Easy Amazon PPC Tutorial 2022 - Amazon PPC Management & ACOS Optimization Strategy 2022
Summary
TLDRThis video script offers a comprehensive guide on Pay-Per-Click (PPC) optimization for Amazon campaigns. It instructs viewers to generate ad reports after running campaigns for at least two weeks and use insights from these reports to refine keyword strategies. The script emphasizes the importance of Amazon's 48-hour data processing time and demonstrates how to create reports, analyze key metrics like click-through rate and cost per click, and adjust campaigns accordingly. It also advises on when to pause or double down on campaigns, with the ultimate goal of reducing advertising costs of sale (ACOS) and improving organic rankings.
Takeaways
- 📈 Optimize PPC campaigns by generating ad reports and creating insights to identify specific keywords and campaigns to focus on or pause.
- 🔍 Ensure campaigns have been running for at least two weeks for sufficient data analysis, with a 48-hour data processing time considered.
- 📊 Generate reports from Seller Central by selecting Sponsored Products, Search Term, and setting the time unit to summary for the past 48 hours.
- 🎨 Use color-coding to differentiate between broad, automatic, and exact match campaigns for easier analysis.
- 🔑 Understand key metrics such as keyword, customer search term, impressions, clicks, click-through rate, cost per click, spend, and 7-day sales.
- 🛒 Focus on keywords that convert and bring more clicks and sales to raise organic ranking while reducing ad spend on underperforming keywords.
- 📉 Calculate Advertising Cost of Sale (A COS) by dividing ad spend by sales and multiplying by 100 to understand the percentage of sale price spent on ads.
- 📝 Evaluate campaigns by looking at sales, click-through rates, and A COS, keeping high-performing keywords and adjusting bids for underperformers.
- 💰 Recognize the importance of reviews in conversion rates and adjust strategies accordingly to improve A COS as reviews accumulate.
- 🚫 Pause rather than delete campaigns to retain keyword indexing, which may help in the long run.
- 🌟 Prioritize exact match campaigns as they are most likely to convert, and adjust bids based on performance and review count.
Q & A
What is the main focus of the video script?
-The main focus of the video script is on PPC (Pay-Per-Click) optimization for Amazon advertising campaigns. It covers generating ad reports, creating insights, choosing specific keywords, and deciding which campaigns to pause or double down on.
How long should campaigns have been running before optimizing?
-Campaigns should have been running for at least two to four weeks before optimizing. The longer they run, the more data is available for analysis, which is beneficial for making informed decisions.
Why is it important to consider a 48-hour processing time when looking at PPC data?
-Amazon has a 48-hour processing time on data, so looking at PPC data from the current day or the previous day would not be accurate. To ensure consistent and accurate data, reports should be generated with end dates at least two days prior.
What are the key components to consider when evaluating keywords in a PPC campaign?
-Key components to consider when evaluating keywords include click-through rate (CTR), cost per click (CPC), spend, seven-day sales, and advertising cost of sale (ACOS). These metrics help determine which keywords are performing well and which ones need optimization.
What is the significance of the 'customer search term' in the PPC report?
-The 'customer search term' is significant because it shows the actual terms that customers typed into Amazon before clicking on the ad. This can differ from the keyword set by the advertiser, especially in broad campaigns, and provides insights into potential new keywords to target.
How does the 'impressions' metric in PPC differ from 'clicks'?
-Impressions refer to every instance where an ad is displayed, regardless of whether it was clicked or not. Clicks, on the other hand, specifically refer to instances where a customer clicked on the ad. Impressions indicate the potential reach of an ad, while clicks show actual user engagement.
What is the purpose of calculating ACOS in a PPC campaign?
-ACOS (Advertising Cost of Sale) is calculated to determine the percentage of the sale price that is spent on advertising to make a sale. It helps in understanding the efficiency of ad spend and ensuring that the profit margin is maintained.
Why is it recommended to pause a campaign instead of deleting it?
-Pausing a campaign is recommended over deleting it because there is a theory that pausing retains more keyword indexing. This can be beneficial for future optimization efforts and maintaining the campaign's performance history.
What is the strategy for handling keywords that are performing poorly in an exact match campaign?
