I want to talk to you about Amazon advertising. In a recent strategy I’ve, been using in both seller Central’s, campaign manager and AMS. So this pretty much applies to you across the board, whether your seller, central selling, fbm, FBA, or maybe you’re in KDP, and you have access to AMS or if you’re, an Amazon merge and you used your invite code and You haven’t gotten started advertising, yet this would also be relevant to you as soon as Amazon merch reopens.
Let me walk you through this strategy, so the strategy I am using, I’m, going to call it my lowball bid strategy. It’s, probably not original, although I just decided to go ahead and try it recently because with the cervesa sickness – and you know a lot of things changing at a pretty rapid pace around the world, including in the e-commerce landscape, I started to notice That the bids that were required to get visibility on my products, we’re, not as high as they used to be so, I said to myself like hmm, maybe I should kill some my advertising campaigns that normally run and run well and just remake Them with really lowball bids and see if it gets any traction well, it got some traction.
It didn’t, get a ton of traction, but some is better than none, especially when we’re. Looking at ACOSS of like less than 10 %, you know single digit like this one above my head up here is for my that FBA product, where I had a record sales day the other day, and even though I only got a couple sales, you know at Three point: three: a costs is really good and for those of you that don’t know what a cost is.
It is the advertised cost of sales. So a good example to clear this up is: if you’re selling a product at $ 100, and you have a 30 % profit margin, you’re. A cost needs to be deducted from your profit margin per sale to generate those sales.
So if I have an a cost of let’s just say 3 %, then I take the 30 %. Profit margin deduct 3 %. If we use $ 100. As an example, nice round number, our profit margin normally was $ 30 per sale. Now we have to deduct that extra 3 % so that’s going to enter the 3 %, is from the sale cost the sale price, so 3 % of 100 is $ 3.
00. So, instead of $ 30 profit, we have $ 27 profit just to clarify that. But I’ve, been using this in both AMS and campaign manager and seeing some success not like crazy success, where this is groundbreaking.
But at the same time, there’s. Really no downside to doing this. Take your most successful keywords and well: go ahead! Pause! This video grab you a list of your most successful keywords or just keywords, you think, are most relevant for your product and then unpause.
The video and I’m gonna walk you through very quickly how to get an advertisement or an advertising campaign up and running. I’m gonna use a campaign manager as the example, but AMS is very similar. So if you’re only advertising an AMS, maybe you’re doing KDP.
This would work just as well alright, so step number one all you have to do is hit create campaign that could be an AMS or campaign manager and campaign manager, guys in seller, central just log in look at advertising and then campaign manager step 2.
I clicked sponsored products for this example. Step 3 under create campaign. You’re gonna want to name your campaign, something that makes sense to you start today and I typically leave no end date daily budget.
I set a high budget because we’re gonna be low balling our bids. So if we’re able to spend a high budget at the lowball bids, we’re gonna be doing that’s. Very good, so I don’t want to limit it by budget, so I put $ 20.
00 in and then change targeting from automatic to manual. We’re gonna give Amazon the keywords that we want to show up on all right campaign bidding strategy dynamic bids down only so that means that we can get visibility at the price we specify or less, and I love less, but we’re gonna be low-balling them, so you probably won’t, get much cheaper than what we’re gonna be willing to bid alright next, create an ad group again put in something descriptive.
Apologies! I’m. Going through this pretty quickly to keep this video short in my courses, I go much more in-depth and I get very methodical about naming conventions and all that, but I just want to breeze through this really quickly.
Most of you, guys have probably already set up advertising campaigns and don’t need this tutorial anyways, but for those of you that haven’t, I just you how easy it can be done. Alright, next products, all you have to do is search your product name or Aysen.
If you’re in seller central it’s, gonna limit the scope to products that are in your account, if you’re in AMS, and you’re like me, and you got in through vendor central, You can look up any product on Amazon’s, catalog, which is really cool.
Alright, once you’ve added your products targeting you’re gonna want to do keyword targeting I have messed around with product. Targeting that used to be called product display ads. Then they axed product display ads and they just rolled it up under a targeting section.
So they’re constantly evolving and making changes to the advertising platform that one’s, probably a good one, though I would. I’m in favor of that one, but we’re gonna do keyword targeting alright. Now we need to enter our list of keywords.
This is definitely how I like to prioritize like. If I’m gonna be setting up ad campaigns, I much prefer to provide Amazon the keywords that I want to be spending money to show up on not that auto targeting campaigns.
Aren’t useful, which is the alternative of manual targeting but manual, targeting all the way humans know humans, typically better than our algorithms do so enter list. This is where you’re gonna copy-paste.
Your list now by default under match type you’re gonna see broad phrase and exact checked at the same time, uncheck broad uncheck phrase just check exact. Now there’s, nothing wrong with doing broad and phrase.
Typically, in addition to exact, I almost always like to split them up and then adjust my bids for each because exact is gonna, be our most expensive, but also highest performing keywords. Usually, in this case, what we’re, really trying to do, is reduce wasted ad spend and you’re gonna get more waste with broad match type and phrase match type by the way.
Again, I don’t want to get super into the weeds. I could I could make this like a 30 minute video about advertising. I’m gonna try to keep this. One short just know that, with the exact match type it’s, what it sounds like exact string match so customer types in iPhone 7 case, we bid on exact, match keywords, iPhone 7 case.
