Top 5 mistakes in PPC work on Amazon that drain the budget

Working with advertising on Amazon, it is sometimes difficult to understand why it does not bring the desired results. Often the reason could be found in PPC work errors. Clients usually ask our colleagues what not to do in the PPC model on the marketplace, and what steps drain the budget before advertising starts to affect sales.

Having extensive experience with the Pay-Per-Click ads model on Amazon and other trading platforms, we suggest you consider the top 5 most common mistakes. By knowing and   avoiding them, you can take a few steps closer to an effective marketing strategy. We also offer you to consider cases when our clients’ advertising on Amazon did not work, and after analysis we eliminated the problems. These changes contributed to successful sales of goods on the marketplace.

Mistake 1: wrong choice of keywords

You registered on Amazon and set up ads. But something does not work, the budget ends quickly, in the middle of the day. You need to go to the advertising account and analyze the keywords that you used for the advertising campaign. Now everything is clear. Here is the first mistake – the wrong choice of keywords. If you do not fix it, it will lead to negative consequences for your business:

  • Using irrelevant keywords, your products will be shown to uninterested buyers. They do not need your product, and accordingly – they will not buy it (or convert). You should choose relevant keywords so that interested buyers can find your product;
  • At the same time, if you use keywords that are too high at the beginning of your promotion, you may face high competition, which will force you to spend a lot and sell little. To avoid this, try to use less frequent or long tail keywords that will most closely match your product description;
  • Analyze what non-obvious requests for your product can index your competitors. If they occupy top positions there, then this means that they receive sales from it. Such requests will usually have low competition, and therefore you can use them to increase additional sales without incurring insane costs. This will help you boost your sales rank and thus be better indexed for other queries.

It is very important to work on the keys, remove some, replace some, and you will correct the first mistake in working with PPC. 

Mistake 2: Not Enough Advertising Funds

You have set up ads on Amazon and are waiting for users to actively buy your products. However, the results do not live up to expectations. You check all the settings and see that the budget has disappeared somewhere. What is the reason? Here is the second mistake – there are not enough budgets for promotion, you do not know how quickly the daily budget ends and how much money you need for this. This happens if you do not investigate and analyze the level of indicators to determine the required budget.

To do this, is needed to analyze the following indicators:

  • CPC (Cost per Click): to set the optimal bid for a keyword;
  • Conversion rate: this will allow you to understand how many clicks you need to sell a product;
  • Distribution of expenses between campaigns with different goals.

It is worth reviewing the statistics of the advertising campaign and analyzing it. This way you will notice which days of the week customers are more likely to shop. These days you need to increase the budget, which will increase efficiency. It should be noted that the analytics are displayed with a delay of 2 weeks.

Mistake 3: lack of advertising structure

If, after launching an ad, you have problems with the optimization and analysis of your advertising activity, then in most cases this is due to the lack of an advertising structure.

How to build an advertising structure? We offer you the following tips:

  • Divide products into different campaigns and portfolios;
  • Use a separate match type for each individual campaign;
  • Don’t use too many keywords in one campaign; try to divide them into clusters;
  • Name campaigns in such a way that the name makes it clear:

      what type of campaign it is;

      what match type in key queries;

      which cluster of keys or categories the campaign belongs to;

      what product is being promoted;

      what bidding strategy is used;

      goal of the campaign (desirable).

In addition to making it easier to process data and make decisions based on it, it will also improve the effectiveness of the campaigns themselves, since they will have fewer errors.

Don’t set profit maximization goals until you’ve reached the top competitors’ sales. Otherwise, you won’t be able to reach a low (the lower the better) seller rank. But this applies to conversion only in the context of the fact that when we are trying to maximize profits, we need to leave only converting keywords. This will reduce costs along with the number of sales, and this affects the sales rank, and thus the organic issue. 

Mistake 4: promoting all products at once

If you have eliminated all the above errors, and PPC is still not working as it should, review your advertising account again. Perhaps you decide to promote all products with one campaign, and this is the fourth mistake on our list. It is impossible to use a small budget and advertise the entire range of your brand at one time. This will result in the following:

  • Goods will not be included in the search for the corresponding key queries;
  • You will take fewer places (placements) in search results because one of the listings will be indexed;
  • The campaign budget will end faster, spreading across different products;
  • It will be impossible to obtain adequate statistics and analyze the performance (results of work) of individual products.

