Amazon PPC Strategies – The Ultimate Guide for 2020

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Real talk time: If you want to be successful on Amazon in 2020 and beyond, you need to have a good Amazon PPC management strategy. 

Amazon Pay-per-Click (PPC) is Amazon’s internal advertising system. Through Amazon PPC, professional sellers can create advertisements for their products which show up for certain keywords in Amazon’s search results and competitor product listings. 

Here’s what this detailed article will cover:

What is Amazon PPC?

Amazon PPC is the advertising platform Amazon makes available to its third-party sellers. It allows sellers to create ad campaigns for their products, and then charges them each time a potential customer clicks and views their ad.

Before we get into the details of PPC though, it’s important to understand Amazon’s key PPC metrics. This is how Amazon describes each one:

  • Advertising Cost of Sales (ACoS): The percent of attributed sales spent on advertising. This is calculated by dividing total ad spend by attributed sales. For example, if you spent $4 on advertising resulting in attributed sales of $20, your ACoS would be 20% (ie. $4/$20 = 0.20).
  • Attributed Sales: The total product sales generated within one week of clicks on your ads. Your sales data can take up to 48 hours to populate so, as a result, sales data is not available in the ‘Today’ date range and may be delayed to the ‘Yesterday’ date range. You can view the individual sales totals for advertised products and other products in the Campaign Performance report.
  • Impressions: The number of times your ads were displayed. Once identified, it may take up to three days to remove invalid clicks from your reports. Clicks from the last three days may be adjusted due to click invalidation.
  • Clicks: The number of times your ads were clicked. Once identified, it may take up to 3 days to remove invalid clicks from your reports. Clicks from the last three days may be adjusted due to click invalidation.

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Why is PPC important for Amazon sellers

The easiest way to get your products noticed on Amazon is through Amazon Pay-per-Click (PPC) ads. After all, there are close to 120 million products on Amazon, and you don’t want your listings to get lost in the noise. 

And while your organic ranking — the place where your product appears in search results naturally — is important, advertisements help increase your product’s reach on the platform.

If created and managed properly, an Amazon Pay-Per-Click (PPC) campaign on Amazon can help you sell more inventory, sell it at a faster rate, and increase your organic ranking.

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How to create an Amazon PPC strategy

While each section of this article offers a detailed overview of Amazon PPC and the individual strategies for each, here are the basics of a good Amazon PPC management strategy.

  1. Test out each type of PPC ad campaign, especially automatic and manual.
  2. Perform detailed keyword research using Jungle Scout’s Keyword Scout, focusing both on related keywords and competitor products.
  3. When starting out, set daily budgets and default bids 150-200% higher than what Amazon recommends.
  4. Let ad campaigns run for one week before running reports and making adjustments.
  5. Use ad reports from your automatic campaigns to find keywords for your manual campaigns.
  6. Before adjusting or removing a keyword from a manual campaign, make sure the keyword gets at least 10 clicks.
  7. Continue reviewing your ad reports once a week, subtracting, adding, and adjusting keywords as needed.

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Choosing which type of Amazon PPC ad is right for your business

When starting out, we recommend that you try each one of the ads available to you — especially automatic-targeting ads and manually-targeting sponsored product ads.

These two ad types help you get the best picture of what sorts of keywords and search terms you should target on Amazon. 

Plus, by trying out all of the different ad types, you can find out which ones work for you and which ones don’t. Then, once you have enough data, you can remove ads that aren’t working while boosting those that are performing well.

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Types of Amazon PPC ads

1. Sponsored product ads

Amazon PPC: listing for a sword

 

Sponsored product ads are the advertisements on Amazon that appear in search results and product listing pages. This is the most common type of Amazon PPC ad. 

 

When creating sponsored product ads, there are two types of ads that a seller can create.

  1. Automatic-targeting ads. An automatic-targeting ad focuses on keywords that Amazon’s algorithm determines to be related to your product listing. Over time, Amazon uses the data it collects from clicks and purchases, then adjusts the ads to better suit your listing and increase your conversions.. This is the easiest type of sponsored product ad to create. The downside is that it lacks the optimization options that other ad types possess.
  2. Manual-targeting ads. A manual-targeting ad focuses on specified keywords or like-products of your choosing. Because this is more “hands-on”, you’ll need to monitor changes in costs and make adjustments where applicable. This optimization often results in more effective ads and lower long-term ad spend.

Within manual-targeting ads, there are two sub-types:

  1. Manual-keyword-targeting sponsored product ads
  2. Manual-product-targeting sponsored product ads.

We go into greater detail on these two sub-types later in this article.

