In 2023 alone, Amazon’s ad revenue surged by 23%, to over $38 billion. This indicates that Amazon PPC can significantly enhance product visibility and sales for sellers. Navigating the complexities of Amazon’s advertising ecosystem demands precision and insight. It is also important to understand the interplay between paid and organic performance, which is crucial for e-commerce businesses.
In this guide, we explore the common mistakes brands make when managing Amazon ads and provide strategies to overcome them.
1. Overemphasis on ACoS
Focusing exclusively on ACOS can lead to suboptimal outcomes. While ACOS is a crucial metric, it should be part of a broader evaluation framework. For instance, TACOS connects advertising spend to overall sales and offers a clear picture of how ads contribute to total revenue. Additionally, prioritizing organic keyword rankings over short-term profitability is essential. Ads should boost organic performance and reduce dependency on paid placements over time.
2. Neglecting Product Listing Optimization
Poorly optimized product listings can’t be fixed with advertising alone. Amazon’s A10 algorithm prioritizes high-converting listings, with relevant keywords, quality images, engaging descriptions, and positive reviews. Optimized listings not only improve organic search visibility but also enhance the performance of PPC campaigns. Tools such as Amazon Brand Analytics and Product Opportunity Explorer can help identify the most effective keywords. Listings optimized for organic search experience a 35% uplift in PPC performance. Therefore, investing in listing optimization before launching ads is critical.
3. Ignoring the Impact of Organic Rankings
Another common mistake is overlooking the relationship between PPC campaigns and organic rankings. Ads that drive CTRs for specific keywords often improve those keywords’ organic visibility, even if conversion rates are moderate. This is why monitoring how advertising impacts organic rankings over time is important. Making advertising decisions without considering their effects on organic performance can result in missed opportunities for growth. Aligning paid efforts with organic goals ensures a cohesive approach that amplifies results across both channels.
4. Launching Campaigns Without Keyword Research
Keyword research is fundamental to PPC success. Brands often underperform when campaigns are misaligned with customer search behavior. Effective campaigns are built on a foundation of well-researched keywords that can be broad, medium-tail, and long-tail. Tools such as Amazon Brand Analytics and external platforms can help identify high-performing keywords. Over time, analyzing campaign data and refining keyword strategy supports continued relevance and better ROI. An informed approach to keyword selection enables brands to capture a wider audience and drive meaningful engagement.
5. Poor Campaign Structure and Organization
An unstructured advertising account can lead to inefficiencies in budget allocation and data analysis. Effective campaign structure involves segmenting campaigns by product category, brand, or marketing objectives. This segmentation allows for better performance tracking and more strategic bid adjustments. A well-organized structure lays the groundwork for scalable, data-driven advertising strategies.
6. Limited Ad Type Diversification
Experimenting with different ad formats can drive awareness, engagement, and conversions. For Sponsored ads, the recommended budget allocation framework is: 80% for Sponsored Products, 15% for Sponsored Brands, and 5% for Sponsored Display. Using creative assets such as videos and lifestyle images enhances engagement and drives higher CTRs. Ad diversification is key to capturing a broader audience.
7. Making Hasty Adjustments
Frequent changes to campaigns can disrupt Amazon’s algorithm, which requires time to optimize ad delivery. This learning process is critical for maximizing campaign effectiveness. Instead of reacting to short-term performance dips, brands should set clear thresholds for evaluating campaigns. This includes considering metrics such as a minimum number of clicks or conversions. Analyzing long-term trends and making data-driven adjustments can help optimize campaigns without undermining the algorithm’s learning process. Patience and consistency are crucial for achieving sustainable success in PPC advertising.
8. Neglecting Negative Keywords
With a robust negative keyword strategy, brands can save ad budgets on irrelevant searches. Negative keywords help filter out unqualified traffic, ensuring that ads are displayed only to users who are likely to convert. Regularly analyzing search term reports and updating negative keywords can significantly improve ad efficiency and ROI. By focusing on high-value traffic, brands can maximize the impact of their advertising spend.
A More Refined Approach
A balanced Amazon advertising strategy combines performance analysis, listing optimization, and campaign diversification.
The following strategies outline how brands can fine-tune their approach:
Implement a Balanced Metric Framework: Brands should evaluate both ACOS and TACOS, alongside keyword ranking and organic sales metrics. This approach provides clarity on ad performance and ensures that advertising efforts align with broader business objectives.
Optimize Listings Before Advertising: Product listings must be conversion-ready before launching ad campaigns. This includes integrating relevant keywords, enhancing visuals, and collecting positive reviews. Optimized listings not only improve organic search rankings but also amplify the effectiveness of PPC campaigns.
Diversify Ad Formats: Combining Sponsored Products, Sponsored Brands, and Sponsored Display campaigns can help brands reach different audience segments. Each format serves unique objectives, from driving awareness to retargeting engaged customers. Creative assets such as videos and lifestyle images should also be used to capture attention and drive engagement.
Adopt Advanced Tools for Campaign Management: Platforms such as Adbrew streamline campaign management by offering features such as automated bidding and advanced keyword research. These tools provide actionable insights that can help brands optimize their ad strategies with greater precision.
Conclusion
Scaling on Amazon advertising requires a strategic, data-driven approach that integrates both paid and organic efforts. With Amazon advertising evolving rapidly, staying informed and adapting is critical. Doing so can lead to increased visibility, more conversions, and growth.
About AMZ Pathfinder
AMZ Pathfinder is a solutions provider for e-commerce businesses selling on Amazon. They help businesses achieve Amazon success and offer top-notch services to make your catalog stand out in the crowded marketplace including:
Sponsored Products Advertising
Amazon DSP
Full Account Management
Supply Chain Management
Google Ads or TikTok advertising to channel qualified paid traffic to Amazon
Interested in Receiving Expert Advice? Book a call with a member of AMZ Pathfinder’s expert team: Contact Us – AMZ Pathfinder.
About Brent Zahradnik
Brent Zahradnik is the founder of AMZ Pathfinder, an Amazon advertising management agency. He started the company in the summer of 2015 and it has since worked with hundreds of brands selling in the North American and European Amazon marketplaces. Pathfinder manages millions of dollars in ad spend per month and is a team of 21 advertising experts who speak 12 languages and live all over the planet. Brent lives in Southern France with his wife, their cat, and entirely too many bicycles.