We’re eligible to show up if our bid wins. It is worth keeping in mind that, okay, by the way after you put your keywords in you’ll have an option little button underneath it looks like it got cut off in my screenshot, but you ‘
Ll have an option. To add keywords: when you do that, you will be able to set the bids. Now you’ll notice. That Amazon will give you a suggested bid. The suggested bids are almost always much higher than they need to be to get visibility.
So just always, keep that in mind you don’t, always have to go off of the suggested bid. Keep in mind guys this isn’t gonna be brewed groundbreaking news, hopefully to any of you, but at the end of the day, Jeff Bezos.
He wants to make money, he wants to rule the world right and then he’s. Gon na take Blue Origin and he’s. Gon na go to Mars and probably try to rule Mars too. So I don’t even know. If I’m kidding when I say that look up Blue Origin, if you didn’t know he’s up there with like SpaceX and Virgin Galactic with his own, like outer space programs, but anyways, I digress.
He wants money so, of course, to suggest it bids are higher than they need to be. We don’t care. What we’re gonna do for this lowball strategy, and I apologize the screenshots actually a little confusing.
We’re gonna bid like 10 cents or 11 cents or 12 cents. We’re gonna keep it extremely low. The lowest. I typically go, is 10 cents. Now, depending on what platform you’re on, you may be able to bid as low as like 2 cents.
I think in campaign manager the limit I the low lower limit – I think – is 10 cents, but in AMS, if you want to go for a 2 cent bid, I’m, pretty sure they. Let you do that with two pennies. You may not actually get any visibility, but with 10 cents, as I showed you in those earlier screenshots like I’m.
Actually getting conversions and a cost is well, you know single digits by bidding 10 cents and just keep in mind guys Amazon’s platform, just like similar to Google’s, which is the biggest advertising platform in the world.
It’s, a bidding system and we are bidding for visibility in those advertised spots against each other, and the people were bidding against if their campaigns run out of budget, maybe early in the morning.
You know because the budgets are set on day to day basis. So maybe in the morning, through 6:00 p.m. at night, they’re dominating us because they’re, getting all their budget spent because they outbid us.
What about after 6 p.m. when they, when they spend their whole budget, though Amazon still wants to get paid? Bezos still wants to get paid. You know Internet real estate, aka the advertising spots on on the Amazon platform.
They can and are being monetized and Bezos is getting more money in his pocket right. So then, all of a sudden, even if we come in with lowball bids, their algorithm is still gonna, say hey. These are the only ones eligible be served put them in there, and next thing you know we’re, generating clicks at ten cents, a pop getting more people to our listings and hopefully converting and, as you guys know, Amazon it’s.
A flywheel effect it’s, a it’s, almost like a feedback loop where, if you are getting clicks that lead to sales, you are also getting rewarded by better organic rank. Better organic rank means more visibility, which means more clicks and more sales, and it literally just feeds on itself.
So obviously, our ultimate goal for all of our products is to get to the organic rank one spot on the most relevant keywords. Advertising is a great way to get there because we’re, just getting increased visibility, and you know how what does an amazon’s? Customer journey.
Look like literally search find buy, step one they search. They don’t, see our product. There’s, a zero percent chance that they’re gonna click it if they don’t click, it zero percent. Chance they’re gonna buy it so not to insult anybody’s intelligence.
I’m. Just saying, advertising is very important so now that we’ve added our bid. The last thing you’ll, see you get a chance to do negative keyword targeting normally, I would say, if relevant to your product, include negative keywords here, like if you’re selling, something that’s, the color blue and You know that there’s, similar products that are also sold in red, but you’re only selling blue.
Maybe you put a negative, exact or negative phrase, probably negative phrase of the word red right. That would make sense, but in this case who cares, we’re, paying 10 cents per bid, so I’m, not suggesting to even use a negative keyword targeting because we’re.
We’re low balling. These CPC bids so much all right, step. 11. All you have to do is click launch campaign guys it was that easy. If I didn’t talk so much, it probably would’ve been a lot quicker all right before I wrap the video just wanted to.
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If you want to check that out also supports the channel. So, thank you and just another reminder guys. I breezed through this tutorial in my courses, like my dropship print-on-demand course or my FBA course.
I have at least in each one four different lectures going over advertising where I’ll, explain how it all works. Much more, you know slower and methodically I talk more in depth about manual versus automatic, broad phrase, exact, etc.
I break all those things down naming conventions. I go into campaign manager as well as AMS, and I break down advertising approaches for the different ad types. In this example, we talked about sponsor display ads, but there’s, other ones.
My favorite one is sponsored brand ads. I was blanking on the name because they used to be called headline search ads. They’re, the ads that show up at the very top of search results, but you have to be in brand registry normally to run those, but they they perform extremely well.
So anyways guys. Thank you for watching this video till the end. Remember, if I can do it, so can you there’s literally nothing! I’m, just you from the future right. You’re excited about starting your business.
All you need to know is what to do next, hey. I can help you links are in the description if you want to learn how I grew my FB, a business from zero dollars to seven figures, my print-on-demand business six figures annually, Amazon KDP.