2. Sponsored brand ads

Sponsored brand ads, sometimes called ‘headline search ads’, appear at the top of Amazon searches. A sponsored brand ad allows a seller to include a logo, headline, and three or more products. To use sponsored brand ads, a seller must have a minimum of three brand-registered products on Amazon.

3. Sponsored display ads

 

Sponsored display ads allow sellers to target shoppers who’ve already visited their page. Amazon automatically creates ads targeting those customers on its affiliate sites, including Google, Facebook, Netflix, and even mobile phone apps. Like sponsored brand ads, a seller must have a registered brand in order to utilize sponsored display ads.

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The ultimate guide to creating every type of Amazon PPC ad

HOW TO CREATE AUTOMATIC-TARGETING SPONSORED PRODUCT ADS

How to create an automatic-targeting sponsored product ad

1 – Log in to Amazon Seller Central and select Advertising > Campaign Manager.

Amazon PPC: seller central

 

2 – Scroll below the graphs and click on the yellow “Create campaign” button

 

3 – Choose the gray sponsored products ad “Create” button
4 – Next, fill in the information on the Settings section of the Create campaign page

 

Campaign name
Choose a name for your campaign. The name can be anything that helps you remember the purpose of the campaign. We recommend naming your campaign after the product, and then using the Ad Group name with the campaign type and product’s variations, if any (see below).

Date
Select the start and end date for your campaign. If you want your campaign to run indefinitely, leave the end date field blank.

Daily budget
Amazon allows you to set the maximum amount of money you want to spend on ads per day. According to Amazon, if your ad spend comes in under the set amount at the end of a day, the leftover amount can be used to increase ads by 10% on a later date in the same month.

Note: When starting out, we recommend setting your daily budget to $25 or more. Most of your costs per click (aka. pay per click) will be between $0.50 to $1.50. If you set your daily budget for $10, that means your budget will quickly run out. 

Also, ad costs are charged either a) when you reach $500 in total ads or b) at the first of the month.

The cost for your ads are taken directly from your account balance, and if you don’t have enough funds in your account to cover the cost of your ads, Amazon charges the credit card you put on file at the time of registration.

Targeting

Choose “automatic” for an automatic-targeting sponsored product ad.

5 – Choose your campaign bidding strategy

There are three types of campaign-bidding strategies for automatic-targeting sponsored product ads.

Dynamic bids – down only
Amazon lowers bids in real time when you’re less likely to make a sale. This prevents your ad from showing up on irrelevant product searches.

Dynamic bids – up and down
In addition to lowering your bid as a ‘down only’ bid would, if your automatic-targeting sponsored product is more likely to convert, Amazon will increase the price of your bid by 10%.

Fixed bids
You set your bid and Amazon does not change it – unless you choose to adjust it.

Tip: When starting out, we recommend that you choose ‘Dynamic bids – up and down’ to maximize your chance at earning a sale on Amazon.

6 – Create an ad group

Amazon PPC: creating an ad group

 

On the same ‘Create campaign’ page, enter the following information:

Ad group name
Your ad group name represents the products sharing the same bids and budget. Again, the name can be anything, but ideally it should help you remember the purpose of the ad group. We recommend that you name your ad group after the type of campaign (automatic or manual), plus the product’s variation. 

Naming example: 

  • Campaign name: bamboo skewers
  • Ad group: automatic – 50-pack

Products
Select the products that you wish to advertise. We recommend selecting only one product per ad group when you are starting out. 

Remember: In order for a product to be eligible for sponsored ads, your listing of the product must be eligible for the product listing’s Buy Box.

7 – Set your bids

There are two ways to set bids for automatic-targeting sponsored product ads:

Set default bid
If you wish to make things easy for yourself, you can set a default bid for all types of matches. Amazon suggests $0.75 to start, regardless of the product. However, we recommend bidding a little more aggressively when you’re first starting out (bidding as high as $1.50 to $2.00) to ensure early sales.

Set bids by targeting group
For more advanced automatic-targeting, you can select bids by targeting group, placing different amounts for each strategy.

The four types of automatic-targeting bid strategies are:

  • Close match. This shows your sponsored product ad to those who use search terms closely related to your products. For example, if your product is a “black, 48-inch broadsword”, your product would show up in searches for “black broadsword” or “48-inch broadsword”.
  • Loose match. This shows your sponsored product ad to those who use search terms loosely related to your products. For example, if your product is a “black, 48-inch broadsword”, your product would show up in searches for “sword” or “medieval weapon.”
  • Substitutes. This shows your sponsored product ad to shoppers who view detail pages of products similar to yours. For example, if your product is a “black, 48-inch broadsword”, your product would show up on detail pages for “silver, 48-inch broadsword” or “black, 52-inch broadsword.”
  • Complements. This shows your sponsored product ad to shoppers who view detail pages of products that complement yours. For example, if your product is a “black, 48-inch broadsword”, your product would show up on detail pages for “large, steel shield” or “leather sheath for sword.”