-For poorly performing keywords in an exact match campaign, the strategy is to mark them yellow for review, reduce the bid slightly to avoid high ACOS, and potentially retest them later when more reviews are available to improve the product's social proof.
How does the script suggest balancing high ACOS with organic sales?
-The script suggests that as organic sales increase due to improved click-through rates and more reviews, the overall ACOS can be reduced. Organic sales made through the product listing, rather than through ads, are at full profit, which helps balance out the higher ACOS from PPC campaigns.
Outlines
📈 PPC Optimization and Campaign Management
This paragraph introduces the topic of PPC optimization, focusing on refining ad campaigns that were previously set up. The speaker advises that campaigns should have been running for at least two weeks to gather sufficient data, emphasizing the importance of waiting for Amazon's 48-hour data processing period. The process involves generating ad reports, analyzing keywords, and deciding which campaigns to continue or pause based on performance. The speaker guides viewers on how to access and create reports in Seller Central, highlighting the need for accurate and consistent data by ensuring reports cover a period that ends at least two days prior.
📊 Analyzing PPC Reports for Insights
The speaker explains how to analyze PPC reports to extract valuable insights. They discuss the importance of identifying the relationship between keywords, search terms, impressions, and clicks, and how these metrics can inform ad optimization. The paragraph delves into various report columns, such as keyword, customer search term, impressions, clicks, click-through rate, cost per click, spend, seven-day sales, and advertising cost of sale (A COS). The explanation clarifies the significance of each metric and how they contribute to understanding ad performance, with a focus on optimizing ad spend to improve conversion rates and reduce wastage.
🔍 Evaluating Keyword Performance in PPC Campaigns
This section focuses on evaluating the performance of keywords in both broad and automatic campaigns. The speaker discusses the importance of looking at sales, click-through rates, and impressions to determine the effectiveness of keywords. They highlight the need to retain keywords with high click-through rates and sales, even if the product has low reviews, as these can convert well once the product gains social proof. The speaker also advises on how to handle poor-performing keywords, suggesting marking them for further testing or removal, depending on their performance.
🎯 Prioritizing High-Performing Keywords in Exact Match Campaigns
The speaker emphasizes the importance of focusing on exact match campaigns, where the keyword used in the campaign exactly matches the customer's search term. They discuss the strategy of being lenient with exact match keywords due to their potential for high performance, even if they haven't converted well in the initial testing period. The paragraph outlines a process for marking high-performing keywords in green to keep and yellow to monitor or adjust bids, with the goal of optimizing the campaign for better sales and click-through rates as reviews accumulate.
🛠️ Optimizing PPC Campaigns for Long-Term Success
The final paragraph discusses the outcomes and actions to take after evaluating the PPC campaigns. The speaker suggests three possible scenarios: continuing to gather data if insufficient, fully optimizing the campaigns by moving successful broad and automatic keywords into exact match campaigns, or maintaining a profitable automatic campaign alongside the optimization. The focus is on aggressively bidding on exact match keywords to gain clicks, sales, and reviews, which in turn will lower the advertising cost of sale (A COS) and improve organic ranking. The speaker also encourages continuous evaluation of keyword performance and adjusting bids accordingly.
Mindmap
Keywords
💡PPC Optimization
💡Campaign Manager
💡Advertising Reports
💡Search Term
💡Impressions
💡Clicks
💡Click-Through Rate (CTR)
💡Cost Per Click (CPC)
💡Advertising Cost of Sale (ACoS)
💡Broad Match
💡Exact Match
💡Automatic Campaign
💡Product Targeting
💡Social Proof
💡Organic Ranking
Highlights
Today's focus is on PPC optimization, leveraging campaigns from part one.
Campaigns should run for at least two weeks for sufficient data.
Amazon has a 48-hour data processing time, affecting data consistency and accuracy.
Instructions on generating ad reports in Seller Central's Campaign Manager.
Importance of choosing the right time period for ad reports, avoiding recent data.
Explanation of key sections in the ad report for optimization.
Differentiating between keywords and customer search terms, especially in broad campaigns.
Understanding the relationship between impressions, clicks, and click-through rate.
