CPC Strategy Review For Amazon Advertising | Sales Funnel HQ
According to their own metadata, Amazon CPC Strategy “is a retail-focused search agency that uses a proprietary search optimization process to drive conversions by matching inventory with customer intent.” What does that really mean? This process is all about driving traffic to a given link. CPC means “cost per click.” Driving traffic to a link has a cost associated with it. Therefore, there is a cost associated with driving customers to a product. Maximizing the benefit, or lowering the “cost per click,” can drive more traffic to Amazon links for your products for less money.
CPC Strategy Review: Amazon Advertising
As CPC Strategy reported earlier this year, Amazon has rebranded all of its Amazon Media Group (AMG), Amazon Marketing Services (AMS), Amazon Advertising Platform (AAP), and related activities as just “Amazon Advertising.” This was an effort, therefore, to unify their brand while making sure product names were accessible and simple. Amazon has made an effort, in other words, to consolidate its advertising services. There are a few changes associated with this brand strategy. Firstly, the AMS, or Amazon Marketing Services, are now the “Advertising Console.” Secondly, Amazon’s Advertising Platform, or AAP, becomes Amazon Demand Side Platform, or DSP. CPC Strategy says that this better represents what the “programmatic ad buying tool” can actually do.
In other words, there are some real changes in store for anyone using Amazon Advertising. CPC Strategy says that the new Amazon Advertising comprises multiple aspects. Firstly, there are sponsored products and sponsored brands. This will help companies attract and drive customers to those companies’ products and brand names on the Amazon site. Specifically, it makes this process easier and simpler to use. Secondly, Amazon will employ display ads on other websites and on Amazon itself, not to mention third-party apps. These will include display ads for specific products and brands.
Thirdly, as CPC strategy reviews the changes to Amazon’s Advertising, the site will use video ads. These will help encourage branding messages and customer engagement on major sites related to the content being searched. It includes websites, apps, and popular destinations for entertainment. In other words, ads of this type will be featured where potential customers might go looking for information before buying such an item. A video ad at the Internet Movie Database, for example, might encourage customers to purchase the movie whose information they are searching.
CPC Strategy Review: Amazon Stores
Another proven CPC strategy for driving clicks to products on Amazon is the Amazon store. If you want to create an Amazon store for your business, then this is simple. You can even have your own unique URL that takes customers to your store on Amazon. CPC Strategy says that using a Store is a great way to keep your brand on message. It also allows you to select which products you want to show your potential customers. This matters because then the products can be selected for targeted marketing.
If you know your Amazon customers are likely to be looking for three of your products specifically, then you can present those products more prominently. This gets attention and can prompt customers to buy. A customer is much more likely to buy more items after he or she has made the decision to buy the first item.
Another aspect of this is the “demand side platform,” or Amazon DSP. Advertisers can reach targeted audiences through the DSP. Similar advertising systems are in use in other platforms, at least in content. Advertisers, for example, can target buyers who have searched for or previously purchased similar products. This helps make your advertising more effective. Advertising is wasted if it is “spent” on someone who is not even looking for the product or service. Targeting your potential customers in this way just makes good sense.
CPC Strategy Review: More on Pay Per Click Campaigns
This brings us back to Amazon pay per click (PPC) campaigns. The whole point of CPC advertising, to say it another way, is to drive traffic where you want it. While there are costs involved, this increases sales. A PPC campaign can also improve your rankings organically and easily. CPC strategy for Amazon advertising doesn’t have to be complicated. It’s really very easy to use, in fact. It all starts with Amazon itself, one of the most widely used shopping platforms in the world.
Just how huge is Amazon? It comprises half of the e-commerce market in the United States. That’s well over 250 billion dollars per year. Not only that, but it continues to rise. (The second largest e-commerce platform is eBay, followed by Apple, Wal-Mart, Home Depot, and Best Buy. (Surprisingly, QVC, Macy’s, and Wayfair also make the list, with Costco just ahead of Wayfair.)
There are some things to consider, given all this. Amazon is a tremendously large online shopping platform. People turn to Amazon to shop online more than they turn to any other platform. When they search for a product, some of the results are paid search results. This is just one of the ways CPC strategy can be employed to drive customers to specific brands and Amazon stores.
CPC Strategy Review: Conceptualizing a Pay Per Click Campaign
The first step to conceptualizing your CPC strategy is to think through what you want to support. What brand are you selling? What are your sales goals? Additionally, what is your budget for the CPC campaign? It is very important to think things through. For your CPC strategy to work, it must be integrated. In other words, it must support every component. At the same time, you do not want any part of your strategy to work at cross-purposes to itself. There doesn’t have to be a lot of moving parts, but if there are, they should work together. There are some things you’ll need to consider before you begin.
Firstly, you need to see what sorts of keywords will convert well for you. This can involve a lot of research on your part. You can also conduct these in a trial and error format if you have the time. Your knowledge of your product and industry will help. Using search engines to determine what people are looking for is another proven method. If you have some keywords that work well for you, then you’ve got a good start. Secondly, winnow out keywords that don’t convert well for you. Don’t get attached to any. If they don’t convert, they aren’t worth it. Thirdly, identify the best performing keywords and put more emphasis behind these.
CPC Strategy Review: Advertising Cost of Sales
The next thing you need to figure out is your advertising cost of sales. Sometimes referred to as ACoS, this is a metric that you can use to see how your sponsored product campaigns are performing. In other words, it’s very important to make sure your CPC strategy is on target. The formula, put simply, is the amount spent on the PPC campaign divided by the sales. This gives you the all-important “cost per click,” or CPC (which is what we’ve been talking about all along). ACoS doesn’t tell you if a PPC campaign is profitable enough. All it tells you is how much you paid to earn each dollar.
