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Amazon PPC Best Practices

Oct 19, 2017

Do you want to increase your traffic and sales with Amazon PPC ads? If you are a new seller, this can be an effective strategy to help you gain some traction that you may not be getting yet with reviews and repeat traffic. Running PPC ads can be a huge advantage for sellers using sponsored product ads. Any seller on Amazon should be using PPC ads, whether you are a new seller or an established seller. Each one of these has their own specific considerations, so before you jump head first into your PPC campaign, there are some critical factors that you need to know.

 

How much should you spend? How will you know if your PPC campaign is optimized and working properly? We talk about all of these issues and more today with the Amazon experts at Bobsled Marketing.  PPC provides a very measurable form of getting sales on Amazon, so there’s no reason not to educate yourself and get ready to increase your sales. As always, if you need more professional help and expertise with your PPC campaign, Bobsled Marketing is always here to take it to the next level.

Key takeaways:

  • Be 100% aware of all costs associated with your Amazon presence and all costs associated with it.
  • You must know your profit margins are to know if marketing can be profitable.
  • The 25/25 Rule - 25% of your overall sales should come from PPC while your campaigns operate at 25% A cost - this would be your advertising budget.
  • Estimating ad spend for existing sellers is different than establishing spend for new sellers.
  • For new sellers on Amazon, PPC is one of the only ways to get sales starting out
  • There is one product category that may be an exception to the 25/25 rule. Is it your category?
  • The optimal ratio of advertising to sales is 8-12%. 
  • The A cost based estimation method allows you to spend as much of your budget as you want on advertising as long as you have an acceptable A cost.
  • What frequency should you use to determine your A cost - daily, weekly, bi-weekly?
  • Learn how seasonality and special days like Prime Day can impact your PPC campaigns. Spend more. Bid more. Make more.
  • Your ROI will really determine your PPC spend, so it’s important to know your numbers.
  • It can take up to 6 weeks before you know whether your campaign is performing at the level you want.

Mentioned in this Episode:

 

Bobsled Marketing

The Bobsled Marketing Blog

Amazon Seller Central

Amazon Vendor Express