The significance of cost per click (CPC) and how it differs from bid amount.
Calculating Advertising Cost of Sale (ACoS) and its importance in campaign evaluation.
Evaluating broad match campaigns for sales and high click-through rates.
Importance of retaining keywords with potential for future conversion despite low current sales.
Assessing auto campaigns for sales and considering product targeting.
Exact match campaigns are crucial and should be handled with care for optimization.
Three potential outcomes after evaluating campaigns: further data collection, full optimization, or maintaining profitable automatic campaigns.
Optimizing involves moving successful broad and automatic keywords into exact match.
The impact of reviews on click-through rate and ACoS as they increase over time.
Balancing ad sales with organic sales to achieve overall profitability.
Encouragement to engage with the content and ask questions for further assistance.
Transcripts
[Music]
what's happening guys today is all about
PPC optimization we're gonna take the
campaign's we created in part one which
you can check out up here if you haven't
seen that but we're gonna take those
campaigns we're gonna generate ad
reports and then we're going to create
insights from those reports and we're
gonna choose specific keywords and which
campaigns those go to well also choose
which campaigns we pause and which ones
we really double down on now at this
point your campaigns should have been
running for at least two weeks between
two and four weeks and generally the
longer the better because you're gonna
have more data to work with now it's
important to know Amazon has a 48-hour
two day processing time on data so you
never want to be looking at PPC data
that's from today or from yesterday it
has to be from three days ago if you
want consistent and accurate data so
anytime you generate reports make sure
the end dates of that report is at least
two days ago so let's get going first
you're gonna jump on seller central hit
advertising and then campaign manager
and once you're in the campaign manager
you will see advertising reports you
want to click on that then at the top
right you're gonna see create report and
that's what you want to click here now
in creating that report choose sponsored
products keep the report type to search
term and then make the time unit summary
and then you're going to choose your
report period as you can see here and to
do that you want to choose if you've run
it for two weeks choose the last two
weeks but only up to two days ago
because remember that 48 processing time
or if you've done this for three or four
weeks do the same but again giving that
48 hour leeway so only up to two days
ago at max then you can also name your
report so you can just name it your
product name and then search term and
then the date so you know when you
created the report choose now for the
scheduled time and then you simply gonna
click run report and now it's gonna
process it will say processing there
refresh the page it might take a couple
minutes but then it will become
downloadable and you want to click that
little download icon and save this to
your computer
so now that
let's jump into the report let's have a
look at what you'll see how you can
organize this and what insights you can
pull from it and so you can see I have
this report here on screen and you'll
notice there's a lot of different
sections and you will see these as well
when you download it but the most
important ones are the ones we're
focusing on today and they're going to
be this main section here up to
seven-day sales and also a cos now yours
won't come out with colors but all I've
done is color-coded the broad ones
yellow the automatic ones orange and the
exact ones green and you can see this is
a minimized version just for time so
that we can go through it but you would
go through it for your full keyword list
that you get back for this remember the
report might also hold multiple products
but you named your ad group well in the
beginning so you're gonna easily be able
to identify okay this is our would get
broad would kit also would get exact so
that's how you can focus in on the
product you're busy evaluating then you
can just delete the others from the
report so you can focus in so now that
we have the report our overall goal here
is to optimize our ad spend we want to
focus on the best keywords that are
going to convert and bring us more
clicks and sales so we can raise that
organic ranking faster and we're just
focusing on the ones worth focusing on
we don't mind paying for them the poor
performing keywords we want to move away
from those as quick as we can so we
reduce wastage and again bring that a
cos that advertising cost of sale way
down and we'll explain a serious in a
minute and so you can see some sections
here and I think some are more important
than others I'm gonna go through the
ones that are most important and that
can be quite confusing just so you have
a bit of a glossary when you're looking
at this you know exactly what each
column means first of all keyword so you
can see the keywords here these are the
keywords that you have put into that
campaign remember we copied and pasted
from Excel into our ad campaign when we
were creating it on South Central that's
the keyword you chose but then you can
see over here cuz
a search term that could be really
confusing why do I have like two
keywords well the customer search term
