The key to successful Sponsored Product campaigns lies in regular optimization.
While regular optimization leads to more profitable campaigns, it also requires a certain amount of time and effort. This, in turn, depends on how you structure your campaigns.
In the previous lesson, we recommended a structure that allows for an effective balance between efficient optimization and moderate effort. If you have not read the previous lesson yet, please do so first.
In this lesson, we explain step-by-step how campaigns should be optimized on a regular basis.
Regular Optimization: A Step-by-Step Process
What is ‘regular optimization’?
Please be aware that you should only make adjustments and optimizations when you have collected sufficient data (impressions, clicks, conversions, etc.). This is the only way that key figures such as ACoS, number of conversions, or profit are reliable enough to base your decision on.
We generally recommend using at least one week to collect data for each element (e.g. search terms, keyword CPCs etc.) before making any adjustments. In addition, we recommend that you wait for a set value of “X clicks” (rule of thumb) before optimizing campaigns (see below for details).
There are 3 different types of optimizations that should be made regularly:
- Add irrelevant/costly keywords as negative.
- Optimize or transfer profitable search terms and keywords.
- Optimize your keyword CPCs.
1. Add negative keywords
Identify keywords in your ad campaign that are generating clicks without conversions. Exclude these unprofitable phrases as negative keywords to avoid further unnecessary costs.
Keywords should be added to Negative in the following cases:
- Case 1 – Irrelevant Keywords: Search terms that are obviously not relevant to the product in terms of content.
- Case 2 – No conversions: Unprofitable search terms that may be relevant to your product and generate clicks. However, the clicks do not convert into sales.
How long should you wait before excluding the case 2 search terms? Should these terms be tested against a certain number of clicks before assuming that they are ineffective and unprofitable?
As we mentioned above, the following rule of thumb — “X clicks” – is a good guideline to use:
You can use the following estimates for the expected conversion rate:
- Average PPC conversion rate (CR) of the product.
- If the PPC CR is not available, use the organic CR of the product.
Note — ASIN search terms as negative keywords: ASIN search terms mean that the PPC campaign is displayed on the product page of the advertised product itself. However, you cannot add these ASINs as negative keywords to avoid displaying the product ad on its own listing.
Manage negative keywords efficiently with Sellics
Managing negative keywords is significantly easier with the AMS module in Sellics VE:
- No exports necessary: Analyze search terms directly in the Sellics campaign manager instead of having to export them to Excel.
- Efficient management: Set one or more search terms directly to negative with a few clicks. These negative keywords can be set for individual campaigns or applied to the entire account.
- Automation: Automatically set search terms to negative according to your self-selected criteria.
2. Transfer search terms
For more precise optimization, transfer well-converting search terms regularly from Automatic to Broad or from Broad to Exact ad groups.
Don’t forget to add the transferred keyword as a negative keyword in the original campaign, so that it only receives traffic in the new ad campaign.
- From Auto to Broad: Keywords with a higher conversion can be transferred from the Automatic campaign to the Broad campaign. Simultaneously add the transferred keywords to the Automatic campaign as “Negative Phrase” keywords.
- From Broad to Exact: The best search terms from the Broad campaign can be transferred to the Exact campaign. This is where they can be targeted most precisely to deliver the optimum CPC. As before, add the transferred keywords as “Negative Exact” keywords to the Broad Campaign.
Note – ASIN search terms as keywords: ASINs as search terms mean that the ad was displayed on the details page of the respective product. However, adding ASINs as keywords is not useful. The ASIN is treated as a regular keyword, which is rarely used by customers in this form.
Move search terms & keywords between campaigns easily with Sellics
The AMS module of Sellics Vendor Edition makes managing and moving search terms and keywords in between campaigns easier and more efficient:
- No exports necessary: An analyze search terms directly in the Sellics campaign manager instead of having to export them to Excel.
- Efficient management: Transfer one or more search terms or keywords to another campaign with just a few clicks.
3. Optimizing CPC bids
Both the standard bid of the automatic campaign as well as the keyword bids in the broad and exact campaign should be regularly adjusted and optimized. The relevant target values should be clearly defined so that different CPCs can be systematically tested step by step.
Standard cases for CPC optimization are:
- Campaign with high ACoS: Reduce standard bid if ACoS > target value.
- Campaign with low ACoS: Increase standard bid if ACoS < target value.
- Keywords with high ACoS: Lower keyword bid if keyword ACoS > target value.
- Keywords with low ACoS: Increase keyword bid if keyword ACoS < target value.
- Keywords without conversions: Lower keyword bid or pause keyword.
- Keywords without or with few impressions: Check whether a keyword is missing in the product listing if no impressions are achieved. Test whether increasing keyword bids results in more impressions.
As advised earlier, sufficient data should always be collected before a CPC adjustment is made. As a guideline, “X clicks” can also be calculated according to the following formula:
Further detailed information on CPC optimization can also be found in this article.
Save Time and Automate Your CPC Bids
The manual management of bids and negative keywords can be very time-consuming. The AMS module of Sellics VE automates these tasks, thereby saving you a lot of time and effort. You can use our predefined automation rules or define your own.
Sellics automates the following tasks for you:
- Lower/raise keyword and campaign bids
- Pause keywords
- Add negative keywords
Summary: How to Optimize Your Automatic, Broad and Exact Campaigns
The optimization measures you should carry out regularly for each individual campaign (Automatic, Broad, Exact) are:
Boost Your Amazon Ad Performance with Sellics
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- PPC automation: Save time with automated bidding. Managing keyword bids manually can be very time-consuming. Sellics automates these tasks for you and saves you a lot of time.
- See your KPIs and ad performance: Get an immediate bird’s eye view of your PPC performance. Compare your Sponsored Products vs. Sponsored Brands campaign performance with ease.
- Intuitive trend visualization: Understand how your PPC performance develops over time. Visualize and easily evaluate past campaign performance with our Trend Chart.
- Smooth workflow for campaign management: Full integration with AMS. Create and optimize your campaigns easily with Sellics. Efficiently handle bulk changes to campaigns, move keywords between campaigns, use negative keywords, and more.
- See your PPC history log: Changes you make to your keyword bids, budgets, added or removed keywords are all visualized for you. Learn from the past and know exactly which changes correlated with a boost in ad performance.