Amazon PPC Management Software

Today, we’re excited to announce the release of a new suite of features for our Amazon PPC management software, AdManager. The new features include: 

  • Automated search term optimization 
  • Automated budget optimization to maximize profitability 
  • An Out of Budget table that recommends ideal budgets 
  • A new “4 Campaign Build” option for campaign creation 

All these features are being added for free for existing users and will be included as standard features for all new subscribers.

This set of features joins the existing suite of features, which includes dynamic bid optimizations, a centralized keywords table for simplified campaign management, and detailed reporting. 

Automated Search Term Optimization 

AdManager can now automatically identify and add high-converting search terms as keywords to campaigns, promoting relevancy and driving more sales. Users set custom rulesets that will mine customer search terms from automatic campaigns and broad and phrase match types. If a search term meets your selected parameters, AdManager will automatically add it as a keyword to your manual campaigns.  

With this feature also comes keyword negation. AdManager will automatically identify and negate terms that don’t meet your custom performance thresholds. For example, a keyword that continuously generates clicks but never generates a conversion is wasting your budget. AdManager can now automatically negate such terms, minimizing wasted ad spend and increasing campaign relevancy. 

Search Term Optimization

Never Run out of Budget 

AdManager now lets you set custom rules that automatically increase daily budget for high-performing campaigns if they run low. This way, you ensure that your most profitable campaigns never turn off, maximizing your revenue. 

Budget Optimization

Campaign Budget Optimization Table 

AdManager now includes an Out-of-Budget table that shows at what time a campaign ran out of budget, how often they run out of budget, and uses Kaspien’s proprietary data to recommend an ideal budget for each campaign.  

It’s important that campaigns can run 24 hours per day because optimizing campaigns requires data. If your campaigns consistently run out before 10am, any optimizations you make are using incomplete data, and as a result, risk doing more harm than good. The Out of Budget Table provides both visibility and a solution for this problem.  

Out of Budget Table

Automated Campaign Build Strategy 

Maximize data insights and improve performance using our proven “4 Campaign Build” architecture. When creating a new campaign, you can select our “4 Campaign Build” to automatically create three manual campaigns (one per match type) and one automatic campaign. 

Since we began advertising on Amazon seven years ago, we’ve been experimenting with campaign architecture to find the most effective structure for strong results and ease of management. The 4 Campaign Build is what we’ve found to be the most effective.  

Manually creating this architecture is time consuming, which has led many marketers to regretfully turn away from it, even knowing the benefits to data insights and performance. AdManager solves this problem by automating its creation.  

4 Campaign Build Ad Architecture

For New and Experienced Marketers 

AdManager is designed to cater to both novice and experienced Amazon marketers. The easy-to-use interface and data visualization make it accessible for marketers not yet versed in Amazon advertising. For users who are experienced with Amazon advertising and want to get more in the weedsAdManager offers the depth and customization that you’re looking for.  

Take a self-guided demo to see the backend, or request a live demo with a specialist to see AdManager in action and ask more detailed questions.  

If you’re not ready to start using the software yourself, AdManager is also available as a managed service. Our experts can serve as an extension of your team and manage your Amazon ad campaigns on your behalf. 

Our Lowest Prices Ever 

To celebrate the launch of these new features, we’re offering AdManager at our lowest prices ever! Self-service AdManager is now available starting at $99/month and managed service AdManager is available starting at $1,300/month. Visit Kaspien.com/AdManager to learn more. 

etailz AdManager is your marketer who never sleeps

We recently launched Kaspien AdManager, software for Amazon pay-per-click (PPC) ad management. To celebrate this momentous occasion, we sat down with our AdManager experts to discuss some of the most pertinent questions, like “What is AdManager?” and “What makes it better than other Amazon ad management software?”  

You’ve asked. We’ve answered.  

Find all the juicy details below. 

What is Kaspien AdManager?  

AdManager is your Amazon search marketing team member who never sleeps. In more technical terms, it’s marketing software for Amazon that minimizes manual campaign management by automating keyword and bid optimizations for PPC ads. Users can take a simple “autopilot” approach, where they select their target advertising cost of sale (ACoS) then let Kaspien’s proven optimizations turn on, or users can get into the weeds and create custom rule sets around specific goals per ad group. Additionally, AdManager also captures and composes data, giving you the insights needed to improve your marketing efforts.  

What problems does AdManager solve?   

