Vizion / Paid Media / How to Optimize Your Amazon PPC Campaigns
Paid Media

How to Optimize Your Amazon PPC Campaigns

Ams Ad How to Optimize Your Amazon PPC Campaigns Vizion Interactive Reading Time: 6 minutes

This post was updated on July 17, 2024.

Are you tired of  running Amazon PPC ads that don’t churn out the sales you thought it would?  You probably need to go back and optimize your campaigns. 

In this guide, we’ll show you how to optimize your Amazon PPC campaigns for the best ROI, including techniques for testing different ad content, targeting options and bid strategies to ensure your listings stand out from competitors. 

Tips for Amazon PPC Campaigns 

1. Research Keywords for Specific Product Listing 

You can research keywords manually, but one way to do it is using the Search Term Report. It shows you the search terms and keywords that are currently driving traffic to your ads so you can select the right ones based on actual performance. Pay special attention to ones that generate the most clicks or conversions. 

Keyword research for Amazon involves finding words that customers use most often to find the products you sell and using those words in your ad naturally to increase the chances of your product listing appearing more often in Amazon searches. 

Here’s how you can decide which keyword variations to choose: 

The right keywords should:

  • Have high search volume.
  • Have less competition.
  • Accurately describe your products.
  • Be in-demand all year round vs just in a particular season.
  • Show the customer’s clear intent to purchase a product. 

If you need more visibility, consider expanding your ads to closely related keywords, while ensuring you do not oversaturate your campaigns.

Practical Tips for Picking the Right Amazon Keywords Using the Search Report

Us the following metrics to get the best results:

  • Focus on keywords that are directly related to the specifications, features, or benefits of your products. For example, if you sell running shoes, target keywords like “supportive running shoes” or “cushioned running shoes for overpronation.”
  • Make sure the keywords you target have a monthly search volume of at least 500 searches. Keywords with lower search volumes may not get enough traffic to generate sales.
  • Don’t neglect long-tail keywords. These are more specific keywords that may have lower search volumes but could lead to great conversions. 

Use these long-tail keywords in your product titles, descriptions, and ads. For example “best lightweight running shoes for women with bunions”. These long-tail keywords have relatively low competition.

  • Optimize your top 3 product titles by including the keyword in the first 45 characters. Make sure to include it naturally without making it appear unnatural or spammy. Also, include the keyword in the first 100 characters of your product description.
  • Test ads targeting different keywords to see which ones get the most clicks and conversions. Focus future efforts on the keywords driving the best results. Tools like Sellics can help you find those new keywords easily.

Pro Tip: Stay up to date with your keyword research by reviewing reports at least quarterly.

2. Organize Ad Groups Thoughtfully

When setting up your Amazon PPC campaign, organize your ad groups thoughtfully. A well-structured campaign will help you better target customers and improve performance. You can target promotional messages more effectively to potential customers, based on their interests and past behaviors.

If you didn’t effectively organize your existing ad structure when you did the initial campaign set up, then you need to start by fixing that. Here’s how to do it:

  • Review your targeting and ensure closely related keywords are grouped together within clear, focused ad groups. This will help your ads reach the most relevant potential customers.
  • You’ll want to create ad groups around your main targeted keywords so the right ads show up to the right people. Group keywords that are similar in topic or product type together. For example, you may have one ad group for “workout equipment” and related terms like “home gym,” while another covers “yoga mats” and “workout shoes.” Within each group, be sure to include only products that match the theme.
  • Consider organizing some ad groups based on your best-selling brands and products. This allows you to really hyper-target top performers to loyal customers. You can highlight headline products, new releases, bundles, or limited-time deals to upsell and cross-sell.
  • Test different ad group structures to help you visualize which layouts lead to the most relevant connections between customers & products, and the highest conversion rates.

Always try to organize your ad group to at least mention the keyword on the headlines. 

3. Start Off With Automatic Campaigns but Switch to Manual Later on

When starting with Amazon PPC, it’s a good idea to start with automatic campaigns rather than manual campaigns. 

Automatic campaigns have several benefits: 

  • They allow Amazon’s algorithms to match your products to relevant search terms. This means you don’t have to spend time on doing the initial keyword research.
  • You can gather valuable performance data on keywords and search queries to inform your future manual campaign strategies over predetermined periods of time, usually monthly or quarterly.
  • Automatic campaigns provide insights into new, long-tail keywords that could expand your reach.
  • They can help you easily identify top-performing keywords.
  • You can test the campaign type with minimal budget risk by running a small targeted campaign. You can also carefully measure key metrics to learn what performs best.
  • When you set up a low-budget Amazon Marketing campaign with only a few products, you can explore the platform’s features without spending a lot.
  • Automatic campaigns continuously optimize bids and ad placements based on customer search data and conversion rates.