You can set different values for each of the bid strategies. Amazon makes recommendations for these bids based on similar sellers’ bid amounts.

8 – Optional: add negative targeting keywords

 

If you don’t want your product to show up in certain keyword searches, you can add those keywords to the automatic-targeting list. When starting out, we recommend that you leave the list blank.

Later, we’ll show you how to add in poor and high performing words to this list.

9 – Launch campaign

Be sure to double check all of your information. Then, once you’re ready, click the yellow ‘Launch campaign’ button at the bottom of the page. You can also save your draft if you need to come back to the listing later. 

It usually takes 30 minutes to an hour for your ad to premiere on Amazon.

HOW TO OPTIMIZE AUTOMATIC-TARGETING SPONSORED PRODUCT ADS

How to optimize automatic-targeting sponsored product ads

Once you’ve had your automatic-targeting sponsored product ad running for at least a week, you’ll want to review the data and make any necessary changes.

1 – Return to your automatic campaign

Return to Seller Central > Advertising > Campaign manager. Scroll down below the graphs and find the advertising campaign you wish to adjust. Then, select the ad group you wish to optimize.

Amazon PPC: automatic campaigns

 

2 – Review the data

In your ad group, you have information you can instantly review to help you get a snapshot of how well your automatic-targeting sponsored product ad is performing.

  1. Spend. This is the amount you’ve spent on advertising for this specific campaign in the specified date range (in the case above, the last 30-days).
  2. Sales. This is the total sales you’ve made for the product, related directly to the sponsored product ad campaign in the specified date range. This value does not include organic sales or sales made using other ad campaigns related to the product.
  3. ACoS (Advertising Cost of Sales). This percentage comes from your ad spend divided by your direct sales for the campaign. 
  4. Impressions. This is the number of times shoppers saw your ad in the specified date range.
  5. Add metric. You can add additional metrics to the above graph, including: Clicks, Cost-per-click (CPC), Clickthrough rate (CTR), and Orders.
  6. Itemized product list. All of the products that are a part of the ad group are listed at the bottom of the page. Each itemized product listing has its own selection of columns showing metrics for the selected date range.
  7. Columns. Similar to the Add metric feature, you can add additional columns to your item lines. You can add Impressions, Clicks, Clickthrough rate (CTR), Cost-per-click (CPC). You can also reset the columns to default.
  8. Date range. You can change the dates to show different periods of time. The options are: 
  9. Export. If you wish to save the data for your ad group, you can export the information into a downloadable CSV.
  10. Additional options. At the top of the graph are the following options:
    • Targeting. Automatic targeting focuses on keywords and search terms selected by Amazon. As such, there are no adjustments to be made. However, you can use this screen to download a report of the customer search terms and keywords that resulted in a sale.
    • Negative targeting. Any keywords that you specifically do not want Amazon to target show up on this list. You can remove or add new negative keywords as needed.
    • Search terms. All of the keywords that Amazon targeted for your ad, and that customers clicked on, are displayed here. Like the other graphs and lists, this information is customizable.

 

    • Ad group settings. Here, you can change the group name and your default bids.
    • History. Any changes you’ve made to the respective campaign within the specified date range are shown here.
    • Advertising reports. To view a full list of the search terms and keyword phrases customers clicked on within your campaign, run an advertising report. It takes approximately 30 minutes for Amazon to create your advertising report. Then, once the report is created, it appears under this tab.
3 – Create an advertising report

After you’ve had a chance to review the broad data for your automatic-targeting sponsored ad, run an advertising report. The advertising report creates an .xlxs (Excel spreadsheet) with data from all of your advertising campaigns.

Amazon PPC: reporting settings

 

  1. Select ‘Sponsored products’
  2. Create a ‘Search term’ report type
  3. Select ‘Summary’
  4. Run a report for the last month (or any time that’s relevant to your campaign)
  5. Name your campaign
  6. Deliver your campaign whenever it works best for you
  7. Click the yellow ‘Run’ report button.
  8. Go to ‘History’
  9. Download your report and open it
4 – Review your advertising report

 

The advertising report has a lot of important data about the keywords and search terms Amazon customers used in relation to your automatic-targeting sponsored product ad. 

Focus on the following columns:

  • Customer search term. This is the exact term that an Amazon customer used to find your product.
  • Total advertising cost of sales (ACoS). Your ACoS is the percentage of the total sales made, related to the keyword spent on ads. 
  • 7-day conversion rate. Your conversion rate is the number of sales made with seven days, divided by the number of impressions your sponsored product ad received in the same time frame.
5 – Create a list of poor performing keywords

Look for keywords on your search term report that are performing poorly. We recommend selecting keywords that have had more than 10 clicks, and a high ACoS or low 7-day conversion rate. 

