📈

How to Set Up Amazon Advertising

Jul 10, 2024

How to Set Up Amazon Advertising

Why Advertise on Amazon?

  • Amazon PPC (pay-per-click) used to start a million-dollar business.
  • Businesses spent over $10 billion on ads with Amazon in one year.
  • 66% of U.S. online product searches start on Amazon.
  • 4x ROI on average (every $1 spent returns $4 in revenue).

Overview of the Process

  • A complete tutorial on setting up and optimizing Amazon ads to maximize profitability.
  • Five main steps:
    1. Automatic Campaigns: Easy way to start; can be set up in five minutes.
    2. Keyword Research: Using tools to find effective keywords.
    3. Sponsored Product Ads: Using keyword targeting to get the product at the top of search results. Introduction to five types of keyword targeted ads.
    4. Product Targeting: Ads appear on your competitor’s listings.
    5. Negative Keywords: Save money by excluding irrelevant searches.

Introduction to Amazon PPC

  • Amazon PPC: Pay-per-click advertising where you only pay for clicks on your ad.
  • Access via Campaign Manager.
  • Importance of appearing at the top of search results for higher sales.
  • Sponsored products vs. organic search results.

Step-by-Step Guide to Setting Up Amazon Ads

Step 1: Automatic Campaigns

  1. Access Campaign Manager via Amazon.
  2. Create Campaign: Choose Sponsored Products.
  3. Name the Campaign and set a daily budget (at least $5).
  4. Automatic Targeting: Allows Amazon to decide where to show ads.
  5. Bidding Strategy: Dynamic bids (up and down recommended).
  6. Ad Group Configuration: Separate ad groups for close match, loose match, substitutes, and complements.
  • Example: Close match likely to yield the most sales.
  1. Launch Campaign.
  2. Negative Keywords: Discussed for later use.

Step 2: Keyword Research

  1. Tools: Helium 10 or Jungle Scout for extensive data.
  • Free trials and discounts available.
  1. Manual Research: Start jotting down ideas of what people might search to find your product.
  2. Using Tools: Input primary keywords and explore related phrases.
  3. Competitor Research: Look up competitors’ products and their keywords.
  4. Copy and Paste Keywords into your Amazon advertising setup.
  5. Keyword Types: Broad, phrase, and exact match explained.
  6. Negative Keywords: Add irrelevant keywords to save on ad spend.

Step 3: Sponsored Product Ads (Keyword Targeting)

  1. Specific Keyword Campaigns: Directly related to your product, e.g., “Wine Flash Cards”.
  2. Broad or Generic Keywords: Related but not specific, e.g., “Wine Education”.
  3. Related Keywords: Slightly tangential but related searches.
  4. Competitor Keywords: Keywords related to competitor products.
  • Setup similar to Step 2 with appropriate keyword lists.

Step 4: Product Targeting

  1. Identify Competitors and related products on Amazon.
  2. Input Competitor ASINs into your campaign setup.
  3. Category Targeting: Target entire categories, e.g., “Wine Education and Games”.
  4. Exclude Irrelevant Products: Negative product targeting.

Step 5: Negative Keywords

  • Importance: Reduces wasteful ad spend by excluding irrelevant terms.
  • Addition: Through campaign management or during the initial setup.

Best Practices and Final Tips

Common Mistakes to Avoid

  1. Short Tail Keywords: Avoid overly broad keywords; focus on long-tail for better targeting.
  2. Lack of Negative Keywords: Failing to use them can waste budget.
  3. Not Gathering Enough Data: Let campaigns run long enough to gather useful data for optimization.
  4. Overspending: Ensure ad spend is justified by the returns.
  5. Selling Poor Quality Products: Quality products are essential for successful advertising.

Free and Paid Tools

  • Helium 10: Comprehensive keyword and PPC management (paid).
  • Google Keyword Planner: Free alternative for initial keyword research.
  • Suggested Keywords Tool: Explore keyword suggestions provided by Amazon.

Budget and Spend Insights

  • Starting Budget: At least $5/day.
  • Bidding: Follow suggested keyword bids to start, adjust based on performance.
  • Conversion Rates: Monitor and adjust based on ad performance.

Travel Rewards Tip

  • Use credit cards (e.g., Gold AMEX, Platinum AMEX) for ad spend to accumulate travel points and miles.

Resources and Community

  • Free Amazon FBA Course: Access to structured video tutorials, worksheets, and a supportive community.
  • Accountability and Support: Join groups and find accountability partners for motivation and guidance.

Full transcript