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Mad Men, Amazon style. It’s time to talk Amazon sponsored ads, powerful PPC and ways to show your private label product on page 1 immediately after launching. Amazon PPC is incredibly robust and NEEDS to be a core of your FBA business, here’s our opinions and strategies on Amazon advertising (certainly not set in stone, simply what we do). Hope this helps and go make it happen!
The Keys to Amazon PPC – Tune In To Find Out
- How ad spends affect rankings, even organic sales
- Why it pays to spend more on Amazon ads
- The importance of reviews and a fast start to killer conversion rates
- Strategies to find more profitable keywords to target
- Why you should almost NEVER turn off Amazon ads
- Everything you need to know about ACOS
- Why there is a delay in Amazon sponsored sales data
- The reason ads don’t need to break even
Amazon Sponsored Ads – Campaigns to Get Started
- Amazon autotargeting campaign
- Amazon suggested keywords campaign
- Adwords competitor keywords campaign
***Run all of these for one week, duplicate them exactly so you have two sets of identical campaigns and pause the originals for a week. This keeps your ads running, momentum going and lets you see the data you NEED to know to see what converts!***
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Matt: Wohoo is right let’s do this podcast. Guys today we’re talking PPC Amazon sponsored ads, how do you sell the crap out of your product even from Day 1.
rus: Let’s do it, yeah I don’t know how you guys use that Adverts but if I’m advertising on Google or Facebook or something normally I’m looking to make a margin, I’m looking to leverage my adsense to make a profit which I don’t really do that on amazon. How about you is that kind of? What is foremost on your mind when you’re buying Amazon Adverts.
Matt: Honestly, just go big guys, this is what you need to know about Amazon Adverts everysell is a sell that means if you’re selling it through an Ad,
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Amazon loves you cause you’re paying them extra money and
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You’re helping improve your keywords ranking, which means you’re getting Daba, whatever can opener up higher in the ranking everyone loves can openers right?
But what you kind of need to do is it’s a little confusing at first but at the same time amazon ads I mean arguably what do you think rus? Easiest in the world to get started?
rus: Yeah depending on your niche of course but when I started a year ago I could drop like cents on an Advert and actually make a financial return and it was really awesome you know I’ll just drive money into my piggy bank but now more and more people are actually selling on Amazon. I’ve noticed that the advert cost creeper and that’s because people are less concerned about the profit, the potential profit return for a particular advert sale, then I’ll ask the profit whether it’s selling, they just want to sell stuff. The more adverts they’ve got being displayed and the more sales they make that means that organic ranking is going to be higher as well because the products converting and making more sales and then they’re after for profit on their organic rankings.
It has become a lot more competitive. A lot of the stuff I’m selling I don’t make a margin from when I’m running adverts, I run my adverts on the loss, those additional sales help keep my organic rank up in my organic sales some kind of compensate for the money I’m losing.
Matt: Over compensate hopefully we want to make this piggy fat, so this is how you guys get started with it, it’s pretty easy so you’re gonna want to set up an auto targeting campaign, you go into amazon and manage promotions and amazon’s gonna automatically target keywords they think are good for your listing based off your product page, back end keywords all back and stuff.
So you’re gonna start that in running it for a week simultaneously Amazon suggested so this is gonna go through your listing and not just auto target but look at all at the keywords you have in there start that bad boy and run it for week. There’s a lot of different theories on what you should do but set an amount that you’re comfortable with, 25 or 50 dollars a day and depending on whether you start your PPC at for max bid and think about the amount you want to get real data from this 75cent is probably not enough rus.
rus: Yeah I generally try I start off with the 10 dollar a day ad spend just you know 1 dollar and just see what that is. I’ve actually burned like 200 dollars in one day for sales before. So you don’t want to make that mistake. Start kind of small then with a mind to increase, bear in mind any organic sales you’re making you know it might be worth putting like a big effort in and this is a great technique to use for kind of products that are gonna have likes that you’re gonna be able to sell on Amazon for a few years because they kind of drive sales hot for like a solid month using a strategy like this. You know it’s worth kind of living without profit for a little while. So what I like to do is as organic sales come in and I actually kind of have a profit then reinvest that into adverts to see how they affect my organic ranking so if I’m doing 50 dollars a day profit organically I’ll quite happily hurt that 50 dollars you know back into adverts to kind of see if I can increase my organic sales with more ad related sales.
