3 Tips for Successful PPC Management in Marketing Agencies

Here are three tips for achieving PPC success as a marketing agency:

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Importance of Search Term Volume

When marketing agencies use PPC advertising on Amazon, it is important to consider both the product rankings on specific search terms and the volume of those search terms.

PPC campaigns involve bidding on keywords, and the cost of keyword bidding on popular search terms can be higher due to increased competition. If marketing agencies only focus on high-ranking with no consideration for search terms volume, they may end up spending a significant portion of their budget without reaching potential audiences.

By considering search term volume, they can identify a balance between relevancy and cost-effectiveness, targeting keywords with a decent search volume and reasonable competition. In this way, agencies can identify keywords with a substantial search volume that can bring more exposure and potential buyers to their products.

Analyzing search term volume helps marketing agencies understand customer behavior and preferences. It provides insights on the popularity and frequency of search for keywords related to their products. By identifying high-volume keywords, agencies can optimize their PPC campaigns to target the right audience, increasing the chances of conversions and sales.

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Bidding on low performers PPC keywords

We all know for marketers it is vital to bid more on keywords having good conversions, but on the contrary, we also suggest you bid on keywords with low performance. That’s because underperforming keywords or ad placements often have lower competition compared to high-performing ones. This means that bidding on these low performers can be less costly, as fewer advertisers are bidding on them. At the same time, it helps you to better allocate your ads budget.

The other reason is that those low-performed keywords can be long-tail keywords that target niche audience. But they still attract some relevant and engaged audiences. They may not generate a huge search volume, but they do contribute to your PPC campaign success by those niche segments. This strategy helps marketers reach potential customers who are further along in the buying process and are actively searching for specific products or solutions. And what better marketplace than Amazon for customers with high purchase intent?

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Monitor PPC ads metrics

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ACOS

The first metric marketers focus on when doing PPC ads on Amazon should be ACOS.

Calculation method

ACOS = Amazon advertising costs / sponsored sales

It's important to ensure that your ACoS is lower than your profit margin before considering advertising costs. This means that the amount you spend on advertising will not eat up all of your profits.

To optimize your advertising strategy, you should set a target ACoS that is below your break-even point. The break-even ACoS is the point at which your advertising costs equal your profit margin. By setting a target ACoS below this break-even point, you can generate sales while still making a profit.

What is a good ACOS?

Many marketers in agencies are wondering if their ACOS is “good”. But actually ACOS was impacted by many issues like product’s category, competition intensity and product’s maturity.

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Note: If you want to know how these issues impact it, you can gain deeper insights in this article.

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Conversion rate

Conversion rate may be the most important metric to measure your performance.

Calculation method

Conversion rate=Visitors that clicked on your ad and then went on to buy your product / Number of Visitors

According to Ecomerew Survey, The average conversion rate for Amazon listings is 10% to 15%. Comparing your conversion rates to the industry average helps you assess the benchmark and ppc competitor analysis. But Prime members tend to have higher conversion rates due to their subscription benefits, such as fast and free shipping.

And now conversion rates play a significant role in Amazon's A10 algorithm, which determines the ranking of listings in search results. Since higher conversion rates usually are combined with strong sales velocity. It’s a signal to Amazon that your Amazon product listing is popular and relevant.

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How Does m19 Work in PPC Ads?

m19 is the go-to PPC software for Amazon agencies. This AI-driven PPC tool offers different modes for various PPC advertising goals on Amazon: performance, budget control, product launch, new marketplace... It’s a simple solution for powerful results, whether you’re an ad agency or a single marketer. Here's how it works:

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ACOS target management

You can customize desired ACOS levels for different product strategies to increase sponsored sales and better measure the profitability of your advertising campaigns.

With m19, you set up campaigns in no time, with a keyword granularity no one could reach manually (on average, the m19 AI finds 8 times more keywords than humans). On top of that, each ASIN/keyword pair is monitored individually, each day.

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Monthly budget management

By utilizing "monthly budget management," you only need to specify a budget to adhere to, and the algorithm handles all other aspects. We optimize performance by spending your exact monthly budget while minimizing ACOS on sponsored products.

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Marketplace launch routine

We kickstart the learning process and enable the algorithm to gain insights, adapt strategies, and maximum performance in a new or outdated marketplace.

Conclusion

Marketing agencies doing PPC advertising on Amazon should consider more the mechanism of how the metrics work.

Leveraging AI-driven PPC software like m19 enables customized ACOS management and efficient budget allocation. These strategies and tools optimize campaign performance, helping marketing agencies achieve success in their Amazon PPC advertising.

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