Most brands on Amazon understand that in order to stay competitive in today's marketplace, they have to be spending money on Pay-per-Click advertising for their products, but many of them don't utilize all the tools available for them to help their advertising campaigns succeed. Having a strong understanding of some of the underlying principles will help to create winning strategies. Following are the 3 most misunderstood that can help accelerate your Amazon PPC sales.
Principle #1 Amazon PPC and BSR
The Amazon Best Sellers Rank (BSR), also known as the “Amazon Sales Rank” is a score that Amazon assigns a specific product. It ranks a product based on category, sales, inventory and historical sales data, and it fluctuates hourly. The lower your BSR for your category the better (ie rank #500 Toys is the 500th best selling product for the Toys category) as your product is more likely to show up on the first page of search results.
When you run Amazon PPC advertising for your listings, you artificially get to show up on the first page of search results, giving you a much bigger audience. When someone purchases your product through PPC, it will not only help your Best Sellers Rank (BSR) in this category, but will also boost your unique keyword phrases that contributed to those sales. Basically, your PPC spend will not only get you a sale that day, it will also uprank your product BSR and keywords associated with the sale, leading to more sales down the road.
Amazon's A9 algorithm is also hierarchical. This implies that in case you aren't getting visitors and sales, your BSR will drop, as will the keyword ranks attached to your listing. This usually means that to succeed on Amazon, you have to spend. The term "it takes money to generate money" is more relevant on Amazon now than ever before. Just keep in mind that at some stage as you raise your ad spend you will reach a point of diminishing returns. Your aim is to locate the sweet spot between outbidding your competitors, and maximizing profit margins. This will take a reasonable amount of market research and strategizing to discover the precise point you should be paying for each keyword.
Principle #2: You Win Search by Dominating Keywords
How are people supposed to buy your product if they can't find it? Optimizing keywords both within the listing and on the backend can have more of a payoff than almost anything else you'll do.
There are a number of resources you may use to explore which keywords are most likely to get you the maximum sales. That data, cross-analyzed with keyword data in the Brand Analytics section on your Seller Central dashboard, can assist you to determine exactly which keywords have the highest likelihood to boost your BSR and pull your other keyword rankings.
A few different keyword strategies exist depending on your brand's unique situation. Some prefer to aggressively target the main few keywords, as these would be the most searched and garner the biggest audience. The main problem with this strategy is that it can become prohibitively expensive without deep pockets, especially in hyper competitive categories. Other sellers prefer a"shotgun" approach to their keyword plan and go after all the long tail keywords they can think of, but they might be dispersing their investment to wide and miss the majority of their potential customers. In the end, there is no best solution other than one that is uniquely crafted for your products and situation.
Principle #3: ACOS Does Not Tell the Whole Story
Before you create your first campaign, you need to know what metric can help you the most for your PPC campaigns. Most vendors use the metric Advertising Cost of Sales (ACoS, described as PPC pay ÷ PPC revenue ) to figure out the efficiency of the PPC campaigns. However, ACoS only tells a part of the story, and it can seriously damage your overall operation on Amazon if you rely exclusively upon this metric.
On Amazon, more so than any other e-commerce platform, PPC spend is tied directly to organic earnings, not only PPC revenue. This is because PPC spend provides an increase in BSR and your listing's keyword positions. The higher your PPC spend, the more likely you are to make organic sales in the future, which means it is preferable to measure PPC spend as connected to organic sales. We call this metric Complete ACoS (PPC spend ÷ overall sales). It is possible to use Total ACoS to find out the way your spend is affecting your PPC sales and your organic earnings, and better comprehend your marketing performance on Amazon.
You may also use total return on advertising spend (Complete ROAS), which is your overall organic sales ÷ PPC spend. Total ROAS will also tell you the same narrative of how your PPC is impacting your overall natural sales. The point is to make sure your PPC metrics are all taking into account the overall organic growth of your accounts because PPC directly impacts your organic earnings.
Comentarios