Facebook has been one of the marketing platforms for E-commerce marketing earlier. Now, Amazon ads seem to have taken its place with the sale of 12 million products. It shows that Amazon ads are becoming the best pick for your advertising.
More than 197 million people around the world tend to access Amazon on their devices every month. It is evident in its growing power in the marketplace. Moreover, it has become a credible source for buyers that 9 out of 10 consumers price check a product on Amazon.
Why invest in Amazon Ads?
You would go to Amazon with the mindset to shop for a product, which is probably one of the most important reasons to invest in Amazon ads. On Amazon ads, you will find an audience who is ready to buy your product.
When you place your ads on Amazon, you not only build awareness about your product but also get a crucial placement when users are ready to buy. It dramatically increases the chances for your product to get sold out.
Apart from this, there is a credibility factor attached to Amazon ads. As mentioned above, 9 out of 10 consumers go on Amazon to check prices because they trust Amazon. Moreover, you will find reviews and ratings that shape consumers’ buying decisions. Today, 84% of the shoppers read online reports, which is not surprising, but it indeed boils down to the word TRUST.
From sponsored product ads to sponsored brand ads and other product display ads, you get a variety of ad types to experiment with.This way, you can find a perfect mix of marketing that would help you increase your sales. Moreover, your ads will appear before relevant users because you tend to bid on keywords rather than audience metrics.
For your ads to earn a substantial amount of revenue, it’s essential to structure your Amazon account and optimize your ad campaigns properly. Question your PPC agency doesn’t do either of the things, you will get high ACOS(Advertising cost of sales) and low sales, which are considered bad. Apart from this there are several other mistakes that they might be making that result in such a condition. Let’s begin with a thorough analysis of each one of them:
1. Having a lot of keywords in one ad group
The first mistake that some of the PPC consultants do to get the audience’s attention is they include many keywords in one ad group, which is never considered a good practice. When you do so, the keywords are not properly triggered, and they don’t get the needed scope. When users tend to search for your product, then only a few keywords would appear, and other keywords won’t get the margin to show up.
Solution:
Consultants usually put 25-30 keywords in one ad group, which is a bad practice. The ideal number of keywords that you must put in one ad group should be 8-10. This way, every keyword would get the margin to show up on Amazon ads, which are adequately triggered. And, if you wish to target all 25-30 keywords that you have selected then, better create different ad groups.
2. Skipping A/B testing
Another mistake that many PPC consultants make is skipping the A/B testing. Supposedly you have used some keywords in your initial Ad, and if you tend to check the results, you find that it could not fetch you enough conversions. Your wrong selection of keywords could be the reason. Moreover, if you skip A/B testing, you won’t be able to measure the results and keep track of what’s performing better for you and what not.
Solution:
Ideally, you are required to test your ad campaigns every other day. This way, you have a better idea of what could be the probable reasons in case your ad is not performing well. If the wrong keywords are the reason, you can make modifications in the ad title to show up before the relevant users. Moreover, you can better compete with your competitors if you test your ads.
3. Ignoring reports
Ignoring reports is a huge mistake that people do. It is forgivable on the initial level but, you cannot afford to ignore your reports for a long time. When you check your reports, ACOS is the primary measuring factor for the performance of Amazon ads. If you have your ACOS under 20%, then it depicts that you have a better ROI on your ads, and your ads are performing better. If it is more than 20%, then that is not a good sign.
Solution:
The ideal way to keep your ACOS under control is to check it every day because it changes daily. If you don’t check your reports, you won’t be able to identify and understand the loopholes in your ad campaigns. If you can’t check it daily, you must check it every 3-4 days. It gives you the ground for analysis and helps to avoid any issues.
4. Having different products in the same ad group
Placing different products in the same ad group is another mistake that many PPC agencies do. Supposedly you have a specific niche where you are dealing with medical products that include masks, instruments, supplements, and medications. If the user searches for supplements, he will get to see masks and instruments which are not relevant according to his query.
If you place all the products in one ad group, then your ad loses the relevance, and the consumer may soon lose interest.
Solution:
You must avoid placing different products in the same category; otherwise, your consumers would leave your ad without making any purchase. It’s better to create separate ad groups for different types of products. If you think from the users’ perspective, your products will have better relevancy.
5. Placing too high bids
Placing too high bids is an indication of poor allocation of the budget. If you don’t have a big budget for your ads, you must initially avoid spending too much. Your ad’s existing position and impression share should be considered before allocating the budget. The reason is that a bid automatically increases when your ad has an average position.
Also, Google suggests increasing your bid depending on the bids your competitor is placing for a keyword which increases your budget. If you increase the bid in the first place, it will increase your expenditure unnecessarily.
Solution:
Initially, you must avoid placing too high bids. Otherwise, you may end up spending your entire budget on bidding and will not have any other option to make your ads work. It’s better to observe the results in the first place, check your ad’s position and impression share. It will give you an idea of how much budget is needed to increase the visibility of your ad or drive conversion.
6. Bad account structuring campaigns?
When you create ads on Amazon, you tend to build brand awareness by selecting relevant keywords so that your ad shows up and ranks better. But, many PPC consultants end up structuring the account inappropriately. Now, what do we mean by bad account structuring?
As we mentioned above, if you place too many keywords in one ad group or place different types of products in a single ad group then, it is considered a bad account structuring. Moreover, if you do so, it decreases the relevancy and credibility of your brand and products.
Solution:
Every product is unique and has its own uses. To protect your brand image, you must categorize the keywords and products in separate ad groups based on their usage and relevancy. It is essential that you closely align keywords and your ads so that your ads are better positioned.
7. Neglecting negative keywords
Negative keywords are a type of keywords that prevents your ad from getting triggered by a particular ad query, word, or a phrase. Supposedly, you deal in only men’s T-shirts, then T-shirts for girls, T-shirts for women, T-shirts for kids are all negative keywords for your ad.
If you ignore negative keywords, you may increase your budget, and you may end up spending on the wrong keywords. Moreover, your ads show up at the wrong places where they need not because of wrong keyword selection.
Solution:
Make negative keywords an integral part of your ad campaign as they help to narrow down your search funnel and increase more relevancy. This way, you can save yourself from unnecessary expenditures on irrelevant keywords.
How can EvenDigit help you?
If you wish to make necessary adjustments to your PPC ads account, or are not satisfied with your current PPC agency, then, EvenDigit is here to help you out. We are a team of 40+ dedicated young and enterprising professionals who would love to help you grow your business.
Being one of the leading PPC companies, EvenDigit has a 97% success rate for 657 clients. We were successful in attracting 250257 PPC leads in a budget of US$ 3543726.05 for the PPC campaign. And, we continue to get 13,491 monthly orders in various domains including PPC from the website itself.
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