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Live Webcast:
Top Amazon Sponsored Product
Mistakes Draining Your Budget & Profits
Presented By:
Today’s Logistics
Session Recording + Slides Will Be Sent Out
Join in the Poll Questions!
Submit Questions to Our Panelists
Today’s Event Speakers
Pat Petriello
Head 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 Strateg...
Mistake #1:
Not Fully Understanding
Competing Advertising Goals
CPC Strategy’s Advertising Triangle
1
3
2
VOLUME EFFICIENCY
SPEED
Understanding Your Goals Before Structuring Campaigns
1) Volume & Speed
a) You can grow volume quickly by maximizing expos...
Mistake #2:
Not Getting Granular Enough with Your
Campaign Strategy
Sponsored Product Campaign Structuring
SPONSORED PRODUCT CAMPAIGN SET-UP
AD GROUPS
CAMPAIGN NEGATIVE
KEYWORDS
KEYWORD MATC...
Manual & Automatic Campaigns
● Goals Will Determine Ad Group Differentiation
● Sellers can add up to 1,000 keywords per Ad...
Keyword Match Types
AdGroup Harvest Goals
✓ Broad Match: 30-90
keywords
✓ Phrase Match: 20-40
keywords
✓ Exact Match: 5-20...
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 Humans
50% for Bots
Clicks Just as Important
as...
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
Marg...
What’s a Good ACOS?
AMZ Fee 25%
35%COGS
10%
Overhead
30%Profit before
PPC spend
30%
20%
Break
Even
ACOS
Target Profit
Marg...
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 Conversion
Rate (%)
/ =
Benchmark Data
Benchmark Data
3% 5% 17% 6-8%
Good
Conversion Rate
Amazing
Conversion Rate
1-800 Flowers Your Average
Target
The 3 Things that Amazon Values the Most
1) Utilizing Sponsored Ads and AMS = $
2) Inventory is available Prime ( Fulfille...
Win-Rate Math!
$$$$ that Amazon Values the Most
1) Heaviest weight placed on conversions
2) Not all conversions are created equal
3) For ...
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 Optimizat...
Schedule Your Sponsored Products
Account 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/gold
PASS...
Questions for Speakers?
Pat Petriello
Head of Marketplace
Strategy
Chad Rubin
CEO & Co-Founder
Top Amazon Sponsored Product Mistakes Draining Your Budget & Profits | CPC Strategy + Skubana
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Top Amazon Sponsored Product Mistakes Draining Your Budget & Profits | CPC Strategy + Skubana

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Are my campaigns performing at their optimal level?
Why aren’t my Sponsored Product ads converting?
My ACoS is cutting into my profit margins—How do I fix this?
Why aren’t my ad placements sending enough traffic to my listings?

We find these types of questions come up A LOT with Amazon Sellers trying to maximize the performance of their Sponsored Product investments. Therefore we’re having former member of Amazon’s Seller Services team, Pat Petriello, and Top 250 Amazon Seller, Chad Rubin, demonstrate their proven methodologies for improving campaign performance.

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Top Amazon Sponsored Product Mistakes Draining Your Budget & Profits | CPC Strategy + Skubana

