Live Webcast:

Top Amazon Sponsored Product Mistakes Draining Your Budget & Profits

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Today’s Logistics

Session Recording + Slides Will Be Sent Out

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Today’s Event Speakers

Pat PetrielloHead of Marketplace

Strategy

Chad Rubin

CEO & Co-Founder

Today’s Agenda

1) Not Fully Understanding Your Advertising Goals

1) Not Getting Granular Enough with Your Campaign Strategy

1) Not Using Data to Make Decisions

1) The Meaning Behind ACoS Calculation

1) Not Optimizing Your Listing for Conversion Rate

1) Seller who set it and Forget it

Mistake #1:Not Fully UnderstandingCompeting Advertising Goals

CPC Strategy’s Advertising Triangle

1

3

2

VOLUME EFFICIENCY

SPEED

Understanding Your Goals Before Structuring Campaigns

1) Volume & Speeda) You can grow volume quickly by maximizing exposure & impressions

through aggressive bidding, but you're going to sacrifice efficiency.

1) Efficiency & Speeda) You can increase efficiency quickly by cutting out wasted spend which

entails cutting bids on inefficient keywords & pausing poor keywords altogether.

1) Volume & Efficiencya) You can increase both volume & efficiency in any advertising

campaign, but not on day 1.

Mistake #2:Not Getting Granular Enough with Your Campaign Strategy

Sponsored Product Campaign Structuring

SPONSORED PRODUCT CAMPAIGN SET-UP

AD GROUPSCAMPAIGN NEGATIVE

KEYWORDS

KEYWORD MATCH TYPE

BROAD PHRASE EXACT

AUTO TARGETING CAMPAIGN

MANUAL TARGETING CAMPAIGN &

SINGLE ASIN

← Profitable Keywords

MATCH TYPE NEGATIVE KEYWORDS

Manual & Automatic Campaigns

● Goals Will Determine Ad Group Differentiation ● Sellers can add up to 1,000 keywords per Ad

Group

● Give All Your Products a Chance to Perform● Data Harvesting● Actions are driven by your company’s goals

Automatic Manual

Keyword Match Types

AdGroup Harvest Goals✓ Broad Match: 30-90

keywords✓ Phrase Match: 20-40

keywords✓ Exact Match: 5-20

keywords

Keyword Match Types & Negative Keywords

Mistake #3:Not Using Data to Make Decisions Emotional vs Data Driven Decisions

Three Must-Use Traffic Tools

Merchant Words& MOZ & A9 Auto-Suggest

The Hashtag The Keyword Research Report

How do you build what customers want?

Build what customers search for

The Hashtag

The Hashtag

The Search Term Report

The Search Term Report

Optimize For Traffic

That’s ½ the Battle

Do Keyword Research Write 50% for Humans50% for Bots

Clicks Just as Importantas Conversions

Mistake #4:The Meaning Behind the Advertising Cost of Sale (ACoS) Calculation

Start by Setting the Right Goals

Maximize Profits Maximize Sales

There are two main goals for PPC

What’s a Good ACOS?

Maximize Profits Maximize Sales

Target ACOS Break Even ACOS

What’s a Good ACOS?

AMZ Fee 25%

35%COGS

10%Overhead

30%Profit before PPC spend

What’s a Good ACOS?

AMZ Fee 25%

35%COGS

10%Overhead

30%Profit before PPC spend

30%

Break Even ACOS

What’s a Good ACOS?

AMZ Fee 25%

35%COGS

10%Overhead

30%Profit before PPC spend

30%20%

Break Even ACOS

Target Profit Margin

10%

Target ACOS

What’s a Good ACOS?

AMZ Fee 25%

35%COGS

10%Overhead

30%Profit before PPC spend

30%20%

Break Even ACOS

Target Profit Margin

10%

Target ACOS

ACOS < 30%: ads are profitable

ACOS < 10%: hit your target profit margin

Only the Strong will Survive

Mistake #5:Not Optimizing Your Listing for Conversion Rate

Understand Your Conversion Rate

Math!

(Total Order Items+ Total Order Items

B2B)

Sessions Amazon ConversionRate (%)

/ =

Benchmark Data

Benchmark Data

3% 5% 17% 6-8%Good

Conversion RateAmazing

Conversion Rate1-800 Flowers Your Average

Target

The 3 Things that Amazon Values the Most

1) Utilizing Sponsored Ads and AMS = $

2) Inventory is available Prime ( Fulfilled by Amazon) = $$

3) Conversion is made = Amazon gets a Referral Commission = $$$

The Perfect Amazon Transaction

Win-Rate Math!

$$$$ that Amazon Values the Most

1) Heaviest weight placed on conversions

2) Not all conversions are created equal

3) For same keyword, would amazon rather have the person buy 1

or 5?

Amazon Tracks Unit Session %

Propel Rank - Get Your Customers to Buy 2+ Units

Boost Your Avg Order Value

Mistake #6:The Set it and Forget it Approach

Seller’s Typical Mistakes

1) Bidding

1) Keyword Selection

1) Advertised ASIN Selection

Today’s Recap

1) Understand Your Advertising/Business Goals Before Jumping in

1) Get Granular with Your Campaign Optimizations

1) Calculate Your Ideal ACoS before Creating Your SP Campaigns

1) Ensure You’re Using Data to Inform Decisions

1) Look at your Listing Conversion Rate Before Jumping into Sponsored Products

1) Don’t Set it & Forget it!

Schedule Your Sponsored ProductsAccount Health Evaluation

www.cpcstrategy.com/amazon-services

BONUS

❏ The Amazon Conversion Spreadsheet I Use To Run My Business!

AVAILABLE UNTIL END OF DAY TODAY

skubana.com/goldPASSWORD: nuggets

Questions for Speakers?

Pat PetrielloHead of Marketplace

Strategy

Chad Rubin

CEO & Co-Founder