On Amazon, marketers face three consistent problems: campaign management is time consuming, achieving optimal return and product placement simultaneously is challenging, and data is limited and spread across several reports. All three of these issues become more problematic as a business scales. AdManager solves each of them.   

Automates Optimizations: AdManager gives back time by automating optimizations, including bid up and bid down, adding new high-converting keywords from the Search Term Report, and adding low-converting keywords as negative keywords. It also saves time for manual optimizations by allowing users to adjust all keywords, all ads, all ad groups, or all campaigns at once via a centralized keywords table.

Enhances Efficiency: Second, it maximizes returns and placement by using a combination of value-based and rule-based bidding, which enables optimizations to be more nuanced, precise, and efficient.

To get more insights into why this is such a big deal, download our AdManager eBook. 

Empowers Data-Driven Strategy: Third and finally, it solves the data issue by collecting data from the lifetime of the campaign (instead of just the trailing 90 days), then presents it in a single place, so you can easily assess campaign performance and make strategic improvements. 

etailz's PPC management software increases Amazon sales

What circumstances brought about the need for AdManager?   

Saying that we “just launched” AdManager is a bit of a misnomer. In truth, Kaspien created AdManager over 4 years ago for our own teams to use when managing our partners’ ad campaigns. What we really mean when we say AdManager “just launched” is that it is available for the first time as a self-service application.  

Interestingly, the impetus for AdManager was the need to reduce the time it takes for reporting. As one of the largest 3P sellers on Amazon, Kaspien was running thousands of campaigns for hundreds of brands and reporting on those campaigns was time intensive. As we built out the reporting functionality, we quickly found that there was so much more potential in automation.   

Amazon lacked a way to effectively manage ads for every product, so we had been making all our optimizations via macros in Excel. The files grew so large that they literally crashed Excel. By creating AdManager, we could save time for not just reporting, but every aspect of campaign management. And since we were building the software ourselves, we could ensure it ticked all our boxes, first and foremost being that automation did not sacrifice our experts’ ability to tailor optimizations down to the product-level. 

How does AdManager differ from what’s available in Seller Central?  

Where to begin? AdManager is much more robust and has a more user-friendly interfaceUnlike Seller Central, it provides access to lifetime campaign data, displays realtime changes, enhances optimization functionality, uses AI algorithms that optimize based on product-level KPIs, allows max bid ceilings, and provides cross-campaign reports of keywords, ad group, and product performance 

etailz AdManager vs Seller Central

software for Amazon PPC ads outperforms Seller Central

Amazon advertising via Seller Central is limited compared to AdManager

How does AdManager differ from other PPC Management software for Amazon?  

AdManager is more sophisticated. Most other Amazon PPC management applications dumb down the ad management process by only allowing users to select a target ACoS for their entire product line. This is great for small catalogs or marketers who want to maximize return at a very high level, but it does not serve brands that have products at varying stage of their life cycles (i.e. new products need more aggressive ACoS targets), and products with different margins (which require different ACoS targets)AdManager has dynamic optimization capabilities. Marketers can either set a target ACoS and use Kaspien’s proven optimizations, or they can create custom optimizations using a combination of metrics in a tiered structure, enabling a more nuanced strategy than most competitors. 

It’s also one of the only PPC management tools built by Amazon sellers. We’ve spent over 12 years in online retail and have been refining and validating AdManager on our own and partners’ campaigns for over 4 years. We know the ins and outs and all the pain points of advertising on Amazon, and we used that experience to make the best Amazon advertising software available 

Who should use AdManager as a Managed Service vs. Self-Service? 

AdManager is available in two formats: as a Managed Service and as Self-Service. In the Managed Service model, Kaspien’s marketing experts use AdManager to run your Amazon ad campaigns on your behalf. As such, the Managed Service is ideal for brands who don’t have the personnel, time, or expertise to run and optimize Sponsored Ads on Amazon. This model is available to everyone: our retail partners, agency partners, and businesses using just a select set of Kaspien services.  

The Self-Service model is for brands or agencies who have the personnel and know-how to run PPC ad campaigns on Amazon but could use a better tool. If you have the expertise, but struggle to find the time or want to see improved performance, then the Self-Service model is a great fit. 

Who could benefit from using AdManager?  

