How to configure Amazon Ads
Once you've decided to sell your products on Amazon, you should think about whether Amazon Advertising could be a useful marketing channel for your business. Having run lots of Amazon ad campaigns over the years, these are our tips for structuring and optimising your ad campaigns.
Structuring ads: the entities
There is a hierarchy of entities with Amazon Advertising:
- Account - if you have just one seller or vendor account then you will likely only have one advertising account.
- Portfolio - used to create groups of campaigns; you can set a monthly spend limit for a portfolio which is useful.
- Campaign - campaigns can use either automatic or manual targeting; contain multiple ad groups.
- Ad group - within campaigns you can create ad groups for individual or groups of products to make reporting clearer; ad groups in automatic campaigns allow you to see which keywords people are using to discover your product; ad groups in manual campaigns allow you to adjust bids on individual keywords.
- Product ads - ad groups can contain one or more product ads.
Structuring ads: our recommendation
We recommend creating one portfolio for your campaigns and using this to set a monthly spend limit.
We recommend creating two campaigns within the portfolio: one with automatic targeting and one with manual targeting.
Within the auto campaign, create one ad group for each product.
Within the manual campaign, create two ad groups for each product: one for keyword targeting, one for product targeting.
Create a single product ad within each ad group for ad groups in both auto and manual campaigns.
Add ’exact match’ keywords to the manual ad groups. Add the same keywords as negative match keywords to the auto ad groups.
Your own ads won’t bid each other up as the Amazon algorithm simply chooses the most appropriate ad to show, however doing this improves reporting and gives the Amazon algorithm extra data to go on.
At regular intervals you can browse the search terms that the auto campaigns have been using and add them as exact match keywords to your manual campaigns. You can either do this:
- As soon as they appear
- When they get one or more clicks
- When they get one or more order
This gives you greater control over the bids for each keyword which helps ensure you are driving profitable sales.
To ensure all keywords are driving profitable sales, let each keyword run for a while until either you have an order or you have so many clicks that an order seems unlikely.
If you get one or more orders, then look at the ACOS and adjust the bid accordingly to give you your target ACOS. For example, if your target ACOS is 50% and you have an average ACOS of 100% from your first few orders then you should halve the bid. This should result in an ACOS of roughly 50% in due course.
Alternatively, if you don’t get any orders after a few clicks then drop the bid to a very low amount (say £0.10). With a cheap cost-per-click, this keyword might still be able to drive profitable sales even at a low conversion rate.