How to Streamline Your Amazon CPC Expenses

Living in the Digital Age means that more and more tasks are being carried out online, including shopping. Globe Newswire reports that the acceleration of e-commerce has led to a steep rise in demand for marketers with strong digital skills. To illustrate, London-based digital marketing agency, The Brains, has stated that their inquiries have risen by 135% since June 2020. Yet with so much noise in the digital space today, Maryville University finds that digital marketers need more effective and data-driven strategies to stand out. These include visual communication that is updated to appeal to evolving sensibilities and modern aesthetics.

However, even just as important is that businesses can now pull off sophisticated advertising campaigns that are cost-effective. Amazon Advertising is one of the most efficient ways to boost your profits by heightening customer engagement and targeted advertisement. And although many factors come into play when it comes to the costs of this type of advertising, there are several ways you can streamline your Amazon Advertising expenses. Here’s how…

What is CPC and why does it matter?

Cost Per Click (CPC) is the amount that Amazon charges each time a customer clicks on your Pay Per Click (PPC) advertisement. It serves as an important metric to measure the price that your brand is paying for advertising campaigns. Having a low CPC ensures that your campaigns are cost-effective, meaning that you have a greater return on investment (ROI). This makes it a big part of your campaign’s profitability.

Having a low CPC is important to keep your Advertising Cost of Sale (ACoS) down. This is important as ACoS serves as a metric for evaluating and tweaking your campaigns on Amazon.

How to lower your CPC

Maximize visibility with backend keywords

One of the best ways to maximize your visibility, and therefore heighten the likelihood of buyers purchasing your products, is by using backend keywords. Amazon uses several factors when determining what results to show customers when they make searches. One of the most important is the presence of relevant keywords in your Amazon listing.

Our article ‘Amazon Backend Keywords’ lists some basic pointers for optimizing your keywords. One of these is using all 250 bytes in your keywords to maximize coverage. You should also include popular misspellings of high-traffic keywords, including synonyms and alternative spellings. Ensure that you don’t include brand names, repeat keywords, or include punctuation. Observing gives you a well-optimized product listing.

Optimize your bids

Paid digital marketing usually uses an auction model where the advertising platform — in this case, Amazon — uses your bid amount and other factors to determine which ads rank the highest. When you’re advertising, the goal is to outdo all your competitors for the best ad position. The best way to do this is by optimizing your CPC bid, or the maximum cost you’re willing to pay for each click your ad gets.

Some steps you can take to optimize your bid include bidding as low as possible. Try increasing or decreasing your target or maximum amounts, testing it over a couple of weeks, to see how these changes affect your conversions. You should also be diligent with your bidding, as seasonality causes bid values to change over time.

Use automated Amazon PPC tools

PPC tools might be your best friend when it comes to managing your campaigns. These tools base their actions on your campaign goals to manage bids. These metrics may include ACoS or other goals like launching a new product or increasing sales. PPC tools use AI to manage bids, evaluate keywords, and add or deduct keywords according to their effectiveness to meet your goals. You can use these software tools to choose between manual optimization or automation, test your campaigns, and revise accordingly.

Our Amazon PPC Service can offer these and more. The service includes SEO, consulting, posts management, PPC, and storefront and branding. Having mastered keyword research, keyword bidding, and listing optimization, our tactics ensure proven strategies to manage and optimize your campaigns.

Constantly review your strategy

In order to make your business scalable, you will need to keep updating your strategies so that your CPC remains low. This means staying up-to-date with the latest trends and having an expert understanding of how your business is faring. Fortunately, Amazon gives you access to your metrics so that you can adjust your gameplay.

Our PPC Audit Service can help you make sense of your metrics and keep your listings on par with the latest trends. We increase CPC efficiency with a professional understanding of keyword and search term analysis and diversity. We can also provide a deeper analysis of negative keyword use for clearer recommendations. These steps ensure that you’re making the most of your time instead of being stuck on lowering your CPC.

Amazon is quickly becoming the biggest online ad business, with its revenue jumping 18% this past quarter. To make use of this platform well, you need to ensure you study these methods to optimize your Amazon Advertising expenses.

Article written by Ruth Janine and exclusively submitted to amzpathfinder.com

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