Matt: Wow you’re really scientific about this, I’d like to push really hard and what that means is I want my products to rank number 1 for all of the primary keywords that I’m targeting with sponsored ads hence the power of Amazooka’s ad tracker guys. Make sure you’re ranking number 1 pull your way up to the top and what that means for me is I know when I was initially getting started I will launch a product and do 75 cent max bid and that just wasn’t going to cut it to really get traffic and to really get data fast, because data is what shows you not only for keyword converts but there’s actually volume there and if you’re not bidding high enough to be seen you can’t really tell if keyword A or B is going to be better for putting in your title, for putting in the back end for what you really want to be focusing on so I would go a little higher depending on your product’s price point your profits and etc. but if you think about a 10 percent conversion rate I mean that’s pretty basic. I like a dollar and fifty and one other campaign that I would setup right of the bat would be an Adwords based campaign not from Google Adwords because that would be stupid. Amazon’s got plenty of buyers there but you can use a tool like data adwords keyword pointer to rip the list and rip the keywords from your competitors listings take their url put it into google and Google will churn out 600-700 keywords that are relevant about your competitor, grab all of those and throw them into a campaign, setup a bid I would go a little bit lower on this because some of them is going to be junk keywords, but at the same time run with that probably a dollar or maybe more, maybe less depending on what you can handle and let all of those run for at least a week after it’s run for a week you’re going to want to pause all of these campaigns because Amazon takes a while to actually display the data.
Don’t worry when it looks like you’re getting absolutely killed on your Adspent, it takes 2 or 3 days for a lot of the sales to actually register as being sponsored ad sales. And most people pause their ads called turkey, that’s what I did, that’s not what I’d recommend, if you want to try keep your sales going good, let’s say you’ve got enough you’re getting sales, pause all of your campaigns and replicate all of your campaigns. So that you have the same exact campaign running, the same keywords the same bids and then you can get the data from the first week all of that will show you what’s converting and what’s not while at the same time you’re still running the ads, you’re still getting those sales and you’re not dropping off which makes Amazon think that you weren’t really there for the long run, what are your thoughts?
rus: Yep, exactly that, one of the benefits with adspend is you can pay to get your listings in front of eyeballs and amazon will give you conversion rate information so they’ll tell you how many clicks are converting into sales which going back to yesterday’s podcast that means you can AB testings as well really quickly to see if they help your conversion rates. There’s so much value in being able to run Amazon ads and not just in your bottom line like being able to kind of make money from the adverts is the lowest benefit, being able to push your organic rankings up for keywords and AB test in order to improve landing page conversions that’s the massive benefit from adverts.
Matt: That is absolutely the benefit and Amazon’s got a great system in place they have a metric called the ACLOS, average cost of sales and that looks at how much you’re spending to get a customer to buy a product so let’s say your product were selling can openers apparently and I’m going to say that’s going to be about 15 box let’s say your average cost of sale is 10 bucks that’s 66 percent that’s 2/3 so typically anything that’s below 50 percent assuming 50 percent margins means you’re making money. If you don’t know what margins are you’re gonna need to learn a little bit about those this is kind of an important game but make sure that you’re paying attention to that but at the same time you have like a limiter cut off that you do rus, you know I go over 50 percent and keywords that matter because let’s face it I want to rank for this freaking keywords I’m going to get those organic sales.
If I can get my product shown on page 1 on number 1 wherever it needs to be so if it’s 60 to 70 percent I don’t really have a problem with that, if it’s 80 percent and It’s a killer keyword screw it let’s do it Branson.
rus: Yeah. Exactly that, I didn’t look at profit from the advert itself, I look at profit that I’m making on Amazon, depending on what the product is and where it’s ranking if it’s making money organically but sale let’s just say at page 2 making money organically then I’m gonna want to keep growing all of that money and maybe a bit more into it and see if I can get it on page 1 by buying more adverts, you know page 1 let’s just say I’m doing like 200-300 dollars a day with the product but I know that you know there’s 15 spots above me where I can make more money then you know stop putting 200-300 dollars a day into amazon’s advert system you know trying to get that ranking.
You know as long as the organic ranking, sales and the advert sales kind of bring it in some kind of profit, at the end of the day even if it’s only you know 1 or 2 dollars you don’t want to be running at a loss, so I don’t to sudden extent but as long as the combination of organic and paid sales are making you money then I’ll just start all throw of it into the adverts.
Matt: Scared mind doesn’t make money guys and that’s one of the benefits I think of Amazooka if you’ve got a software and place where you can actually track your keyword rankings then you know how your adsense are actually affecting those, you’ve got to be able to track over time where your primary keywords are because there’s an exponential increase if you go from maybe the number 5 listing to the number 3 listing you’re not just adding a small amount of sales, you’re adding a ton of sales people are lazy they don’t want to scroll down the page, they definitely don’t go to freaking page 2 so you want to make sure you get up there, it has just a huge boost guys push hard on this if you can push hard on this, if you can’t think about what you’re doing.
rus: It’s all statistics at the end of the day like the sales, the profit you’re making, the paid sales your adverts and then your keyword ranking as well so you’ve got to keep on top of kind of all these different paths your kind of amazon sales machine in order to make sure that you’re making the correct decisions it’s like there’s no point in increasing your adspend if you’re already at number 1 organically for all of your search terms and you’ve maxed out the potential of the adverts themselves so all you’re gonna end up doing is giving amazon more money for the exact same sales volume that you’re getting previous.
