Are Amazon advertising fees too high? Take you out of the vicious circle of brutal budget! Are Amazon advertising fees too high? Take you out of the vicious circle of brutal budget!

Are Amazon advertising fees too high? Take you out of the vicious circle of brutal budget!

In Amazon's operating style, there is an extremely crude advertising strategy: the advertising budget is infinitely high.

Specifically, from the first day of the advertising launch, the budget is very high, such as 300 US dollars, 500 US dollars, etc., and the advertisement is directly placed at the top of the keyword homepage.

Many people look down on this kind of advertising, thinking that only stupid people with a lot of money would run such advertising. In fact, the logical algorithm involved in this operation is very clever!

First, let me talk about the advantages of this approach - quickly accumulate keyword weight!

Keyword weight is composed of advertising weight and natural weight. Natural orders have high weights and are ranked high; advertising orders have high weights and are ranked high. If both weights are high, both the natural ranking and the advertising ranking will be high.

When a new product is launched, it will definitely not be found in the natural rankings, so it is basically impossible to have natural orders. Without natural orders, there will definitely be no natural order weights. Without natural single weight, the natural ranking will definitely not be able to move forward.

So at this time, the most effective way to promote keyword rankings is to increase keyword advertising weight.

Increase the total weight of keywords through keyword advertising weight. Finally, the natural ranking is improved through the total weight of keywords.

Keyword advertising weight consists of five parts: budget, bidding, conversion, selling price, and commission. When operating the keyword advertising weight, since it is a new product online, the number of previous reviews may be very small or even zero.

At this time, it is almost impossible to make weights by calculating conversion rate and transaction amount. It is impossible for an operator to spend a month waiting for the reviews to accumulate and go online.

So at this time, we directly increase the overall weight score by increasing the budget. Assume that the budget for a set of ads is $300 per day, the click-through rate is 0, the conversion rate is 0, the selling price is $30, and the commission is 15%, then your keyword weight score is:

1) Total keyword weight score = natural single weight + advertising single weight

2) Natural single weight = 0

3) Advertisement order weight = 300 + 300/0*30*0*15% = 300

4) Total keyword weight score = 300 + 0 = 300

Finally, your keyword weight score is 300 points. This operation is more effective than other operation advertisements!

However, if this advertising method is not used properly, it will bring the listing into a vicious circle:

1) Advertising orders contribute more than 70% of the total orders, while organic orders contribute less than 30% of the total orders

2) Advertising expenses account for more than 30% of sales

3) Once the advertising budget is reduced, the advertising ranking will immediately drop, the natural ranking will immediately disappear, and the number of orders will plummet.

The core reason lies in the keyword weight ratio!

This operation can quickly raise the keyword ad ranking to the homepage, spend money like crazy to raise the keyword weight, and finally raise the natural ranking to the first few pages (third page, fourth page, fifth page...)

However, if this advertising keyword continues to have no orders, or has a very low conversion rate, or has a very high acos, or its natural ranking in the first few pages (third page, fourth page, fifth page...) continues to have no orders, or has very few orders, then the natural weight of this keyword is very low.

The result of low weight is that the natural ranking can only be carried to the first few pages by the advertising budget. Once the advertising budget is reduced, not only will the advertising ranking jump back, but the natural ranking will also disappear directly.

If you encounter such a situation, what you need to do is adjust the keyword acos and conversion rate. Increase the ACOs of keyword ads and the conversion rate, and use this data to improve the performance of the keywords themselves. Instead of constantly spending money to secure a position.

This can not only improve the advertising ranking, but also improve the natural ranking of keywords! By improving the natural ranking, the proportion of natural orders will gradually increase, and the proportion of advertising orders will gradually decrease. This will completely reverse the vicious cycle!