To determine your ACoS threshold, consider the profit margin made on your product after fees and costs of goods sold are deducted.

If your ACoS is less than the profit margin, then it is a good ACoS. But if the ACoS for that keyword is higher than your profit margin, you may wish to place the keyword into the negative-targeting keyword list for your automatic-targeting product ad group.

We aim for conversion rates around 10% for products priced between $18-$25. For higher priced products, you might consider a lower conversion rate.

Once you know which words are performing poorly, create a list. Then, add those keywords to the negative-targeting keywords tab under the ad group.

 

Once added to the negative targeting keywords list, Amazon will not display your automatic-targeting product ad in searches for that keyword.

6 – Create a list of high-performing keywords

Using the same report, look for high-performing keywords. A high-performing keyword is any keyword that has at least 10 clicks and is at or below your threshold for ACoS or conversion rates.

Once you have your list of high-performing keywords, add those keywords to your existing manual-targeting sponsored product ads related to that product (we detail how to do this below). 

In addition, add the keywords to your negative targeting keyword list. You don’t want to have your under-optimized automatic-targeting sponsored ad campaign targeting the same words as your manual campaigns.

7 – Continue to run your automatic-targeting sponsored ad

After optimizing your automatic-targeting sponsored ad, continue to run it for another week. At the end of the second week, repeat the same process.

As the ad matures, you’ll continue to find more useful keywords for you to add to your manual-targeting sponsored ad campaigns.

HOW TO PERFORM KEYWORD RESEARCH FOR MANUAL-TARGETING SPONSORED PRODUCT ADS USING KEYWORD SCOUT

Manual-targeting sponsored product ads

Before you launch your first manual-targeting sponsored product ad, you’ll need to perform keyword research.

How to perform keyword research for manual-targeting sponsored product ads using Keyword Scout

1 – Log onto Jungle Scout — an all-in-one platform for selling on Amazon — and select Keywords > Keyword Scout

 

2 – Perform a search in Keyword Scout

There are two ways to search for relevant keywords using Keyword Scout. 

First, you can perform a search using a related keyword. 

Amazon PPC: keyword Scout

 

The second type of keyword search you can perform is called a ‘Reverse ASIN lookup.’

With this type of search, you enter the ASIN of one of your competitor’s products. Then, Keyword Scout reveals the keywords for which your competitor’s product is ranking.

 

You can review the data for each of the keywords Keyword Scout suggests, including:

  • 30-Day search Volume (Exact). This is the number of times Amazon shoppers entered the exact term while performing a search on Amazon.
  • 30-Day Trend. This is the increase in searches for a particular search term over the last 30 days, compared to the previous 30-day period.
  • 30-Day Search Volume (Broad). This is the number of times Amazon shoppers entered search terms closely related to the given search term while performing a search on Amazon.
  • Dominant Category. This is the category in which the search term appears the most often.
  • Recommended Promotions. When creating promotions for newly launched products, this is the number of discounted products or coupons we recommend giving away per day.
  • HSA Bids. This is the average bid current sellers are using to make their sponsored brand ads appear at the top of Amazon searches related to the respective keyword.
  • PPC Bid (Exact). This is the average bid current sellers are using to make their sponsored product ads appear at the top of Amazon searches using the exact keyword.
  • PPC Bid (Broad). This is the average bid current sellers are using to make their sponsored product ads appear at the top of Amazon searches using closely related keywords.
3 – Create a keyword list

Click the ‘download CSV’ button at the right side of Keyword Scout, above the keyword list. This creates a spreadsheet where you can organize the data according to your needs.

When you create a manual-targeting sponsored product ad, you can cut and paste directly from this list.

Tip: Use multiple keyword suggestions and ASINs to build a large list of relevant keywords for your products. The more keywords, the better!

HOW TO CREATE MANUAL-TARGETING SPONSORED PRODUCT ADS

How to create manual-targeting sponsored product ads (keyword targeting)

1 – Create a new ad campaign

Repeat steps 1 – 6 described in “How to create automatic-targeting sponsored product ads”, but choose ‘Manual’ for in the Targeting section instead of ‘Automatic’.

2 – Set targeting

Within manual, there are two types of targeting strategy: keyword targeting and product targeting. For this ad, select keyword targeting.

Keyword targeting
With this strategy, you bid on keywords to give your product a higher position in relevant Amazon searches.

Product targeting
With this strategy, you bid on categories, or related individual products, to grant your product a position within competitor detail pages or in relevant Amazon searches.

3 – Add keywords to your manual-targeting sponsored product campaign

 

There are three ways in which you can add keywords to your keyword-targeting sponsored product ad campaigns.

