Performing an Amazon account optimization is very important to understand and improve its performance. The following guide will provide some valuable insights and strategies for the areas that are performing well and those that need improvement. 

Auditing the PPC account performance will lead to increased revenue, minimize ineffective advertising spending, discover new search terms, and decrease ACoS (Advertising Cost of Sales)

Before performing the audit, it is essential to set and track the main KPIs to be aware of the business goals. If the targets are not met in the previous month, it is necessary to make adjustments to the ads to align with those objectives. On the other hand, if the goals were met, it is wise to establish new ones to improve the account’s performance further. It is also recommended that metrics are kept track of every time an audit is performed to evaluate the effectiveness of the optimizations.

The Amazon PPC Audit Process

An audit involves a deep examination of the trends and metrics of any areas that require improvement.

The following steps are useful to assess the performance of the account and enhance opportunities to increase sales and profitability

1. Evaluate the Product Detail Pages

Online shoppers rely on the available information about the product to make their purchasing decisions. CTR (click-through rate)  is a key metric to measure how many people clicked on the advertisement compared to how many people viewed it. When a CTR is high, it means there is an interest in the product. However, if the CVR (conversion rate) is low, it means that the product listing is not convincing enough to lead to a purchase, as this metric measures the percentage of people who made a purchase compared to the number of people who clicked on the advertisement. On the other hand, when there is a high CVR but the CTR is low, it suggests that the product detail page is not receiving enough attention and needs to be exposed to more views.

 

The following are very important aspects to take into consideration for a high CVR:

• High-quality visuals and pictures
• Understandable product titles with relevant keywords
• Descriptive list of features that highlight the main attributes of the product
• Engaging A+ content with great visuals showing product details
• Competitive Pricing
• Strong rating and high amount of reviews

Regularly monitoring CTR and CVR is crucial for ongoing improvement. It is also important to compare the listing with competitors and make sure to incorporate relevant keywords. Conducting A/B tests with various images, titles, bullet points, and A+ content is also helpful in determining the most effective combination for the product detail page.

2. Structure of Accounts and Campaigns

A strong campaign structure is key to having a more detailed approach when it comes to making improvements and analyzing data. Investing time in organizing and structuring the campaigns will make it easier for future audits.

PORTFOLIOS

A portfolio is the highest level in the campaign structure and it is important to have one for each parent ASIN, as each product can be promoted by multiple campaigns. Creating portfolios for new products will help to track their performance and make it easier to identify successful products and highlight those that need more attention.

CAMPAIGN NOMENCLATURE

Properly naming campaigns is a crucial aspect that is often underestimated. As a company grows and launches more campaigns, having a standard naming system helps maintain organization and simplifies the management of PPC. Although it may not directly impact profitability, easily identifiable campaigns help a smooth optimization process.

Examples of effective campaign nomenclature include:

Campaign Type – Campaign Type – Product Identifier – ASIN – Targeting Type – Additional Details

CAMPAIGN STRUCTURE

• One Ad Group: As part of the auditing procedure, it is important to verify that every campaign has only one ad group. This will guarantee that the campaign budget is only directed towards that particular ad group. Having multiple ad groups makes it difficult to ensure an equal distribution of the budget.

• Single Match Type: Ensure that auto and manual campaigns are separated according to match type. Since match types have different performances, organizing them into individual campaigns allows for better optimization and scaling.
• Keyword and Product Targets: Keyword dumping creates an imbalanced allocation of both sessions and expenses. While it may be tempting to add 1000 keywords per ad group, the quantity of keywords in an ad group significantly affects the campaign’s effectiveness. It is recommended to have between 5 – 10 keywords per ad group.
• Segmentation of Keywords: Dividing campaigns based on search volume and performance helps to focus on the keywords with higher search volume. When they are combined in one ad group, the majority of the budget goes to the high-converting keywords leaving other keywords with potential with little or zero impressions. It is also important to separate branded keywords from non-branded ones as the first ones have a higher purchase intent and being isolated will help enhance their performance.

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3. Evaluating the Effectiveness of a Campaign

Budget 

The budget optimization is essential for a campaign’s success. Having campaigns that run out of budget during the day can harm PPC performance and lead to missed sales opportunities. The audit helps to make sure the campaign budgets are correctly set to meet the traffic demand

If a campaign is achieving the desired results and generating a positive return on ad spend (RoAS), increasing the budget will lead to an increase in sessions and spending, which can result in higher sales.

BID PLACEMENTS

Utilizing bid placement as a strategy can greatly enhance sales, but it can also be counterproductive and result in wasted advertising costs. During a detailed evaluation of the account, it is crucial to evaluate the effectiveness of the bid adjustments. 

Bids should be scaled for campaigns that already have adjustments in place by prioritizing those with a high Return on Advertising Spend (RoAS). In cases where there is a lack of success and significant ad expenditure is being wasted, decreasing the adjustment for those specific placements will be a more effective approach.

Identifying Profitable and Unprofitable Search Terms

Campaigns are an effective way of uncovering fresh keywords, but they may also result in Amazon displaying your advertisement for unrelated or unprofitable search terms. Regularly auditing these terms will guarantee making the most of profitable search terms while minimizing wasted ad expenditure on irrelevant or unprofitable ones.

To improve the effectiveness of the ads and increase profitability, it is important to identify and exclude customer search terms or ASINs with high spending but no sales by using negative exact match or product targets. It is also crucial to monitor and eliminate any irrelevant search terms or ASINs as they can be expensive and negatively impact your performance in the Amazon algorithm.

The strength of discovery campaigns lies in conducting an analysis and uncovering high-converting keywords that may have been overlooked. Launching these terms in fresh campaigns will boost the potential for generating more sales.

Bidding for Targeted Keywords/Products

The last stage of the PPC audit involves assessing and enhancing the bids for your keywords and product targets. It is important to have a specific bid for each keyword or product target in the campaign, taking into consideration its performance.

To improve visibility, the bid for keywords or product targets that have a low ACoS and are performing well should be increased. To decrease ineffective spending, the bid for keywords and product targets with low performance and a high ACoS should be decreased or paused.

One way to improve the performance of keywords or product targets that are not performing well is to identify them and increase the bid. By doing so, they will have a higher chance of generating more impressions and increasing the overall spend.

A helpful suggestion is to adjust bids gradually and in small increments, such as $0.05 at a time. This approach will prevent significant declines in sales or significant increases in advertising expenses.

To learn more about Advertising check out our Blog Post about Strategies for Amazon Advertising.

Ready to Optimize Your Amazon Advertising for Maximum Profit?

Running ads on Amazon without a structured approach can lead to wasted spend, missed opportunities, and stagnant growth. But with the right strategy, you can maximize sales, minimize ACoS, and scale your brand efficiently.

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