Take your Non-advertising Data into account in Amazon PPC

These data points provide insights into different aspects of your business and can help inform your overall marketing and PPC campaign strategies. This is how to make money on Amazon.

Here are some examples of non-advertising data that you absolutely need take into account:

• Inventory Level
• Organic Traffic
• Profitability Analysis
• Competitive analysis

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Inventory Management

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Consequences of low inventory

Firstly, low inventory issues can negatively impact product rankings, sales, and the management of PPC campaigns.

When inventory levels are low and PPC campaigns are still active, customers who click on ads may find that the product is unavailable for purchase. This leads to a poor customer experience and wasted ad spend. If customers repeatedly encounter out-of-stock products through ads, it can damage their trust in your brand, resulting in potential loss of sales and a negative impact on your reputation. Additionally, the Amazon A10 algorithm recognizes low inventory levels and may lower the product ranking, reducing exposure and click-through rates. So getting back to your original rankings, product exposure on Amazon may need time and effort.All the more as you may bid on keywords that lead to your low-in-stock product…and you end up winning a bid with no sale opportunity.

To ensure sustainable traffic for your products, it is crucial to align your Amazon PPC strategy with product inventory levels.

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Strategies for Low Inventory

To mitigate this issue, it's important to replenish inventory timely.

Many sellers choose to pause their advertising campaigns in such situations. However, this can harm your product's search term ranking. Once you restock the product, it may take time to reactivate your PPC campaigns and regain momentum.

To avoid spending on products with no inventory, you can create inventory rules that pause your PPC activities for out-of-stock products. For example, you can run PPC ads only when inventory levels exceed a specified threshold or pause ads when product inventory falls below a certain threshold.

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m19 experts can help optimize your PPC campaigns. If your product inventory falls below the threshold, you can decide to pause the ASIN in all sponsored products and sponsored display campaigns.

For further reading, please click here

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Organic Traffic

Increased organic traffic can positively impact the ROI of paid search campaigns. When organic traffic increases, it indicates that your product listings are well optimized and attract more potential clients. By directing paid search traffic to these optimized product listings, you can benefit from the high conversion rates of organic traffic, thereby improving the ROI of your paid search campaigns.

When you promote products through paid advertising, these ads can also enhance the visibility of your products in organic search results. If your products rank well in organic search and receive additional exposure through paid advertising, it can accelerate your sales velocity.

Organic and paid search traffic provide complementary data, allowing you to optimize your strategies more effectively.

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TACOS for Holistic Analysis

To have a complete understanding of the impact of advertising on total sales, it's essential to connect advertising with overall revenue through additional metrics. That's where TACOS (Total Advertising Cost of Sales) comes in.

TACOS provides valuable insights into how advertising investments impact total sales, considering both direct and indirect sales effects. By monitoring TACOS, you can better understand the impact of advertising investments on your overall sales.

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Note: Wondering how TACOS can help your Amazon PPC campaign? Find the answer here.

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Profitability Analysis

Considering profitability is crucial for making informed decisions about PPC campaigns.

Understanding profitability metrics allows you to optimize bidding, budget allocation, and targeting strategies to maximize profitability.

While ACoS is a standard metric for assessing PPC profitability, it is important to consider the overall cost structure of your products. This includes factors such as FBA fees, shipping costs, product pricing, discounts, and production costs. By analyzing metrics such as profit margins, return on ad spend (ROAS), you can optimize your PPC bidding, budget allocation, and targeting strategies to maximize profitability.

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Competitive analysis

Through competitive analysis, you can gain valuable insights into your competitors' advertising strategies and keywords, helping you optimize your PPC advertising campaigns. Here are some strategies related to competitive analysis:

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Understand competitors' keywords

Competitive analysis allows you to identify which keywords your competitors are targeting in their advertising campaigns. You can use this information to optimize your own keyword selection and bidding strategies based on the performance and competition level of these keywords.

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Utilize brand analysis reports

Brand analysis reports provide you with a list of search terms used by your competitors. You can filter out the keywords that have the best conversion and click performance and add them to your advertising campaigns to increase traffic and sales opportunities.

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Adopting unconventional advertising strategies

Through competitive analysis, you can explore unconventional advertising strategies to differentiate yourself from competitors and optimize your advertising performance. This can include bidding on popular keywords, adjusting bids based on placement guidance, and targeting long-tail keywords. These strategies can help you stand out and improve your advertising performance in a competitive market.

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Note: How to analyze your competitor's Amazon PPC strategies? More information click here

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Conclusion

Taking non-advertising data into account is crucial for achieving success with PPC campaigns on Amazon. It help build a big blueprint for your Amazon business.

Using m19 PPC software is an optimal approach to enhance operational efficiency when managing your PPC campaigns, particularly for marketing agencies handling substantial workloads and multiple accounts. For further assistance, please don't hesitate to reach out to our experts at m19.com. We are dedicated to providing the support you need.

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