Amazon Sponsored Products
In our previous post, Advertising on Amazon Campaign Manager, we talked about Seller Central advertising and how to set up Sponsored Products. When you optimize your listings and set up your first campaigns, you ads will run and gather valuable data for you. This is just the first stage, however. Below we outline what you can do next with your Sponsored Products to get the most bang for your buck.
Give Your Sponsored Products Time
The most important thing to remember when running Sponsored Products for the first time is that they may not show great conversions right off the bat. Be patient with your campaigns, even if they don’t seem to be working in the first two weeks. Some campaigns can take as long as one month before they prove profitable. It can be tempting to cut your losses and run, but then you would really be losing out.
Cost Per Click
Generally, the longer your Sponsored Products run, the lower your cost per click will become. It can be quite an investment to run Sponsored Products at first, but they will pay off if you can stick with it over the long haul. Some ads may not be worth the lower CPC over time, but you can cut these ones out and charge it to experience. Take the data that they have produced from running these Sponsored Products and use that to create better Sponsored Products Ads, or to optimize organically.
Amazon pay per click advertising has a positive effect on organic rankings. As your Sponsored Products run, you will see an increase in the organic ranking of your products. If you give all your Sponsored Products at least one or two months before you pass judgment, you will be able to see clearly which ones are getting you result, and benefit from an organic boost. If you can wait a little longer, you might see your products jump up a few spots on the organic results. This increase in rankings may even justify keeping certain Sponsored Products running since the cost could easily be covered by the change in organic conversions.
Track Your Sponsored Products
There is no solid way to guarantee which campaigns will be winners or to predict which campaigns will perform better over time. You need to track your campaigns regularly to check on what’s happening and determine which Sponsored Products are working for you. You can check Seller Central any time to check on the performance of your PPC advertising, or download your reports to review and compare later. If you want a more convenient option, there are several analytics tools that can give you key metrics at a glance.
When tracking, make sure you check each keyword to see how it is performing. Check your keywords against both clicks and conversions. A keyword may catch your eye because it is getting a lot of clicks, but may not be converting well. Another keyword may not get half as many clicks, but converts very well. Check your impressions as well so that you are aware of negative trends that may be developing so that you can nip them in the bud.
Optimize Your Amazon PPC Campaigns
Tweak your campaigns now and again to refine your keywords. With all the information that you have gathered while tracking your Sponsored Products, you should be able to make a few decisive cuts here and there. You may want to drop a few keywords, or adjust your bids. Fine-tune your campaign until you get the perfect set of keywords that converts at a high rate while keeping your costs at an acceptable level. By taking the time to properly track and optimize your ads, you can properly gauge your advertising cost of sale and maximize on your campaign.
If you started out with automatic targeting to do some keyword testing, this is the time to switch to manual campaigns. Take the best keywords that your Sponsored Products have proven to be profitable and transfer them to a manually targeted campaign.
Set Up More Targeted Campaigns
You can also use manual targeting to set up Sponsored Products for a certain subset of your products that need a performance boost. Once the research phase is over, you don’t need to keep running these ads to collect data. Then use Sponsored Products to get attention for new products, for instance. You don’t need to wait for them to get noticed by chance or to get picked up as a related search. Sponsored Products can promote items that are only popular at certain times. Seasonal listings may not need much of a boost since searches for these products will naturally peak. Sponsored Products will, however, help you to gain an advantage over the competition by immediately driving traffic to your products. If you have the Amazon Buy Box but are not getting many page views, Sponsored Products can bring life back to these products with a little push.
Maximizing the potential for your Sponsored Products will require an investment of money and time. If you can power though the first stages, however, you can push an increase in conversions that will more than make up for your efforts.
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