may actually differ from the keyword
particularly if you're doing broad
because remember when running broad
Amazon will run you for related terms to
the keyword you put in and so here you
can see although we had woodworking
tools there it ran us for woodworking
tool kit that is exactly what the
customer typed in it wasn't our exact
keyword and remember we also did
negative exact match but putting that
aside this is the keyword the customer
typed in and you can see how important
that is because now we know another
keyword we should be targeting if that
converted really well we've got a lot of
clicks versus impressions then we know
we need to be targeting that and that's
where testing and the value in testing
comes from the keyword what you put in
customer search term what the customer
actually searched on Amazon before
seeing your ad and clicking on it
impressions also people get confused
with this one it is simply when someone
sees your ad whether they click on it or
not doesn't matter if they type
something in on Amazon and saw your ad
and scroll just past it really quickly
or they clicked on it either case they
saw your ad the way I like to remember
this is your ad have an opportunity to
impress them so it's an impression any
time they saw your ad or it was on
screen in front of their eyes it's an
impression counts as one impression and
then clicks of course the simplest one
this is every click that a customer
makes on your ad so they have to click
on it each customer click counts as one
click now these two are actually very
important because they're related
for example clicks here you can see okay
we got one click from 16 impressions so
1 out of 16 then you can see here four
clicks 4 out of 41 so you start to get
like a ratio for example here we got one
click out of two impressions so out of
two people you saw our ad one clicked
the
a lot better than out of 16 people who
saw our ad only one clicked so you can
see how that allows you to actually put
value on your clicks when you do the
impression click relationship
click-through rate so this is simply the
percentage of clicks relative to
impressions practically that
relationship we just spoke of but as a
percentage so you can see here we had
four clicks from 41 impressions so that
would be about 10% for is 10% of 40 and
as you can see the click-through rate is
nine point seven five percents almost
10% so it just shows that relationship
the higher your click-through rate the
better cost per click another really
important one and this is not your bed
so let's say on woodworking tools we bid
two dollars on this keyword running a
broad campaign it showed us up for
woodworking tool kit and then the
customer clicked on our ad now doesn't
mean we definitely paid two dollars
because remember we did dynamic Birds
down only meaning Amazon can reduce our
bid where applicable where we no don't
need to pay that much as you can see
they did here the average cost per click
on this keyword was a dollar 89 so it's
really important this one because it
actually tells you what you're actually
paying per click not your bird so if you
reverse engineer it now let's say you're
ranking position one top of page one
you now know exactly what it costs to
put your ad in position one top of page
one because you can see your average
cost per click for that keyword so
that's cost per click spend this is your
overall spend for that keyword in the
period that we're looking at so for
example here in the period for
woodworking tools we had five clicks
five times a dollar eighty nine is going
to be nine dollars forty seven and then
seven-day sale simply the amount of
sales you made while running this ad for
the period that's important especially
if you're actually making sales from
keywords at this point but I'll explain
why it's not everything in a moe
and then a CEOs advertising cost of sale
and this shows you as a percentage of
your sole price how much you generally
spend of that sale price on an ad to
make a sale now a COS only comes into
play when you've actually made sales of
course and how you can work it out is ad
spend divided by sales times 100 so for
example if we look at this one this was
in our automatic campaign actually when
you see these stars this means it's an
automatic campaign it does say broad
here but this is automatic because it's
not using your keyword it's using
Amazon's keyword remember because they
choose the keywords for your automatic
campaign but let's look at this for our
a cos now remember it's going to be ad
spend divided by sales times a hundred
that gives us a percentage and as you
can see thirty other hundreds going to
be like thirty percent so you can see
it's 33% and what that means is that of
your sell price on average you're
spending thirty three percent of that
sale price to make that sale you can see
how that's absolutely critical to know
because if your profit margins 33
percent here it is literally being eaten
up by ad spend every time you make a
sale through an ad not through your
organic listing those ones will be full
profits but every time you make yourself
you're an ad it's costing you on average
thirty three percent of the sale price
to make that sale and so the
relationship between a COS and profit
margin is very very important to know
you want to know if my profit margins
forty percent on this product and my a
cos is let's say fifteen percent then I
know on average every time I make a sale