Related
Amazon suggests keywords for you related to your product. You can add all of the keywords at the same time or you can add them “a la cart”. Plus, you can differentiate the Match type for each of the keywords.

Be sure to review the words and remove any that you feel are unrelated.

Enter list
You choose and enter your keywords. This is where you place the keywords that you generated with Jungle Scout’s Keyword Scout.

Upload file
Here, you can create a .CSV (spreadsheet) file and upload all of your keywords automatically. Amazon offers a downloadable template to use for this method.

4 – Adjust starting bids for your keywords

Amazon PPC: adjusting bids

 

After you add keywords into the keyword-targeting window, Amazon displays the keywords in the right column with the chosen match types and suggested bids.

You can adjust the bids as you see fit.

When starting out, we recommend adjusting your bids up in order to capture more early sales, as Amazon’s suggested bids tend to be somewhat conservative. 

Note: Keep your daily budget in mind when setting bids. If you have a lot of keywords with bids of $1.00 or higher, that means that once you get 9-10 clicks on your sponsored product ads, your ads will no longer show because you’ll have run out of budget.

5 – Launch campaign

Be sure to double check all of your information. Then, once you’re ready, click the yellow ‘Launch campaign’ button at the bottom of the page. You can also save your draft if you need to come back to the listing later on. 

It usually takes 30 minutes to an hour for your ad to premiere on Amazon.

HOW TO CREATE PRODUCT-TARGETING MANUAL-TARGETING SPONSORED PRODUCT ADS

How to create product-targeting manual-targeting sponsored product ads

1 – Create a new ad campaign

Repeat steps 1-2 described in “How to create keyword-targeting manual-targeting sponsored product ads”, but choose ‘Product targeting’ in the Targeting section.

2 – Input default bid 

Set your default bid for you product-targeting manual-targeting sponsored product ad campaign.

Tip: When starting out, set your bids to $1.50 or more to encourage sales. Amazon’s suggested default bids are often conservative.

3 – Target categories

If you’re targeting categories for your product-targeting ad, you can use the ones Amazon suggests or you can search for your own.

4 – Target individual products

 

In the same ad group, you can target individual products as well. Select one or more products in Amazon’s catalog that you feel are related to your product.

5 – Review the categories and individual products at the bottom of the page

Amazon PPC: individual products and categories

 

After you’ve selected categories and individual products to target, you can review the information. Amazon offers suggested bids which you can match, or you can set your own bids if you them to be higher or lower than the default bid.

6 – Launch campaign

Be sure to double check all of your information. Then, once you’re ready, click the yellow ‘Launch campaign’ at the bottom of the page. You can also save your draft if you need to come back to the listing later. 

It usually takes 30 minutes to an hour for your ad to premiere on Amazon.

HOW TO OPTIMIZE MANUAL-TARGETING PRODUCT ADS

How to optimize manual-targeting product ads

1 – Run an advertising report

Repeat steps 1-2 detailed in the section “How to optimize automatic-targeting product ads.” Then, click on the Targeting tab.

 

2 – Review your keyword performance

Scroll below the graph. There, you can review how well each of the keywords in your manual-targeting campaign sponsored product ad are performing.

 

Similar to automatic-targeting campaigns, look for keywords with at least 10 clicks, and that have an ACoS higher than your threshold. 

We recommend the following strategy:

  • If your ACoS is greater than 100%, mark the keyword inactive. The keyword may not be relevant or may be too competitive.
  • If your ACoS is above your threshold but not too high, adjust the bid for the keyword down.
  • If your keyword doesn’t have any impressions or clicks, consider adjusting the bid for your keyword up.
3 – Add in any newly discovered keywords

Repeat the keyword research process described above, using Jungle Scout’s Keyword Scout, to find new keywords. In addition, add any new keywords you discovered after running a report for your automatic-targeting search term report.

Note: If you add a keyword to a manual-targeting ad that already exists on the list, Amazon will automatically remove the new keyword so you don’t end up adding it twice.

4 – Add poorly performing keywords to your negative keywords

Any poorly performing keywords you discovered during your manual-targeted keyword campaign can be added to your negative keyword-targeting list. This will prevent Amazon (and you) from advertising for those keywords for that particular campaign.

HOW TO CREATE SPONSORED BRAND ADS

How to create sponsored brand ads

1 – Log in to Amazon Seller Central and select Advertising > Campaign Manager.
2 – Scroll below the graphs and click on the yellow ‘Create campaign’ button.
3 – Choose the gray sponsored brand ad ‘Create’ button.

Amazon PPC: sponsored brand ads

 

4 – Fill in the information on the Settings section of the Create campaign page.