All businesses who advertise on Amazon could benefit. The PPC management software can handle a few campaigns or hundreds of campaigns, depending on your needs. AdManager gives you the tools you need with the option to get as granular as you’d like, so anyone from an entrylevel marketer to a veteran marketing manager can drive improvements to their campaigns.  

Some businesses are cutting back on marketing spending now due to the human and economic impact of COVID. Why should impacted businesses be looking for software at a time like this?  

The biggest winners in uncertain times are the ones who can maximize wherever theyre investing time and money. With the reduction in ACoS that AdManager provides, we typically see the software pays for itself through spend reduction and sales increases in just a few months. If you’re skeptical, start your free trial. You’ll see results. 

Amazon PPC software drove consistent year over year sales growth

What are the next steps in AdManager’s journey? What else is on the roadmap? 

There is so much potential for this unicorn! We’re developing Vendor Central compatibility and improved automated optimizations. We’re close to releasing Day Parting, which is a feature that many advertisers (and we at Kaspien) are very excited about. We’ve been beta testing Day Parting, and the results are very promising. We’re also looking to expand to additional domestic and international marketplaces, which is a huge need within the marketing world. The goal is to simplify and enhance every marketer’s online performance through the use of this incredibly powerful software. 

Learn more, request a demo, or start a free trial at Kaspien.com/admanager.

How to create a sustainable Amazon advertising campaign

Running an Amazon ads campaign is exciting. Working to get a low ad-cost-of-sale (ACoS) and high sales is a challenging but rewarding task. We can speak to this with some authority. Kaspien has been doing this with our Amazon sponsored products for 12 years, and we’ve become quite adept along the way.

In 2019, Kaspien generated over $1.5MM in ad sales at a hyper-sustainable ACoS of 6% for our high-opportunity products campaigns using Kaspien AdManager, our proprietary Amazon ad management software. Over its lifetime, AdManager has generated over $50MM at a 10% ACoS for our partners.

In this post, we dive into how you too can create a hyper-sustainable pay-per-click (PPC) ad campaign. 

Incremental Sales – At What Cost? 

Let’s say your product has a gross margin of 40% after manufacturing and shipping costs. Then you list it on Amazon, leaving you with a margin of 20% after FBA fees. What amount of that remaining 20% margin are you willing to spend on marketing1, 2, maybe even 5%? Put simply, what is the maximum ACoS you can commit to?  

Once you have your maximum ACoS selected, you can start creating ad campaigns. If you structure your campaigns in a way that allows granular insights, you can actually create an always on, sustainable marketing campaign 

In theory, the more efficient your ad campaigns are, the more you’ll be able to contribute additional dollars to fuel the fireUsing the below graph as an example, let’s say your campaigns are performing with an average ACoS of 25% and you’ve spent your entire monthly budget, but there are still 10 days left in the month 

how to create sustainable Amazon advertising

You could pause all of your campaigns, which is what most brands do. Or, if you’ve structured your campaign architecture in a nuanced way, you could selectively pause different campaigns or ad groupsmaintaining the most sustainable keywords to maximize profitability. For example, if we divide our graph into different sections based on sustainability (indicated by the red lines), you could continue running ad groups for keywords that fall within the hyper-sustainable range of sections 1 and 2, while pausing keywords that fall in 3 through 7By doing so, you increase sales while minimally increasing spend 

how to create sustainable Amazon advertising

How to Create a Self-Sustaining Ad Budget 

The ability to make these strategic adjustments and create a truly sustainable marketing campaign is dependent primarily on your margins and how you structure your ad campaigns. Here’s how to get started: 

  1. Determine Your Product Margin 

Margins are shaped by many factors, such as labor costs, FBA fees, production costs, etc. Margin generally remains fixed, although factors such as tariffs or updates to Amazon’s fees can impact them. 

  1. Create a Strategy Around Your Margins

Once you understand your margin constraints, you can build a strategy around them.  

One way to do this is to ask yourself, “Where do I want my brand to be in five years?” Set an ambitious goal to aspire to. Once you set your long-term goal, you can set about the process of creating short-term objectives that will get you there.  

With an ambitious goal, you need to be able to measure your progress. That requires good reporting. What metrics do you need to track in order to discern whether you’re trending toward your objectives? For example, keeping track of marketing spend by product will allow you to see exactly what your ROI is by product.  

Another key factor in good reporting is the ability to isolate variables. Your marketing and sales performance does not exist in a self-contained environment. Countless factors can influence their performance, and your reporting needs to take that into consideration. If you don’t, you risk making decisions based on an incomplete understanding, and that may do more harm than good.  

