5 Tips to Build Your Amazon Campaign for Success
Managing Amazon campaigns can be a tricky task, especially since Amazon Advertising is a young platform which is continuously evolving. Let’s look at 5 tips to make sure you’re getting the most out of your products, keywords, and your campaign!
1) Segment by Product
While it’s definitely easier to put all of your products into one ad group, you’ll be missing out on valuable information and money by doing so.
Imagine you sell socks on Amazon. If you add all of your socks to one ad group, the performance data will all blend together – you’ll have no real way of knowing which products are running profitably, and which ones are simply draining spend. Take the extra time to categorize each of your products into its own ad group so that you’re maximizing spend and tracking your best selling products effectively.
Segmenting by product also allows you to analyze other attributes, like cost of goods, for each product (more on that later). If you have seasonal products it’s easier for you to manage them if they’re segmented by product. By doing so, you can insure they’re not spending money out of season by adjusting their performance based on the time of year it is. For new products, it’s easier to track their performance if you’re adding them in on their own as well. And if you’re including the SKUs this allows for multichannel insights which you can use to compare product performance on Google or Bing!
2) Segment Keywords
You’ve segmented your products into individual ad groups, now it’s time to segment your keywords too! Many advertisers put all of their keywords into one group. They put broad and exact together, but those categories target very differently which results in skewed. Thus, you should have different standards for different match types.
To start, segment your queries by exact match and phrase broad. Next, raise the bid amount for exact match keywords. Even though exact match keywords cost more, they are more likely to convert compared to phrase broad keywords — making it the better investment over time! Broad is going to gather way more impressions and most likely end up costing more, while Exact Match it’s much more targeted, reaching only the people who searched for that specific term. In turn, you may need to increase bid to actually serve the ad for that term, but the traffic it gathers will be ultra-targeted.
We also recommend you investigate your broad keywords, which are most likely to zap spend. Customers searching for generic terms are less likely to convert, so don’t waste spend on broad queries. Take the time to investigate which broad terms are worth the money and goodbye to the rest.
3) Add New Products
Adding new products to your ad campaign can be an arduous task, especially if you’re a large company with a quickly expanding product line. However, it is a necessary step to optimizing your Amazon campaign. Unadvertised products means untapped potential for profit. Without proprietary tools, Amazon makes it a challenge to add hundreds of products. That’s why at Omnitail, we’ve developed in-house tools that allow us to add hundreds of products in a fraction of the time. With or without proprietary tools, advertising all of your products is worth your time for the added profit it earns! Want to take your products to Google Shopping? Learn more about how to effectively segment PLAs here.
4) Add New Keywords
Managing keywords is just as important as adding new products. In order to find out which keywords to add, mine your Amazon Advertising reporting section to see the most productive key phrases. From there, segment your keywords correctly and stay on top of adding new keywords when you add new products. Additionally, it’s important to keep up with products you’ve been selling for awhile. Return to those products to see which keywords are under-performing and get rid of them!
5) Use Profit as a Metric Not Just ACOS
Profit, unlike ACOS (Advertising Cost of Sales), takes into account costs like commission to give you a more accurate representation of your account performance. Odds are, you’re over spending. If you’re selling products fulfilled by Amazon, the added cost is usually higher. Using profit, added costs such as this will be calculated in. That’s why we’re Omnitail: The Profit-Driven Online Marketing Agency, because profit is the only metric that gives you those insights.
For example, let’s go back to selling socks. You make $10 selling socks. If you spend 4 to sell the socks, you get a 40% ACoS which sounds reasonable! However, if you factor in profit which takes into account 30% COGS and 15% commission, you’re barely breaking even. Learn more about calculating Contribution Margin and why profit matters here.
The basics of managing Amazon accounts are simple, but in practice they can be time consuming because of Amazon’s lack of automation. For smaller companies, adding products and keywords may be a breeze, but as product lines grow, the task becomes more of a challenge. These steps are necessary to getting the most out of your Amazon account though. Need help managing your Amazon accounts? We’re here to assist you. Contact Omnitail at email@example.com to see how our in-house tools can streamline your Amazon Advertising campaign today!
Savannah is the administrative assistant at Omnitail. She has a degree in Marketing with a minor in Graphic Design from George Mason University. Her favorite part of the job is the design work she get to do, and the variety everyday brings. She’s happy to work with such an excellent team at Omnitail.