Matt: That is not true. So you don’t want to add to it but you’re not gonna out bid competition that isn’t there so if I’m bidding 3 dollars for a keyword and I want to raise that to 3 dollars and 50 cent as long as no one’s there bidding 3 dollars and 20 cents I’m fine, it’s gonna stay at 3, gonna take the lowest maximum that it needs to be the winner and you don’t want to turn off your ads or go easy on it because once you get to the top the ads are going to help you stay at the top. There’s always gonna be little competitors coming in trying to eat whatever you like to eat. Then you don’t want to let that happen so you don’t have to necessarily raise it but if you see other people coming in and stealing your number 1 adspot over time they’re gonna steal those sales and why would you let them steal your sales when you’re number 1 you’ve got a, you’re king of the hill you’ve got to defend it.
rus: Yup.
Matt: Don’t take your foot of the pedal, this is a race, a long term race and if your engine is running smooth keep it running smooth in my opinion.
rus: I’m gonna have to revisit adverts maybe increase my sales spent then realize.
Matt: Yeah, it’s just ads are good, if you can run it, run it. There’s a lot of theories out there that Amazon sellers have but I would be willing to back that Amazon gives special Boost to people that are willing to spend more money, even if they don’t admit that they do just because it makes economic sense for them to reward people that do big.
rus: people anecdotally notice that Google organic rankings for keywords go up along with the google adwords, adspend that’s kind of notice in the SEO industry for the last couple of years. So it really would not be a surprise if Amazon do something similar as well with their adverts system.
Matt: Apparently Amazon runs paid ads in Google, so if your products are ranking high for a said keywords, you’re actually ranking high in Google as well a lot of times, Amazon is actually paying advertising for you which is interesting but we missed a really important topic we should’ve covered earlier, what you need to do before you start running paid ads? You need to have some reviews otherwise your listing is gonna kind of suck no one wants to be the first person to review your product listing try to get 15 to 25 reviews right of the bat before you start sponsored ads otherwise your conversion rate’s gonna be terrible. Amazon’s gonna think your product kind of stinks and you’re going to lose a lot of money in the process with data that isn’t really true. So make sure that your product pages as prime as it can be to get those buyers to buy your stuff before you start running ads if you want to max out your returns on this.
rus: I generally aim for at least 50 reviews if possible, it’s quite easy to get up that high you can get that for about a week with a bit of effort but you need social proof no one wants to buy something that’s untested especially when everything, every other product is going to have maybe even up to a hundred plus reviews, so getting a solid basis one of the most important things you can do not just for the paid adverts label but also for your organic listing.
Matt: For everything and helping you rank higher get a review club like the Amazooka guys, we plugged it there. And there’s one other thing that I wanted to mention and it was a power of ads after any kind of blast. So let’s say you blast your product you sell, personally I like a smaller value over a larger extended time frame so 20-30-40 sales a day for 5 days that looks awesome Amazon sights because you’re selling but if all of a sudden you fall off a cliff and you’re down to like 2 or 3 they realize that it was just kind of a spark in the pan but if you have your sponsored ads running that’s going to help you carry a lot of that momentum that you initially built so that you keep going further you cost higher up in the rankings and you don’t fall off the cliff. So get your sponsored ads going and then go hard once, pedal hard keep going hard essentially.
rus: You want everything you’re doing to kind of it should be a feedback, everything you do should keep working for you.
Matt: and have your feedback systems in place guys before you do this make sure those follow ups are there because that’s how you’re gonna keep growing the reviews, growing the sellers feedback and turn this into an Amazon automated profit wheel. Anything else rus?
rus: No, but I would just like to bring this we haven’t really mentioned this and this is kind of the time to talk about it in depth but just what you’re saying about feedbacks there are systems in place where you can automate sending emails to your customers essentially ask them for reviews so if you don’t have something like that everyone else does, everyone else have this system in place and that’s one of the ways they’re getting this mad review counts.
The guy who’s like ranking 1 point above you with a hundred and fifty plus reviews is going every day, that’s what he’s doing he’s doing automated mail outs asking people if they liked the product and if they need any help for anything or any questions to be answered and “oh could you please give us some feedback and the product review as well at the same time”. So if you’re not doing that then you’re kind of lost because your competition is surreal.
Matt: Absolutely and it gets even better than that, it’s the scariest, awesomest, dirtiest entrepreneur secret in the book. Most normal people don’t know what the hell an auto responder is. That means that I don’t know about you rus but I get feedback all of the time.
Thank you so much for following up with me, this came hour after I ordered my product it means the world to me that you’re really caring about what I think. Thank you for sending me this guide by the way making guides about your products and how to use them can be great to boost you up there.
All of these things make it seem even more like you care about your customer and it gets your name and your company’s name in front of them to even higher degree. Off of Amazon sales, recurring customers, and everything that makes a business sustainable sexy and awesome so get on a follow sequence like Amazooka guys. We’re off a little bit right now, you can’t help it but that’s gonna be our wrap now for sponsored ads and crashing it with your product.