
Optimization and errors in PPC
2 Apr 2024
Understanding and Using PPC Campaign Optimization on Amazon
Understanding and using Pay-Per-Click (PPC) campaign optimization on Amazon is crucial for effective budget management and maximizing return on investment. In this article, we will present best practices for optimization and the most common mistakes to avoid when running PPC campaigns.
Campaign Optimization
PPC campaign optimization is a process that should be performed regularly to align marketing activities with actual results based on KPI metrics. Key aspects of optimization include:
Increasing bid amounts for low ACOS campaigns: Campaigns with an ACOS of up to 15% have the potential to generate more traffic and conversions. Increasing bids can help improve their effectiveness.
Decreasing bid amounts for high ACOS campaigns: Campaigns with an ACOS of 80-100% or more are less profitable. Lowering bids can help reduce costs and improve profitability.
Removing high-click, low-sales keywords: Such keywords can drain the budget without generating the appropriate amount of sales.
Assessing keyword performance: Keywords that perform well should be kept at the top, while those that drain the budget should have their bids reduced.
Testing: Experimenting with different strategies and keywords is essential to find the optimal approach.
Attribution Time
When optimizing, it is important to consider attribution time, which is the period during which sales are attributed to specific ads. Sponsored Products have a 7-day attribution period, while Sponsored Brands and Sponsored Display have 14 days. Making decisions based on data from the last few days can be misleading, so it is recommended to analyze data over a longer period, such as 30 days.
PPC Mistakes to Avoid
Multiple ad groups in one campaign: This can lead to a loss of control over the budget and inefficient resource allocation.
Too many keywords or product ASINs per campaign: This results in a loss of control over even distribution of spending.
Overlooking valuable keywords identified in automatic campaigns: Not adding these to manual campaigns is a missed opportunity to increase efficiency.
Lack of regular addition of negative keywords: This is a key element of campaign management that helps eliminate ineffective spending.
Mixing keyword match types in one campaign: One should avoid mixing broad, phrase, and exact match types in a single campaign to maintain clarity of strategy.
Lack of regular optimization: Regular analysis and adjustment of campaigns are essential to maintain their effectiveness.
Summary
Optimizing PPC campaigns on Amazon requires continuous monitoring, analysis, and adjustment of advertising strategies to changing market conditions and consumer behaviors. Avoiding the above mistakes and following optimization recommendations can significantly contribute to improving campaign efficiency and maximizing ROI.
Remember, success in PPC does not come overnight – it requires patience, testing, and continuous learning. Good luck!