  1. Create a Nuanced Campaign Structure 

Now, campaign structure is technically part of strategy, but it’s so important that it’s getting its own section. How you structure your ad campaigns on Amazon will influence how granular your reporting and optimizations can be, which directly affects your ability to improve strategy. You need a campaign structure that is conducive to reporting.  

We’ve seen great success in structuring campaigns with one product per ad group, enabling us to see insights and make adjustments at a product level.  

Poor architecture doesn’t mean poor performance, but it does mean poor insights. A poor campaign structure is like a firing a shotgun at a target. You can still hit the board, but it’s sloppy and wasteful. A well-structured campaign is much more precise and efficient, hitting near the bullseye and then making careful adjustments to improve every time. 

The Brass Tacks 

To be clear, we’re not advocating for an unlimited marketing budget across your entire product line, but there are product lines with enough margin and velocity that a self-sustaining budget is entirely possible. 

This isn’t a get rich quick scenario, and it’s not really going to be unlimitedNaturally, your products, regardless of the bid and daily budget, have a natural cap on the amount of clicks Amazon customers are going to execute in a day. If you’re in a hightraffic category, your clicks per day could be astronomical. If you’re in a niche category, you may see clicks in the single digits each day. However, if ACoS for your product ad was 1%, wouldn’t you spend there? 

Hopefully yes, and hopefully yes 100% of the time (barring end of life products sold at a loss, but there’s a good argument there as well). 

Ideally, implementing this strategy doesn’t involve you downloading and juggling a mess of spreadsheets every day because you use the exceptional Amazon marketing software we developed, but if it does, you’re still well on your way to leveling up your Amazon advertising efforts. 

Amazon Keyword Analysis for Sponsored Product Ads

As a search marketer, it’s critical that you understand how each individual keyword is performing, and one key indicator of performance is keyword distribution. By graphing your keyword distribution, you can discern if your bank of keywords is too narrow or too broad, helping you refine your Amazon marketing strategy. Two statistics that are particularly important for Sponsored Product and Sponsored Brand keyword analysis are Skewness and Kurtosis. 

SKEWNESS 

Skewness is a measure of symmetry or the lack thereof. A symmetrical distribution will give you that much sought-after bell curve. A perfect bell curve shows that your keyword pool includes a good balance of investment keywords – keywords that are more expensive than desired now, but are important to your strategy and are likely to return a profit in the long-term – and highly efficient keywords that keep your campaigns profitable (enabling you to sustain the investment keywords). If your keyword distribution shows a bell curve and your target advertising cost of sale (ACoS) is equal to the campaign’s average ACoS, you’ve nailed it.

A deviation from this bell curve symmetry indicates that your campaign is under-optimized, and should drive revisions in your strategy. The keyword distribution – skewed to the left or skewed to the right – can be used to understand how exactly your strategy should be adjusted.

Left-Skewed 

Left Skewed Distribution

A distribution skewed to the left (negative skewed distribution) indicates a majority of keywords are performing above the average ACoS; your campaign is spending too much per conversion. When your target ACoS is below the campaign’s average ACoS, you can make optimizations to improve the efficiency of ad spend, but it may come at the cost of total sales. This occurs because the optimizations will bid down the poor performing keywords (those driving up spend) until the bids are no longer competitive. It restores your target ACoS, but leaves you with a small pool of keywords.

If you can justify keeping the high ACoS keywords, leverage inbound marketing services like paid social and influencer marketing to drive traffic to those keywords. A social ad may refer to your product with a specific, high-ACoS term, for example. As more consumers see the ad, more will use that specific term to search for it. In this way, your inbound marketing efforts can help build relevancy and lower the keyword cost.  

 Right-Skewed 

right-skewed-distribution

A distribution skewed to the right (positive skewed distribution) indicates a majority of keywords are performing below the average ACoS. In other words, the majority of keywords are operating at an efficient ACoS, but are driving few conversions.

If you are consistently winning auctions on these keywords and not running into budget issues, you can use a similar tactic as mentioned above, leveraging off-Amazon marketing to drive additional traffic to these keywords to boost sales volume for those keywords.  

KURTOSIS 

Kurtosis is a measure of heavy or lighttailed distribution within a data set. Data with heavy tails indicate the presence of outliers. Conversely, a lighttailed distribution indicates the lack of outliers.  

