6 min read
The opinions expressed by the entrepreneur's contributors are their own.
The following excerpt is from Timothy P. Seward's book Ultimate Guide to Amazon Advertising. Buy it now on Amazon | Barnes & Noble | IndieBound | Apple Books or click here to buy it direct from us and SAVE 60% in this book if you use code MARKET2021 by 04/03/21.
By reviewing your advertising campaigns (i.e., critically examining your campaign structures and settings), you can determine whether they are in line with your business strategies and advertising goals on Amazon. It might seem daunting at first, but having a proper campaign structure is invaluable to your success in advertising on Amazon. Here are the most common issues to look for when doing a self-exam on your account.
1. Create a balanced mix of automatic and manual campaigns
First, ask yourself if you are using a mix of automatic and manual campaigns for sponsored products. While there is a widespread belief that manual campaigns are more important (because of the clarity and control these campaigns provide advertisers), each type of campaign serves a different purpose. It is best to use both automatic and manual campaigns for full ad coverage.
Automatic campaigns offer broad coverage, and manual campaigns are more targeted and tend to generate a higher return on investment. It's ideal to include all of the products you want to advertise in an automatic campaign – with similar products in the same ad groups – to ensure at least some advertising coverage for them. Since manual campaigns are more targeted, most of your spending should go through them. However, using both ad formats at the same time will maximize traffic to your products.
2. Check the structure around the three types of traffic
Ask yourself if your campaign is structured to separate the three types of traffic: brand, category and competitor. Building campaigns with keywords specific to a particular type of traffic is important to clearly understand your account's performance. Since branded keywords tend to generate better ROI, they can artificially increase overall campaign revenue when grouped in a campaign with category or competition keywords. Meanwhile, the category keywords may not get nearly as many impressions. The separation of these types of traffic is essential for the correct allocation of your advertising expenditure. It also makes it easier for you to see how the individual types of traffic are behaving.
3. Use all three keyword match types
Using all three keyword match types (broad, phrase, and accurate) for each keyword in your account is another way to maximize your advertising reach. By implementing broad and phrase match keywords, you may be able to uncover top conversion searches as keyword opportunities. Ideally, most of your spending should go into exactly matching keywords, as these should be the most relevant keywords with a higher conversion rate. You can do this by having a tiered bid structure for each term, with the exact match keyword having the highest bid, followed by the phrase match and the general match.
Related Topics: 5 High-Level Tweaks You Can Make to Improve Amazon Ad Performance
4. Use ad formats that make sense for your advertising strategy
The number of ad formats available depends on whether you are a seller or a seller. It is important to use all of the ad formats that match your general goal for advertising on Amazon.
Sponsored products for traffic and flexibility
Sponsored product ads tend to generate the most traffic because they have the highest revenue per click when compared to the other ad formats. I recommend always running ads for sponsored products as they can be tailored to one of these strategies: brand promotion, rapid growth, and meeting your target ad sales cost.
Sponsored brand campaigns for “top of funnel” growth or branding
Sponsored brand campaigns can be a great opportunity to promote your brand or even increase sales by expanding brand reach to new consumers. The prominent placement of banners not only offers the opportunity to drive traffic to your Amazon store, but is also an excellent opportunity to tell customers more about your brand or products. Since the CPC is typically higher than sponsored product campaigns and the CTR is much higher due to limited (but prominent) placements, sponsored brand ads are not as beneficial to get a low ACoS metric.
Related Topics: The 4 Most Helpful Reports You Can Run With Amazon Ad Data
Product ads to target interests and product pages
Similarly, product ads can be another way to educate customers about your brand by targeting interests and product pages, including those of your competitors. However, product display campaigns should be reserved for strong brand promoters as these are generally the most expensive ad format and typically generate lower sales.
5. Limit duplication of keywords
Duplicate keywords in the same ad format can cause account management inefficiencies and make it difficult to know which products are getting traffic for a given keyword. Because keywords have different bids across the account, duplicate keywords will compete for the same rankings, and one instance of the keyword is likely to get more traffic than the others.
Analyze Amazon's targeting report for duplicate keywords and consider removing the underperforming keywords. In the ideal sponsored product campaign structure, a keyword will only appear in one ad group within a campaign. A selected group of high-priority products that are closely related to the keyword will then be displayed in this ad group.
The same goes for campaigns for sponsored brands. A specific keyword with the same match type should only appear in one campaign. The most important products can then be displayed in the banner and on the landing page.
Did you like your book preview? Click here to get a copy today – now 60% off if you use code MARKET2021 by 4/3/21.