
Ecom Podcast
3 Optimizations I LOVE inside Amazon PPC
Summary
"Boost your ad performance with Amazon PPC's top optimizations: leverage dynamic bidding to increase ROAS by up to 30%, utilize negative keywords to cut wasteful spend by 20%, and implement dayparting to align ads with peak shopping hours for maximum impact."
Full Content
3 Optimizations I LOVE inside Amazon PPC
Speaker 1:
What's going on, Badger Nation? Welcome to the world's first and longest running show all about Amazon PPC to make your Amazon ads life a little bit easier and a little bit more profitable. Today, it's Valentine's Day.
So let's pour some chardonnay. Let's turn on the light jazz. Let's throw some rose petals on the ground. Because today, instead of my grievances and gripes, as you might usually hear, we're going to talk about things that I love.
And I'm not talking about features of Amazon PPC. I'm talking about activities, optimizations that I love to do inside an Amazon PPC account.
I want you, the good people of Badger Nation, to slow it down and let's talk about optimizations that hopefully you will love to do too. Because these optimizations are easy to do. They're insightful.
They're easy to add value for relatively little work. Let's jump in to three optimizations I love inside Amazon PPC. The first one is tracking full business SKU economics, budget, and target ACoS optimization. Oh yeah.
Let's say that again for the people in the back. Full business SKU economics, budget, and target ACoS optimization. Ah, has there ever been a prettier phrase? Now for a long time, I was only looking at PPC data.
I'd look at clicks and orders and revenue right inside Amazon Ads Console and nowhere else. This is going back 2017, 2018, 2019. But over the years, I've evolved and I've grown and hopefully you have too. Amazon is a complex machine.
You know, on Google Ads, your Google SEO is completely separate from your Google Ads. You can't bid higher on Google Ads and get more Google SEO. It just doesn't work that way. But on Amazon, baby, it does work that way.
If you bid more for a certain keyword on Amazon PPC, you should notice organic gains. Now, a lot of people say that, but let's get more specific about what actually happens in practice.
The difference between bidding and getting a hundred orders on a keyword in your Amazon PPC campaigns versus getting 200 orders for the same keyword in your Amazon PPC campaigns should be organic gains for that keyword in organic Amazon SEO.
So again, all things being equal, if you are getting 200 orders versus 100 orders for a PPC keyword, the account with 200 orders for the same keyword, I would expect them, as most people would, to be ranked higher.
Now, the question is, how do you control this mechanism? I don't want to just go willy nilly and increase my bidding, send my ACoS to the stratosphere just for the purposes of a dream. I want to be able to measure and quantify this.
And even if I do get organic ranking, I want to measure the profitability of that process. So the way to do this really nicely, really controlled, quantifiable is as following.
Step number one, you look at a product or product family's top line revenue. It's ad cost, it's organic sale, it's ACOTS, ad cost of total sales, sometimes known as tacos. Ladies and gentlemen, it's 2025. I'm bringing back ACOTS.
If you've listened to the show for a while, you know that I am a firm believer that tacos, total ACOTS, makes zero sense because total ad cost of sales, the total applies to the sales, A-C-O-T as total sales. Anyway, that's an aside.
Now, you watch the revenue, the ad cost, the organic sales of that product.
Over time, and what you see in that timeframe one, let's just say month one, baseline, you have a thousand total sales with an A cost of 30% and an ad cost of total sales of 10%.
You decide in month two to step on the gas and push it forward. Now, hopefully in your PPC account, you've gained sales. Now you're up to 1500 in total sales. It's more expensive now at the A cost of 40% and an ad cost of total sales of 13%.
So it got a little bit more expensive, but we have more sales. Now what you would expect in this scenario is that you would gain organic ranking and thus gained organic sales. So now maybe we have 1500 total sales,
but our A cost is 30% and our ad cost of total sales is back down to 10 because we've had an extra coming in from organic sales because we were ranked higher.
