Easy Amazon PPC Tutorial 2022 - Amazon PPC Management & ACOS Optimization Strategy 2022

Summary

This 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.