amazon is similar to traditional advertising. It follows the same principle: minimizing advertising costs to achieve maximum results. According to WebFX, advertisers spent $4.6 billion on advertising on Amazon in 2018; promoting products on Amazon has become crucial to success, especially when you’re just starting out selling on Amazon. Starting a PPC campaign is like shifting into a different gear, increasing the product’s overall core user coverage. PPC activities are an indispensable factor for a seller’s success. If they are not managed well, they will soon face a state of continuous losses. Therefore, when we carry out activities on Amazon, PPC optimization is one of the factors that TecRetail has always emphasized. When optimizing campaigns, there is only one goal, which is to provide ROI for each campaign. Among them, ACoS (ACoS refers to the ratio of advertising expenditure to target sales) is absolutely crucial and has now become an extended cost, but at the same time it can increase your profit margin. Optimize ACoS Many sellers have a question that no one can give a specific answer to; the sales strategy for each product depends on many factors. People tend to have preconceived notions about this and call a higher ACoS a negative, but a higher ACoS can even mean higher profits at different times! So, you can’t focus all your thoughts on a specific strategy and apply this general strategy template to different products. Lower your ACoS today with these 5 guidelines and strategies! When a product is launched, we recommend starting with automatic and manual campaigns in parallel while keeping a close eye on them. You need to constantly monitor the keyword performance in the report, adjust and take the right course of action to convert keywords from automatic campaigns to manual campaigns. This process is sometimes tedious and time-consuming; but it is necessary to go deep into the data obtained from each keyword test and observe the patterns therein regularly and carefully. Otherwise, a large amount of money will be consumed in the early stage, and no data with reference significance will be provided. However, testing alone is not enough; you must also find the right combination for your product, which often requires a lot of field testing before you hit the right formula for success. Keywords are powerful on an individual level, but taken as a whole, their impact will determine the performance of your overall sales. It is necessary to find a suitable keyword combination that resonates with the product in order to maximize profits. Split the keywords and find out the useful and useless keywords; But keyword bidding has a range of functions, and you need to set your bid price based on competition and budget; although they may seem like single clicks, they have a compounding effect on costs. The rule is simple: "keep" those keywords that make you money and "eliminate" those keywords that don't make you money. Once you’ve studied keyword performance patterns for a while, it will be easier to spot keywords that are having a negative impact on your bottom line. Find them, make a list, and include them in your negative keyword list. Some sellers simply let negative keywords stay in the mix, underestimating their impact on the overall performance of the product. Removing them will play a key role in keeping your ACoS low and controlling your profit margins. Amazon will always suggest a bid range for each keyword; but you must set the total number of keywords you want to compete for and your target bid based on your budget. For example, if the bidding range for a specific keyword is $0.70-$1.50, you can choose $0.70/click or $1.50/click. If you choose the latter, you will definitely win the ranking, but your overall cost will reach a sky-high price in a short time. Amazon has also introduced dynamic bidding, which allows you to increase your bid price based on your preference for product placement on the product page or below the search bar. When you increase your bid, your CPC will increase significantly based on the default bid. A single click can sometimes cost you 5 yuan or more. So be careful and take the initiative to learn more about dynamic bidding. You can set bids for broad, exact, and phrase match keywords separately; of course, the bid ranges for each will be different. Typically, broad match keywords are a source of cash outflow because Amazon will show your product ads to buyers who search for keywords that have a low chance of converting. The conversion rate for specific/phrase match keywords is more encouraging because the buyer comes with the intention of purchasing a specific product and only needs to choose from the range of products presented to him/her; this is when you must frequently check the generated search term reports to grasp the science of the search terms before making a decision. |
