09. Amazon PPC Strategies, Reports and Analysis

KEY TAKEAWAYS

A. Amazon PPC Strategies
  • Work your way up with Keywords in tandem with the stage of selling of your product. For product launches, launch your ppc journey with long-tail keywords and slowly progress towards short-tail keywords.
    WHY? It is not suggestible to waste your ad expenditure competing with difficult-to-compete keywords. Instead, focussing on non-competitive product specific keywords will need lesser bids and possibly more converting, slowly building the sales velocity.
  • Always devise complementary campaigns with different advertising goals, target ACoS [similar to the example discussed in scenario 2 of ACoS calculation in the above section]. One campaign may burn your wallet and not result in sales but may complement other campaigns resulting in overall sales.
  • In the mature stage of your campaigns, start incorporating metrics like ACoOS (Advertising Cost of Overall Sales) that includes organic sales too along with the attributed sales from campaigns.
    WHY? As campaigns generate sales velocity for your product, the organic product listing will start receiving traction - clicks, pageviews and sales. By monitoring ACoS and ACoOS, you will have a better viewpoint over the campaigns and marketing budget.
  • Either defensive or offensive approach, you should always tap added opportunities of 'adjust bids by placement' allowing Amazon to decide dynamically for impressions of your ads within the multiplier range you marked.
  • Use all match types. Broad match provides the widest traffic exposure for your ads, while phrase and exact match are more restrictive, but will drive highly relevant traffic. Add keywords in all three match types to capture all types of traffic. You can create different campaigns targeting different match type keywords.
  • Test different ad creatives. Clone your campaigns and change one variable at a time, such as headline text or destination landing page. This allows you to run an effective experiment by comparing versions that differ in only one variable. Then use the results to create a list of best practices.
B. Reports

Let us first get to know the important metrics data provided by Amazon regarding the campaigns, ad groups, performance of ads made available in different reports.

Campaign metrics
Budget Sponsored Products: Average amount you are willing to spend on your campaign per day.
Sponsored Brands: Maximum amount for the lifetime of your campaign, or a capped amount to spend per day on your campaign.
ACoS Percentage of sales spent on advertising
RoAS Return on Advertising Spend is the ratio of total sales to total spend. It is also simply an inverse of ACoS
Sales Attribution Amazon tracks the activity of a shopper who clicked your product ad even if the shopper makes a purchase at a later period. Currently, Amazon considers standard attribution window for Sponsored Products as 7 days while the attribution window for Sponsored Brands as 14 days. Within the attribution window, the sale is attributed to the click to the ad the shopper previously made.
Ad group metrics
Impressions Clicks Spend Sales ACoS RoAS
Keyword metrics
Match type Sponsored products: Broad, Phrase and Exact match type.
Sponsored brands: Phrase and Exact match type
Estimated Win Rate Realistic percentage of how many eligible impressions your keyword might receive.
Keyword bid Maximum amount you will pay for a click when this keyword triggers your ad. Custom keyword bids will override default bids.
Click-through-rate (CTR) Percentage of shoppers who click on your ad.
CTR = Clicks ÷ impressions.
Other Sponsored Brands metrics (new-to-brand metrics) Measure orders and sales of your products generated from first-time customers of your brand on Amazon
New-to-brand orders The number of first-time orders for products within the brand over a one-year lookback window.
New-to-brand sales The total sales (in local currency) of new-to-brand orders.
% of orders new-to-brand The percentage of total orders that are new-to-brand orders.
% of sales new-to-brand The total sales (in local currency) of new-to-brand purchases.
New-to-brand units Number of units from first-time orders for products within the brand over a one-year lookback window.
% of units new-to-brand Percentage of total units that are units from new-to-brand orders.
New-to-brand order rate number of new-to-brand orders relative to the number of clicks. (New-to-brand order rate = New-to-brand orders / clicks)
Benefits
  1. Optimize your Sponsored Brands campaign to drive new customer acquisition for your brands
  2. Identify keywords that generate new-to-brand orders with higher price points and basket sizes
  3. Measure and optimize in-flight campaigns
  4. Plan future marketing strategies
  5. Drive customer acquisition and brand loyalty

Types of Reports

Sponsored Products
Report type Description Date Range
Targeting Report Provides insights into sales and performance metrics for targets in all campaigns that received at least one impression 90 days
Advertised Product Report Provides insights into sales and performance metrics for your advertised ASINs in all campaigns that received at least one impression 90 days
Purchased Product Report Provides details on the non-advertised ASINs a shopper purchased after clicking on your ad 60 days
Search term report Provides the search terms entered by shoppers searching on Amazon that resulted in a click. It helps to identify high performing searches and also to create negative keywords for search terms that don't meet your goals. 60 days
Placement report Provides insights into the performance across different placement types of the product ads 90 days
Performance over time report Provides data of the clicks, cost per click (CPC) and spend for all of your Sponsored Product Campaigns. 90 days
Sponsored Brands
Keyword Report Provides insights into sales and performance metrics for targets in all campaigns that received at least one impression 90 days
Keyword Placement report Insights into your keyword performance across different placement types. 90 days
Campaign report Insights into the overall performance of your campaign. 60 days
Campaign Placement report Insights into your campaign performance across different placement types. 90

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