Once you have performance metrics from a few months, transition your top-performing keywords and products into manual campaigns. 

There, you can apply finer controls like custom bids and negative keywords.

You may find that certain product types convert better within automatic campaigns while others prefer manual optimization, so use your discretion to mix and match once data is available. 

Once you get comfortable with running these campaigns, test different campaign types, like single-product vs. grouped or broad vs. phrase-match keywords. 

4. Refine Targeting and Bids

Now that you’ve identified your top-performing keywords and campaigns, it’s time to refine your audience targeting by making bid adjustments. Getting granular with bid adjustments is key to improving ROI.

Here’s how refine targeting and bids: 

  • Start by using bid modifiers based on product attributes. For example, if certain colors or sizes of your products convert better, raise the bids for those specific listings. You can also lower bids for less popular options to save ad spend. Experiment with 5-10% bid adjustments to find the sweet spot.
  • Another powerful tactic is retargeting customers. Amazon makes it easy to retarget visitors who added products to their cart but didn’t complete the purchase. Create a new campaign with a broad match of their search terms to recapture their interest. 
  • You can also bid higher on customers with purchase histories similar to past buyers. This strategy significantly increases purchase likelihood with minimal extra spend.
  • Location data also provides opportunities to refine your targeting. Consider geo-targeting bids based on purchase trends in different regions. For instance, if a certain state buys your gardening tools more than others, increase bids there during the spring season. You can also exclude less relevant locations to focus budgets where they count.

5. Measure and Analyze Performance

Performance measures help you determine whether to continue, expand or adjust campaigns to maximize ROI. When running Amazon PPC campaigns, you must regularly measure and analyze their performance to ensure optimal results. 

Here are a few things you should be doing:

  • Review Campaigns and Groups Regularly Using Amazon Reports

Amazon provides valuable reporting tools that give you insights into how your campaigns, ad groups, and keywords are performing.

Review your Amazon campaign reports at least once a week. This will help you see which elements are working well and where you may need to make improvements.

  • Analyze Click-Through and Conversion Rates

Two key metrics to pay attention to when optimizing your Amazon PPC campaign are your click-through rate (CTR) and conversion rate. 

CTR indicates the relevance of your ads and keywords, while conversion rate shows how well visitors are converting into customers.

Tracking these rates over time can reveal underperforming areas that need optimization. 

You also want to compare rates across devices and locations to identify issues. For example, consistently lower rates on a specific device may point to a need for maintenance or upgrades. Comparing locations can also help optimize resources and staffing where needed most.

  • Regularly Test New Keywords and Creatives

Do ongoing A/B testing of any keywords you add. This allows you to identify the highest-performing keywords with ease. 

You should also regularly rotate different ad headlines and description combinations to see what hooks visitors most effectively. Looking at how tests turn out can help you choose better strategies.

6. Optimize Listings and Product Pages

Optimizing your product listings and pages is one of the most important things you can do for your Amazon PPC campaigns. 

It allows you to showcase your products in the best light and increase click-through rates for your ads. After all, customers first see these when clicking on your ads or searching organically.

Here are some things you can do to improve your listing: 

  • Include Optimized Title, Bullets, and Description

These elements catch people’s eye when they see your product in search results and drive traffic from paid search ads, so it’s best not to ignore these. 

Ensure the title includes the most relevant keywords that show how your products solve customers’ problems. 

In the description, clearly explain the features and benefits of your products in a compelling way. Use bullet points for emphasis and to quickly convey key info at a glance. 

Remember, you have limited characters, so every word counts.

  • Add Relevant Images and Videos

A recent study by Smart Insight shows that over 85% of buyers believe that visuals and images are more important than text when it comes to making decisions about a purchase.

High-quality images that show your product from various angles will pique customer interest. Use the first image slot for your hero shot.

Videos are also powerful. Consider making a short video to show how your product works. A demo could help customers understand what they are getting before they buy it.

Conclusion

Testing and optimizing PPC on Amazon can help increase sales, while refining ads, exploring new ad types, and continuous learning can boost product visibility and sales over time.

By leveraging keywords and other tips we have shared here, you get the most bang for your buck with Amazon ads.

At Vizion Interactive, we have the expertise, experience, and enthusiasm to get results and keep clients happy! Learn more about how our status as a Google Partner, along with our PPC Management, Google Shopping Ads, Social Media Advertising, Amazon Advertising, and other Paid Media services can increase sales and boost your ROI. But don’t just take our word for it, check out what our clients have to say, along with our case studies.

Related Blog Posts