How Do I Setup Advertising on Amazon?
Luckily, setting up advertising on Amazon is pretty straight forward.
Login to your Seller Central account
Click on Advertising on the upper navigation
Click on Create New Campaign
Name the campaign after the product you wish to advertise like this:
Select the Manual radio button
Name this ad campaign the product and Exact like this:
“Product Name – Exact”
Select the product and all of the variations you wish to advertise
Set your default bid to something you are comfortable – we recommend between $0.50 and $0.75
Add your keywords and select Exact from the dropdown menu on the right
Click Save and Finish
That’s it, you’re all done!
The Strategy behind the Structure of Advertising on Amazon
Amazon likes to simplify things for sellers especially when it comes to advertising since it means that Amazon is going to make more money off of a seller. When you advertise a product, you want to include all of the variations of that product in your Ad Group, otherwise Amazon gets confused and doesn’t know what to show for an ad. For instance, if you sell shoes, chances are you sell several sizes of each style of shoe. You don’t want to set up an ad campaign or ad group for each size of each style of shoe. Not only would the be exhausting and tedious, but Amazon’s algorithm wouldn’t know which shoe to serve in ads consistently.
The algorithm can be a real bear sometimes, too. If you made ad groups for every size of shoe, you might have a shoe that has all of the best signals for Amazon to serve the ads: high CTR, high conversion rate, excellent quality score, Prime eligibility, and more. But if that product is a size 13 shoe instead of a size 10 shoe, Amazon might continually serve the size 10 shoe because that is a more popular size and it thinks those two ad groups are meant to serve the technically more popular shoe anyway.
However, if you have all of your sizes of a style in one ad group, Amazon is much more likely to either rotate the sizes, or, as is the most frequent case, serve an ad with an arbitrary sized shoe that will lead folks to your product anyway.
Amazon Advertising Hierarchy
The approach to take to avoid all of this is to come up with a clean hierarchy. We recommend the following approach:
Create a Campaign with an Ad Group that encomapsses all of your similar products (same shoe style but different size, same flavor beverage but different volumes, one style of pants but different colors, etc)
Create two Campaigns for each product:one manual and one auto
Create two ad groups for each product grouping: one exact and one broad
This allows you a ton of flexibility for when you want to promote a specific product or run seasonal campaigns. Your every day campaigns can keep running, but you can also play around with specific campaigns, too.
Need help setting up your advertising, or unclear on the strategy? Contact us to get the conversation started.