Amazon Advertising Management Services

Absolutely, managing ad spending can be quite challenging, especially in a competitive marketplace like Amazon.

At zonhack, we constantly monitor our running campaigns. For an out of control ad spending campaign we first make a quick survey after that we prepare specific strategy for it and start optimizing. 

Here is a check list that we follow to complete our survey:

Product landing page quality check:

✔️ Listing Quality

✔️ SEO Keywords

✔️ Organic Keywords Ranking

✔️ Keywords Search Volume

✔️ Category

Running campaign quality check:

✔️Bids for the Keywords

✔️ACoS (Advertising Cost of Sale)

✔️TACoS (Total Advertising Cost of Sale)

✔️Impressions

✔️TACoS (Total Advertising Cost of Sale)

✔️Clicks

✔️CTR (click-through-rate)

After Analyzing these data we start our optimization process. We do Fresh Keyword research for listing, backend and ad keywords. We immediately pause any bad campaigns and do a fresh start. This way we monitor, control and maximize our ads performance.

Amazon offers several types of ads to help sellers and brands promote their products more effectively. They are:

Sponsored Products: The most common type of ads on Amazon. Sponsored Product ads allow us to promote individual product listings. These types of ads appear in search results and on product detail pages, blending in with the non-sponsored listings.

Sponsored Brands: Formerly known as Headline Search Ads, these are aimed at promoting a brand rather than individual products. Sponsored Brands ads typically feature a brand logo, a custom headline, and multiple products. They appear in more prominent positions like the top of search results.

Sponsored Display Ads: These ads target customers based on their shopping behaviors and interests, both on and off Amazon. They can appear on Amazon product detail pages, customer review pages, on top of the offer listing page, and even on external websites and apps.

Determining a “good” ACoS (Advertising Cost of Sale) and TACoS (Total Advertising Cost of Sale) for an Amazon product can be subjective. It largely depends on your business objectives, product lifecycle, profit margins, and the competitive landscape of your category. 

Before determining what is good and what is not let get familiar with some key positions of these two very important matricks. 

When the ACoS is low like bellow 30% we can consider this as a good position not the best. And Same goes to TACoS as well. Lover the percentage better the performance.

Lets observe some different scenarios that will help to understand what might be a good ACoS and TACoS.
 

ACoS:

• High Profit Products: If you have high-profit margins, you might be able to tolerate a higher ACoS. For example, an ACoS of 30% might be acceptable if your profit margin is 40%.

• Low Proft Products: For products with lower margins, you’ll need a lower ACoS to remain profitable. An ACoS of 10-15% might be more appropriate in such cases.

• Growth Phase Products: If you’re in the growth phase, focusing on brand awareness and market penetration, a higher ACoS might be acceptable temporarily.
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• Mature Products: For well-established products, the focus usually shifts to maintaining profitability, thus aiming for a lower ACoS.

TACoS:

• New Products: For new product launches, a higher TACoS is common as you’re investing more in advertising to gain visibility. A TACoS of 10-15% might be typical.
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• Established Products: For established products, a lower TACoS is ideal. A range of 5-10% might be good. This is an indication that your overall sales are not overly dependent on paid advertising.

The best approach is to set ACoS and TACoS targets based on your specific business context. 

Always consider your overall profit margins, the competitive intensity in your category, and your long-term business goals when evaluating these metrics. It’s also important to keep an eye on how changes in your ACoS and TACoS impact your total sales and profitability, making adjustments as necessary.

Amazon PPC does indeed have an impact on organic rankings. When you launch PPC campaigns, your products gain increased exposure and, ideally, a boost in sales. Amazon loves it when products sell well. So, when your product starts racking up sales through PPC ads, Amazon takes note.

What happens next is pretty cool. Amazon thinks, “Hey, this product is pretty popular, let’s show it more in organic search results too.” This is because Amazon’s primary goal is to sell products that customers are likely to buy. So, a product that sells well through PPC can get a boost in organic rankings. It’s like Amazon’s way of giving a thumbs-up to products that customers seem to love.

Keep in mind, though, it’s not just about getting clicks on your ads. It’s the actual sales from those clicks that really count. The more sales you get from your PPC ads, the better your chances of climbing up in the organic search rankings. 

However, it’s important to note that PPC is just one of several factors influencing organic rankings on Amazon. Other factors like product relevance, customer reviews, pricing, and overall customer experience play significant roles too.

Now-a-days, PPC is a must have option for amazon sellers if they want to get their product development in a smooth line. Working with a limited budget for Amazon PPC can be a bit tricky, but it’s totally doable.

Here’s a game plan:

Start with Research: Before you dive in, do your homework. Look at your product, your competition, and your target market. Identify the most relevant keywords for your product, but don’t just go for the big, popular ones. Sometimes, less competitive keywords can give you more bang for your buck.

