Amazon PPC Management
Amazon Sponsored Ads - Consultation, Audit, Setup & Management
amazon sponsored ads, amazon ppc, campaign management, amazon pay-per-click, dsp ads, amazon dsp, automated targeting, paid media, seo, search engine optimization, branding pages, Amazon FBA, amazon product ads, programmatic
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Amazon Advertising is not unlike other PPC ad channels like AdWords or Bing. However, customers come to Amazon already mindset ready to buy something, so the likehood of them making a purchase is much higher than on any other platform. When the customer visits a ecommerce website via adwords, the likehood of the purchase depends on many more variables, than for the customer who visits Amazon.
There are 2 ways to setup the Amazon PPC ads:
- “Auto Target” (a setting that the most sellers select), an Amazon advertising campaign allows Amazon to determine when your ad should show to a customer at a maximum budget and bid per click that you decide.
- “Manual Target”, the seller decides for which keywords and/or similar products the ad should be shown. Each keyword can have a different bid. This option is where the proper professional optimization happens.
A seller’s advertising account should have a strategic structure setup to allow for granular adjustments that make the entire advertising spend more profitable over time. It’s not uncommon for a seller to have dozens of campaigns, hundreds of ad groups (i.e., sub-sections of each campaign), and thousands of keywords. Sounds complicated? This is where Page 35 expertize can help.
An effective Amazon PPC campaign depends on a combination of experience and technology. Experienced and skilled Amazon PPC manager has the ability to use programmatic data and do the adjustments that are more efficient and methodical than an every day Amazon seller can do.
Here at Page35 over the years we have managed hundreds of Amazon campaigns for sellers/brands and delivered significant improvements in ACoS (Ad Cost of Sales) and sales.
We use a proprietary software to measure the overall product page performance, to find the competitors, to accommodate custom rules that we create for every client. Page35 also establish targeted ACoS that may be different for each campaign or group of products. For amazon sellers having such help with this level of sophistication in Amazon PPC strategy is critical.
AMAZON PPC CAMPAIGN SETUP AND MONTHLY RETAINER
The initial contract for Amazon ads setup and management by itself is designed for 3 months. After the first 3 months we can continue to work on month-to month basics with the existing campaign. Currently we only work with accounts where the product catalog includes no more than 10 products or product variations.
Depending upon complexity of the account and the catalog size, there will be a one-time setup fee as well that correlates to complexity of the ad account and catalog size. Most clients will have a one-time set-up fee ranging from $500 – $2,000.
The retainer begins at $1250 or 10% of previous month’s ad spent whichever is greater. For example, a client spending $10,000/month on Amazon ads will pay $1250 ( because it is greater than 10% of ad spend). A client spending $30,000/month on Amazon ads will pay $3,000 (i.e., because 10% is greater than the $1250 minimum).
We typically see significant improvement by the third month on established accounts. After 3 months, contract terms are month-to-month.
- You manage $10,000 amazon ad spend yourself, achieving a 33% ACoS.
- Ad-derived sales on this spend and ACoS is $30,000.
- Excluding your own time or an employee’s, your total cost of advertising is $10,000 + $0 consultant fee; or 30%.
- Page35 manages your Amazon Sponsored Ads and is able to improve your ACoS to i.e 20%.
- Your ad spend is the same $10,000/month.
- At 20% ACoS, your resulting sales are $50,000.
- Your total cost of advertising is $10,000 + $1,250 (Page35 fee), for $11,250, or only 22% of sales generated (compared to 33% in Scenario 1).
Results vary from client to client, depending upon their products, the product page quality, product price, competition, pricing strategies and other variables.
