What are the common problems and misunderstandings about Amazon CPC advertising?
FAQ 1: The bid I set is clearly the highest, why is it not displayed at the top?
Misconception: Thinking that the higher the bid, the higher the display position, while ignoring performance.
What factors affect CPC advertising ranking?
In fact, advertising booths are similar to search booths, and both have their own ranking systems. The ranking of search booths is determined by factors such as sales volume and conversion rate; the ranking rules of CPC advertising booths are determined by performance and bid, and then the limited booths are continuously rotated every hour every day.
However, the weight of performance is often greater than bid, because for Amazon, everything is to bring more conversions and more sales to the platform. Because it is impossible for him to put you on the homepage just to earn a few clicks from you regardless of your quality. Whoever has a higher conversion rate and can bring more sales will have priority.
Common Question 2: My CPC campaign didn’t have much effect and the order volume didn’t increase much.
Misconception: Thinking that CPC can increase conversion rate and increase orders.
CPC is only an auxiliary tool. It only increases the exposure of the product and brings in traffic, but it cannot change the competitiveness of the product itself, that is, the conversion rate. The main determinants of sales: products, conversion rate, and traffic. Now that we have traffic, the key is the conversion rate of the product. If your conversion rate is not good, it is unrealistic to expect traffic to save your dismal order volume. All improvements depend on the competitiveness of the product itself, and all marketing and promotion methods are just auxiliary.
Common problem three: Simply setting up automatic paid advertising and then leaving it alone.
Misconception: Thinking that for CPC advertising, all you need to do is set up automatic pay-per-click. After that, I basically didn't look at the reports and just let things take their course. I occasionally look at the data, and even if there are sales, I don’t know how they came in.
This is an extremely irresponsible practice. Paid reports also require downloading paid advertising reports, analyzing data, constantly adjusting and optimizing keywords, and optimizing products.
1. Within a certain range, the higher the bid, the greater the possibility of being ranked at the top. But this is limited. Bid bidding is only a secondary factor and will never be mainstream.
You should know that any search engine and platform will only give priority to products that are most beneficial to consumers. Traffic purchased with money will always come second. In the backend advertising promotion management, you can view the predicted bid and cost per click for each keyword. If your bid is 0.2-0.5 USD higher than the cost per click, you already have an advantage, but if it is more than 1 USD higher, it will be meaningless. The CPC click price is a combination of the second place bid + the percentage of the difference between the first and second place + your performance. In other words, there is a certain upper limit on the amount, and the higher the bid, the more competitive it is not.
2. The second point is the most important: performance. It all comes down to one thing: conversion rate, which is far more important than bidding.
The conversion rate can be viewed from two aspects: one is the CTR click-through conversion rate (that is, the number of clicks divided by the number of impressions), and the other is the ACOS advertising cost-to-sales ratio. These indicators can be seen in the advertising report or in the background.
The better these two indicators perform, the more competitive your product will be and the more attractive it will be to buyers. Conversion rate is always the first determining factor of natural search ranking and advertising search ranking. If the conversion fails, then the natural ranking or advertising ranking will definitely fail. It’s the same for any e-commerce business: conversion is king.
By constantly screening out keywords with good performance and optimizing your listings, you can continuously improve your conversion rate, and your advertising performance will get better and better. Only good performance will continue to accumulate weight over time.
This is the end of the CPC advertising knowledge for this issue. If you want to get more information about CPC advertising, please pay attention and we will continue to answer your questions~
