Amazon Advertising 100 Questions – Part 6

Amazon Ads 100 Q&A - Pt 6

(Content authorized by Amazon, copyright Amazon @2023)

Featured Questions

Q1 What is a healthy and reasonable ACos (or ROAS) value?

There is no fixed excellent value or healthy value for ACOS or ROAS. The thresholds for each seller’s each product are different, mainly depending on factors such as your product price, cost, logistics, and operating costs to calculate the advertising profit and loss balance point. Generally, there may be a high ACOS during the initial period of a new product, but if the conversion rate meets expectations, CPC will gradually decrease with the growth of order volume and the accumulation of historical data. After entering the growth and maturity period, ACOS will tend to stabilize.

Q2 If there are a lot of keywords generated by automatic advertising, which ones should be manually added to the campaign?

Through automatic advertising of product promotion, you can quickly accumulate some keywords, including high-performance customer search keywords that are suitable for strengthening in manual advertising.

The overall characteristics of high-performance keywords are “high exposure-high click-high conversion”. You can download “Placement Report” and “Search Term Report” on the advertising platform to consolidate information, select high-performance keywords based on your business stage and operational goals (for example, mature sellers can focus on the CVR and ACOS indicators of keywords); and then select an appropriate number of keywords based on the actual budget of your advertising campaign for subsequent manual delivery.

Q3 Should the keywords added to manual advertising be negated in automatic advertising?

Not recommended to negate. There are two main reasons:

(1) Automatic and manual ads are in two different ad campaigns with separate budgets, so there won’t be a situation of competing for impressions;

(2) If the good performing keywords in the automatic ads are negated, it may affect relevance verification, impact the system’s judgment on Listing, and subsequent advertising effects.

Do you know the benefits of automatic ads?

Q4 Do you need to adjust bidding in different time periods during the day? For example, lower the bidding and budget when it is not the time for placing orders, and increase the bidding and budget when it is. Do you recommend that our bidding fluctuate by time period?

You can consider the technique of adjusting bidding by time period. If you analyze the performance report, you may find that there are peak and off-peak periods for placing orders, which have regular changes such as seasonal changes, weekly changes, and changes during different time periods of a day. Increasing the budget and raising the bidding during the peak period for placing orders, and properly lowering the bidding (note: not turning off the ad) during the off-peak period can improve the overall ACOS performance of the ad campaign to a certain extent. You can use Amazon Advertising Platform’s “budget rules” and third-party tools with time-based bidding adjustment functions that meet the qualifications.

Do you know about Amazon Advertising’s “budget rules”?

The ad space of Amazon Advertising mainly appears in three positions.

(1) Product detail page

(2) Top of search results (homepage)

(3) Other positions in search results

If you are using product promotion, you can set “adjust bidding based on ad position (replacing “bidding+”)” in the bidding strategy section of the ad campaign manager. For example, you can set a lower base bid of $0.1, and add 900% to the top of search results (homepage) (i.e. $1.0) and 200% to the product page (i.e. $0.3). As a result, because the bid for the top of search results is higher, you are more likely to get more traffic.

If you are using brand promotion, you can set “custom bidding” in the bidding strategy section of the ad campaign manager. For example, you can set a 60% reduction for ad positions outside the top of search results, in order to get more traffic to the search results page.

Q6 Should I shoot the video myself or hire a professional agency?

The use of video format advertising materials is increasingly favored by consumers, which has also attracted the attention of sellers. Excellent video materials can fully convey brand stories, increase click-through rates, and even promote consumer purchasing and repurchasing behaviors. You can refer to the official excellent material guide for lightweight self-starting and self-production, or you can hire external service providers for paid production, according to your budget.

Amazon Advertising provides you with a free video creation tool (Video Builder), where you can quickly generate creative video materials for ad delivery in a few minutes by using rich templates and simple settings, extracting images and copy from product detail pages, or uploading lifestyle images from your local device.

Q7 My advertisement has clicks but no conversions (for example, 20-30 clicks and 0 orders), how should I adjust?

If your advertising has dozens of clicks, it can basically rule out accidental factors causing no orders. Therefore, sellers need to focus on thinking about the problem of low conversion rates, which can be analyzed and optimized from the following perspectives:

(1) Is there any optimization space in your Listing?

For example, whether the main picture/video/A+/product description meets consumer demands, whether there are obvious negative reviews.

(2) Are there strong competitors’ ads on your product page?

Pay attention to the advertising space and consider positioning your own ASIN in the form of product delivery to achieve a closed loop of traffic.

(3) Is your targeting strategy reasonable?

Download advertising reports, look for high-performance keywords/ASINs, and if you still cannot get any orders, consider negating them to avoid advertising waste.

Q8 Is it only well-known big brands that can have good brand promotion advertising effects?

The effectiveness of brand promotion does not depend on whether your brand has enough popularity, but on your operational level, including your understanding of the logic of brand promotion advertising, your awareness of your own brand and products, and your definition of promotion goals.

(1) Understanding the product logic of brand promotion advertising: can reach consumers through two methods of keyword or product delivery, can attract consumers’ attention through customized pictures or videos, can reflect brand information (trademarks, slogans, etc.), and can jump to the product details page or brand flagship store. This means that using this advertising product can reach consumers in a more diverse way and get more clicks through creative materials. At this point, you need to consider whether your brand or product is ready, whether the video or picture materials are ready to attract consumers, and whether the destination, such as the brand flagship store or Listing, is ready.

(2) Understanding of own brand and products: During the process of brand promotion advertising leading to the brand flagship store or listing, the brand should confirm and display the brand information and core selling points of the products that will be presented to consumers in advance. This can effectively repeat and deepen consumers’ impressions of the brand or products, which can help improve the click-through rate and conversion of brand promotion advertising.

(3) Clarify promotion objectives: Each brand and product will have specific promotion objectives when using advertising products at different stages, such as promoting new products, popular products, clearing inventory, promoting repeat purchases, etc. When choosing brand promotion advertising, it is important to clarify the promotion objectives of the brand or product in the current stage, whether to use brand promotion advertising to achieve them, and whether to use image or video materials.

What factors will affect the actual effect of your brand promotion? You can focus on the following four aspects:

Q9 Is the advertising fee for display advertising higher?

This is a common misunderstanding among sellers. After understanding the special features of display advertising, you will understand where the problem lies. Display advertising is different from product advertising and brand advertising, and its uniqueness lies in:

If your current operational goal is to have a wider reach and more visible display volume to enhance product awareness, you can choose “optimize for visible display volume” and “vCPM” billing methods. The system will help you achieve this goal, but its traffic may have a lower click-through rate and conversion rate. Therefore, from the perspective of placing orders, it seems to have entered the misunderstanding of “higher advertising fees,” but in essence, it has gained more brand and product awareness.

Q10 When downloading reports, do you generally analyze search term reports or search term impression share reports?

The search term report and the search term impression share report are both based on analyzing the customer search terms to evaluate the effectiveness of the keywords, such as impressions, clicks, CTR, CPC, total orders within 7 days, ACOS and other information. The majority of the column headings are consistent between the two reports. The difference lies in:

Therefore, you can choose the appropriate report according to your needs for viewing and data analysis.

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