Amazon Sponsored Campaigns is a self-service paid advertising available to registered sellers, vendors,
and agencies that is designed to help advertise products on Amazon marketplaces.
It certainly helps you grow awareness of your brand and reach shoppers searching for products like yours.
It's CPC (cost-per-click) or PPC(pay-per-click) advertising solution where you pay for customer clicks.
It is important to note that you don’t pay when your ads get exposed but customers do not click on your ads.
On the dashboard you can see how much you’re spending, search terms shoppers are using, and other performance data.
You have to adjust your strategy on bidding, keywords, competing products, and creatives based on this data.
Amazon offered only Sponsored Products to 3P sellers until a few years ago then started rolling out Sponsored Brands,
and recently Sponsored Display to third-party sellers also which previously offered only to retail program (vendors).
Sellers can access the Advertising tab on Seller Central and Vendors and Agencies can access Create a campaign menu on the advertising console.
There are three types of Campaigns, Sponsored Products, Sponsored Brands (formerly Headline Search Ads),
and Sponsored Display. These Sponsored Campaigns appear in a variety of places across Amazon or off-Amazon
to make it easier for shoppers to find your products. Here are examples of ad placements:
Off Amazon on third-party websites and apps
Amazon has streamlined its creation process and automated many of its parts. To start, you have to choose the product
to advertise, decide how much you want to bid for clicks, decide which type of Sponsored Campaigns you would like to run.
Sellers can access the Advertising tab on Seller Central and Vendors and Agencies can access Create a campaign menu
on the advertising console.
You can choose to bid the maximum amount that you're willing to pay when a shopper clicks an ad for your product.
The higher your bid, the more likely your ad is going to be displayed when it matches an Amazon customer's search.
You can also set the daily budget so that you do not spend more than what you can afford for your product.
We typically suggest spending at least $50 a day.
Similar to "flywheel effect" or "virtuous circle" introduced by Jeff Bezos years ago, Amazon Advertising can help
boost your BSR by delivering constant sales volumes. That is, more sales you make via Amazon PPC,
the more relevant your product become on A9 algorithm which will boost your best seller rank and this will
increase your product's relevancy again.
The daily budget is the amount you are willing to spend on a campaign each day.
Sometime, you may see more cost spent on a day than your daily budget cap
because the daily budget is averaged over the course of a calendar month.
On any given day you could spend less or more (up to 10%) than your average daily budget.
This is to ensure that you can fully benefit from high traffic days.
Impressions are the number of your ads that were displayed and clicks are
the number of your ads that were actually clicked. The percentage of customers who saw your ads and also clicked on it,
can be calculated as clicks divided by impressions to compute click-through-rate.
The higher CTR, the higher clicks with the same level of impressions and great images, review rating, price,
and product title can improve CTR of your product not only within ads, but organic CTR.
Keywords are what you entered to bid in manual campaigns while customer search terms are
what customers actually type in the search bar on the top of Amazon marketplaces.
Amazon checks your product relevancy and how competitive your bidding is to decide whether to show your ads,
where to show your ads when customer types in specific search term query to find a product.
You can and should create an automatic campaign with match types.
For close-match, Amazon will show your ad to shoppers who use search terms closely related to your product.
For loose-match, Amazon will show your ad to shoppers who use search terms loosely related to your product.
For substitutes, Amazon will show your ad to shoppers who view detail pages of products similar to yours.
For complements, Amazon will show your ad to shoppers who view the detail pages of products that complement your product.
Each match type behaves differently depending on seasonality or how competitive your product is.
You can advertise with keywords with three match types - broad, phrase, and exact.
Broad match offers the most broad traffic exposure. Phrase match is more restrictive than broad match
and will generally result in more relevant placements for your ad.
It will show if the search term contains the exact phrase or sequence of words.
The search has to exactly match the keyword or sequence of words in order for the ad
to show including a close variations of the exact term. Each match type behaves differently
depending on seasonality or how competitive your product is.
The bid is the maximum amount you set to pay for a click when your ad is triggered.
It can be set for each of keyword, match type, or ASIN. CPC is cost-per-click,
the average amount paid for a click that can be calculated as total costs divided by the number of clicks.
Amazon shows suggested bids by internal calculations from a group of recent winning bids
for ads that are similar to yours.
Advertising cost of sales (ACoS) is the ratio of advertising costs to attributed sales.
Similarly, ROAS is the Return on advertising spend which is the ratio of attributed sales to advertising costs,
exactly inverse of ACoS. It is one of the key metrics used to measure your advertising performance.
Conversion rate is ratio of units ordered to number of clicks.
Negative keywords prevent your ads from displaying when customer's search query on the search bar
matches your negative keyword. Negative products prevent your ads from displaying when the customer
is viewing a product that matches your negative product. You can use this feature to exclude poorly
performing search terms or ASINs from other brands to improve your performance metrics.
There are two match types (exact, phrase) available in the negative feature.
You may use negative phrase to exclude your ads from displaying when a customer types in exact phrase
or sequence of keywords. As compared to using exact negative, using negative phrase is
a more preventive approach which often requires more in-depth analysis.
Amazon PPC advertising can appear in a variety of places across Amazon or off-Amazon
to make it easier for shoppers to find your products. Amazon provides placement performance data
at the campaign level at this moment. Although placement performance is very high level
with only three types of placements, you can differentiate your bidding strategy using bid adjustment
by placements to some extent based on your data analysis.
Amazon introduced a beta version of dynamic bidding strategy early in 2019.
Now, when you create a Sponsored Products campaign, you have three bidding strategy options
that can be set at the campaign level. By setting it, you are essentially choosing
to have Amazon adjust your bid up or down in real-time based on the likelihood of conversion
that Amazon A9 algorithm knows.
