October 2022

When done correctly, PPC boosts sales and improves and increases brand image and awareness. As a seller or an advertiser, this proves helpful in competing harder and staying at the top. In this blog, we deliberate on the common mistakes that cripple Amazon PPC.  BOOK A FREE CONSULTING CALL Are you dissatisfied with your Amazon PPC campaign results? Does it look like all the efforts- strategy, bidding, and rounds of optimization- were in vain? As significant as PPC advertising is, it’s a no-brainer that PPC is not just about creating and launching campaigns. If not careful, a few mistakes can convert cost-effective PPC campaigns to high-ACOS PPC campaigns. What are these mistakes? Let’s take a look. Eliminating poor-performing keywords too early: Amazon SEO is not the same as Google SEO, with different strategies working for them. As an Amazon seller, one should focus only on the Amazon A10 algorithm functionality and conduct keyword research to discover what customer search terms are. Keyword research is key to a PPC campaign’s real potential. An ideal keyword list should include root keywords, synonym keywords, generic category keywords, and broad keywords. For example,        1. Root Keywords: washer machine pan, washer drain pan, drain pan, etc.        2. Synonym Keywords: washer pan, washer tray, floor tray        3. Generic Category Keywords: washing machine, washer machine, drain pans, home improvement        4. Broad Keywords: washing machine pan for drainage, water pan for washing machine] Modifying Campaigns too quickly: PPC campaigns may give faster results but let’s be realistic. Like most ad campaigns, the Amazon PPC campaign takes 7-14 days to stabilize and reveal performance that may or may not require help. Moreover, most Amazon advertising reports have~ 48-hour delay.Doesn’t it then seem wise to change and adjust your campaigns ahead of time? Adjusting bids and adding or removing keywords early on gives you no time to collect valuable data, leaving you with nothing to analyze your ad performance by. Not using the correct bidding strategies: There are different bidding strategies to consider and know their differences well. Dynamic Bidding(Up and Down): Amazon increases your bid by up to 100% if the possibility of conversions is high or reduces it if the chances of conversions are low. Dynamic Bidding(Down Only): Amazon lowers your bids by up to 100% when the possibility of conversions is low, reducing your ad costs overall. Fixed Bids: Amazon will utilize your exact bid and any manual adjustments you make. There will be no changes to your bids based on the number of conversions. Not taking negative keywords into account: When your Amazon PPC ads show up for keywords other than those matching your product search term, they generate traffic and clicks without conversion. This can destabilize your ad budget. By removing negative keywords, you can increase sales by boosting campaign profitability. That too without any compromise of visibility. Not considering automatic and manual campaigns together: Automatic campaigns help you utilize Amazon’s data from where you can identify both top-performing and poor-performing keywords. Add these top-performing keywords to your manual campaigns and remove the poor ones from them to boost sales and maximize profitability. Together, they help control your ad expenditure. Irrelevant Targeting: Solely targeting broad, generic terms having extremely high search volume is unwise. It is misleading as one targets all the audience searching for an irrelevant product at certain times.By targeting broad terms, you are spending your ad budget on shoppers not interested in your product. Focussing on niche keywords prevents this and keeps your ACOS in control. Final Thoughts Optimizing your Amazon PPC is highly crucial. Sellers, whether beginners or established, can utilize PPC to boost their sales and gain a competitive edge. All one needs to remember is to do or repeat these mistakes and to monitor campaigns regularly. Or have someone like Fab On Go help you with it. BOOK A FREE CONSULTING CALL Get Free Consultation Amazon Service Management

The Amazon market is a challenging arena for businesses online. And Amazon Advertising, with its multiple features rolling out time and again, has only made it more competitive. Stakes are high, so the execution of Amazon PPC strategies has to be near perfect. But with much to learn about Amazon PPC, where do you start? It’s best to familiarize oneself with all the common PPC terms before any deep-diving. Advertising placement Advertising placement is the area where an advertisement is displayed. Amazon ads are commonly found at the top of search results, alongside search results, and on product display pages.  Budget The maximum amount of money that can be exhausted for a campaign. If you fix a daily budget at $30, you will not be able to spend more than $30 on that day. Bid The amount of money one is willing to pay for each click on their ad. Sellers can choose between automatic or manual bidding and avail benefits. Keywords Keywords are the most basic PPC tactic for pulling customers. Sellers can target keywords that customers utilize as search terms to find products. There are two types of targeting: automatic and manual targeting. Search Term Search Terms are not the same as keywords. They are terms within Amazon reports that refer to where your ads show up. Keywords are about what you’re targeting, while search terms are about where your ads are getting delivered. Demand-Side platform (DSP) Available across only certain countries, DSP is an Amazon software platform enabling advertisers to programmatically purchase video, display, and audio ads on and off Amazon.  