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Top Amazon PPC Mistakes That Are Draining Your Budget

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Top Amazon PPC Mistakes That Are Draining Your Budget

If you are operating an Amazon PPC (Pay-Per-Click) campaign to increase your sales, you understand how it is essential to get each click working. However, your efforts sometimes fail, and the outcome does not turn out as expected, leaving your budget running out swiftly without the desired return. If you are asking yourself where things go wrong, it may be that you are getting into PPC pitfalls.

In this blog, we’ll take you through the most common Amazon PPC mistakes that may be sucking up your budget and keeping you from realizing the results you’re owed. Let’s get started!

Not Setting Up Proper Campaign Structure

Among the most common errors committed by Amazon sellers is lacking a clean and well-structured campaign setup. An unorganized campaign will result in inefficient ad spend and bad performance. Here’s what to keep in mind for a firm foundation:

Campaign Types: Amazon provides various campaign types such as Sponsored Products, Sponsored Brands, and Sponsored Display. Each has a specific purpose. Ensure you are using the proper type for your aim.

Ad Group Organization: Structure your ad groups around product or target audience to prevent blending of non-relevant keywords or products. For instance, don’t put high-performing products together with new or untested ones.

Segmentation: Segregate your campaigns into broad, phrase, and exact match types to better manage your budget and performance.

Solution: An organized campaign allows you to monitor performance more effectively, make more intelligent changes, and cut wasteful spend.

Disregarding Negative Keywords

Negative keywords are your best friend when it comes to optimizing your Amazon PPC campaigns. Without them, your ads may show up for irrelevant searches, wasting money on clicks that aren’t likely to convert.

Mistake: Many sellers fail to add negative keywords, allowing irrelevant traffic to drain their budget.

For example, if you’re selling high-end coffee, you don’t want your advertisement to appear for searches such as “cheap coffee” or “free coffee.”

Solution: Check your search term report regularly and include irrelevant keywords in your negative list. This will prevent unwanted clicks and only attract relevant customers.

Broad Match Keywords Without Proper Monitoring

Broad match keywords enable Amazon to match your advertisement with a broad list of search terms. While they can be beneficial in the discovery of new related keywords, they can also contribute to budget wastage if monitored poorly.

Error: Applying broad match keywords without monitoring performance can cause expensive outcomes and minimal returns.

You will end up bidding on irrelevant terms that aren’t specifically linked to your product, so untargeted traffic, poor conversion rates, and greater cost-per-click (CPC).

Solution: Begin with broad match terms but keep an eye on how well they are doing. Move towards phrase or exact match terms as soon as you find strong performers.

Overbidding or Underbidding

Determining the correct amount to bid can be difficult, but overbidding or underbidding will hurt your campaign. Overbidding leads to excessive overspending, while underbidding may push your ads too low in search ranks.

Error: Bidding too high or too low can disrupt your budget and campaign performance.

Solution: Utilize Amazon’s dynamic bid strategy to enable Amazon to change your bids based on performance. Alternatively, inspect your keyword performance and manually fine-tune your bids to align with your spending goals.

Not Maximizing Amazon’s Automated Campaigns

Most sellers only work on manual campaigns, believing that they have greater control. Nevertheless, Amazon’s automated campaigns are also a force to be reckoned with in terms of discovering new high-converting keywords and placements. Missing out on the use of these automated campaigns is a lost opportunity.

Error: Only manual targeting and neglect of the advantages of Amazon’s automatic campaigns.

Solution: Leverage Amazon’s automated campaigns alongside manual ones to tap into wider keyword opportunities. Let automation assist you in finding profitable keywords that you may not have thought of.

Failure to Optimize for Mobile Traffic

Increasingly, more and more customers are doing their shopping on Amazon through mobile devices. If your campaigns do not optimize for mobile traffic, you could be excluding a large percentage of potential buyers.

Error: Not optimizing for mobile or neglecting mobile-related performance metrics.

Solution: Track the performance of your ads on mobile, and optimize your bids. Make sure your product listings are mobile-friendly and simple to use.

Not Optimizing Product Listings

Even with a well-set PPC campaign, a suboptimal product listing can still drain your conversion. Without good photographs, good copy, and optimized keywords, the traffic generated through your ads is going to go to waste.

Error: Advertising to poorly optimized product listings, which do harm to conversions.

Solution: Always ensure your product titles are optimized for both organic search and advertising. Quality images, engaging product titles, and detailed bullet points can go a long way in converting ad clicks into sales.

Not Adjusting Campaigns for Seasonality

A lot of sellers commit the error of keeping the same PPC campaign throughout the entire year without considering seasonality. Not making changes to your campaigns according to peak periods or special offers will result in wasted budget.

Error: Keeping the same PPC strategy all year round irrespective of seasonality.

Solution: Adapt your bids, budgets, and keywords according to seasonal demand. For instance, raise your budget and bids during peak sales periods such as Black Friday or Christmas. Reduce your bids when demand is slow.

Not Monitoring and Optimizing Periodically

PPC is not a “set it and forget it” affair. A well-performing campaign today will probably not perform so well tomorrow. Not regularly looking at performance and making changes to bids, keywords, and targeting will most definitely lead to an inefficient or static campaign.

Mistake: Allowing campaigns to run unattended without monitoring them regularly for optimization potential.

Solution: Install weekly or bi-weekly inspections to track your campaigns’ performance. Identify keywords that are spending your budget without generating conversions and stop them. Test new keywords as well as optimize your bids for optimal performance.

Not Using A/B Testing

Testing is the secret to enhancing the effectiveness of your campaigns. Most sellers use the same ads for a long time without experimenting with different versions of their ad copy, images, or keywords.

Error: Adhering to a single version of your ad without experimenting with other variations.

Solution: Perform A/B testing on various elements of your ad, including headlines, images, or call-to-action buttons. This will help you know what works best and optimize your campaigns for improved performance.

Conclusion

Amazon PPC campaigns can be an effective means of driving traffic and boosting sales, but if you’re doing the above-mentioned mistakes, your budget could be being wasted without delivering the desired results.

By optimizing campaign structure, employing negative keywords, bid adjustments, and frequent monitoring of performance, you can gain complete control of your PPC strategy and make each dollar count.

If you’ve been struggling with your Amazon PPC campaigns, it’s time to address these common mistakes and adjust your strategy for greater success. With the right approach, you’ll start seeing more efficient ad spend, better conversion rates, and a higher return on investment.

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