March 14, 2019
Two Recent Amazon Changes Shaking Up Ecommerce
Many people are wary of Amazon automatic campaigns. This fear is understandable, especially if you have had poor experiences with automated bidding in the past. However, Amazon’s automatic campaign targeting has shown itself to be a key to revenue growth on Amazon Ads.
You have two choices for search term targeting on your Amazon sponsored products campaign: automatic or manual. In this post, we’ll walk through three key details about how Amazon automatic campaigns work, two ways they drive growth, and four steps to incorporate them into your current strategy.
1) You won’t select keywords. Amazon uses automatic targeting to match the product you are bidding on with keywords and product pages that are similar to yours
2) You can include multiple products per ad group, but remember bids are set at the ad group level (this is an important detail to remember for effective campaign implementation!)
3) Ads will show both in the Amazon search results and on Amazon product pages as similar products
1) Find profitable search terms that you didn’t initially brainstorm. Search behavior is always changing and may differ from one platform to another; automatic campaigns help you fill those gaps
2) Achieve ad coverage on a wide variety of products in advance of building out dozens of campaigns. With some expertise and a small amount of time, automatic campaigns can profitably achieve ad coverage on an entire product catalogue
The implementation of Amazon automatic campaigns can make or break your profitability. Follow this checklist to ensure you set yourself up for success. With these strategies, we’ve driven 76% growth in Amazon revenue at a 31% improvement to ROAS for clients within the first six months of management.
1) Add negative keywords for any keywords you are actively targeting in manual campaigns. This ensures that high value keywords receive the direct bid you have set and don’t end up in your automatic campaigns.
2) Don’t put all your products in the same ad group! Your bid is set at the ad group level, so if you have 100 products in one ad group, then you aren’t able to shift spend towards the products driving the best revenue return. Put high volume products into their own ad group for better control and group products by type, price, or margin, so that you can monitor bids effectively.
3) Review your search term report regularly for irrelevant negative keywords. Amazon profits from your sales, so typically, the search terms they match with are highly relevant. However, Amazon’s algorithms still aren’t going to get you 100% relevant searches, so using this report on a frequent basis helps improve profitability.
4) Create manual targeting campaigns for high volume keywords in the search term report. Manual campaigns give you the most control over your spend and efficiency, so use automatic campaigns as research for manual campaigns.
In conclusion, don’t be afraid to use Amazon automatic campaigns to drive growth on new products or to find new highly relevant search terms. Just make sure you give yourself the right levers to effectively move spend to the highest performing areas of your account. Contact our team to see how we can drive Amazon sales growth for your business.