Light-tailed Distribution 

Kurtosis light-tailed distribution

A lighttailed keyword distribution represents a very targeted keyword mix. This may indicate missed opportunities because your current keyword selection is too refined. To correct this issue, add a greater variety of keywords in your campaign. This widens your net, helping you capture more sales, although it may increase your ACoS. This strategy works best when in conjunction with off-Amazon marketing, for the aforementioned reasons. 

Heavy-tailed Distribution 

Kurtosis-heavy-tailed-distribution

A heavytailed distribution represents a broad keyword mix with a significant number of outliersIn other words, you’ve cast too wide a net. These outliers spread your budget too thin and detract from campaign performance.  

To resolve this issue, you need to identify the most egregious outliersIf they happen to be terms that you consider highly relevant to your product, don’t cut them from your ad campaigns. Instead, use social media marketing and influencer marketing to drive external traffic to these terms and build up their relevancy. If the terms are not highly relevant to your product, cut em loose.  

SIMPLIFY THE PROCESS  

Using these two measurements of keyword distribution will help you better understand and improve your Sponsored Product and Sponsored Brand campaigns. However, repeating this process for multiple campaigns quickly becomes time-intensive and tedious, especially as you repeat it on a monthly, weekly, or daily basis.  

To simplify the process, you have two options:  

Excel Plugin 

Use the Data Analysis ToolPak in Excel. This plugin is a fantastic tool for users who spend some of their time managing ad campaigns in Excel. The plugin does enables you to effortlessly create summary statistics which includes skewness and kurtosis.

Instructions for installation can be found here.

Ad Management Software

Excel may not cut it for users who are managing many campaigns, dealing with large budgets, spending hours in Excel even with the plugin, or are generally looking to further professionalize their operation.

If that’s the case, it’s time to invest in a dedicated ad management tool. Kaspien began as a third-party seller in 2008, and we’ve gone through the full process of using increasingly massive and complicated Excel spreadsheets and macros to optimize our Sponsored Product campaigns. Eventually, we outgrew Excel. Literally. So, our engineers set to work  on creating a custom solution. Over three years in the making, we’ve built and refined Kaspien AdManager until it became a search marketer’s dream tool. With AdManager, we’ve achieved: 

  • 10% avg. ACoS and 10:1 avg. ROAS on over $50MM in ad spend 
  • Generated 30% sales growth on Amazon for retail and agency partners 
  • Reduced ACoS by 50% for key partners  

AdManager is currently available as a managed service, where our experts use the software to manage your ad campaigns for you. A self-service model will be released in March 2020 for users who want to handle the process entirely themselves.  

Join the AdManager waitlist to receive a free 30-day trial when AdManager launches, as well as emails about product features, case studies, and strategic advice.  

Amazon adds new features for sponsored products

 

Amazon Updates Sponsored Products & Sponsored Brands

Amazon recently released two new features for Sponsored Product ads that will drastically improve the visibility into advertising performance: Search Terms Insights and History.

Sponsored Products History

Search Terms Insights allows advertisers to view the search terms that shoppers are entering in the Amazon search bar and which keywords they’re matching to within a Sponsored Product campaign.

The report is available at the Ad Group level within a campaign and shows all search terms that produced at least one click. Advertisers can view this data across multiple date ranges (up to 60 days) and across all keyword match types within the Ad Group. Search Terms Insights is available in both Automatic and Manual campaigns and shows both search terms and ASINs, which can be used to create Product Targeting campaigns. This feature will partially replace the need to manually download a Search Term report and filter the data for new keywords.

Sponsored products search terms feature

History is a new beta feature that allows advertisers to view changes made at the Campaign or Ad Group level.

At the campaign level, advertisers can see changes made to the settings of a campaign, daily budget adjustments, or if a campaign ran out of budget. These data points are time- and date-stamped and span the lifetime of the campaign.

At the Ad Group level, advertisers can use History to see changes made to bids on individual keywords.  The dashboard shows the keywords, the current bid, the previous bid, and the time and date it was changed. This data appears to be back dated to October 1, 2019.

Both of these features are significant improvements to Amazon’s marketing platform and address pain points that marketers have experienced for years. Amazon is clearly making an effort to improve the functionality within Seller Central as more third-party software solutions become available.

Sponsored Brands Video for Mobile Devices

Advertisers now have a new ad format to choose from for Sponsored Brand ads – Video in mobile.