Amazon will lower your bids in real-time for clicks that may be less likely to convert to a sale.
This will be done if Amazon sees a less relevant search query or your ads shown at poorly-performing placements.
Amazon will increase your bids in real-time for clicks that are more likely to convert to a sale,
and reduce the bids for any clicks that are less likely to convert to a sale.
Amazon will increase up to 100% for the top placement and up to 50% for all other placements.
Amazon will not adjust your bids based on the likelihood of a conversion but use your exact bids.
Placements are places across Amazon where your sponsored ads can appear.
At the campaign level, you can differentiate your bidding strategy by three placements:
top of search (first page), rest of search, and product pages. You can set % value anywhere from zero to 900%.
Top of search refers to the top row of the first page of customer search results. Rest of search refers to your ads shown in the middle or at the bottom of search results plus all Sponsored Products ads from the second pages. Product pages refers to Sponsored Products placed on the product detail pages of other products plus all non-search based placements such as add to cart page.
In general, Top of search delivers fewer impressions but 10X higher click through rates and better conversions.
However, this may not be true in certain cases, for instance your product is below average in terms of review ratings,
selling prices ranges and so on because if placed on the top, you are essentially competing with the best sellers placed beside you on the top.
Amazon identifies and invalidates malicious clicks for you via advanced click-validation software.
They invalidate the malicious clicks based on click patterns and remove click statistics
once they determine it’s invalid. Clicks can be invalidated for the following reasons:
• Clicks from an Amazon.com IP address including Seller support and bots/webcrawlers.
• Unusual click patterns. This can include repeated and sustained clicks from a single IP address.
• Clicks identified as being machine generated.
• Clicks from non-U.S. and non-Canadian customers who are not logged on to Amazon.com.
You may still receive traffic from these customers, and may see the clicks in your Web server logs or tracking systems;
however, you will not be charged for this traffic.
When customers click your ads and later purchase one of the products advertised, Amazon attributes the sale
to your PPC ad campaign. The time period for recognizing sales after a click is called an attribution window.
If any customer clicks on and leave, and returns to the advertised product, and purchases it within the attribution window,
that sale will be counted in sales.
Sponsored Products has 7 days attribution window while Sponsored Brands and Sponsored Display have 14 days attribution window.
Also, Sponsored Products includes sales of other products if customers clicked on the advertised product once
but ended up purchasing one of the other products in your inventory. Sponsored Brands includes sales of any product
within your brand if customers clicked once and purchased other products in your brand,
regardless of whether it is sold by you or others.
Similar to "flywheel effect" or "virtuous cycle" introduced by Jeff Bezos years ago,
Amazon Advertising can help boost your BSR by delivering constant sales volumes.
That is, more sales you make via Amazon PPC, the more relevant your product becomes on A9 algorithm
which will boost your best seller rank and this will increase your product's relevancy again.
Amazon A9 is Amazon’s search engine algorithm that decides the organic placement of every product sold on Amazon.
It is a very secretive entity that constantly builds and upgrades this search engine algorithm
to serve Amazon customers better. The A9 comes from Amazon(A) plus Algorithm(9 digits).
It is known that traffics and sales play significant roles in telling A9 that your products are more relevant
and important to each set of search queries so that A9 will display yours first than others
when customers type in search keywords. However, conversions, shipping, satisfaction rate, feedback rates, price ranges,
ctr, and many others also are taken into consideration by A9.
This has a significant implication for you: you need to make your products rank high
with all the key search terms customers frequently use when they search for your item type
by making sure your listings are optimized for traffics as well as conversions. If done correctly,
this will in turn will boost your sales and relevancy at A9 again and you can enjoy virtuous cycle all along your journey.
This happens when two of your campaigns or ad groups compete against each other for the same keyword.
It also occurs between automatic and manual campaigns. While it is known that you won’t be outbidding yourself,
there's a chance that the less optimized campaign or adgroup out takes away the impressions
for the keyword costing you more. Furthermore, it can make it difficult for you to optimize your bids
for that keyword because the performance of the keyword may be great sometimes but bad in different time frames also.
You can prevent this from happening by adding those search terms as negative exact in either campaign or adgroup.
The Amazon Advertising API lets sellers and vendors programmatically and intelligently manage Amazon advertising operations.
It typically requires dedicated development resources and approval for API integration from Amazon.
With the growing complexity of Amazon advertising solution, an advanced API algorithm will help serve sellers
who need to not only manage but also intelligently optimize their ads better than any other sellers.
Item Type Keywords(ITK) are means of assigning your products(ASINs) to specific browse nodes. For example,
if you insert a n ITK value of 'skin-care-products' for one of your offers, you are telling Amazon to assign
that product to the Skin Care browse nodes. This is the lowest sub-category. It is extremely important
to have this value inserted correctly because it decides how much your selling fees will be,
also taken into consideration in customer's search results.
The most important thing you need to make sure before start advertising is to have great products
and detail pages which directly impacts on your ad performance and sales. Also, there are different targeting options
in automatic and manual campaigns that you should optimize to increase the opportunity for your ads to show and
to reduce inefficient costs. Also, you can refine your bidding strategy and bid adjust by placements
to better control your ads converstions. Most importantly, Amazon sets you up with a range of reports
to help you understand your campaign performance, measure the success, keep optimization process
to achieve your business goals.
Staying on top of PPC strategies is critical for improving ad ROI—but it’s also time-consuming.
If you’d rather focus more energy on other parts of your business,
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PPCWIZ uses the power of artificial intelligence to adjust not only your bids but also your keyword selection.
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