Set Clear Goals: What do you want to achieve? More sales, brand visibility, or maybe you’re launching a new product? Your goals will shape your strategy.

Budget Allocation: Now, this is key. With a limited budget, you gotta be smart. Prioritize products that have the best chance of success. Maybe it’s your bestsellers or products with the highest profit margins.

Opt for Automatic Campaigns Initially: When you’re just starting out, automatic campaigns can be a great way to gather data without spending too much. Amazon will pick keywords based on your product info.

Monitor and Adjust: This part’s crucial. Keep a close eye on your campaigns. Which keywords are bringing in sales? Which ones are just eating up your budget? Adjust your bids and switch off what’s not working.

ACoS (Advertising Cost of Sale): Keep an eye on this metric. It tells you how much you’re spending on ads for every dollar of sales you’re making. The lower the ACoS, the better.

Refine Your Strategy: Patience is key. It’s not a quick fix, but a learning process. Start with small tweaks and learn from the results. Gradually shift to manual campaigns for better control over keywords and budget. This approach sharpens your strategy, making it more effective.

Always Remember, success in PPC is a gradual process of learning and adapting, even with budget constraints. Stay patient and focused on your strategic adjustments for the best outcomes.

There are some crucial metrics for Understanding the effectiveness of an Amazon PPC (Pay-Per-Click) campaigns. Let’s break down these key terms related to Amazon advertising; ACoS, TACoS, and ROAS:

ACoS (Advertising Cost of Sale): This key metric shows the relationship between your advertising expenses and the sales generated from those ads. It tells us how much we are spending on advertising for every dollar of revenue you make from those ads. 

The formula is: 

ACoS=(AdSpend÷Sales)×100. 

A lower ACoS means your campaign is more efficient, as you’re spending less to make a sale.

TACoS (Total Advertising Cost of Sale): This is a broader metric than ACoS. TACoS considers the total revenue (not just the revenue generated from the ads) and the ad spend. It gives us a more holistic view of how our advertising impacts our overall sales. 

The formula is: 

TACoS=(AdSpend÷TotalSales)×100 

TACoS helps you understand how your advertising efforts are contributing to your overall business, 

beyond just the direct sales from ads.

ROAS (Return on Ad Spend): This metric flips the concept of ACoS on its head. Instead of showing the cost ratio, it shows the return you’re getting for every dollar spent on advertising. The formula is: 

ROAS=RevenuefromAds÷AdSpend.

A higher ROAS indicates a more successful campaign, as you’re earning more revenue for each dollar spent.

Yes, we run a variety of ads, including those on platforms like Google Ads and Facebook Ads. These platforms offer unique opportunities and audiences, so utilizing them helps in reaching a broader and more diverse audience.

Deciding how much to spend on ads for a new product on Amazon can be tricky. It really depends on things like how much money you have for this, how competitive your product type is, and what you want to achieve with your marketing.

Here are some considerations to help you make an informed decision:

Initial Budget: It’s wise to start with a modest budget to test the waters. You might consider starting with a daily budget of $20 to $50. This allows you to gather data on ad performance without overspending.

Cost-Per-Click (CPC): Research the average CPC in your product category. This will give you an idea of how much each ad click will cost you, helping to better allocate your budget.

Product Margin and Break-Even ACoS: Understand your product margins and calculate your break-even Advertising Cost of Sale (ACoS). This is the point at which your advertising spend equals the profit from sales generated by ads. It’s crucial for ensuring you’re not spending more than what you make from sales.

Market Competition: Highly competitive categories often require a higher ad spend to stand out. Check the competition level for your product category.

Sales and Marketing Goals: Set clear goals. Are you looking to gain visibility, boost initial sales, or collect customer reviews? Your goals will influence how much you should invest.

Continuous Monitoring and Adjustment: Start with your initial budget, then monitor your campaigns closely. Adjust your spend based on the performance data, such as click-through rates, conversion rates, and ACoS.

Keep in mind, there isn’t a single answer that works for every product and market. Each one is unique. It’s usually a good idea to begin with a small budget and then slowly raise it depending on how well your ads are doing and how comfortable you feel about the money you’re spending.

Certainly, I’m here to assist you in minimizing your ad expenditure. It’s akin to fine-tuning a car; you want to maximize performance without wasting fuel. Let’s analyze your existing ad campaigns to identify areas for improvement. We’ll optimize your targeting options, refine your keyword selection, and review your bidding strategies. It’s like bargain hunting – you want the best value without overspending. And remember, continuous monitoring is essential. Regularly assess campaign performance to identify what’s working and what’s not, allowing for timely adjustments. With a few tweaks, I’m confident we can reduce your ad costs while maintaining campaign effectiveness.

