How to Optimise Amazon PPC Campaigns [+ 3 Most Common Issues]

Reaching potential clients who are already considering making a purchase by advertising on Amazon has become an inevitable strategy for Amazon sellers. Advertising sales have generated Amazon over 37 billion U.S. dollars in 2022 and it is expected to represent 10.2% of total digital ad spending worldwide in 2023. These numbers show how thriving the ad industry is for Amazon and how brands and retailers have no intention to stop promoting their products on this platform. 

But, what does this mean to you? 

Since more and more online merchants are willing to pay for ads, more competition arises as well. This is why nothing is worse than wanting to promote your products on Amazon, the world’s biggest online retailer, and finding out that your investment is not generating enough sales. As with many other marketing tactics, advertising on Amazon per se is not the problem, but how it is done.

Amazon ads optimisation starts with the performance of your ad impressions because if only a few people are being reached it is very unlikely for your ads to generate a significant amount of sales. 

The question you should ask yourself first is:

How many potential customers are seeing my PPC ads on Amazon and why? 

If the answer is not satisfactory, here are some suggestions that can help you increase your impression rates:

• Increase bids: Amazon suggests you a minimum bidding price and from there you can decide to increase it so you improve your competitiveness level and the chance of having higher visibility on Amazon’s SERP. However, having the highest bid does not guarantee you more sales, just higher impressions.
• Make specific keywords more relevant: Choosing the right keywords for Amazon ads is key in order to improving your overall impression rate. When creating a new ads campaign, you can either select between automatic or manual audience segmentation. If you just started your first Amazon PPC campaign, then we recommend you choose Amazon’s automatic segmentation. However, after trying out this segmentation you should use the search queries that the Amazon algorithm gathered and create your own manual segmentation for a more precise reach. Just like any other search engine, you should know how your customers think and search so you target the keywords that they use themselves.

Example of Sponsored Products on Amazon

Another issue with your Amazon ads campaigns is low CTR. If you are still asking yourself: “Why am I getting hardly any clicks on my Amazon PPC campaign?”, then you need to rework your Amazon advertising campaign strategy. This issue can only be adequately fixed once your impression rate is improved. 

These are the main improvements you can implement in order to increase your CTR on your PPC campaigns:

• Optimise the main image and do A/B testing: The type of image you use may affect your CTR rate, so make sure you conduct A/B testing on Amazon ads to know which pictures work best for your consumer base. Keep in mind that the image you use should always have high quality and show the advertised product.

• Optimise the copy of the title: The title of the product ad should include the most relevant keywords and be clear to the viewer.

• Improve the price (and if applicable, the offers and coupons): As you may know the price is one of the most important aspects that buyers take into account when purchasing a product. If a competitor sets a lower price for the same or similar product on Amazon, then you will certainly lose potential buyers. Always offer competitive prices thanks to a price intelligence solution software.
• Increase and improve the ratings and reviews: Having positive reviews and ratings is very important forLengow’s price intelligence solution software, Netrivals your CTR to increase, so use the Amazon Ratings and Reviews Analyser to make your products more attractive to your consumers.

Last but not least, are low conversion rates. This issue may or may not be a reflection of both issues mentioned above but it is the most important factor to keep in mind. Although Amazon shoppers might see and click on your product ad, there might be some elements lacking once they enter the product page which make them exit without purchasing. 

Here are some good practices to follow if you want to generate more revenue with your Amazon PPC ads:

• Improve the number of ratings and good reviews: Once more this is a factor that marks the image of your advertised products. If an undecided shopper enters your product page and sees mostly bad reviews then it might influence their choice so make sure to improve your services.

• Provide more information about your product in images, bullet points, and descriptions: Shoppers want to know that they won’t regret their purchase so the clearer you inform them about your product the better. Make the content useful, precise, visually appealing, and skimmable.

• Add/ Improve A+ content: Besides improving your classic product sheet, Amazon also offers professional sellers the opportunity to add A+ content to their product pages. This functionality helps you stand out from the competition with textual and visual content that retains customers and eases the buying process.

• Have an overview of your price competitiveness and shipping speed: Stay competitive with affordable prices and fast shipping and compare your position in the market with the ones of your competitors thanks to Netrivals’ Price Intelligence feature.
• Make sure you have the Buy Box: In order to advertise your products on Amazon they need to have the Buy Box. Once your products lose the Buy Box position they stop being shown as an Amazon ad.

In the previous text, you have learned how to effectively tackle the 3 main issues that Amazon sellers are faced with when advertising on the platform: low impressions, low CTR, and low conversion rates. Although some solutions require manual work, others, such as the Buy Box ownership and competitive pricing can be achieved through pricing solutions such as Netrivals (Lengow Company).