Advertising Cost of Sales (ACoS) It is used to assess the performance, effectiveness, and profitability of sponsored product advertising campaigns. You can calculate it by dividing Total Ad Spend by Total Sales. Target ACoS (TACoS) Target ACoS, also known as TACoS, is the advertising spend as a percentage of total revenue generated, including organic revenue. The latter gives a more integrated perspective to your promotional efforts. Return on Ad Spend (RoAS) A popular benchmark across digital advertising, RoAS is the inverse of ACoS. It represents the dollars earned per dollar spent. Conversions It is the desired action that a customer completes, be it “Add to Cart” or a “Buy Now”. It is a measure of the times your ad ended with the desired result. Conversion rate The conversion rate is the percentage of clicks received on your ad that bring about the desired result, for example, the sale of a product. Cost-per-click (CPC) CPC is the average cost you pay each time someone clicks on your ad. It is calculated by dividing the amount of money spent on an ad by the number of clicks. CPC can be thought of as being mutually beneficial to Amazon and the sellers, as the sellers only pay for ads that get a click. Click-through Rate (CTR) The percentage of people who have clicked on your ad to those who have viewed it. In other words, CTR is (clicks/impressions) x 100. New-to-brand metrics The metric used to describe buyers purchasing your brand or product for the first time on the platform over the past year. These estimate the cost of nurturing new customers and determine the best channels and tactics to achieve their campaign goals. Automatic Campaigns Easy to use and offering access to data gathered through the e-commerce platform, Automatic Campaigns are a campaign or targeting type where Amazon itself decides when and where ads will be displayed. They take away the control out of a seller’s hands. Manual Campaigns Manual campaigns where sellers and advertisers have things in their hands. It helps to strategize and optimize campaign setup and running more effectively. PPC Spend The total amount assigned to advertising efforts on Amazon PPC. Target ACoS This isn’t TACoS or tacos. It’s Target ACoS.  It is your profit margin before advertising divided by your target profit margin post advertising. This number will be different for every seller and is determined by the various costs of making your product available. This wraps up Part I of ABC of PPC on Amazon. And for A to Z PPC management, don’t forget to contact us!

Intro Get to know what advertising on Amazon Vendor Central is all about. You can also have a Fab On Go advertising specialist help you through and through. BOOK A FREE CONSULTING CALL What is Vendor Central on Amazon? It is an exclusive and invite-only program available to only a few elite brands. As an Amazon seller, if you find yourself this lucky, you have a chance to be on the top of the heap when compared to other sellers. A vendor sells directly to Amazon which then sells the products to its customers. Here’s what makes you eligible for that eliteness: A brand that has a large user base An exhibitor with fascinating products who participate in trade shows and fairs An Amazon marketplace seller who is in a different league altogether. Amazon Vendor Central and the Evolution of Amazon Advertising Before 2020, paid marketing was split into two separate portals for vendors and sellers. Amazon then combined them(Amazon Marketing Services and Amazon Advertising Platform) into a unified hub called Amazon Advertising. An exceptional move by the e-commerce platform, it allows businesses to access the same types of advertising systems, campaigns, and reporting metrics. To get the best out of it, a business must register itself through Amazon Brand Registry.  Registration helps take advantage of the many marketing placements and gain access to several self-service brand protection tools. Types of Ads Available to Vendors and their Features Amazon Sponsored Products These are the most basic ad options used by both sellers and vendors. These ads are shown on Amazon search results or a product details page. These can be executed only when one wins the Amazon Vendor Buy Box. These offer two types of targeting: Automatic targeting where Amazon controls the ad campaigns. It selects the search terms by itself based on your product’s description. It frees you from worrying about any additional setup. In Manual targeting, you get to customize keywords and individual bids.  These ads help generate general awareness and elevate sales for your product when in high demand. Amazon Sponsored Brands  These were known as Amazon Headline Ads back in time. These allow for a single headline, logo, and three featured products along with links to their respective product pages. You can also redirect these sponsored ads to your main Amazon storefront or a particular customized landing page. These can be targeted to brand names, search terms, and competitor ASINs. They can also be auto-targeted as per the category. These ads boost both brand and product awareness among your target customers.  Amazon Sponsored Display These ads allow businesses to reach target customers both on and off Amazon. These allow advertisers to customize bids and adjust targeting. These ads allow vendors to explore product-based targeting, views-based targeting, and interest-based targeting. Amazon vendors are given a few more targeting options according to their Brand Registry status. Differences between Vendor and Seller Advertising There is one main difference- the attribution window. An attribution window is the number of days that fall between a person viewing or clicking your ad and subsequently taking an action. For sellers, the attribution window is 7 days while for vendors, it is 14 days. Final Thoughts To give it all to Amazon Vendor Central advertising can feel cumbersome if you don’t see good results right away. Nevertheless, it is an excellent way to reach new customers and control ad spending. For best results, consult our advertising experts today.

