5 PPC optimization steps for higher efficiency and ROI

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When it comes to optimizing your PPC campaigns, there are multiple strategies you can run. While some yield variable results based on factors like product, category, market, and competition, others remain consistently effective. These are crucial methods that we think should be integrated into every advertising strategy to maximize reach and achieve a better return on Ad spend.

Overlooking these could potentially result in missed opportunities. In today’s email, let's delve into them in greater detail:

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1. Prioritizing Top Converting and Relevant Targets

One common mistake we see often in PPC audits, especially with a constrained budget, is it being split too thin across campaigns. While there are some high-converting keywords that are not maximizing the impressions share available. Allocating a higher budget to them could have therefore been more effective in terms of the return on Ad spend (ROAS).

Pushing your Top converting and relevant KWs first can help you get more relevant traffic, higher consideration by shoppers, and revenue.

By maximizing traffic for these keywords, you can establish a stronger presence on the Search results page, ultimately improving product ranking.

However, this doesn't imply solely targeting these keywords; it means giving them precedence. You can still target a broad spectrum of keywords that attract interested shoppers efficiently by optimizing bids based on performance. This approach helps ensure you're making the most of every opportunity.

2. Optimising for Higher Click-through-rate (CTR)

Increasing your Ad CTR results in more no. of clicks from the same number of impressions. This effectively boosts traffic to your product detail page.

Moreover, a better CTR can also help your Ad win the auction with a lower CPC as Amazon values relevancy.

How to improve it? These 4 simple steps can help:

i. Main Image, Title, and Price: These are the key product attributes shoppers see before they click. Split testing is a great way to find out which version attracts more clicks.

ii. Custom Images on SB and SD: Using custom creatives for SB and SD is a great way to get more attention. Both Ad types support video creativity as well. We’ve observed on average a 3-8x higher CTR on video ads.

iii. Optimizing for top placements on page 1: We observe a 2-6x higher on the Top of search placements Ads. Finding out your top KWs and optimizing for TOS is a useful strategy, that eventually helps improve product ranking and organic sales.

iv. Target relevancy: The higher your Ad relevancy, the better the CTR. While it’s worthwhile running broadly targeted campaigns to maximize reach, it’s also useful to analyze search term reports and set up exact match campaigns for focused reach.

3. Setting up connected campaigns

How do your Ad campaigns interact in your Ad portfolio? Are different campaigns targeting the same keyword or products twice or thrice or more? Are you negating irrelevant keywords in one campaign but still targeting in another? Are less-converting campaigns spending more or as much as some high-converting campaigns? If the answer to any of these is yes, then your Ad portfolio needs a better structure.

For example, we set up multiple campaigns for keyword targeting that are connected in the form of a flow. At a high level, it involves 4 levels:

A. Keyword research campaigns

Campaigns to test the initial list of keywords' relevancy and the likelihood of their performance.

B. Testing and Harvesting campaigns

A. Testing the initial list of KWs that are deemed relevant but not sure of the conversion, with an Exact match

B. Harvesting new keywords. There could be various different ways shoppers could express their needs, not 100% captured in the initial KW research. The harvesting KWs are a mix of different key terms, targeted using broad & phrase match.

C. Learning and implementing in other campaigns

Looking at KWs performance regularly to identify negative targeting (to be added into harvesting or broad campaigns) as well as high-converting keywords to be added to the next set of campaigns.

D. Segregated keyword categories & performance based campaigns

Combined, these constitute a connected campaign flow. We use this flow for effective keyword targeting. In the same manner, you could set up connected campaigns for different strategies. For example, the popular funnel strategy.

4. Defensive and Cross-Promotion Campaigns

With ads getting an increasing number of placements on search results and detail pages, it’s essential to run defensive and cross-promotion campaigns.

This strategy helps in numerous ways. It enables capturing more real estate on the PDP, preventing competitor product ads, and helps drive more awareness by showcasing different products from the brand and cross-promote. Overall, it helps to display a stronger brand presence.

These campaigns are quite low maintenance but effectively save conversion and drive more sales. The bigger the product portfolio the more effective is this strategy.

Additionally, the current defensive strategy should not be limited to the traditional Sponsored Display Ads. You could also consider including SD Video Ads, SB Video Ads, and SP Ads. These are the different Ad types that commonly appear.

5. Comprehensive reporting for a full picture

If you’re only looking at the Sponsored Ads numbers, you could be missing important pieces of the puzzle. Ad metrics only provide a glimpse into the overall performance. To truly understand the impact of your advertising efforts, it's crucial to broaden the perspective and incorporate a comprehensive view that encompasses both Sponsored Ads and account-level data. Take this case study for example:

In two months, our Ad spend doubled, leading to a twofold increase in Ad sales. However, the ACOS remained stagnant at 50%, suggesting a lack of profitability. But, let's take a broader look at the entire account context:

• TACOS actually decreased from an average of 34% to 28%,

• Organic sales nearly tripled (2.8x), and orders rose by 1.4x.

• In essence, the brand achieved an additional 2.3k monthly sales while becoming more profitable.

If a lower ACOS can't deliver these outcomes, then a 50% ACOS proves better. The overall reporting helps to uncover this and make more informed and effective decisions.

Other learnings:

1. Sponsored Product Ads are now appearing on off-Amazon websites. Amazon unveiled a new phase in Sponsored Products, extending campaigns to premium apps and websites including Pinterest, BuzzFeed, Lifehacker, and Mashable. [Read more].

2. Looping slideshow in SB ads. Amazon makes SB ads more engaging with the new feature to add multiple custom images. These images are presented in a looping slideshow format. [Read more].

3. Sponsored Brands Outcome-Based Campaigns. Amazon is releasing new outcome-based campaigns to “Drive Page Visits” and “Grow Brand Impressions Share”. [Read more].

4. The new Translations tab is available under Creative Tools. It features Amazon's in-house Translation services for videos and content, available for Free in most accounts as part of a limited-time offer. [Read more].

Thanks,

George

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