Perhaps one of the most challenging tasks for a new Amazon seller is to control the PPC costs as there are very few options for cost savings. There are, however, some tricks that can be employed to help cut PPC costs without cutting the ROI.
Advertising on Amazon can be a very successful way to sell your goods. But without a well-designed strategy, you are likely to run up huge costs. On Amazon, you are just one business among many others that are competing for potential customers.
That is why running an Amazon campaign on your own to try to undercut your competitors can itself be costly.
You need to remember that you need to monitor your spending whilst increasing your volume and conversions. This is why you need an advertising and marketing agency to take care of your marketing and increase your reach while keeping your costs low.
This article looks into the benefits of working with a third-party Amazon ad agency to manage marketing campaigns for you while cutting down the costs.
Choosing Your Products
What many sellers seem to fail to do is properly select the right products to advertise on Amazon in their PPC campaigns. This can lead to significant losses in terms of investments and returns.
The main reason to hand over the planning phase to an agency is that they have professional analysis tools and skills which (let’s face it) most of us don’t have.
Through these resources, the marketing agencies can drive traffic directly to your website and storefront, to raise awareness of the product and drive up conversions.
By choosing the right products and having a well-thought-out advertising campaign, they can help you make good returns on your investment.
Keyword research is the first step towards the success of any Ad Campaign. If you do not have a clear direction of where to drive traffic, it can lead to some challenges for your business. This is why you need to partner up with an advertising agency that understands Amazon Advertising for PPC.
Digital marketing agencies can perform keyword research. For example, they can use traffic estimator tools to help identify how much traffic potential your niche has and what are potentially profitable products.
Once your product is selected, the first thing that needs to be done is to conduct comprehensive keyword research and understand what the competition is doing on the Amazon Marketplace.
This will help you position your product and make smart decisions on your campaign budget. In turn, it will reduce your monthly ad spends and also boost ROI.
However, using tools like Google Trends, Google Ads etc. have their challenges as they require a level of expertise which could cost you a lot of money if not done right.
Aside from the technical aspect, your strategy could be draining your pockets because of several mistakes in keyword research which is why advertising agencies exist in the first place.
Optimizing Lists For SEO
If you are using PPC to drive traffic to your Amazon product listings (and you should be), getting the most out of your advertising budget is crucial. You need to get the most targeted traffic possible, with the least amount of wasted impressions.
Optimizing the product listings for SEO can make the difference between gaining and losing customers. Optimizing lists for SEO help improve click-through rate (CTR) and conversion rates which in turn reduces ACOS.
But you are not going to get anywhere if you start doing it on your own.
Advertising agencies have the skills and resources and can come up with new ways to lower the cost per action (CPA) of Amazon product listings through a strategic Amazon PPC marketing plan.
Amazon is known to do most of the heavy lifting. But when it comes to marketing, you need to outsource it to focus more on planning your business.
This article has provided some insights into how marketing agencies can greatly reduce your workload and decrease your costs incrementally.
We hope this post will be helpful for sellers who are still thinking twice about hiring a marketing agency for their PPC campaigns.