Never try to do everything at once. Divide products into different portfolios; create different advertising campaigns for them. Then you can analyze them, increase efficiency and successfully make sales.

Mistake 5: Leaving everything to chance

After setting up all the advertising options on Amazon, some sellers leave ads unattended, thinking that everything will work by itself. However, the results again do not meet your goals. You start creating new campaigns, testing different types of campaigns, and stopping old ones. You need to understand that different types of PPC campaigns have their own advantages and disadvantages. You can use all types, and they will bring you positive results only if you intervene and constantly monitor the campaign.

After launching the ad, you need to:

  • Study statistics regularly;
  • Adjust PPC settings;
  • Analyze search queries and, if necessary, negative them, or vice versa – transfer them to separate campaigns.

These and other actions with settings should be performed only when necessary, when you see the appropriateness of changes. It is the control of advertising that will help to improve it and increase its effectiveness.

Cases of our clients

 Now let’s look at significant errors in the PPC settings on the marketplace that our clients have dealt with. We helped them understand what the problem was and fixed the situation. After that, the ad showed effective results and convinced customers that PPC works great on Amazon.

Case 1. How did a high-frequency query affect advertising:

  • Situation: The client had an automatic advertising campaign with a limited budget per day, categories, a few precise keywords and campaign research;
  • Problem: out of all campaigns in terms of the number of views, clicks, the exact worked best, but no campaign brought sales;
  • Problem Identification: Exact analysis of the campaign showed that there was a keyword that was popular (high frequency) among others in this category that were related to the product, and it was a high bid. It used the entire daily budget, so the ads stopped working at noon. Goods promotion has been significantly restricted at various times and by other requests;
  • Correction of the situation: increase in the daily budget by 35%, since the category is competitive, which will allow advertising to work around the clock. We also advised to exclude the “expensive” high-frequency request so that it does not spend money. Instead, you can use longtail keywords from your research. These queries have less contention. You can also reduce the bids for some keywords and exclude some queries so as not to burn the budget in vain;
  • Results: the campaign brought us more information, on which we optimized advertising and created new effective campaigns to make successful sales.

Case 2. Lack of structure:

  • Situation: the client had several advertising campaigns, different in type, but there was no structure;
  • Problem: Difficulty in optimizing campaigns and lack of results;
  • Problem Identification: The same keywords or search terms worked in multiple campaigns at the same time without producing results. Also, different keys gave the same requests, and if the result was bad, the keyword was stopped (paused). The other key continued to work, but attracted the same requests, which also had no effect. In addition, each campaign used different products, and they are suitable for different queries. Without a clear structure and division into groups, it is impossible to analyze the results in the issuance of a product search;
  • Correction of the situation: to facilitate the analysis of the work of all campaigns, we have developed an advertising structure. Campaigns are divided by types, and products by portfolio. We analyzed lists of keywords, from which duplicates were excluded, and unnecessary (irrelevant / those that led to expenses) search queries were moved to the negative (excluded);
  • Results: Thanks to this, we were able to get the results of advertising, see which keywords work for which products, and also reduce their number. Correcting the situation helped to effectively reallocate the budget and get positive results.

What does fixing PPC errors on Amazon do?

Every seller on Amazon can make mistakes when working with ads. Among the biggest problems are:

  • Incorrect selection of keywords;
  • Limited finances for the advertising rate;
  • No testing of PPC options;
  • Promotion of the entire range in one campaign;
  • No adjustment of target data.

The most important tip for a successful PPC launch is to carefully prepare your listing. To do this, check the quality of your product images, prepare up-to-date product descriptions, formulate good product names using relevant keywords, and use “A +”. These are the primary steps before the start of the promotion, which must be done so that properly configured advertising campaigns work more efficiently in the future. By knowing the above mistakes, you will avoid them. All this will bring you closer to successful Amazon sales and revenue growth.

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