Amazon Auto PPC Campaigns: How A Poorly Optimized Listing Could Be Costing You
Running auto PPC campaigns is considered a mandatory campaign strategy for both newbies and long-time sellers to initiate their Amazon advertising journey. However, a lack of understanding on how to properly utilize and implement these types of campaigns often leads to a non-profitable set-up for many sellers – resulting in a hemorrhaging of money.
The objective of auto PPC campaigns is to compile data based on Amazon’s evaluation of your product. The Amazon algorithm does this evaluation by analyzing your product page (frontend and backend in Seller Central). This includes your browse node and refinement funnel. From this collection of information, Amazon displays your product based on the keywords they think best reflect your product and will increase your chance at sales. However, you as a seller or anyone managing your PPC has little to no control regarding which keywords Amazon will consider when targeting your audiences.
Now, let’s delve deeper into Amazon Auto PPC to understand its nature so that you as a seller can reap the benefits.
How Amazon’s Auto PPC Campaigns Works
It’s not uncommon that many sellers find their Auto Campaign outcome quite devastating while analyzing its Search Terms. It can produce many unrelated search terms along with ASINs to target.
In its evaluation phase, the A10 algorithm analyzes the product pages using unexposed internal metrics to categorize the product that helps them decide your product’s likeness to Display Ads. The popular understanding is that Amazon’s Algorithm takes into account Titles, Bullet Points, Description, and Backend Keywords chronologically during the evaluation. However, years of research signifies that additional metrics are used to evaluate and come up with automatic PPC suggestions.
At Liazon Marketing, our team of experts has created unique, research-oriented metrics that help us minimize this evaluation gap to run successful Auto campaigns for your product.
Associated Uncertainty with PPC Advertising
As mentioned earlier, the obvious problem with running Auto PPC Campaigns as opposed to Manual campaigns is that you don’t have enough control to target preferable keywords or ASINs that are most likely of higher value to your product. Amazon automatically defines the search terms based on its product evaluation that might not necessarily be profitable when displayed as Ads.
Furthermore, uneducated bid decisions produce inconsistent data that doesn’t match or fulfill the campaign creation objectives. It devalues keyword profitability as we bid the same for high, low, and non-converting keywords. Let’s assume, for example, for a loose-match keyword phrase, Amazon has suggested a $0.75 and you bid for $0.50. Amazon will give you clicks, but you have less probability to get sales. Thus, you’re spending money on advertising with no ROI.
Hidden PPC Ad Opportunities
Running an objective-based Auto Campaign can bring a significant change to the PPC-maintenance aspect. This includes controlling the target audience and bids. It allows us, as PPC experts, to see whether your listing is fully optimized and make changes accordingly based on this analysis. Furthermore, it allows us to recognize best-matched product targeting options (close match, loose match, substitutes, complements) to run further manual campaigns. In other words, if your listing is not optimized properly (both from the frontend and backend), your auto PPC will not perform the way it should. You will get skewed suggestions that lead to high impressions, low conversions, and a high ACOS. A Properly managed Auto PPC campaign combined with a keyword-rich, optimized listing forces Amazon to produce the keywords that maximizes impressions, CTR, and sales.
At Liazon Marketing, the Listing Optimization team works directly with the PPC team and follows a data-driven, methodological approach to create a sustainable relationship between your product listing and the PPC Campaign aspect.
For more information on how we utilize PPC advertising or to get a professional Listing Optimization, please click here to set up an appointment.