Amazon PPC Series: Guide to Campaign Optimization

Amazon PPC Series: Guide to Campaign Optimization
By Franz Jordan in Amazon Marketing Tips, Amazon PPC. Last updated on

Regular campaign optimization is the key to success with Amazon PPC. In part 3 of this article, we outline the key campaign optimization measures you should take once your campaigns and ad groups are up and running. You can learn more about PPC campaign setup in part 2, or prepare your PPC campaign structure in part 1 first.

It’s important to remember you only want to make adjustments to your PPC campaigns once you have collected a sufficient amount of data (impressions, clicks, conversions, etc) to evaluate your current campaign performance. We recommend to wait at least 2 weeks before you make any changes to your campaign, and depending on the number of impressions, clicks, etc collected it may also be necessary to wait longer.

At Sellics we’ve outlined 3 key  campaign optimization measures you should regularly undertake following our recommended PPC strategy.

1. Transfer profitable search terms

In order to achieve more precise control over your keyword CPC, profitable search terms should be regularly transferred from your Auto Campaign to your Broad Ad Group, and from your Broad Ad Group to Exact Ad Group.

  • Transfer relevant search terms from Auto Campaign to Broad Ad Group

This process is simplified for you in Sellics. Simply click on the ‘auto’ campaign in your PPC Manager, and you will instantly see all the new customer search terms Amazon has matched to your ad.

Of course, not all search terms matched by Amazon will be relevant to your product. You will only want to add the search terms that have generated purchase orders for your ad.

Use our Smart Filters to filter for the profitable search terms that have generated orders, and add them as new keywords to your Broad Ad Group, where you now have greater control over the keyword CPC.

  • Transfer profitable search terms from Broad Ad Group to Exact Ad Group

In your Broad Ad Group, you will want to similarly identify & transfer profitable search terms to your Exact Ad Group, where you will be able to then optimize the individual keyword bids.

New customer search terms matched by Amazon are automatically displayed for each keyword running in your Broad Ad Group. Simply filter for the profitable search terms in your Broad Ad Group and easily add them as new keywords to your Exact Ad Group.

2. Negative Keywords (remove unprofitable search terms)

You will want to periodically track the search terms running in your Auto Campaign and Broad Ad Group that are generating clicks without conversions, to prevent accumulating unnecessary PPC costs. Learn more about negative keywords here.

When do I add a keyword to Negative?

In order to determine after how many clicks a keyword becomes cost-prohibitive, you can use our formula below (you will need the organic CR of your product):

Number of clicks (before adding keyword to Negative) = 100 ÷ organic CR

For example, if you have a product with a conversion rate of 2%: 100 ÷2% = 50 clicks. I.e. this keyword should be added to negative if it has not generated any orders after 50 clicks.

When filtering out unprofitable search terms from your campaigns and ad groups, your aim is to remove:

  • Irrelevant search terms that are clearly not relevant to your product.
  • Unprofitable search terms that may be relevant to your product, however continue to only generate clicks without conversion.

When utilised correctly, negative keywords will help you achieve a lower ACoS. Use our PPC Analyzer to track whether your optimization efforts were successful, and immediately see if you’ve succeeded in lowering your ACoS.

3. Optimize your CPC bids

You will want to regularly perform CPC optimization for your campaigns and ad groups, with your Exact Ad Group offering you the most keyword control, allowing you to set (and adjust) individual keyword bids.

In order to determine the ‘optimal CPC’ for your campaigns, ad groups, and keywords, you will need to define your campaign goal (whether your aim is to maximise sales, profit, or achieve a low ACoS) and calculate the relevant key metrics. You can read our CPC optimization guide for further guidance.

Keep in mind it’s critical to allow for sufficient waiting time between keyword bid changes, to ensure you have collected enough data (impressions, clicks, conversions, etc) to help you assess whether further bid adjustments are necessary.

Use our PPC Analyzer to track the effects of your CPC bid changes on your sales and  advertising costs, and immediately see if your optimization efforts have succeeded in increasing your  PPC sales, or lowering your ACoS.

Increase revenue with the Sellics PPC Manager

Sellics automatically tracks every change you make to your ad campaigns. Changes you make to your keyword bids, budgets, added or removed keywords are all visualized for you. Learn from the past and get a real understanding of what really affects your PPC performance.

Key features:

  • Net profit calculation:  We display the net profit for all your Amazon products  (we automatically deduct your Amazon fees, taxes, Cost of Goods, shipping, and PPC costs).
  • No more spreadsheets: Use our Smart Filters to quickly filter through high and low performing keywords. Change your campaign status, keywords, bids, and budgets directly in Sellics.
  • Historical data tracking: Track your campaign performance for any given period, and use our Trend Chart to analyze the performance of your ads.
  • See your Bid History: Immediately see the positive or negative effect of your bid changes on your ACoS, impressions, CTR, and conversion rate.

Part 1: How to Structure Your PPC Campaign

Go back to review how to structure your PPC campaigns and find the best balance between time investment and campaign precision.

Part 2: PPC Campaign Setup

Go back to review how to set up your PPC campaigns for maximum success.

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