New Tools that Optimize your Amazon Ads

Brandon Young.m4a [ 00:00:00 ]Hey, everybody. I am Brandon Young. I am an eight-figure seller, but I'm also a coach. I have a coaching program with over 1,000 members doing over $3 billion in combined sales. We also have a software called Data Dive where we do Amazon keyword research and data analysis and SEO. Today, we're going to talk about some of the new tools that we're writing to help you optimize your ads. I'm at the Market Master's Mastermind from Kevin King and BDSS. This is a one-of-a-kind event for this space, and it's been super powerful. Check it out when you get a chance. If you want to learn more about that, or if you want to reach me, you can reach me at datadive.tools, and you can get a demo at datadive.tools slash demo. [ 00:00:51 ] Today, we're going to talk about some of the ways that I think PPC can be done better. A lot of people are used to optimizing their ads with only a few data points. I think what they end up doing is a disservice to the total niche that they're trying to enter. You might optimize for tacos or ACOS, and what it is is a short-term win. There are new data points that we have access to through advanced reports at Amazon that we can start to triangulate across other data points. If we match. If we can see a scenario where we've got three or four things to be true, that could only mean one or two things, and therefore, we should take some certain action. [ 00:01:34 ] We're in the process of writing an audit that we just released, where we're going to give you some insights around the triangulation of those data points. Let's talk a little bit about ads. I've got this handy whiteboard here. Now, the first thing you need to know is that ads are all about ranking. On Amazon, your main objective should be to organically rank on Amazon. That's where your organic traffic and sales come from, and when you blend organic sales with your paid sales, that's how you make a profit. So the long-term health of your business is based on how your ads help you rank organically. Now, ranking on Amazon happens with this simple formula: Amazon had to write an indexing and ranking formula similar to Google's where it's performance times relevancy to establish a quality score or a ranking score. [ 00:02:35 ] Now, that happens on every single keyword, but there's a way that they do attribution for a certain event on thousands of keywords, which makes it pretty gnarly, but really predictable. Now, the first thing you're going to see is click-through rate and conversion rate, and the total dollars, so the total revenue you actually make. So you're going to see that the total revenue you actually make is the total revenue you actually generate on a keyword. This is super important for you to establish your performance score, but your performance score is not the only way you rank. You have to multiply it times your relevancy. Now, when you multiply it times your relevancy, if your relevancy is below one, one being the highest, then what you're doing is you're reducing your score, your performance score. [ 00:03:20 ] So let's say you have a performance of 1,000, but it's a low-relevancy keyword, or you did not establish that. You did not establish that relevance, and you only have a .25. Now your score becomes 250. Two hundred and fifty might only be good enough to get you onto page two or three. Now, if you write your listing properly by doing it the right way to send the right signals to Amazon, you might raise that score up to one, and now you've got your full score of 1,000, and you instantly jump your rank up to the top 10, for example. So how is relevance established? So how is relevance established? It's established by your match type and the location of the keyword in your listing. [ 00:04:01 ] So, for the strongest possible relevancy, you want an exact match at the beginning of your title. The title is the most important spot, and the beginning of the title is even more important than the middle of the title. Now, then you're going to look at the bullets, the backend search terms, and your description. Once you've established a good enough relevancy relative to your competition, then you need to start looking at other data points. And this is how you're going to optimize your ads. It's not just conversion rate. It's not just click-through rate. But you also need to be factoring the organic ranks because that's what your goal is. Then you're going to start looking at impression rank. Now remember, a lot of these things are relative to your competition. [ 00:04:51 ] So a generic keyword is going to have naturally a lower competition. It's going to have a higher conversion rate than a very specific long-tail keyword. So your conversion rate on a keyword is relative to your competition. And just because another keyword is performing worse, doesn't mean it's necessarily going to end up resulting in worse ranks. As long as you have these other things to be true. So let me give you one example of triangulation of some data points. Let's say I've got an impression rank of number six. That means that there are five competitors that have more impressions than me on a specific keyword. That means I'm not spending a lot of money compared to those other five guys. Now this could be because of, Matt, what I'm doing with my ads. [ 00:05:37 ] How am I running these ads? Is it SP campaigns? Where am I targeting my ad placement? How much am I spending? Am I doing exact, broad, phrase, auto, right? So you have many different ways to get more impressions. But if let's say I'm number six, but my conversion rate is good. Like it's a very good converting keyword. I've got 25 clicks and five sales for a 25% conversion rate. I've got enough data points to let me know that that's a high converting keyword. But my organic rank for that keyword is only number 17. What this is telling me is that this is a prime example of a keyword where I should spend more money because I can push those ranks from 17 down to five, four, or three. [ 00:06:27 ] Again, you need to be able to triangulate data points to make decisions. I've got another situation. What if my organic rank is number two, my impression rank is number seven, and my conversion rate is decent? This means I could spend more money to get more profitability, but the reality is on that keyword, I've almost got all the impressions. It's me and another guy sharing these impressions. There isn't a lot of room to grow. So, what happens if I turn on more ads there? I might be cannibalizing my organic sales. My ads will start to get more sales, but I may in fact actually be hurting my profitability. So, there are a lot of different scenarios where you should be spending more or less money, and you need to fix your indexing. [ 00:07:18 ] So, I'll leave you with one final thought. There's a simple three-step S-O-P that you need to follow. The first step, and if you're tracking all of your keywords the way you should be, and you can see your ads at the keyword level over time, this is what we show you in Rank Radar, is we have a keyword tracker that shows your ranks over time, and at the keyword level we put your ad performance and your impression rank. So you've got your keywords and you're tracking them over time. There's a simple S-O-P to follow. You're going to easily be able to detect whether you have an indexing issue, because you're going to see one of two things. You're going to see your rank in the 35 to 55 range. [ 00:08:00 ] This is where Amazon is not sure that that keyword is relevant. Maybe you're using the broad match in your listing, or you've got those words in your listing but they're too far apart. So Amazon thinks it might be relevant, but it might not be. Or you're not even indexed for it, so it shows up as 101 plus, which means you're not even on the first five pages. So step one is fix your conversion rate. Make sure you've got a good conversion rate for that keyword. Step two is fix your indexing. Step three now is make decisions on spending after you triangulate these data points. So very simple. Step one, conversion rate. Step two, indexing. Step three, make decisions on spending in order to boost those organic ranks as your primary goal. [ 00:08:48 ] So there's a lot more than this. We can talk for six hours about it. We can talk about ads. As a matter of fact, I've done it before. So start to think more about how you optimize your ads because there's a lot more to it. Don't just look at conversion rate or your ACOS or your CPA. You're going to end up losing your keyword ranks over time, sacrificing a lot of opportunity. It goes a lot deeper. Track hundreds of keywords and optimize it the right way. So again, I'm Brandon Young. If you want to reach me, you can find me at SellerSystems.com, which is our code. You can find me at SellerSystems.com, which is our coaching program, or Datadive.tools if you want to check out Datadive. Take care.