Setting Up Amazon PPC Correctly

Amazon pay per click is amazing! It allows your product that potentially has no sales history to be on the first page of product listings and get in front of your target audience.

Amazon pay per click (PPC) is still in the early days and there are many keywords that are still not being targeted. If you can find a keyword that is not being targeted there is a lot of money to be made through Amazon PPC. Amazon PPC basically allows you to put your product on the first page for a very low cost per click depending on the niche and keywords that you target. 

The PPC ads are showing up less and less above the fold.

Now they show up on the right-hand side  

and also the last few products that are displayed on each page of Amazon.

Some people believe that you should not run Amazon PPC until you have at least a 10 reviews. I think that is nonsense. You can start running the PPC as fast as possible on Amazon. Like I said before, Amazon PPC can be cost-efficient if you choose your keywords wisely.

How to set up your PPC on Amazon

One way to choose your keywords correctly is by letting Amazon help you choose keywords. Gointo your Amazon seller central account. Click on Advertising and then click on Campaign manager.

The next step in setting up your Amazon PPC is setting up a campaign. Click Create campaign. You will now be on a page that looks like this:

  1. Name the campaign based on the product you are advertising for. (Ex. Silicon Glove ads)
  2. I set a high daily budget since Amazon usually can’t max it out each day. If you are just starting out $15 to $20 should be fine.
  3. I usually do not have an end date set. I will just end the campaign in the future if I deem it helpful or profitable.
  4. You will want to select Manual targeting here. This way you can see the keywords Amazon wants you to target. Amazon is in the business of selling as much as possible. They want to give you the best chance possible to get sales, so the keywords they suggest are most likely the keywords that convert the most often.

On the next page it will have you name the ad group. I usually keep the standard name of ad group 1 unless I am planning on doing something very specific with that ad group. Below naming the ad group it will have a list of products you are selling on Amazon. Choose the product(s) you want to run ads for by clicking the select button next the desired product.

Once you clicked the product you want to run ads for your screen will look like this:

Default bid should be based on how much margin you have in your product. This will vary. I like to miss high if anything. Keep in mind when you're setting a price per click which is the maximum price and that Amazon will  give you the lowest price possible as you bid with other sellers. There are still opportunities where one can find keywords that no one else is bidding on andcosts are something crazy like $.03-$.06 per click.

As you can see when you do manual targeting, a set of keywords will automatically appear below. Again, getting sales is in Amazon’s best interest, but that does not mean spending Ad money wisely is in Amazon’s best interest. A lot of the keywords that Amazon recommends will be very good . A handful will be worthless keywords that do not fit your product very well and that are very competitive and very expensive.  

An example of this would be selling a leash for seeing-eye dogs. A seeing-eye dog leash is a perfect product in my eyes because it has very low competition and gives an opportunity to rank for specific keywords. It also would be fairly cheap to get on the first page of specific keywords if you're running ads for,”seeing-eye dog leash.” Make sure to check through the keywords in your manual ad and turn off the keywords like “dog leash”, “leash”, “dog” or any other simple keywords. Keywords like that will be very expensive and not very helpful. People who search general terms are usually in the research phase of the buying process and not the buying phase. You want to target people who are in the purchasing phase of the buying process so keep your keywords specific. The more specific the better conversion rate you will have and the lower your ACOS. 

(ACOS Definition Average Cost of SalesThe percent of attributed sales spent on advertising.This is calculated by dividing total ad spend by attributed sales)

One strategy to find extra keywords to use when you're setting new manual targets for your Amazon pay per click campaign is looking at the other suggested searches that go along with your keyword. One way to do this is search for your best keyword and see what else appears. See image below 

Look at what else people are searching for when shopping for your product and see what the price of that keyword is by adding it to your manual Amazon PPC campaign.

A gray hat technique is to target the keyword of other competitors brand names so when someone searches, say, “Gillette razors” your razor comes up too. This is something a that a big box company could easily overlook. This can be an easy way to get high traffic keywords for a low price since no one else targeting it yet.

In conclusion, always keep testing your assumptions. Always try new keywords and always try new strategies. It is impossible to know what is going to work 100% of the time without testing your assumptions. Amazon PPC will not be something that you set and forget about. You should be checking your Amazon PPC Campaigns every week and constantly keeping your ad spend as lean as possible.