 

Campaign name
Choose a name for your campaign (anything you want) that helps you remember the purpose of the campaign. We recommend naming your campaign after the product and then using the ad group name as the type of campaign and product’s variation (see below).

Date
Select the start and end date for your campaign. If you want your campaign to run indefinitely, leave the end-date field blank.

Daily budget
Amazon allows you to set the maximum amount of money you wish to spend on ads in one day. According to Amazon, if your ad spend comes in under the set amount, the amount can be used to increase ads by 10% on a later date in the same month.

Note: When starting out, we recommend setting your daily budget to $25 or more. Most of your costs per click will be between $0.50 to $1.50, so if you set your daily budget for $10, that means your budget will quickly run out. 

Also, ad costs are charged either a) when you reach $500 in total ads or b) at the first of the month. The cost for your ads are taken directly from your account balance, but if you don’t have enough in your account to cover the cost of your ads, Amazon will charge the credit card you put on file at the time of registration.

Landing page
Amazon offers two choices for where shoppers land when they click on your sponsored brand advertisement.

  • Amazon Store. If you’ve created an Amazon storefront, your advertisement can direct customers to the store.
  • New product list page. Alternatively, Amazon can automatically create a page listing all of the products represented by your sponsored brand ad.
5 – Select the products for your ad

You must select three or more products to show up in the sponsored brand ad. If you selected ‘new product list page’ for your landing page, these are the products that will show up on your landing page as well.

 

6 – Edit the appearance of your sponsored brand ad

Amazon allows you to add details to your sponsored brand ad.

Amazon PPC: editing ads

 

Logo
You can add your brand’s logo, which will appear on the far right side of your ad.

Headline
You can add a short 50-character headline. The headline must follow Amazon’s guidelines:

  • No typos, misspellings, and/or grammar mistakes.
  • Avoid excessive punctuation such as “!!!” or “?!”
  • Avoid random punctuation such as “Your. headline.”
  • Avoid extra spacing such as “Y o u r h e a d l i n e.”
  • Sentence case is recommended.

In addition, Amazon will reject any headlines that boast sales numbers, best-seller ranking status, etc.

Custom image
Amazon allows you to add a custom image of your product. 

Reorder products
You can arrange the order in which your products appear on the list.

Optimize your ad
Optionally, you can allow Amazon to add products to your Amazon sponsored brand ad if those products are relevant to a search.

7 – Target keywords or products

Finally, after you’ve adjusted the settings for your sponsored brand ad campaign, you can select targeting for keywords or for products. This process is the exact same as it is for manual-targeting keywords.

8 – Launch campaign

Be sure to double check all of your information. Then, once you’re ready, click the yellow ‘Launch campaign’ at the bottom of the page. You can also save your draft if you need to come back to the listing later. 

It usually takes 30 minutes to an hour for your ad to premiere on Amazon.

9 – Optimize your sponsored brand ads

Once you’ve allowed your sponsored brand ad to run for seven days or longer, review the data and adjust your bids accordingly. This process is the exact same as it is for manual-targeting keywords.

HOW TO CREATE SPONSORED DISPLAY ADS

How to create sponsored display ads

1 – Log in to Amazon Seller Central and select Advertising > Campaign Manager.

 

2 – Scroll below the graphs and click on the yellow ‘Create campaign’ button

 

3 – Choose the gray sponsored display ad ‘Create’ button

Amazon PPC: choose campaign type

 

4 – Fill in the information on the Settings section of the Create campaign page

 

Campaign name
Choose a name for your campaign (anything you want) that helps you remember the purpose of the campaign. We recommend naming your campaign after the product and then using the ad group name as the type of campaign and product’s variation (see below).

Date
Select the start and end date for your campaign. If you want your campaign to run indefinitely, leave the end-date field blank.

Daily budget
Amazon allows you to set the maximum amount of money you wish to spend on ads in one day. According to Amazon, if your ad spend comes in under the set amount, the amount can be used to increase ads by 10% on a later date in the same month.

5 – Create an ad group

 

Set the name for your ad group. Audience is automatically set to views, which creates re-marketing ads for customers who’ve already viewed detailed pages of your advertised products or similar products.

6 – Choose the products for your campaign

 

Whichever products you would like Amazon to re-market off-Amazon on your behalf, select them here.

7 – Set your bid

 

Set your cost-per-click bid. Amazon will adjust bids up when they’re more likely to convert to a sale, and adjust them down when they’re less likely to convert to a bid.

All of this is done without exceeding the daily budget you fixed in settings.

8 – Launch your campaign

Be sure to double check all of your information. Then, once you’re ready, click the yellow ‘Launch campaign’ at the bottom of the page. You can also save your draft if you need to come back to the listing later. 

It usually takes 30 minutes to an hour for your ad to premiere on Amazon.