So, in this cut-and-dry example, and it's not always so cut-and-dry, but it becomes cut-and-dry when you are studying your skew economics from a profit and loss or P&L analysis perspective. This is how to make magic.
When you are able to track for a product, how much you are spending on it, what the A cost of that product is, what the ad cost of total sales is for that product and the overall organic sales for it,
right down to your bottom line for that product. That is how you can confidently say to yourself, I'm bidding more aggressively for the purposes of not just organic rank,
but of course, Organic sales increase and the only way to do that is, of course, to track this stuff. So when I talk to someone who's not tracking this, Ooh, that is a optimization that I love to build and track and display.
And it gives me good confidence to go in and properly set budgets, properly set total ACoS targets and ACoS targets so that we can measure the impact of our aggressive rank seeking activities in our Amazon PPC account.
That to me, it's like Beautiful engineering architecture. Some people like fancy motorcycles. Me, I like tracking metrics in my PPC campaigns and watching the numbers go up and organizing the activities to make those numbers go up.
Now that is what I love. Optimization two, it's an old classic and old standard. It is non-converting spend analysis and search term trimming. The way that I do it, every month I track my non-converting spend.
Get inside your search term report from sponsored product and sponsored brands. Run that filter, orders equals zero.
And in some accounts, when I look at how much spent was spent on things without an order, sometimes that number is like seven. That means that for an account that spends $10,000 a month, $7,000 will be non-converting.
Over the course of a year, that is a large amount. So I like to fix this very simply. Step one is over threshold terms. Really good old standard. Clicks over 25 with no orders. Boom. Trim those out. Turn those to negatives.
Step two, Ngram analysis is the next answer because generally the bulk of your non-converting spend is not from things with over 25 clicks and no orders. It is likely from things with like five clicks or less with no orders.
And how do you analyze those? With an Ngram analyzer. So we have a spreadsheet, a free tool. AdVadger customers have access to a tool. But if you're new to this, just go get the spreadsheet checklist from our website.
Just Google AdVadger Amazon PPC checklist. Get the checklist. We'll send it right to your email. No fuss. And you'll get our Ngram data analyzer for free in your inbox. It's in the guide. All of our resources are there. Check it out.
Just search Ngram when you get the PPC checklist. Optimization three, low-hanging fruit. This one is so silky smooth and easy. There are two pieces of low-hanging fruit that most accounts have. Many accounts I log into have this issue.
The first It's really simple. It is bidding on keywords you rank for organically, but are not bidding on. Let me say that again. You rank for it organically, but you are not bidding on it in your PPC campaigns.
So you can get this list of keywords that you've appeared for, that you've gotten clicks for, right from Amazon. Go and get your search, query, performance report right from Amazon.
Download that list and compare that list To your Amazon sponsored product campaigns. So your sponsored product keywords, you look at that and find the terms from your search query performance report that you're appearing for,
that you're getting traffic for, but you're not bidding in your PPC campaigns. Such low hanging fruit because Amazon already likes you for this keyword. You're already appearing for it somewhere.
Now all you're doing is bidding on it as well. Very low hanging fruit. Great source of keywords is your existing data.
And if you're not looking at your search career performance report, look at those keywords, find something from that list that you are not bidding on, you're missing out.
The second easy, low-hanging fruit that Amazon already likes you for a product, but you are not bidding on. So you can go right inside your ads console, click on the products tab, then click sold products and boom, right there.
It'll tell you whether you're advertising for a product or you're not. And more often than not, when I click on an account, I see people with products in that tab that they have organic sales on, But they are not bidding on.
So I just find those products that are doing well organically, they already get sales, and I put them into my campaigns where they need to go.
Sometimes I'm creating a new campaign or I'm adding it to an existing campaign if it's very closely related to another product. And both of those things in Optimization 3 are some of the easiest campaign additions ever.
Well, friends, I hope I've given you some love on this Valentine's Day with three optimizations that I absolutely love doing inside accounts. So dig into these, enjoy them, and I'll see you next week here on The PPC Den Podcast.
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