This new ad placement contains an auto-play video featuring a single product, with the intent of driving traffic directly back to the listing. The ads appear on the bottom of the SERP on mobile devices. The rest of the ad functions the same way as previous versions of Sponsored Brand ads, using keyword-based placements based on Broad, Phrase, and Exact match types.

This feature is a game changer for search marketers on Amazon, as video ads were previously only available through Amazon’s DSP platform.

Amazon Sponsored Brand Video for Mobile

Amazon’s information on the service provides some basic advice for video marketing:

“Keep your video brief and relevant. It will autoplay, so make sure the first 2 seconds are highly engaging, and don’t rely on sound to communicate your message. If you use text in your video, make sure it’s legible.”

Our Results:
Updated February 2020

In a 2-month test of the beta, Kaspien achieved the following results, indicating significant potential for Sponsored Brand Videos.

  • We’ve achieved an average ACOS of 9.61% on over $2,500 ad spend, showing that video ads perform notably better than traditional banner ads.
  • CPC has averaged $0.80, again showing that video ads perform better than traditional Sponsored Brand banner ads.
  • We’ve generated 260K impressions, showing that in addition to generating more conversions than traditional Sponsored Brand banner ads, they still drive excellent brand awareness.

File Requirements:

  • Video duration is between 6 and 90 seconds
  • File format is .MP4 or .MOV
  • Display aspect ratio is 16:9 
  • Audio bit rate must be at least 192kbps

More information about requirements can be found here: https://advertising.amazon.com/resources/ad-specs/en/video-in-search 

Ad Management Software

Kaspien’s own software, Kaspien AdManager, has features like Search Terms Insights and Bid History available. Our team has used these features and others internally since 2017 to help improve and scale our marketing for our retail and agency partners. We are now introducing Kaspien AdManager as a SaaS offering in Q1 2020.

Join the Waitlist to receive a free 30-day trial and receive informational emails about product features, case studies, and strategic advice.

Amazon search marketing just got a whole lot easier.  

We’re proud to announce the beta launch of our self-service Amazon ad management software, Kaspien AdManagerAdManager is designed by marketers for marketers, drawing on over 11 years of ecommerce marketing experience to create our dream tool.  

We’ve spent years building, using, and refining AdManager internally to run our partners’ ad campaigns on Amazon. Now, we’re launching it as software as a service (SaaS) so interested brands can bring their marketing in-house while using the industry’s best Amazon ad management software.  

Apply to the Beta 

Automate Four Major Optimizations 

The software uses artificial intelligence to automatically optimize bids across all CPC/PPC campaigns, maximizing efficiency and sales. Specifically, Kaspien AdManager automates four optimizations: 

Bid Optimization  
Every day, AdManager automatically bids up or down at the keyword level based on any combination of metrics, including ACoS, ROAS, clicks, CPC, ideal CPA, ideal CPC, sales, and more.  

Search Term Mining  
AdManager identifies high-converting search terms and adds them to your list of keywords, continuously improving campaign performance.  

Budget Optimization  
Ensure that high-performing campaigns keep running, regardless of their budget ceiling. If a campaign is exceeding your goal metrics, AdManager can automatically increase the daily budget to maintain momentum.  

Keyword Negation  
Not all keywords are profitable. AdManager evaluates current keywords and automatically negates low-performing terms, minimizing wasted ad spend and increasing campaign relevancy.  

Lifetime Data Insights & Custom Reporting 

In addition to enhanced campaign optimization capabilities, AdManager also provides better data insights and reporting. With AdManager, you can collect marketing data for the lifetime of your Amazon campaigns, in stark contrast to the 60-day window Seller Central provides into marketing analytics

AdManager can also create reports that include charts, graphs, and tables to visualize your data and empower you to make more informed decisions. 

AdManager Drives Real Growth 

We’ve been using AdManager internally to run our partners’ Amazon ad campaigns for several years, to great success.  

On average, we’ve seen AdManager: 

  • increase total sales on Amazon by 30% 
  • reduce Advertising Cost of Sale (ACoS) by 50% within three months of implementing AdManager 
  • yield a 10:1 Return on Ad Spend (ROAS) on over $48 million in Sponsored Product sales 

Many of our partners have seen even better results, with one brand seeing Sponsored Product revenue increase by 192%! 

