Sometimes Amazon Sponsored doesn’t get a conversion, because of certain mistakes that happen. People ask FAQs like “why isn’t my ad converting well” or “my ACOS is not proper. What should my sales targets be?” or I’m not getting any traffic to my products. What to do?” These are a few problems that take place –
Mistake 1: Not Knowing Your Margins
People who just start using sponsored product ads usually do not have a campaign goal in their minds. You must know what your margins are before running your first ad. Your advertising cost of sales (ACOS) goals will change over time. If your product is great and you want to focus on getting more profits, you should set a target ACOS of 15-20% to maintain an even balance between sales and profit. Therefore, always have a goal in mind so that you can follow a consistent strategy.
Mistake 2: Having A Poor Amazon Listing
One of the most common reasons for poor Amazon PPC performance is having a poorly optimized Amazon listing. Before spending money on ads, you should see to it that certain bare minimum conditions are met.
- High-quality header image
- Use all your image slots to show off your product from different angles
- Bullet points convey the value propositions of your product
- Product title conveys the type of product you are selling.
If you don’t know whether your product quality is good or not, check with your conversion data. If your conversion rate is less than 5%, then you are having a conversion problem. If it is more than that, then your campaign is either normal or working extremely well if the percentage level is higher.
Mistake 3: Poor Campaign Structure
You should always use different campaign structures for your products.
- Auto Campaign
This campaign allows Amazon to check out its keyword space.
- Broad Campaign
Using Scope, you can check the Amazon listings of your competitors to find out which keywords are generating sales. Choose the highest performing keywords and you can convert at a high rate.
Mistake 4: Not Having Enough Amazon PPC Data
Most people who start using Amazon Sponsored Product Ad don’t gather sufficient data before making any changes or conclusions with their ads. You must check your keywords, create negative matches, check high conversion rates and then draw conclusions.
Mistake 5: Choosing Too Many Keywords
You should not use keywords that are more than 2-3 words long. This is a balance of keyword exploration and profitability. The problem people find with keywords is that they are either too descriptive or not descriptive enough.
Mistake 6: Not Making Correct Adjustments
You should never let your campaigns run at the cost of profits just because you get too excited or are in a rush. Instead, you should find keywords that aren’t converting and add it to your list of negative keywords. If you have relevant keywords which aren’t that profitable, then you should lower your bid until your ACOS matches your goals. If a keyword is relevant, generates an occasional sale but is unprofitable, add it in the negative keyword list or lower your bid to the point where you will make a profit.
Never leave your campaign dormant just because it’s making a couple of sales. This will be at the expense of your profitability. If you are not able to interpret your data, then you should use a tool called Ignite. It automatically makes bid adjustment and keyword recommendations on your account. It is based on a machine algorithm.