6 Ways to Reduce Amazon PPC Costs

Are you an Amazon seller looking for ways to reduce your Amazon pay-per-click (PPC) costs and get the best return on investment? Then you’re not alone. Fortunately, it’s not as difficult as you might think. 

There are some relatively simple ways to improve your Amazon PPC performance and reduce advertising costs over time. From tracking keyword trends to focusing attention on top-performing campaigns, we’ve compiled a list of six of the most effective ways to maximize the efficiency of your PPC efforts. So let’s get started!

#1 Organize your ads into manageable campaigns

Optimizing your campaign structure is a great place to start if you’re looking to take your advertising strategy up a notch. By breaking your campaigns down into smaller, more targeted ad groups, you can improve your overall ad relevance and drive better results for your business. 

Not only will this help you target your core audience more effectively, but it will also allow you to better experiment with varying ad messaging and tactics. By taking a segmented, professional approach to your campaign optimization, you can harness the power of targeted advertising and start seeing the results you’ve been striving for. 

#2 Automate bidding

Tired of constantly adjusting bids and budgets for your advertising campaigns? Let automated rules come to the rescue. Utilizing automation can help reduce manual work and create more efficient processes. Amazon sellers may be familiar with the platform’s automated pricing tools, but similar streamlining is also available for PPC campaigns. 

These rules allow you to set specific conditions and thresholds for bid and budget adjustments, allowing you to focus on the bigger picture of your advertising strategy. Not only does this mean less time spent making tedious adjustments, but it also means more accurate and timely ones as well.

#3 Use Negative Keywords

Obviously, you want to ensure you’re reaching your target audience precisely and efficiently. That’s why keyword research is so important. But you must also identify negative keywords to incorporate into your campaign. Otherwise, these words or phrases may trigger irrelevant searches or have a low conversion rate. 

By noting which keywords aren’t likely to drive traffic to your site, you can optimize your campaign by excluding them from your ad targeting. Not only can this save you substantially on your advertising costs, but it also ensures that your message reaches the right people. So take the time to research these negative keywords and watch your conversion rates move closer to your goal. 

#4 Analyze the Search Terms report 

As an online advertiser, the goal is to get your brand in front of your target audience, and the search terms report can be incredibly helpful in achieving this. By analyzing this report, you can gain valuable insights into what your customers are searching for when they see your ads, allowing you to refine your keywords and improve the relevance of your ads. 

Monitor this report regularly and make adjustments to your campaigns based on the data. Then you’ll be able to better tailor your messaging and targeting to your customers’ needs and improve your online advertising’s effectiveness. Take the time to dive into your Search Terms report to find actionable ways to refine your keywords.

#5 Diversify the Ad Types

Using every type of Amazon PPC ad in your advertising campaigns can help expand your reach, increase visibility, and maximize your return on investment. Sponsored Products, Sponsored Brands and Sponsored Display Ads can all help you reach your sales goals. In addition, each ad type targets different parts of the customer journey, allowing you to influence shoppers at various stages of the buying cycle.

A Sponsored Product ad is targeted using keywords and (ASIN) to reach Amazon shoppers. They allow advertisers to promote specific products within Amazon’s search results and product detail pages. Appearing above search results, Sponsored Brand ads display a custom headline, logo and up to three products. Clicking on this type of ad typically sends shoppers to an Amazon Storefront or custom Amazon landing page. A Sponsored Display Ad is unique from other Amazon product display ads in that it can reach targeted audiences on and off the platform.

Sponsored Products and Sponsored Brands are typically best for driving sales and boosting visibility, while Sponsored Display Ads are great for retargeting and cross-selling campaigns. You can optimize your campaigns for different goals and improve overall ad performance using a mix of ad types. Diversifying your ad type can also help you maximize your ad spend by allocating your budget to the ones that provide the most value and return on investment.

As Amazon continues to improve its advertising platform, new ad formats and features are continually being introduced. By utilizing all of the available ad formats, you can adapt to changes and capitalize on the latest trends and opportunities. 

#6 Monitor PPC Performance

It’s hard to overstate the value of consistently monitoring the performance of your Amazon PPC efforts. It’s a key to success that allows you to measure progress, identify areas of improvement, and adjust your strategies accordingly. 

By regularly keeping track of your progress, you can stay on top of any potential issues and make necessary changes before they become more significant problems. Monitoring your performance can also provide valuable insights into what strategies are working well and which areas may need further attention. So be sure to make it a priority to routinely analyze your performance metrics and stay ahead of the competition.

Fast-track your efficiency with Amify

Increasing your Amazon PPC performance doesn’t have to be overwhelming. By utilizing the tips outlined here, you can confidently and effectively optimize your campaigns for success. 

Or, you can reach out to experienced Amazon consultants at Amify. We’re ready to become your strategic Amazon partner and provide the guidance needed to optimize your Amazon business now and in the future. Contact us today to learn more about how our services can support your business.