The ad campaign is underperforming? Maybe because your advertising strategy is wrong!【Part I】

Amazon advertisement campaigns, whether or not they are created, have almost instant effect on orders. A Listing that does not perform badly will inevitably increase the number of orders if it advertises. If the ads that was created for a Listing is stopped for any reason, the total number of orders will also decline significantly. Although the results of advertising are obvious to all, the effect is different and varies greatly depending on the different ad optimisation of different sellers.

Here are a few of the questions frequently asked by sellers. Let’s review our understanding and knowledge of ads.

1. How to advertise low-priced products?

Under the currently fierce competition on the Amazon platform, the bidding price of advertising has generally increased, and the profit of low-priced products is very thin. From the perspective of input-output ratio, it is not suitable for advertising.

However, the purpose of advertising is not only for profit，but to obtain more orders and push up the Listing rankings faster, it is necessary to advertise on Amazon.

Therefore, we should adhere to two concepts in advertising for low-priced products:

(1) If you only want to obtain orders and increase the ranking of the listing, you can spend more in advertising. In this case, you can only pay attention to the Ad sales and conversion;

(2) As the ranking of listings goes up, natural traffic is limited, and when the BSR ranking of Listing has not reached its desired ranking, you can also create the campaign. However, at this time, ads should not be excessive.

2. What is the ideal ACOS during advertising process?

Many people always expect the ACOS to be as low as possible, but obviously, it is just an illusion.

From the perspective of actual operation, ACOS has several reference values:

(1) ACOS is less than the gross profit margin of the product: in this case, the ad is bound to make money;

(2) ACOS is equal to the gross profit margin of the product:  you may notice from the data comparison before and after the advertising that, the ads actually bring some orders, while the number of orders generated by natural traffic has also increased, this is the positive effect of ads. Therefore, if your ACOS  is exactly equal to the gross profit margin, then in my opinion, this advertisement is also worth continuing to invest;

(3) The ACOS is higher than the gross profit margin: it is necessary to pause or stop the ads, and find reasons from the perspectives of Listing optimization and market analysis. Perhaps the product is not good enough, maybe the market is not suitable, in a word, only to find out the real reason, can we formulate a targeted response strategy.

3. What kind of products are necessary to advertise?

Advertising is part of the overall operational strategy. Not all products should be advertised, nor are all products worthy of advertising. In terms of product selection for advertising, we should adhere to the following points:

(1) If the asin price is too low, it should be cautious to advertise;

(2) Advertising should be concentrated, put the advertising budget on the products you are focusing on;

(3) If there are multiple products in the same series, it is necessary to select the SKU that best suits the public’s aesthetics. If there is more than one child asin in a variant Listing, you should also select the child asin that best fits the public’s aesthetics.

(4) Suspend advertising for the Listing with low long-term conversion and the listing that fails to reach the expected level after different Amazon ad optimisations. If the cause of the loss is not determined, it is also a worthwhile operation method to think about.