🔍 Top 5 Mistakes to Avoid in Amazon PPC Advertising
If you're an Amazon seller, you know that advertising is a crucial part of your business. One of the most effective ways to advertise on Amazon is through Pay-Per-Click (PPC) advertising. However, many sellers make common mistakes when it comes to PPC advertising that can cost them money and hurt their sales. In this article, we'll go over the top five mistakes to avoid in Amazon PPC advertising.
🚫 Mistake #1: The Need to Be Top of Search on PPC
Many sellers believe that the only way to show up on page one of Amazon search results is by spending money on the top PPC slots. However, this is not always the case. While the top slots may get the most sales, they also come with higher bids, sometimes 100-500% higher than other parts of the page. In reality, the most profitable sponsored keywords are often found in the mid to bottom of page one. So, don't feel like you need to be at the top to make sales.
🚫 Mistake #2: Not Continuously Doing PPC Research
PPC keywords and search volumes on Amazon are constantly changing. It's important to continuously do keyword research to stay on top of these changes. Use tools like Helium 10 to monitor search volumes and adjust your PPC campaigns accordingly.
🚫 Mistake #3: Negating Keywords Too Quickly
Many sellers make the mistake of negating keywords too quickly. Even if a keyword is not performing well, it may still be worth optimizing the bid to lower the ACoS. Don't be too quick to give up on a keyword that could potentially be profitable.
🚫 Mistake #4: Taking Profitable Keywords from One Campaign and Adding Them to Another
It's important to not take profitable keywords from one campaign and add them to another. There is a history and relevancy in PPC campaigns that can be lost when you move keywords around. Instead, focus on optimizing the bids for those keywords within the original campaign.
🚫 Mistake #5: Being Scared to Optimize Your Campaign
Many sellers are scared to optimize their campaigns because they fear it will lead to fewer sales. However, it's important to remember that every sale you make should be profitable. If you're spending more on PPC than you're making back from Amazon, it's time to reevaluate your strategy.
🎁 Bonus Tip: TACoS
TACoS, or Total Advertising Cost of Sale, is a metric that shows how your PPC is affecting your organic sales. It's important to aim for a TACoS of 15-20%. If your TACoS is less than 15%, you have room to use more of your ad budget to make more sales. If your TACoS is higher than 25-30%, it's time to work on ranking strategies rather than relying solely on PPC.
By avoiding these common mistakes and utilizing tools like Helium 10, you can optimize your Amazon PPC campaigns and increase your sales. Remember to continuously do keyword research, optimize your bids, and focus on profitability rather than just making sales.
Pros and Cons of Amazon PPC Advertising
Pros:
- Increased visibility and sales
- Ability to target specific keywords and audiences
- Control over ad spend and budget
- Ability to track and analyze campaign performance
Cons:
- Can be expensive if not optimized properly
- Requires continuous monitoring and adjustment
- Can be competitive and difficult to stand out
- May not be effective for all products or niches
Highlights
- The top PPC slots may not always be the most profitable.
- Continuously do keyword research and adjust your campaigns accordingly.
- Don't be too quick to negate keywords that could potentially be profitable.
- Focus on optimizing bids within the original campaign rather than moving keywords around.
- Prioritize profitability over just making sales.
- Aim for a TACoS of 15-20%.
FAQ
Q: How much should I spend on Amazon PPC advertising?
A: It depends on your budget and goals. Start with a small budget and adjust as needed based on campaign performance.
Q: How often should I adjust my PPC campaigns?
A: It's important to continuously monitor and adjust your campaigns based on performance. Aim to adjust your bids and keywords at least once a week.
Q: Can Amazon PPC advertising work for all products and niches?
A: While PPC advertising can be effective for many products and niches, it may not be the best strategy for all. It's important to test and adjust your campaigns to see what works best for your specific product or niche.
Resources:
- Helium 10: https://www.helium10.com/
- Amazon Advertising: https://advertising.amazon.com/