Aiming for the top 3 in your niche? That’s awesome, go for it! Amazon PPC can definitely be a game-changer for you. Think of it like having a megaphone at a crowded party. It helps you get noticed!

So, here’s how PPC can be your best friend in climbing to the top:

Visibility Boost: It’s like getting a VIP pass. Your products get prime real estate on Amazon’s search pages. This means more eyeballs on your stuff, which is super important in a crowded market.

Target the Right Shoppers: You know how you find just the right crowd to hang with? PPC lets you target shoppers who are actually looking for what you’ve got. You can pick keywords that match what your ideal customer would type in.

Data: It’s like having a roadmap. PPC gives you tons of info on what’s working and what’s not. You’ll see which keywords are bringing in the buyers and which ones are just window shoppers.

Control Your Spend: You’re in the driver’s seat with your budget. You can start small, test the waters, and then put more into what’s working. It’s all about getting the most bang for your buck.

Outsmart the Competition: With PPC, you can see what others in your niche are doing and then do it better. It’s like playing chess – you gotta think a few moves ahead.

Just remember, it’s not just about throwing money at ads. It’s about being smart with your strategy. Stay focused on your goals, keep tweaking your approach, and with a little patience and a lot of hustle, you’ll see yourself climbing up to those top spots.

Keyword bidding on Amazon is a crucial element of their advertising platform, Amazon PPC (pay-per-click). It allows sellers to bid on specific keywords relevant to their products. By placing bids, sellers compete for their ads to appear in prime positions on search results pages, increasing their products’ visibility and attracting more potential customers.

How it works:

Bidding for Keywords: Sellers identify keywords potential customers might use to find their products and then bid on them.

Auction System: When a customer searches for a product, an auction is held amongst those who bid on relevant keywords. The highest bidder wins the top ad spot.

Second-Price Auction: Amazon implements a “second-price auction” system, meaning the winner pays only $0.01 more than the second-highest bid. This ensures sellers pay a fair price for their ad placement.

Dynamic Bidding: For those who prefer a more automated approach, Amazon offers “dynamic bidding” options. These adjust bids automatically based on certain factors, like a click’s conversion likelihood.

Overall, keyword bidding is a powerful tool for sellers on Amazon. By understanding its nuances and employing a strategic approach, sellers can significantly increase their product visibility and achieve their advertising goals.

Ad placement on Amazon refers to the specific locations where your ads appear across the Amazon platform. These placements can range from search results pages to product detail pages, and they play a crucial role in determining the visibility of your products and the effectiveness of your advertising campaigns.

Types of Ad Placements on Amazon:

Sponsored Products: These ads appear within search results pages, directly below or alongside organic product listings.

Sponsored Brands: These ads showcase your brand and multiple products, appearing in search results pages and on product detail pages.

Sponsored Display: These ads use automatically generated creatives and are targeted to audiences based on their Amazon shopping behavior. They can appear across Amazon’s owned and operated sites, as well as third-party websites and apps.

Product Detail Page Placements: These ads appear directly on product detail pages, either above or below the product’s description and reviews.

Amazon DSP: This demand-side platform allows advertisers to programmatically buy display, video, and audio ads across Amazon’s network and beyond.

By understanding the dynamics of ad placement on Amazon and implementing a strategic approach, you can effectively position your products in front of the right customers, maximizing the impact of your advertising campaigns and achieving your sales goals.

Yes, dayparting can be a helpful strategy for Amazon ads. It allows you to adjust your ad bids and budgets based on the times of day when your products are most likely to sell. This can help you to save money on your advertising costs and improve your overall return on investment (ROI).

There are a few reasons why dayparting can be effective for Amazon ads:

• People’s shopping habits vary throughout the day. For example, people are more likely to browse and shop for products in the evenings and on weekends.

• Your competition may not be running ads all day long. This means that you may be able to get your ads in front of more people by running them during times when your competition is not as active.

• You can use dayparting to experiment with different bidding strategies. For example, you could try running your ads at a higher bid during peak times and at a lower bid during off-peak times.

Some Pro tips about Dayparting for Amazon Ads:

• Start by analyzing your historical sales data to identify your peak and off-peak selling times.

• Set up different ad schedules for different types of products. For example, you may want to run ads for seasonal products at different times of the year.

• Be prepared to experiment and adjust your dayparting strategy as needed. Your sales patterns may change over time, so it is important to be flexible.

Overall, dayparting can be a valuable tool for improving the effectiveness of your Amazon ads. By taking the time to understand your target audience’s shopping habits and experiment with different bidding strategies, you can save some money and improve your ROI.