If you want to figure out what ACoS is acceptable, then you have to figure out your profit margin. You don’t want to exceed your profit margin on your paid campaign. It involves Cost of Goods Sold. In other words, what does it cost to sell your product? This is the “cost of sales,” which includes everything from freight and material costs to all the other inputs. Your target ACoS is based on your cost of sales and your desired net profit margin. All of these elements work together so you can figure out what cost of sales is acceptable to you. In other words, when you know the limits of what you can spend to make a desired profit, you can determine if a CPC strategy is working for you to produce profitable PPC campaigns.
CPC Strategy Review: Building a Pay Per Click Campaign
There is more than one way to build a pay per click campaign that supports your CPC strategy. It’s really a matter of following a few simple steps. Firstly, generate a list of keywords. This can be done through whatever market research you would normally do. At the same time, you might have some inside knowledge of your product or demographic that helps you. If you know your product and your clients well, then generating keywords should be easier.
Understand Your Budget –
Secondly, take a good look at your budget. Understand your Cost of Sales and your desired net profit. Factor in your Cost of Goods Sold. The point of a budget is to make sure you don’t exceed it and lose money. Breaking even might occasionally be acceptable. You will not expand your business simply by breaking even, however. Your campaigns should support your strategy, and your strategy should support your desired target advertising cost of sales. This, in turn, should support your sales goals. The whole point of formulating your strategy, setting your budget, and building your campaign is to do it in a comprehensive and logical manner.
Finally, optimize your campaign and leverage any feedback you see from your sales results. In other words, remove keywords that don’t convert and put more resources into those that do. There is more to understand where keywords are concerned, so read on.
CPC Strategy Review: Keywords and PPC
Finding keywords does not have to be difficult. There are tools available that help you identify keywords. You can also do a great deal of research on your own. For example, you can start typing a phrase into Google and see what autocompletes. This is a good indicator of what the popular search terms are for a given topic. Most importantly, it can help you identify keywords and search strings you might not have thought of yourself. If that isn’t enough, you can use some of the keyword tools available on the market. There are multiple resources to help you find keywords.
There are some old-school methods for identifying keywords, too. You can always go to a newsstand (while there are still a few left) and take a look at print publications that involve the products you sell. These publications and their article headlines can help you to identify keywords. In other words, other publications and the way people talk about your products can point you to search terms for these.
Put a modern spin on this type of research by looking at the headlines for online publications related to your products. Extend this to social media and to all other venues where people discuss your products. To create the maximum benefit, look for commonalities in terms. You can find keywords based on this type of research, leveraging search engines, and combing through social media and related publications.
CPC Strategy Review: Getting the Most from a PPC Campaign
After you have your initial list of keywords, you can move forward to get the most out of your PPC campaign (and therefore your CPC strategy). The actual process of using keywords to generate sales conversions creates data. This is data you can use. Look at your sales figures. Examine the keywords. See which keywords produce which results. Most importantly, take these keywords and assign numerical values to them. In other words, some will perform at or above your desired ACoS. Others will perform below your desired ACoS. Reduce or eliminate the resources you are putting behind the lower- or under-performing keywords, focusing your resources instead on the ones that are performing as you wish them to.
Don’t forget, too, that just because a keyword performs well initially does not mean it always will. You must engage in ongoing monitoring and attention to detail. The good news is that this does not amount to much actual effort. With a little attention and a little logic, you can keep your sales funnels going in a way that supports your CPC strategy and grows your business. This, after all, is the whole point of this type of marketing. It’s the reason that we engage in the type of work that we do, and it’s the reason you are leveraging the incredible platform that is Amazon for your sales. CPC Strategy specifically, and the strategy behind CPC as a concept, work together to support your goals. If you approach this logically you can build a solid platform on which to grow your sales.
CPC Strategy Review: In the Final Analysis
You must support your CPC strategy. This isn’t hard. You can optimize your sales and get the most from your campaigns by following a few simple guidelines. Firstly, set goals for sales. Setting and meeting goals is very important to staying on track. It also provides ongoing reasons to monitor and optimize your campaigns. In other words, you should cut out any underperforming keywords. Don’t waste money on campaigns, keywords, and venues that aren’t performing for you. Expand this concept to touch everything you are doing. This includes your Amazon store listings, your third-party ads, in-app advertising, and so forth.
Secondly, make sure you shovel more resources into those items that actually perform. We cannot stress this enough. If a given item is performing well, failing to put more resources behind it is essentially leaving money on the table. It’s like seeing an opportunity and letting it pass you by. Always take advantage of optimization opportunities when they present themselves. This is key for great performance and even better sales.
Finally, pay close attention to your desired net profit, your targets for ACoS, and your margins. Inputs can change and the numbers won’t always be steady. Don’t allow yourself to become complacent. Taking the time to lay the groundwork is the key to a brilliant approach and therefore a winning cost per click strategy. If you take the time to plan now, then you will benefit greatly in the future.
CPC Strategy Review: Conclusion
Services like CPC Strategy, as such, can help you tap the full potential of an already gigantic market. In other words, CPC Strategy as an entity, and the concept of CPC strategy as a tool, can bring traffic to your links. This works regardless of where those links might be. Whether in an ad, on a third-party site, on Amazon itself, or in related, brand-unified marketing. From Amazon stores to display ads to setting up your own Amazon store, there are multiple options. In the final analysis, what matters is that you drive more sales and sell more product. Given this, everybody wins. It’s literally a win-win situation, both for your business and for Amazon itself. The platform will continue to provide a great means of reaching customers. It will improve customers’ sales experience in the bargain. CPC strategy for amazon advertising is definitely a winning combination.