Takeaways:

• Paid advertising is crucial for Amazon sellers to succeed, as it is a pay-to-play model on the platform.
• It is common for sellers to spend money across different ad types or match types, but diversifying and optimizing the budget allocation is essential.
• Building a strong foundation for product visibility on Amazon is crucial, and sponsored product ads are recommended for this purpose.
• Sponsored products have higher conversion rates compared to rest of search or product pages, so focusing budget on top-of-search placement is recommended during the launch phase.
• Once the product gains ranking and sales velocity, the budget can be reallocated to other ad types, such as sponsored brands and sponsored display ads.
• Budget management, bid management, seasonality, and communication with inventory teams are essential aspects to consider for proper campaign management.
• Clearing out wasted ad spend is crucial to free up budget for finding new opportunities. The wasted ad spend ratio, which is the inverse of the conversion rate, should be monitored and reduced.

Quote of the show:

Making sure your budget is utilized the right way is really important. Many accounts spend money on just one ad type or match type, or focus heavily on a single product. It’s important to diversify and maximize traffic to all products. Additionally, allocating the budget effectively according to your strategy is essential to minimize wasted ad spend.

Links:

• Personal – LinkedIn: https://www.linkedin.com/in/patientfirstpt/
• Personal – Twitter: https://twitter.com/PPCEntourage
• PPC Entourage – Website: https://ppcentourage.com/
• Carbon6 – Website: http://carbon6.io/

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