Amazon’s advertising revenue in the U.S. will reach nearly $10 billion this year, up more than 33% from 2018, according to eMarketer, and about 4% of Amazon’s total sales go to advertising.
As traffic becomes more and more important, the cost of advertising for Amazon sellers is getting higher and higher. However, in actual operations, many sellers will unknowingly fall into misunderstandings, resulting in wasted money and no results. Today, let’s talk about Amazon advertising!
1. Be careful not to waste money and hurt yourself by placing ads like this
1. All products are put into CPC
Many sellers have dozens or even hundreds of SKUs, and once the products arrive at FBA, they rush to advertise each product, spending one or two hundred dollars a day on advertising, but in the end, there is still no sales, which is both costly and frustrating!
2. Let the sheep run their advertising
Many sellers do not organize the data or analyze the reports after placing automatic pay-per-click ads. They do not know where the traffic comes from or which keywords are effective. They just want sales. This wastes a lot of the value of the ads.
3. Use low-priced products to attract traffic
Some sellers choose products at low prices, but still place advertisements due to traffic factors. As a result, the conversion rate is not cost-effective and the ACOS remains high. Advertising brings traffic and orders, but also brings losses.
4. Ignoring the Importance of Listing
One of the key prerequisites for advertising is to optimize the listing. But many sellers ignore its importance. The result is that they have good exposure and click-through rates, but no conversion rate, and spend money but no effect!
2. How does DaMai do CPC advertising?
1. Combine automatic and manual advertising
For new products, only automatic advertising is used to test the products; for key products, manual advertising is used, a new ad group is created, and keywords are added. Provide high-conversion accurate traffic for high-conversion products (potential hot-selling products, good products) (running automatic advertising, which is testing), so that the conversion rate of this advertising group becomes higher and higher, thereby reducing advertising costs.
2. Optimize listings and choose keywords
In automatic advertising, the Amazon system will largely identify and capture keywords from the listing details and titles; in manual advertising, keywords will be added manually (the added keywords must be relevant to the product, known to consumers and may be used for search). The best way to match keywords is to choose precise keywords + broad matching method, which can obtain more traffic while avoiding invalid traffic.
3. Use negative keywords wisely
Sellers can cleverly use negative keywords to block the possibility of them being exposed and clicked. Generally speaking, keywords with high exposure, high clicks, and low conversions, or high exposure, high clicks, and zero conversions can be added to the negative keyword list. These keywords have two things in common: they are irrelevant to the product and are large words (broad keywords) with a certain degree of relevance. When enabling negative keywords, it is recommended to adopt a precise negative approach based on considerations of the above-mentioned factors such as the number of clicks and relevance.
4. Focus on controlling advertising bidding strategies
When setting advertising bids, consider three aspects: product gross profit, system default recommended bidding range, advertising budget and advertising expectations. Among them, the bidding for advertising keywords can be set to about 1/10 of the gross profit; if the budget is sufficient, set the bidding higher; if the budget is insufficient, ensure that the daily budget amount of the advertisement is more than 20 times the bidding.
In addition, when placing ads, you should study the product categories and the browsing habits of target users. When the click volume is at a peak, bid higher to increase exposure. When the click rate is low, lower the bid to maintain the ad space while saving advertising funds.
5. Regularly follow up and optimize advertising
Sellers should compile statistical reports regularly, analyze and optimize advertising keywords based on the feedback from the data reports, and decide which ones to increase investment in, which ones to abandon, and which ones to reconsider. They should also adjust the daily and time period delivery strategies based on conversion rates, and continuously optimize to ultimately achieve the desired results.
