PPC: The 7 mistakes people make with their Amazon Sponsored Ads – #2 Dirty AdGroups

This is #2 in a 7 part series entitled “The 7 mistakes people make with their Amazon Sponsored Ads / PPC.”  At the end of this post you’ll learn why you should (almost) never include more than one Product Ad in any given AdGroup.

Whenever you create an advertising campaign in Sponsored Products, Amazon will ask you to create at least one adgroup, where you specify the keywords you want to target (in a manual campaign), and then they will ask you to specify at LEAST one product that you want to advertise for those keywords.

It’s a trick question, don’t fall for it.  Just choose one.  But first, a list.

Things that can be dirty:

1. Your pop.

2. Your south.

Things that should not be dirty:

1. Your AdGroups.

Here’s why, and it’s really simple:

You’ll have no idea which search term is making you money, for which product.

When you download your search term reports (you are downloading your search term reports, right?) they will tell you how many impressions, clicks, sales, etc you received for your product right?

Wrong.

They give you
1. Campaign.
2. AdGroup

And THAT’S it.

So, here’s where this becomes ruinous.

You have a couple of products you want to sell.  You sell dog leashes.  One is a metal chain leash, and the other is a retractable vinyl leash.  You decide to throw them in the same adgroup.   You bid on the broad/phrase match of “dog leash”

Now, 100 people log into amazon and half of them type “chain dog leash” and half of them type “retractable dog leash”.

There’s no telling which ad each of them is going to see, because Amazon’s not *always* going to be smart enough to match it based on your title and description.

So lets just pretend it’s a fully even distribution

25 people type ‘chain dog leash’ and see a chain dog leash
25 people type ‘chain dog leash’ and see a retractable dog leash
25 people type ‘retractable dog leash’ and see a chain dog leash
25 people type ‘retractable dog leash’ and see a retractable dog leash

What this means is that half of the people who type in the search term will see something that they probably don’t want.  Which means your click through rate will drop (if you’re lucky) or maybe they click on it anyway out of mild curiosity which means your conversion rate will drop, because you’ll spend money on clicks that have a very low chance of actually generating sales.

In your search term report it’ll look something like this

“Query: chain dog leash”
“Keyword: dog leash”
“Match Type: Broad”
“Campaign: Dog Leash Campaign”
“AdGroup: My Dog Leashes”
“Impressions: 10000”
“Clicks: 10”
“Conversions: 2”

/————-/

“Query:vinyl dog leash”
“Keyword: dog leash”
“Match Type: Broad”
“Campaign: Dog Leash Campaign”
“AdGroup: My Dog Leashes”
“Impressions: 10000”
“Clicks: 10”
“Conversions: 2”


Can you tell from that which ad is working for that query?

Nope. Me neither.

Whereas, if you only had your chain dog leash in that adgroup, you could comfortably say “Oh, this is the result when people are seeing this specific product“, and then make your keyword/search term decisions based on accurate information and not vague dirty adgroups.

 

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