Create an Amazon PPC strategy



Business Benefits

Drive traffic to your product pages and result in profitable sales.

Make sure your product is retail-ready before starting PPC.

In the world of Amazon, retail readiness means:

  • The product has 15 or more reviews.
  • The product has a star rating of 3.5 or above.
  • The product is in stock.
  • The product page is well-written and clear with several high-quality images. Make sure to include relevant product keywords, bullet points, and a detailed product description.

Retail readiness is a critical component of successful Amazon marketing. A retail ready product page can help you secure prime ad placement, and also increases the chances of a good return on ad spend.

Choose from three types of Amazon ads: product display, search, or remarketing.

  • Product display ads allow you to choose which competitor product pages your ads show up on.
  • Search ads allow you to choose which search results pages your ads show up on. These ads require doing keyword research.
  • Remarketing ads show your product to shoppers who have previously interacted with your brand.

If you are on a tight budget, you might want to start with only one type of ad, likely product display or search. However, for best results, consider using all three types of ads.

Create a winning Product Display ad strategy.

Identify the competitors you’d like to target. Remember, you’re looking for competitors where your ads will show on their product pages. It might be tempting to choose the top competitors in your space for maximum exposure, but you’re not likely to perform well if their brand is better established. Instead, identify weaker competitors for placement.

You can identify these weaker competitors by searching for your product, and noting which competitors have a low number of reviews, poor-quality images, and higher.

Determine if you want to use automatic or manual targeting for Search campaigns.

An automatic campaign allows Amazon to serve your ad on search terms, and product pages which Amazon feels are relevant to your product. This campaign is a great way to find more keywords and product placements, to be added to your manual campaigns later. The Amazon algorithm is quite advanced, and you might find that automatic campaigns perform well from the beginning.

A Manual targeting campaign allows you to customize search terms and bids, giving you more control of the campaign.

It’s recommended to use both strategies concurrently. The data collected in your automatic campaigns can be used to create successful manual campaign strategies.

Find the most profitable keywords for your Search campaigns.

There are free and paid tools that will help you identify keywords. Google’s Keyword Planner is a free tool that allows you to find search volume for any keyword imaginable. The only downside is that the user intent on Google, is different from Amazon, so it might not give you the most accurate reflection.

Paid tools like AMZ Tracker and AMZScout, include search volume estimates and other insights specifically for the Amazon platform. These tools also have competitor tracking, which can give you an idea of what your top competitors are doing. This allows you to adjust your campaign strategy accordingly.

You can also get inspiration for keywords by doing manual searches on Amazon. For example, if you’re selling a dog treat for small dogs, enter dog treats into the Amazon search bar. The results that autofill are a direct reflection of what customers are typing when they look for a product. To find relevant keywords, you can use Amazon search bar as shown below:

Add keywords to your search using the three available Amazon keyword match types: Broad, Phrase, and Exact Match.

  • Broad match: Your ad will be triggered when a shopper searches for your keywords in any order, along with other close variants. While broad match keywords do not guarantee the best returns, they are a great way to gather data. Start with a broad match to find new keywords and improve ad visibility.
  • Phrase match: Your ad will be displayed if a buyer searches for the keywords in the same order, along with either suffixes or prefixes.
  • Exact match: The ad will only be displayed when a buyer searches for the exact keywords. The search term cannot include any other words or phrases. This is the most refined targeting option. High-converting keywords with exact match, generally yield better ROI and have lower ACoS (average cost of sales). This comes at the cost of visibility that you would have received if you were using broad match or phrase match targeting.

Adjust your bids to maximize ad impressions.

Whether you’re launching an auto campaign or a manual one with your selected keywords, Amazon will suggest a bid for each keyword and ad placement. It is recommended that you bid the suggested value so that the chances of your winning the ad impression increase.

Depending on the value of a keyword, you can adjust your bids up or down to ensure you get conversion-focused traffic. For example, you might want to increase a bid by 25% or more for exact match keywords.

Monitor your ads daily to make sure you are winning ad impressions and clicks. If you’re not receiving any impressions or clicks, you are probably bidding too low, so increasing your bid by 20-30% could be a good remedy.

Add negative match keywords to prevent bidding on irrelevant keywords.

Amazon allows you to negate keywords and search terms in your ad campaigns. So, if there is an irrelevant term that you don’t want to show your ads on, it is best to add them as negative keywords while setting up the campaigns.

In our example of dog treats for small dogs, if you are not targeting big dogs, you can add big as a negative phrase match in your campaign, so that no search term containing the word big will serve your ad, hence you can save the spend on irrelevant search terms.

Set a daily budget, the maximum amount you will be charged per day, per campaign, that can be changed at any time.

It is important to note that setting a high budget does not necessarily mean you will spend that amount. Your actual spend depends on the number of keywords you are targeting, and the bid value you’ve selected. For example, if you’ve set a daily budget of $100, but your bids are too low to get any impressions, you might not spend any amount on the day.

Monitor your performance after launching campaigns.

It’s recommended to check your Amazon ad account daily. In particular look for rejected ads, which means Amazon has disapproved an ad, and you need to fix it. Also check metrics like Spend, Cost per Click, and ACoS, to confirm that your sales are being acquired profitably. If your ads aren’t profitable, you can adjust your bid cost, add new products to the campaign, or adjust your daily budget.

Last edited by @hesh_fekry 2023-11-14T11:25:42Z