through an ad then I am making a twenty
five percent margin because we take our
profit margin forty percent we deduct
our a cos for that product which is
fifteen percent let's say overall for
campaign and we are left with 25% so
when we make sells to ads our profit
margin is now 25 percent not 40%
remember that doesn't impact your
organic listing though those ones will
still be full profit but that's how you
can factor in a cos to your profit
calculation and so evaluating these
campaigns further now that we have an
idea of what everything means here you
can see our broad campaign and here we
were testing we are trying to figure out
what other keywords have we missed or
would work well for our product when
evaluating broad you first want to look
at sales so did we make any sales and
you can see here we actually did not
make sales for broad which is quite
common especially if your test period is
very short but what we can also see is
the amount of clicks versus impressions
the second most important metric and
here going down the list you can see
that relationship of what's important so
32 impressions 5 clicks that's quite
good
a 15% click-through rate that's not bad
so this might be something we keep that
we retain for further testing this one
woodcarving toolsets 16 impressions one
click 6% click-through rate that's
really low that's not a good keyword and
so we may mark that with a red highlight
and you continue down the list like this
in my opinion anything over a 15 percent
click-through rate if it has enough
impressions is worth looking a bit
further at so for example here you can
see we have a click-through rate of 50%
but our impressions were only 2 that
means very very few customers are even
searching that keyword so this is not a
keyword I'm going to keep on and here
although we have a ton of impressions
look how terrible that click-through
rate is so we're gonna mark it red and
so you keep doing this only retaining
those that you would look further at
based on either sales or a high
click-through rate it shows you that
when people typed us in they found your
product very interesting and you can
convert them in future I'll explain why
at this point you probably have very
very few reviews so you cannot expect to
put the offering at the front page and
make sales for every single keyword
there's no trust people don't want to be
the guinea pig to try a product for the
first time they just buy one that's
proven that has social proof has reviews
so even if you're seeing a good
percentage of interest at this point
later when you have reviews you're very
likely to start converting on that
keyword so just keep that in mind and
don't get disheartened if you haven't
made sales on keyword at this point it's
very normal to see that but you do want
to be seeing interest and just make sure
there's enough impressions to give value
to that click-through rate and moving on
to our auto campaigns so here we gave
all control to Amazon to run our product
for anything they thought would convert
this includes keywords like we've gone
through but also a since they could run
our product on other related products
that they think we could convert on in
the sponsored products related to this
item area on those listings so when
you're looking at Auto if you ever do
see an Aysen like this I've just made
one up here but when you see that what
that means is that the customer found
your product via another ace and they
were probably looking at one of your
competitors you can type in that ace in
to Amazon to figure out which competitor
it is but they found your product in for
example sponsored products related to
this item on a competitor listing and
then click through to your listing of
course that can help you in terms of
product targeting if you want to do PPC
product targeting instead of PPC keyword
targeting but that's what those mean
don't get confused by those and then
here you can see keywords as normal so
here we're gonna do the exact same thing
but you can see at the top here zero
sales woodworking kit for adults we
actually made some sales here so this is
really important and this is very good
because we have low reviews at this
point this one also made sales generally
my opinion is if I'm making sales for it
at this point I'm going to keep that
keyword for sure and then you continue
again using your clicks you
and making sure the impressions get that
click-through rate value hearing here
are not good click-through rates this is
a great click-through rate but only one
impression one click so we definitely
not keeping that here we made quite a
few sales so we're definitely going to
be keeping that one you can see here
that our click-through rate is actually
quite poor and this is because this is a
very very strong keyword so we got a lot
of competitors yeah a lot of high review
competitors yeah so that is to be
expected but the fact that we are
already making sales for that keyword
tells me that when we have more reviews
on this product we're gonna do very very
well for this keyword and on all of
these we actually made sales so we're
gonna highlight these green and then you
can see our wax carving toolkit so they
ran us for that pretty low click-through
rate and no sales as we would expect
because it's not actually a wax carving
tool kit and then exact match this is
the most important one and of course
this is going to use our exact keyword
so you can see our keyword here and our
customer search term is exactly the same