Note: This method of advertising on Amazon is still relatively new. As such, we do not have strategies around optimizing sponsored display ads yet.

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If you have any Amazon PPC tips and tactics that have worked for you, please share them in the comments. We’d love to hear them!

 

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38 comments on “Amazon PPC Strategies – The Ultimate Guide for 2020

  1. I’d be interested to see whether there was a significant difference in conversion rates between manual targeted ads and automatically targeted ads. In my experience as a consumer, Amazon’s algorithm is pretty woeful at determining what ads I’d like to see!

  2. This is a great guide, thank you!
    Related question, do you know how I can get my book included in those ubiquitous Amazon email ads? Many thanks!

  3. Hi Dave,

    When you say “Tip: Use multiple keyword suggestions and ASINs to build a large list of relevant keywords for your products. The more keywords, the better!”.
    Do you mean multiple different searches with single keyword/asin as the input, or search with multiple keywords/asins as the input?
    Thanks,

  4. When I started to sell products on amazon I am not ready yet so that’s why I’m failed in the first trial. After that I decided to stop selling products on Amazon because I feel I can’t survive which is a piece of bad news. But then I do not stop doing research on how I can find a solution, I am trying to use uberssugest to find related keywords that can help me to find a better and resourceful site. So, this is it now I’m landing at my desire site which is good and luck for me to read more about this site. Also, I have a new one source before this I called it Sophie Howard Reviews which is a good combination with this article. Thank you…thank you for who posted and owner of this site. I really…really like your contents and it’s nature. A good day!!

  5. Hi Dave,

    Enjoyed your blog. Good points and clearly written. I use Amazon Ads for my books, but I have a problem I can’t find an answer to. Can you help please? I want to delete non-performing keywords from my campaign to leave room for adding in new keywords within the 1000 total keywords allowed. I’ve archived the non-performing keywords, but they still seem to be included in the total number of keywords (albeit greyed out). How do I delete these archived keywords so that they don’t get included in the total number? I want to retain the click history of this campaign. If I open a new campaign, my click history, with all its advantages for future targeting, will be reset to zero. Would much appreciate your advice. Thanks.
    James H

    1. Hi James,

      Glad you liked the article. We’re actually in the process of updating it, too, so keep an eye out for that. My recommendation would be to potentially start a new campaign using the keywords that you know are successful and remove the previous campaign. While you won’t have the data, at least you’ll be able to add keywords.

  6. I was recommended this blog through my cousin. I am no longer
    positive whether this submit is written through him
    as no one else understand such specified approximately my trouble.
    You are amazing! Thanks!

  7. we need your suggestion on our Amazon CPC. It is better we send you our download excel file. You study it and give us suggestion. If you can help, we will be able to work togethr

    1. Hi Chao,

      At this time, we don’t provide one on one consultation services to our customers/other sellers. But we do provide a platform of freelancers who specialize in CPC and other areas of Amazon – check out Jungle Scout Market here.

      Hope that helps!

  8. This is amazing, thank you.

    I launched a new product 3 months ago and I am now selling 10000 a month. I have been running automatic that whole time lol. I will make my 3 manuals campaigns. Can’t wait to see the results.

  9. Hi,
    Is it possible to run three campaigns? one is the Automatic campaign from Amazon, the second is manual campaign (with broad, phrase, and exact) and the third is also manual with more expressions.
    Thanks.
    Idan

    1. Idan,

      Absolutely. In the past, I’ve run three, usually an Auto, Manual, and one using terms from Keyword Scout.

      Just make sure you collect plenty of good data from your campaigns if you’ve going to do multiple.

  10. Thanks for the great, comprehensive article. I’d prefer to do manual targeting using mostly Phrase and Exact match keywords. Does your Keyword Scout tool pull keyword data from Amazon somehow? Or is it looking more at queries on search engines like Google? Thanks.

    1. Hi John!

      Great questions. Normally, Keyword Scout does, but Amazon’s currently put a hold on all software companies (ourselves and our competitors included) in pulling data directly from them. Our Data Science Team and Developers have been preparing for this for the past few months and are refining new models that use data points that extend beyond just search volume. We are excited to bring this revolutionary approach to managing keywords to our customers next year.

      We’ll have more information about this soon but rest assured, we’re on top of things and we will continue to provide you data that you can use to help you make a decision for your FBA business.

      As far as getting data from Google, no. We have a team of expert data scientists (whole lotta PHDs between them) that comes up with the data using their own models.

      Hope that’s helpful!

  11. Hi

    Good job with the article I enjoyed reading it.
    Just a quick question. I’m from the UK I was curios to know whether the information about calculating the (ACOS) is still relevant to me; I regards to me selling in the UK.