Apply to the Beta 

To claim that Kaspien AdManager is the best Amazon ad management software is a bold statement, but to claim otherwise would be a lie. AdManager offers more customization for managing your Amazon ad campaigns than any competitor. It was made by marketers, for marketers. 

Apply to the AdManager Beta today!  

All ecommerce sellers recognize the importance of placement on Amazon’s search results page. But recognizing the importance and understanding the factors behind a product’s placement are two very different things.  

In ecommerce, the factors that determine a product’s placement are summarized in the word “relevancy.” A product with high relevancy is much more likely to place on the first page of the search results. Some factors are entirely in a brand’s control, while others require time or resources that can be obtained through a trusted partner. 

What Factors Influence Relevancy? 

Sales Velocity 

When your product sells well, Amazon’s algorithm determines that the product is relevant for shoppers. The faster you sell, the higher up the SERP you’ll move. 

How do you increase sales velocity?  

Marketing. When executed well, marketing creates a cycle: it increases visibility and drives traffic to listings, where shoppers convert. As more shoppers convert, sales velocity increases, which boosts organic visibility. Soon enough, it creates a snowball effect, growing your sales and accelerating your velocity. 

The best marketing strategies connect your brand to consumers at multiple touch points, on and off Amazon. At Kaspien, we use social media marketing and influencer campaigns to reach shoppers where they’re already at. Once we’ve attracted shoppers to Amazon, we use sponsored product ads and sponsored brand ads to capture on-platform shoppers’ attention, boosting your products’ visibility and drawing shoppers into listings. In the final stage, we rely on top-notch imagesproduct videos, enhanced content, and persuasive copy to convert browsers into buyers.  

An impactful marketing strategy requires coordinating efforts and actionable data. Reach out to learn how Kaspien can help you revamp your Amazon marketing strategy.  

Seller History 

A seller’s size, age, and seller rating are all significant factors in how Amazon’s algorithm prioritizes placement. A household name brand that has been on Amazon for the last decade has a distinct advantage over a seller whose been on Amazon for half that time. If a seller with a strong pedigree launches a new product on Amazon, that new product is likely to place pages ahead of a similar product introduced by a mom and pop business that just launched on Amazon.  

For a newer or smaller brand, heritage represents a significant disadvantage when competing against established brands. To negate that disadvantage, new brands must work extra hard to improve their organic placement (where you place without the use of sponsored ads).  

The takeaway here is that working with an established seller that has a high seller rating can be an enormous advantage for smaller or younger brands. In Kaspien’s 11+ years of selling on Amazon, we’ve earned over 670,000 seller reviews, with a lifetime average rating of 99% positive. Get in touch today to partner with Kaspien and enjoy the benefits of our seller history 

Keyword Relevancy and Density 

As a customer-centric platform, Amazon strives to place the most relevant products in front of shoppers, and it does that by using keyword relevancy. Amazon’s algorithm audits each listing within the category, using frontend and backend keywords to assess how likely your product is to match the shopper’s interests. The more keywords in your listing associated to the product or features described in the shopper’s search query, the higher your listing will place on the SERP.  

Naturally, this mechanism leads some sellers to pack their listings with keywords, writing listing titles, bullet points, and product descriptions that are nonsensical strings of keywords.  

While keyword packing is not penalized by Amazon’s search algorithm (yet), shoppers organically penalize such strategies. When a shopper clicks into a listing, they’re looking for information about the product before they’ll commit to purchasing. If they cannot find the information they need within the photography or copy, they’ll back out and view other products.  

As a best practice for driving higher conversions, keep the customer top of mind, and then edit the copy to include keywords. From numerous tests, we’ve found that Amazon weights the title and bullets the heaviest within their A9 search algorithm, followed by the product description. A+ Detail pages and EBC pages are not currently indexed by Amazon. 

Customer Reviews 

The number and rating of customer reviews can affect your SERP placement. This factor is especially significant for products new to Amazon because they need help gaining traction. We advise enrolling in Amazon’s Early Reviewer Program. At a rate of $60/ASIN (variation listings count as one), Amazon will randomly select consumers who have purchased the product and offers them a small credit to their Amazon account if they leave an honest customer review. Only listings with fewer than five customer reviews are eligible for enrollment. The program lasts for one year or until five new reviews are generated. 