  1. 1. Live Webcast: Top Amazon Sponsored Product Mistakes Draining Your Budget & Profits Presented By:
  2. 2. Today’s Logistics Session Recording + Slides Will Be Sent Out Join in the Poll Questions! Submit Questions to Our Panelists
  3. 3. Today’s Event Speakers Pat Petriello Head of Marketplace Strategy Chad Rubin CEO & Co-Founder
  4. 4. 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
  5. 5. Mistake #1: Not Fully Understanding Competing Advertising Goals
  6. 6. CPC Strategy’s Advertising Triangle 1 3 2 VOLUME EFFICIENCY SPEED
  7. 7. Understanding Your Goals Before Structuring Campaigns 1) Volume & Speed a) You can grow volume quickly by maximizing exposure & impressions through aggressive bidding, but you're going to sacrifice efficiency. 1) Efficiency & Speed a) You can increase efficiency quickly by cutting out wasted spend which entails cutting bids on inefficient keywords & pausing poor keywords altogether. 1) Volume & Efficiency a) You can increase both volume & efficiency in any advertising campaign, but not on day 1.
  8. 8. Mistake #2: Not Getting Granular Enough with Your Campaign Strategy
  9. 9. Sponsored Product Campaign Structuring SPONSORED PRODUCT CAMPAIGN SET-UP AD GROUPS CAMPAIGN NEGATIVE KEYWORDS KEYWORD MATCH TYPE BROAD PHRASE EXACT AUTO TARGETING CAMPAIGN MANUAL TARGETING CAMPAIGN & SINGLE ASIN ← Profitable Keywords MATCH TYPE NEGATIVE KEYWORDS
  10. 10. 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
  11. 11. Keyword Match Types AdGroup Harvest Goals ✓ Broad Match: 30-90 keywords ✓ Phrase Match: 20-40 keywords ✓ Exact Match: 5-20 keywords
  12. 12. Keyword Match Types & Negative Keywords
  13. 13. Mistake #3: Not Using Data to Make Decisions Emotional vs Data Driven Decisions
  14. 14. Three Must-Use Traffic Tools Merchant Words & MOZ & A9 Auto-Suggest The Hashtag The Keyword Research Report
  15. 15. How do you build what customers want? Build what customers search for
  16. 16. The Hashtag
  17. 17. The Hashtag
  18. 18. The Search Term Report
  19. 19. The Search Term Report
  20. 20. Optimize For Traffic That’s ½ the Battle Do Keyword Research Write 50% for Humans 50% for Bots Clicks Just as Important as Conversions
  21. 21. Mistake #4: The Meaning Behind the Advertising Cost of Sale (ACoS) Calculation
  22. 22. Start by Setting the Right Goals Maximize Profits Maximize Sales There are two main goals for PPC
  23. 23. What’s a Good ACOS? Maximize Profits Maximize Sales Target ACOS Break Even ACOS
  24. 24. What’s a Good ACOS? AMZ Fee 25% 35%COGS 10% Overhead 30%Profit before PPC spend
  25. 25. What’s a Good ACOS? AMZ Fee 25% 35%COGS 10% Overhead 30%Profit before PPC spend 30% Break Even ACOS
  26. 26. 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
  27. 27. 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
  28. 28. Only the Strong will Survive
  29. 29. Mistake #5: Not Optimizing Your Listing for Conversion Rate
  30. 30. Understand Your Conversion Rate
  31. 31. Math! (Total Order Items + Total Order Items B2B) Sessions Amazon Conversion Rate (%) / =
  32. 32. Benchmark Data
  33. 33. Benchmark Data 3% 5% 17% 6-8% Good Conversion Rate Amazing Conversion Rate 1-800 Flowers Your Average Target
  34. 34. 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
  35. 35. Win-Rate Math!
  36. 36. $$$$ 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?
  37. 37. Amazon Tracks Unit Session %
  38. 38. Propel Rank - Get Your Customers to Buy 2+ Units Boost Your Avg Order Value
  39. 39. Mistake #6: The Set it and Forget it Approach
  40. 40. Seller’s Typical Mistakes 1)Bidding 1)Keyword Selection 1)Advertised ASIN Selection
  41. 41. 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!
  42. 42. Schedule Your Sponsored Products Account Health Evaluation www.cpcstrategy.com/amazon-services
  43. 43. BONUS ❏ The Amazon Conversion Spreadsheet I Use To Run My Business! AVAILABLE UNTIL END OF DAY TODAY skubana.com/gold PASSWORD: nuggets
  44. 44. Questions for Speakers? Pat Petriello Head of Marketplace Strategy Chad Rubin CEO & Co-Founder

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