    Thanks Keiren.

  12. Dave,
    This was a very helpful article.
    My question is, where in the world do we get to see the reports regarding performance per keyword? It is no-where to be found in my Amazon Advertising dashboard. No – w h e r e. Is this because my Amazon Advertising account was created from a KDP (Kindle Direct Publishing) account, and not from a Seller Central account? I don’t have a Seller Central account. Our product is a book (Kindle & paperback, both published through KDP). So, just a KDP account and an Author Central account. Do we need a Seller Central account, to see the keywords report? If we create a Seller Central account, will it be linked to the KDP account and the Author Central, and pick up the info of any ongoing campaigns from there? This is endlessly frustrating because obviously my first campaign is a disaster and I can’t adjust it if I don’t know how the individual keywords are performing.
    Thank you!

  13. Great blog, thanks. How feasible is the splitting of campaigns by match type? In Google it is a drag as well. Does the splintering of data weighs up to the performance increase?

    Thanks!

  14. I have been following your advice and want to further optimize. I am selling shirts in 2, 4 and six packs with color combos of all black, all grey and black and grey. Should I be setting up a different campaign for each combination or can I run a blanket manual and auto campaign for all of the products?

  15. Hi.
    Is it possible to make a pay-per-click campaign for a product that is not your own? I’m asking because Amazon for some reason refuses to accept my final documents and their translations, and I’m thinking to pay someone with a seller account to make a campaign for my product.
    Thank you.

  16. You mentioned “For example, pretend that Jungle Stix’s Manual Amazon PPC campaign targeting a broad match for “bamboo skewers” let me know that shoppers are buying based on searches for “36-inch long bamboo skewers”, how does the manual amazon ppc campaign TELL YOU that shoppers are buying based in the “36inch” search? Where did you get this extra piece of info about the 36” part? Thx

    1. Hey Brenda,

      In your reports, there’s information for conversion rates within 7 days. The higher the conversion rate, the more relevant the keyword is. And the sheet tells you which campaign it comes from, whether it’s manual or broad.

      Hope that makes sense!

  17. Dave,

    Great blog post. I launched an auto campaign two weeks ago and was converting well and gained some great targeted words which has consistently and steadily increased sales. In two weeks I never used my entire daily budget which was nice. A few days ago, my sales dropped drastically especially on days that had usually been higher. I noticed my daily budget being used up for those days. When I ran a report on the words being targeted I realized the words that where targeted were ASIN numbers. My ACOS score increased by 17%. From what I can tell it is click fraud from a competitor. Is there a way of telling where clicks are coming from i.e. IP address? Do you have anything you suggest to limit click fraud?

  18. Hey Dave,

    First of all, thank you for your article Amazon PPC. It is not too long but concise and to the point. I joined Amazon Sellers and Jungle Scout about a year ago and I have learned a lot but I have spent 12 X $39.99 on amazon and even more on Jungle Scout 12X $69. I have just listed 2 products on Amazon and I have 3 more on their way from China.
    I am just starting my PPC campaigns so finding your article was a real good find. I have been using the Jungle Scout Youtube video’s to me started but PPC still seems like a “Hard Climb” to where I want to be.

    Thanks again for your insights and tips.

    Tom Storey

  19. Dave,
    Thanks for your article. I am trying to learn the big picture of selling on Amazon FBA, I have watched many online videos, plus almost all of the MDCS season 2 episodes (up to #19). Anyway, at this point the PPC campaigns has me most baffled. And it’s the main purpose of it, not the details of the manual campaign or adjust bids, etc, etc.

    For example, if I am planning to sell “widget ABC” why would I not simply review the current Amazon top selling “widget ABCs” and incorporate their keywords in my optimized ad copy? If their keywords drove successful selling to them would it not also do the same for my “widget ABC”.

    And the auction/bidding is still a bit confusing. If a keyword phrase is “soft and fluffy towel” what does a bid of $1.00 or bid of $0.50 mean?
    If someone bids $.055 and I bid $0.50 will the $0.55 get the search win and I would not?

    Anyway, because I have had a lot of work and business experience with project management, copy writing, design and marketing – the basics of finding products, sourcing, ad development and copy writing seems very easy. But, the heavy weeds of PPC has really bogged me down at this point.

    FYI, I am age 70 and have been a financial advisor for 29 years and have done well. I plan to continue managing assets for my existing clients until I sell my practice in next few years. But, I’d like to develop an Amazon selling business to generate $25,000 to cover my property taxes and a couple other expenses that’s easy to pay for now, but could drain through retirement savings when I finally flip the lights out in my financial business.

    Thanks for your help and advice. BTW, although I have not ordered any Jungle Scout products, I certainly will do so as you all have sooooo very much helpful information.

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