because in exact match Amazon only runs
you for what you put in there exactly
and so they will match 100% now when it
comes to evaluating the exact match
campaign we do know these are our
strongest keywords so we're going to be
more lenient on them because remember we
don't have a lot of reviews so at this
point we do want to be careful with just
discarding one of our best keywords
because it didn't perform well in the
past 14 days so when you do find a poor
performer here just market yellow we're
not going to completely remove that we
might adjust bids or raise the bit later
when we have more reviews to really
start targeting that keyword again but
that's important to know exact match
just be careful because we know these
are very very good keywords for us on
this first one we made sales so we're
definitely going to keep that on this
one no sales and low click-through rate
so remarking that as yellow woodworking
tools and accessories also got sales
wood carving kits got sales and also
decent click-through rate so this could
be a powerful keyword woodworking tools
got sales we
carving set also got sales woodworking
tools got a ton of sales you can see
here this keyword did very very well the
click-through rates are low again to be
expected with low reviews but we are
hundred percent going to be keeping that
would tools itself did very poorly and
maybe that's because people are looking
for different wood tools maybe like a
lathes or band saws big wood tools we're
not sure but maybe less relevant so
we'll market yellow and we also got
sales on all of these down here so we're
gonna mark them green so you can see at
this point I'm not focusing on a cos I'm
not focusing on the advertising cost of
sale because I'm expecting it to be
really bad at this point because we
don't have the reviews just yet we're
looking for Inklings as to which
keywords we should really focus on which
ones we might have missed and which ones
could convert really well for us now at
this point there's really three outcomes
number one is you feel you don't have
enough data and you're gonna run this
for another two weeks
number two is that you choose to
optimize this fully and that's what I
would recommend if you have enough data
and that is you're gonna go through
abroad and all the green ones you are
going to move those into exact match and
use the same principles we went through
in part one you're gonna do the same for
automatic the green ones are gonna move
in to exact match with the same
principles at that point you're going to
pause both abroad campaign and the
automatic campaign don't delete it pause
it because there's a theory that you
lose less keyword indexing if you pause
rather than delete so just take note of
that and then what you're gonna do is go
into exact match and the yellow poor
performing keywords you're going to
reduce the bid slightly on those so we
don't get a a wild a cos and we're gonna
keep focusing on the ones that are doing
well while we build up more and more
reviews and we're also going to start
targeting our good performers from our
test campaigns and those should help us
also improves clicks and sales and the
third outcome is that you potentially
have a really profitable automatic
campaign of
seen this happen a few times and so what
you could do is optimize to exact
exactly like we just said but what you
also do is continue running just the
automatic campaign as well if it's
profitable and bringing you sales and
has a decent a cos a low a cos sub 30
then that's worth continuing with for
sure so just keep that in mind as well
but I'm all for optimizing towards exact
match so at this point you have an exact
match campaign you are focusing on and
what you're doing is you're continuing
to bid aggressively you're gaining
clicks and sales and therefore gaining
reviews more and more reviews and as you
boost reviews up you're getting more and
more click-through rate your AC OS is
coming down more and more and more and
all the time you're evaluating those
keywords which ones are performing well
which ones are performing poorly if
they're doing well keep the bid they're
keep the placement towards the top if
they're doing badly reduce the bid on
that keyword until you have more reviews
and you can retest it or if it's just a
poor performing keyword for you you can
pause that keyword altogether but now
you have one campaign that you're
focusing on and optimizing and that's
going to help you reduce that a cos way
way down as you have more social proof
and more reviews on that listing your
ACS is going to drop drastically but
this whole time we've gained clicks and
sales and we've raised our organic
ranking all the way up to page one so
now we not only making sales to ads
we're also making sales for these
keywords through our organic listing at
full profit so even though ACS might be
quite high on these we're now starting
to make organic sales at full profit as
well and that balances it out making us
profitable overall if you found this
video helpful please do smash that like
button for me subscribe if you are not
already turn on those notifications so
you know when new videos come out guys I
hope this PPC Series helped you if it
did please leave me a comment below any
questions below I'll try to get to those
as soon as possible hope you guys are
all doing really well and I will
you in the next video
[Music]
[Music]
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