Are “Amazon’s sponsored product” Ads worth it?  Let’s review tips for getting the most from Sponsored Product Ads, both for experienced users and first time advertisers.

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  1. START WITH AUTO BIDDING

When you launch campaigns in Amazon, you have a choice between “Automatic targeting” and “Manual targeting.”

  • Amazon offers “Automatic targeting” and “Manual targeting” for its ad campaigns.
  • Automatic targeting is better, initially, because it is difficult to know what to look for.
  • Start with automatic targeting.

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  • With “Manual targeting,” you bid on the keywords you choose.
  • Once you launch automatic-targeting campaigns, you can start data analysis, which Amazon will provide.
  • In Amazon’s Campaign Manager, please click on the “Search” button at the top of the page.
  • On the Search Term Report page, you can manually pull down a report of your search data immediately, or schedule reports.

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  • Filter for the terms that led to product sales.
  • Use this data for “Manual targeting” campaigns, to secure more profitable traffic.
  1. BID LEVELS

There is an indirect benefit to Amazon. For context, consider the big picture. Unlike Google, a company that makes money when ads are clicked, Amazon makes money when products are sold. Until you buy a product, you will not be disappointed. That makes sense – for Amazon.

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When you launch a new product, Amazon does not have a lot of data to go on. Predictable revenue and predictable “profit per pixel” is important to Amazon.

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If you’re buying traffic with Sponsored Product advertising and, consequently, Amazon shoppers buy your product, Amazon gets data much faster on your product’s sell-through rate. This indirect support to Amazon Sponsored Products affects bidding strategy.

  1. ‘PEEL-AND-STICK’ STRATEGY

Not all search queries you have the same value to you, even if they are triggered by the same keyword. A peel-and-stick strategy can make the best out of valuable traffic. (Or “stick”) them in their own ad group.

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This is not only for queries but also for underperforming search queries. Put failing or mediocre search queries in more flattering situations, so they profitably add sales to your account. Two primary options accomplish this:

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  • Peel and stick to using more appropriate bids;
  • Peel and stick to using more appropriate product landing pages.

Peel and stick for bids:

Here is an example that demonstrates appropriate bids for underperforming traffic.

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  • Imagine that you’re bidding on “merino sweater” phrase match in Amazon Sponsored Products.
  • Most of the time the traffic sells through your product page very well. However, imagine that Kohl’s, Under Armor, and Banana Republic also sell merino wool sweaters, and your Sponsored Products intercept their traffic at times – but not all that profitably to you.
  • Imagine that when someone types one of those brand names more “merino sweater” your Sponsored Product ad shows. Because you have an attractive product, this is true even though searchers clearly started out looking for another brand.

Peel and stick for landing pages:

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  • Peel each of these queries out and stick it into a new ad group of its own.
  • Again, use negative keywords in the original ad group to block the unwanted traffic there, so that only the specific ad queries.
  • It is valuable to try landing page variants even if there is a clear mismatch, as in the above example.
  • Landing page variants like that can make a difference in conversion rates, so improving your profitability with the Amazon Sponsored Products program.

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You’re making money off this traffic. The opportunity could be significant if properly harnessed. In this situation, the peel-and-stick strategy offers a solution.