For those who are starting out trying to understand PPC better, or those who’ve been around the block for a while but haven’t been diligent about PPC management, I wanted to show an example of significant untapped potential which may lurk in Sponsored Products campaigns if they’re not properly structured, maintained and optimized. Hopefully this will motivate some of you who’ve neglected giving your campaigns proper attention to prioritize them sooner than later.
SOME STARTING POINTS:
Even though this particular account and campaigns are selling 100’s of SKU’s in lower-volume product niches, only a handful of products generated the majority of revenue.
Account is a private-label seller which had been selling on Amazon for more than 3 years.
6 months ago, PPC revenue was heavily reliant on automatic campaigns. Only a few manual campaigns existed relative to the number of advertised products.
Also, the account had several ad groups where each of them contained several SKU’s, some ad groups containing as many as 20+ unrelated SKU’s.
Account had a strict maximum ACoS requirement.
Products are evergreen annually and don’t have a peak season in particular. In other words, no seasonal fluctuations, and certainly not winter products per se.
PLAN OF ACTION:
We’ve created many new manual campaigns to flush out a more comprehensive structural strategy.
Though it’s still a work-in-progress, we’ve been isolating SKU’s so that each ad group only contains 1 SKU. Because this account is very sensitive to ACoS, we’ve been incrementally segregating SKU’s one by one over time. It’ll take us a few more weeks to wrap up this effort.
We’ve been working on moving keywords from automatic campaigns (many of which contained those ad groups with multiple SKU’s) into manual campaigns for more granular control.
All of this was happening along with our usual recurring optimization routine.
OUR RESULTS TO-DATE:
We’ve lowered ACoS from 17% to 14%, with potential to squeeze ACoS even further.
We’ve increased monthly PPC revenue from $70,000 to $105,000 / month (for January 2019, *after* the holiday season was over)!
In other words, we’ve increased the profitability across campaigns while boosting their revenue by 43%! Not bad for a few months’ worth of gradual progress.
If you’d like to know more about how we can help with your Amazon advertising & marketing needs, feel free to respond or contact me.