Amazon Advertising 100 Questions – Part 2

Amazon Ad 100 Q's - Part 2

Hello everyone, I am Regan. This time, I am partnering with Amazon to answer 100 questions about Amazon advertising operations. We will summarize the problems you frequently encounter in the operation process and provide solutions based on our own practical experience. This is the second article, and I hope it can help you.

(Content authorized by Amazon, copyright Amazon @2023)

Q11

Question:

• Amazon Japan’s Second Trial Case Analysis and Second Trial Result Analysis
• How to achieve precise and efficient placement of Amazon ads?
• Amazon is facing another large-scale verification issue! Are all sellers affected?

How many keywords should be placed in the same ad group?

Answer:

We recommend placing no more than 50 keywords (for precise targeting) in the same ad group.

1. If there are too few keywords

(and their precise drainage effect cannot be proved by data in the early stage), it may lead to low ad exposure.

2. If there are too many keywords

there may be invalid clicks due to some keywords not being precise enough, wasting advertising costs. At the same time, too many keywords may also cause uneven distribution of advertising budgets. For example, some big keywords consume a lot of budget, making it difficult for other keywords to get sufficient exposure, resulting in insufficient advertising data and affecting the judgment of the next step of optimizing keywords.

Image source: Amazon

Q12

Question:

What is the reason for all the ASINs appearing in the automatic ads of product promotion?

Answer:

There are four types of automatic ads for product promotion that advertisers can choose from. “Close match” and “Broad match” are matched by Amazon based on the relevance of consumers’ search terms, while “Similar products” and “Related products” are matched based on the relevance of the products that consumers browse. For the situation described in the question:

Image Source: Amazon

Image Source: Amazon

Image Source: Amazon

Q13

Question:

My ad campaign has good exposure but low click-through rate. What could be the reason? How can I optimize it?

Answer:

After the ad is successfully displayed, the following factors may affect the click-through rate:

Image Source: Amazon

Image Source: Amazon

Image Source: Amazon

Q14

Question:

My ACOS is high despite a high click-through rate and good sales. What should I do?

Answer:

The term “big words” generally refers to the core words of a class of products with large search volumes. A high click-through rate and conversion rate are ideal results for advertising campaigns that use big words. However, due to intense competition for big words, the cost per click (CPC) is usually high, resulting in higher advertising costs and a higher ACOS.

ACOS = (advertising costs ÷ advertising revenue) x100

Whether ACOS is high or low is relative to the product’s profit margin, and does not refer to an absolute value. If your ACOS is lower than your profit margin, it means that your advertising campaign is profitable. As the number of orders for big words continues to increase, the natural ranking of the word’s search will also be improved!

If your ACOS is equal to or higher than your profit margin, we recommend that you optimize it from the following two aspects:

1. Focus on improving the order revenue brought by each conversion, also known as “customer unit price”. In the short term, for example, through free virtual bundling tools, combining different products and setting package prices or combination discounts can increase the chance of “bundling sales” for each detail page view. In the long term, building brand and reputation can help improve pricing power and create room for price increases.

2. Continue to optimize conversion rates. The number of orders does not equal the conversion rate, and there may still be room for improvement in your conversion rate. For example, by placing similar/related products in other locations on your own product detail page, you can create a traffic loop and minimize traffic bounce.

Image source: Amazon

Q15

Question:

Brand promotion keywords In brand promotion video ads, if the targeted words are A+B, but the search terms that customers search for may be A+C or B+D, is there a way to have the matched terms contain both A and B at the same time?

Answer:

In brand promotion advertising campaigns, when using broad match type for keywords, synonyms and other similar words related to the keyword will also be matched, attracting more potential customers interested in the product to your advertisement. For example, when using broad match to promote the keyword “shoes”, the synonym “footwear” will also be within the matching scope. However, if you want to limit the search results for certain keywords, you can consider using the restriction symbol function, that is, adding the “+” restriction symbol before keywords A and B to specify that the search results must include these keywords. Let’s take an example:

Image source: Amazon

Currently, the keyword restriction symbol function only applies to brand promotion and not other advertising products!

Q16

Question:

Advertising policy During the peak sales period, I launched brand promotion and the official said that promotional information can be added. However, the response to the case opening was not compliant. Can you provide specific rules?

Answer:

To clarify the content acceptance policy for brand promotion:

Amazon prohibits mentioning any specific price promotion information in brand promotion. This includes discounts, offers, or promotions, such as “50% off promotion” or “discount $20”.

Image Source: Amazon

Q:

Display Advertising Audience Targeting. In the late peak season, I want to try to show my products to buyers who have recently seen my ads. What type of ad and ASIN are more suitable?

A:

The “Retargeting Browse” targeting strategy for display advertising can help you show ads to audiences who have browsed your products or similar products. We recommend that you prioritize ASINs that have won the most detail page views in the past, because the more people who have viewed the product detail page, the wider the audience you can show your ads to.

You can find “Detail Page Sales and Traffic” report under “By ASIN” in the “Business Reports” section of the seller platform, and check “Page Views” to select the appropriate product.

Of course, we recommend that you also consider the conversion rate of that ASIN. ASINs with conversion rates higher than the store’s average conversion rate are more likely to bring conversions.

Q18:

Product Targeting. My product currently has about 10 reviews, and there are more than 20 reviews for my competitors. However, my price is lower than theirs, and I have ordered under their ASIN. Can I target them with ads?

A:

We recommend that you further check whether the data behind this result is sufficient. If there are only a few clicks (for example, less than 20 clicks can be considered insufficient data with an average conversion rate of 5%), the order may be incidental. If there are enough clicks to place an order and the relevance between this ASIN and your promoted product is sufficient after front-end review, we suggest that you can target this competitor’s ASIN for advertising.

Image source: Amazon

Image source: Amazon

Q19

Question:

Advertising report. What should I do if my competitors maliciously click on my ads?

Answer:

Amazon can detect and monitor invalid traffic (invalid impressions and invalid clicks), including potential fraud, non-human traffic, and other illegal traffic. Malicious clicks from competitors are also considered invalid clicks. Sellers can view the “total traffic and invalid traffic” report (shown below) in the Amazon advertising platform’s advertising report to get details. Amazon only charges for valid traffic, and the system will filter out identified invalid traffic data before the advertiser pays the relevant fees. In addition, there are two suggestions:

(1) Amazon monitors traffic data for up to 30 days. If you want more accurate data, it is recommended to extend the report download time by 30 days. Once invalid traffic is detected, the system will automatically remove invalid activity data from invoices and reports for advertisers.

(2) For data that is still abnormal, you can contact Amazon support team through a case for manual investigation.

Image source: Amazon

Q20

Question:

Advertising report. Why might the number of ad clicks be greater than the number of visits in the business report?

Answer:

First, it is important to clarify the sources and definitions of the two metrics mentioned here:

Image source: Amazon

Image source: Amazon

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