Explore what RoAS is and its value as a metric for determining the cost-effectiveness and performance of an ad campaign. As Fab On Go, we offer Amazon advertising support as one of our core services. BOOK A FREE CONSULTING CALL Advertising is both creative and analytical. Creativity requires out-of-the-box thinking whereas the analytical part gauges the effectiveness of a campaign. There is a Return on Ad Spend(RoAS) that both Amazon sellers and Amazon vendors can calculate against a campaign’s ad spend to see if their advertising strategy is working and driving income. Let’s understand it in detail. What is Amazon RoAS? ROAS is a metric that allows sellers to calculate the amount of income or loss for every dollar they invest. It helps them assess the performance of a particular ad campaign or even a keyword. It provides an excellent benchmark for retailers to figure out what’s working and how to improve their advertising strategy for the future. Why is RoAS important? Investing in Amazon PPC ad campaigns is a great way to boost business. Whether it is increasing brand awareness, traffic, or rankings, these ads can do it all.  But it is not that easy. With a new business or product launch as it can be extremely challenging to decide on the spending amount that will lead to success. Metrics like clicks and impressions indicate the growing traction and rising sales. But they can’t determine if you are earning a profit on your ad spend. That’s where RoAS comes into play. It helps Amazon sellers find: Whether their advertising methods are profitable or not. Whether certain marketing techniques and tools can or are already making a difference. Whether there’s a way to readjust the marketing budget for increasing revenue without landing the ad spend in a total mess. How to do Amazon ROAS Calculation? Amazon RoAS formula involves ad revenue and ad spending. Revenue is measured in terms of total attributed sales. Ad spend is the total expenditure on an advertising campaign. For example, if a business spends 1000$ on a campaign and it earns 4000$, the ROAS is 4. There was an earning of 4$ per dollar spent on advertising that product. Is there a good RoAS on Amazon? Every business has to make its own decision for its profit target. Different businesses have different benchmarks which depend on their calculation of profit margin. The average Amazon RoAS of 3x or 4x may work well for someone else and not you. Why? Because of the difference in your industry, strategies, and goals. Generally, RoAS of around 6x can be a good target at the beginning but it all depends on the context of your campaign.  In general, sellers benefit from a high RoAS. But this is debatable. Is High RoAS always a Sign of Success? Not really. Setting a high RoAS target for a higher margin product can be good because of its lower conversion rate. Low RoAS offers greater visibility for products that helps enhance brand awareness. It also influences a high chance of return on investment, and ultimately, helps command a niche. How to Find Your RoAS Balance? You neither want to spend very less on advertising and not receive enough visibility nor spend excessively and decrease your profit margin. Experienced Amazon sellers use different target RoAS for different products. Where to Find Your RoAS? Go to the Amazon Advertising platform and sign in. Click on the “Sponsored ads” tab on the left side. A dashboard will open that shows totals from all your sponsored ads at the top, including the average RoAS for all ad campaigns. Final Thoughts Now that you have the basic insights into Amazon RoAS and how it can help businesses run profitably, we hope you’ll calculate and balance it for your specific business situation. Fab On Go is one of the oldest agencies specializing in everything e-commerce and Amazon. Right from creating an advertising strategy to taking care of optimization and marketing support, we do everything to help you.