Having a large budget means that Amazon won’t throttle you. For example, if you have a $10 budget, a $1 CPC on average, and 30 keywords, you won’t even be able to afford to get one click for every single keyword, every day.
However, if you are willing to spend $100, $500, or $700 a day, where it will be 30 cents, 50 cents, and 70 cents per click, then Amazon will find the most effective way to bring you as many clicks as possible. So there’s a much higher chance of you converting using that method as opposed to lowering the budget.
Wait for a few days and if a keyword is not profitable after a certain number of clicks, wait until it’s exceeded the target customer acquisition. So, if your target customer acquisition is $8 and you spent more than $8 with no sales, you should start cutting things down.
Having multiple ad groups means the budget might be split unevenly between different ad groups and you’ll have no control over the budget. With Amazon, you cannot set an ad group-level budget. You can only set it at the campaign level.
For example, if you have a campaign with five ad groups and your campaign daily budget is $100 a day, each ad group would theoretically get $20 a day. However, as you don’t have control over how much money Amazon’s going to send to the different ad groups, you could have a $100 campaign budget, and it might send $90 to one ad group and then $3 to the other ad groups and then maybe nothing to the last ad group.
5 keywords maximum per ad group is recommended. If you push the limits to 10 for example, you will find the top five are getting most of the spend, and the bottom five will slowly get less. Even beyond 10 with a huge budget of $10,000 a day, you’re going to notice that all of the budget is going to the top five keywords.
To find these keywords go into your ad group and sort by spend, then scroll through the keywords. Look for keywords where you notice slow impressions or no spend, or maybe over the last 60 days, it spent $2 or $3, and you’re not even targeting those keywords.
For example, you’re targeting 100 keywords and five of them are getting spend, and the other 95 are hibernating. You could take those 95 out and put them in their own campaigns, five in each campaign. Give them a big daily budget, starting with a low bid and working up. Instead of those keywords losing out to the top 5 that are taking all of the budget, they’re able to spend across all the different keywords by putting them in their own campaigns.
Just launching ads is not enough, you want to maximize their efficiency because the goal of PPC is to drive traffic to listings in the cheapest way possible. Some of them will get traction and some will not. Some are going to spend a lot of money and not be profitable and some are going to be very profitable.
You should optimize every single week, or if you’re not spending a lot of money, it could be every two weeks. If you’re spending a ton of money, it could be every three days.
Optimize your ad budgets by downloading bulk sheets, filtering only keywords and product targets, and sorting by ACOS.
The higher the percentage, the less profitable your ad is. For example, if a 50% ACOS means that it’s spent 50% of the revenue to make a conversion. 100% ACOS means it’s spent 100%. So, if your product costs $20 and it’s spent $20, that means that that’s 100% ACOS, which is obviously very bad. Then Amazon takes its fees and you have the cost of goods sold.
Changing your bid can be an iterative process. Do this step-by-step, inching your way up or down, like from $1 to $1.05, $1.10, 15 cents, or 20 cents. You can do this frequently and instead of overshooting and then losing you can improve a little bit and get closer. The sweet spot is always changing so having a weekly flow is important
You always want to increase the budget and rarely ever want to cut it down unless you have a tight budget and going over by $10 is going to be a huge issue; then you might want to control the budget.
For example, if you set a $100 budget on a campaign, and now you found out that the ROAS is 4x, which means for every dollar that you spend, you’re making $4 in sales, you can increase the budget.
There are two types of placements on Amazon, top of search first page and product pages. Amazon will give you data for when you showed up at the top of the search on the first page. Not the highest one, which is the sponsored brand, just the top search results that look organic.
When you show up at the top of the search the data shows your ROAS, your CTR, and CR. If you notice that, compared to the rest of the search, you have a much higher ROAS at the top of the search, you could do a bid by placement adjustment.
For example, you can go from $2 a bid, and add 100%, so $4, only if that means you can show up at the top of the search. So the bid is normally $2, but in the case that you can win the bid by showing up at the top of the search, by spending $4, which is 100% more, spend that money.
This is the same with the product pages. If you’re showing up under a product on Amazon, someone clicks, scrolls down, and sees your product, you’re converting well. You can tell Amazon, that whenever you show up here, you’re willing to spend 100% more money to show up more because you know it’s going to convert.
This increase could be anywhere from zero to 900%. It is best to increase that bid by placement a little bit and test it and see what happens. If you notice that you increase 100% bid by placement, and then next week, the data shows that in the rest of the search you’re performing better at the top of the search, you’re not profitable, you can remove that bid by placement adjustment.
Extract unique and profitable search terms by using the Search Terms Report and looking at keywords and product targets with a good ACOS.
Broad and phrase campaigns use Amazon’s algorithm to show up for related keywords to the ones you are advertising for. You don’t want to extract keywords that you’re already targeting and then compete with each other. Use the Search Terms Report to find keywords and product targets with an ACOS of between 1 to 25%.
Launch your extracted keywords into campaigns following one campaign with one ad group for up to 5 keywords.
Whenever you launch and you have a suggested bid, start with that, but immediately follow up to make sure that that bid is the right bid.
For example, if the keywords are spending money and not making any sales or are not very profitable. They’re spending $100 to make you $30 in sales. You will want to get rid of those keywords. When you add them as negatives, they’ll stop showing up and you will stop spending money on them.
Sometimes you’ll get a broad keyword that will show up for 50 different keywords, and if 40 of them perform well, 10 perform badly. You don’t want the 10 bad ones to bring down the whole group average, so you negative those. Then you’ll have 40 remaining that are doing well.
Regularly audit the performance of those keywords and then add negatives to make sure that you’re not spending money on keywords that are not making you any profit.
Do not negative keywords in campaigns where they were working. For example, sometimes people will say I found a keyword in this campaign, I’m going to extract it, launch it in its own campaign and negative that keyword. But you will lose the sales and then it will not perform in the new campaign.