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Top Amazon Sponsored Product Mistakes Draining Your Budget & Profits | CPC Strategy + Skubana

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Are my campaigns performing at their optimal level?
Why aren’t my Sponsored Product ads converting?
My ACoS is cutting into my profit margins—How do I fix this?
Why aren’t my ad placements sending enough traffic to my listings?

We find these types of questions come up A LOT with Amazon Sellers trying to maximize the performance of their Sponsored Product investments. Therefore we’re having former member of Amazon’s Seller Services team, Pat Petriello, and Top 250 Amazon Seller, Chad Rubin, demonstrate their proven methodologies for improving campaign performance.

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Top Amazon Sponsored Product Mistakes Draining Your Budget & Profits | CPC Strategy + Skubana

  1. 1. Live Webcast: Top Amazon Sponsored Product Mistakes Draining Your Budget & Profits Presented By:
  2. 2. Today’s Logistics Session Recording + Slides Will Be Sent Out Join in the Poll Questions! Submit Questions to Our Panelists
  3. 3. Today’s Event Speakers Pat Petriello Head of Marketplace Strategy Chad Rubin CEO & Co-Founder
  4. 4. Today’s Agenda 1) Not Fully Understanding Your Advertising Goals 1) Not Getting Granular Enough with Your Campaign Strategy 1) Not Using Data to Make Decisions 1) The Meaning Behind ACoS Calculation 1) Not Optimizing Your Listing for Conversion Rate 1) Seller who set it and Forget it
  5. 5. Mistake #1: Not Fully Understanding Competing Advertising Goals
  6. 6. CPC Strategy’s Advertising Triangle 1 3 2 VOLUME EFFICIENCY SPEED
  7. 7. Understanding Your Goals Before Structuring Campaigns 1) Volume & Speed a) You can grow volume quickly by maximizing exposure & impressions through aggressive bidding, but you're going to sacrifice efficiency. 1) Efficiency & Speed a) You can increase efficiency quickly by cutting out wasted spend which entails cutting bids on inefficient keywords & pausing poor keywords altogether. 1) Volume & Efficiency a) You can increase both volume & efficiency in any advertising campaign, but not on day 1.
  8. 8. Mistake #2: Not Getting Granular Enough with Your Campaign Strategy
  9. 9. Sponsored Product Campaign Structuring SPONSORED PRODUCT CAMPAIGN SET-UP AD GROUPS CAMPAIGN NEGATIVE KEYWORDS KEYWORD MATCH TYPE BROAD PHRASE EXACT AUTO TARGETING CAMPAIGN MANUAL TARGETING CAMPAIGN & SINGLE ASIN ← Profitable Keywords MATCH TYPE NEGATIVE KEYWORDS
  10. 10. Manual & Automatic Campaigns ● Goals Will Determine Ad Group Differentiation ● Sellers can add up to 1,000 keywords per Ad Group ● Give All Your Products a Chance to Perform ● Data Harvesting ● Actions are driven by your company’s goals Automatic Manual
  11. 11. Keyword Match Types AdGroup Harvest Goals ✓ Broad Match: 30-90 keywords ✓ Phrase Match: 20-40 keywords ✓ Exact Match: 5-20 keywords
  12. 12. Keyword Match Types & Negative Keywords
  13. 13. Mistake #3: Not Using Data to Make Decisions Emotional vs Data Driven Decisions
  14. 14. Three Must-Use Traffic Tools Merchant Words & MOZ & A9 Auto-Suggest The Hashtag The Keyword Research Report
  15. 15. How do you build what customers want? Build what customers search for
  16. 16. The Hashtag
  17. 17. The Hashtag
  18. 18. The Search Term Report
  19. 19. The Search Term Report
  20. 20. Optimize For Traffic That’s ½ the Battle Do Keyword Research Write 50% for Humans 50% for Bots Clicks Just as Important as Conversions
  21. 21. Mistake #4: The Meaning Behind the Advertising Cost of Sale (ACoS) Calculation
  22. 22. Start by Setting the Right Goals Maximize Profits Maximize Sales There are two main goals for PPC
  23. 23. What’s a Good ACOS? Maximize Profits Maximize Sales Target ACOS Break Even ACOS
  24. 24. What’s a Good ACOS? AMZ Fee 25% 35%COGS 10% Overhead 30%Profit before PPC spend
  25. 25. What’s a Good ACOS? AMZ Fee 25% 35%COGS 10% Overhead 30%Profit before PPC spend 30% Break Even ACOS
  26. 26. What’s a Good ACOS? AMZ Fee 25% 35%COGS 10% Overhead 30%Profit before PPC spend 30% 20% Break Even ACOS Target Profit Margin 10% Target ACOS
  27. 27. What’s a Good ACOS? AMZ Fee 25% 35%COGS 10% Overhead 30%Profit before PPC spend 30% 20% Break Even ACOS Target Profit Margin 10% Target ACOS ACOS < 30%: ads are profitable ACOS < 10%: hit your target profit margin
  28. 28. Only the Strong will Survive
  29. 29. Mistake #5: Not Optimizing Your Listing for Conversion Rate
  30. 30. Understand Your Conversion Rate
  31. 31. Math! (Total Order Items + Total Order Items B2B) Sessions Amazon Conversion Rate (%) / =
  32. 32. Benchmark Data
  33. 33. Benchmark Data 3% 5% 17% 6-8% Good Conversion Rate Amazing Conversion Rate 1-800 Flowers Your Average Target
  34. 34. The 3 Things that Amazon Values the Most 1) Utilizing Sponsored Ads and AMS = $ 2) Inventory is available Prime ( Fulfilled by Amazon) = $$ 3) Conversion is made = Amazon gets a Referral Commission = $$$ The Perfect Amazon Transaction
  35. 35. Win-Rate Math!
  36. 36. $$$$ that Amazon Values the Most 1) Heaviest weight placed on conversions 2) Not all conversions are created equal 3) For same keyword, would amazon rather have the person buy 1 or 5?
  37. 37. Amazon Tracks Unit Session %
  38. 38. Propel Rank - Get Your Customers to Buy 2+ Units Boost Your Avg Order Value
  39. 39. Mistake #6: The Set it and Forget it Approach
  40. 40. Seller’s Typical Mistakes 1)Bidding 1)Keyword Selection 1)Advertised ASIN Selection
  41. 41. Today’s Recap 1) Understand Your Advertising/Business Goals Before Jumping in 1) Get Granular with Your Campaign Optimizations 1) Calculate Your Ideal ACoS before Creating Your SP Campaigns 1) Ensure You’re Using Data to Inform Decisions 1) Look at your Listing Conversion Rate Before Jumping into Sponsored Products 1) Don’t Set it & Forget it!
  42. 42. Schedule Your Sponsored Products Account Health Evaluation www.cpcstrategy.com/amazon-services
  43. 43. BONUS ❏ The Amazon Conversion Spreadsheet I Use To Run My Business! AVAILABLE UNTIL END OF DAY TODAY skubana.com/gold PASSWORD: nuggets
  44. 44. Questions for Speakers? Pat Petriello Head of Marketplace Strategy Chad Rubin CEO & Co-Founder

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