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31. May 2018

How to structure your Amazon PPC Campaigns effectively? Our Strategy in 2018!

In this post we want to share our strategy on how to set up corresponding Amazon PPC campaigns and how to manage the keywords and negative keywords afterwards. Please make sure you have optimized your listing and did a wide keyword research before you start with the PPC. The PPC management is one of the last but recurring steps within your ecommerce business.

Find the right balance

The goal is to find a structure that is easy to set up but also easy to manage in future. You have to find the balance between quality through precision data and evaluation speed. We recommend this setup if your PPC sales for a product are at least 30 per month. What works best for us is the set up of three campaigns per product: one AUTO campaign and two MANUAL campaigns. One of the MANUAL includes an ad group with broad or phrase match type keywords and the other includes keywords with exact match type. The decision between broad and phrase match type is based on the level of your keyword research. If you did this well you can start with phrase, if not start with broad. We recommend to start with broad match.

Why you should not use only one MANUAL campaign

The advantage of two manual campaigns exists within the control of your campaign’s budget. Since you cannot handle this on ad group level you should separate the high bidding exact campaign from the medium bidding broad campaign. Otherwise it might happen that amazon sucks your daily budget within a few hours for your high bidding keywords and your broad campaign is not delivered anymore.

How to set the default bid?

The amount of your start bids depend on your budget and the time you have. If you have the budget and you want fast results start with high bids. If you have time and a smaller budget you should start with low default bids e.g. in AUTO with USD 0.23, in broad USD 0.66 and in exact USD 0.87. Do not use USD 1.00 or USD 0.50 since those are the most common bids. Don’t use Bid+ since this influences your avg. CPC.

The importance of negative keywords

Negative keywords exist as exact and phrase match type. Those generally make sure, that you do not appear for search terms that do not fit to your product or audience. Generally you should make sure to set the exact keywords in the other manual campaign as negative exact keywords. This allows you to precisely control your bid for a keyword but DON’T set the manual keywords as negative in the AUTO campaign from the beginning on.

Why you should not set all manual keywords as negative within an AUTO campaign!

One of the main goals of an AUTO campaign is to show up on competitors product detail pages. You can identify your appearance by checking your search term reports. There you find all the ASINs starting with “B0..” where your ad was shown. BUT: The visitors came to the specific ASIN through a search term. Please try that for yourself. Go to amazon after you read this article and enter a search term. Then check the ASINs showing up on the product detail pages for products from the 1st, 3rd, 5th or 10th page. You will realize that they are almost exactly the same. As soon as you set this search term as negative your ad will not be shown anymore on those listings for that search term.

Should I use negative keywords in my AUTO campaign?

Yes, you should! If a search term does not perform well and you have got statistical certainty (check how many clicks you should wait over here) then you may add the keyword as negative. Since you cannot set an ASIN as negative you can check special attitudes of the bad performing ASIN and put identifiers like the brand name as negative. In addition we always recommend to add the keyword you set as negative as a positive keyword as well with a bid that is much lower than the current one.

Why should I add bad performing search terms to a manual campaign?

Even though your search term did not perform as you wanted it to perform your bid might be just too high. If your current CPC is USD 0,50 and you did not generate a sale after 20 clicks and your ACoS would be above your Break-Even ACoS you should change something. If you set the search term as negative you will not get any sale via this search term but imagine if you add it as an exact keyword with a bid that leads to a CPC of just USD 0,25. Now you can receive double the clicks where it is much more likely generating a sale by having the same cost as before.

How BidX can support you!

With BidX you can save valuable time by setting up Corresponding Ad Groups automatically for each SKU and Country. Based on a target value BidX manages bids, keywords and negative keywords for you. Once this is set up you should activate our SYNC feature which makes sure that all existing and new manual added keywords are set as negative in the corresponding manual ad groups. Soon we will enabling the aggregation of performance data between product groups. This brings the low cost of putting all variation for an ASIN in one ad group by still getting all insights which SKU performs the best. BidX makes sure to only adjust keywords based on validated data. Through Amazon’s Advertising API we automatically pull new performance data and it is possible to check the performance for each single keyword and search term in a specific date range to make sure you don’t waste any money. We check all your requirements daily and adjusts the bids for you until you hit your target CPC and ACoS. BidX is the world’s first tool which allows you to automatically adjust the bids and manage corresponding keywords for Sponsored Product Ads.

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