While there is no way to guarantee positive reviews, one of the best methods to prevent negative customer reviews is by providing accurate product information through images and copy. If you can set accurate customer expectations at the start, you’re less likely to have customers who feel misled and write negative reviews.  

Learn More

If you want to learn more about Amazon strategies, download our free whitepaper, The State of Amazon Marketing. If you have any questions, drop us a line through our contact form 

Amazon Sponsored Product Ads are among the most impactful paid advertising tools in online retail. Although these ads appear only on Amazon, nearly half of US shoppers begin their shopping journey on Amazon and 73% of daily online shoppers click on products ads while browsing. Of those who click on the ad, a staggering 83% purchase the product!

The problem is, everyone else also believes in the power of Sponsored Product Ads, creating fierce bidding wars. To compete, you need your dollars to work more efficiently, driving more conversions for less money.

We’ve been working on that.

Introducing Kaspien’s AdManager

AdManager is Kaspien’s proprietary campaign optimization software. Through active machine learning, AdManager automatically updates targeted keywords and bids based on performance goals that you define.  

Amazon advertising operates using an auction system, with sellers bidding on search terms. The seller with the highest bid and best performing ad typically wins the auction. When a shopper enters the search term, that seller’s ad appears on the page. The seller is charged only if the shopper clicks on the ad.

By automating campaigns through AdManager, we ensure that your campaigns undergo continuous optimization, regardless of time or day. If our team is out on the weekend or seasonality picks up, your campaign will still be able to capitalize on that momentum.  

Features

Bid Optimization
AdManager can bid up or down at the keyword level, ensuring maximum profitability. You can customize the metrics used to determine the bidding strategy, including ACoS, ROAS, clicks, CPC, ideal CPA, ideal CPC, sales, and more! Bid optimization runs daily. 

Daily Budget Optimization
If a campaign runs out of daily budget due to high clicks and conversions, AdManager can automatically increase the daily budget to continue capitalizing on the momentum. AdManager checks on the daily budget every hour. 

Search Term Optimization
AdManager runs weekly audits for converting search terms and adds them to the campaign as keywords, making the campaign more efficient over time and amplifying your return on investment. 

Add Negative Keywords
AdManager also automatically re-designates poorly performing keywords as Negative Keywords, which prevents future bids on those terms to minimize wasted ad spend and increase campaign relevancy. 

Our software engineers and developers have invested well over 5,000 hours into AdManager, and we’re continuing to improve and expand its capabilities. Best yet, this highly customizable bid optimization software is complementary to all our Sponsored Product campaigns. 

Why You Need an Ad Platform

The calculation for your ads’ ideal CPC is fairly straightforward. The challenge is not in the formula; it’s in the variables. The numbers you need plug into the calculation change every day, with conversion rates rising and falling day by day and week by week.  

To get maximum return on investment, you need to update those numbers daily so you’re never bidding too much or too little. Sellers can manually monitor their products daily, but the practice is simply not scalable.  

By automating campaigns, AdManager allows you to simultaneously optimize Sponsored Product campaigns for hundreds of products, saving you time, minimizing wasted ad spend, and maximizing return on investment. 

Learn How AdManager Can Help You

If you want to take your paid advertising on Amazon to the next level, reach out to your account manager or contact Kaspien through our contact form. 

Amazon Sponsored Ads

 

UPDATED – October 23rd, 2019

Marketing on the Amazon platform is always evolving, but one of the few constants is the need for a solid Search Marketing strategy. At Kaspien, we’ve seen Amazon CPC ads increase our partners’ sales up to 30%. They’re kind of a big deal.

If you want to learn about Amazon SEO optimization, check out our posts on improving your organic discoverability and listing optimization.

How Amazon CPC Campaigns Work

CPC ads operate on a bidding system. Sellers choose keywords that relate to their product and then bid on it. When shoppers search a phrase that contains the keyword, Amazon’s algorithm considers a variety of things including relevance, category rank, conversion rate, star rating, and much more with the bids. Of the products that Amazon deems most relevant and likely to be purchased, the brand with the highest bid will win the ad placement on the Search Engine Results Page (SERP). No matter how large your bid is, if you win the placement and a shopper clicks on the ad, you will only be charged one cent more than the next highest bid.

We suggest updating your keywords and maximum bids at least weekly, ensuring your keywords are still relevant and adjusting your maximum bids to elicit the results you need. Pay extra attention to your keywords and bids during peak shopping seasons, like Prime Day and the Q4 holiday season.

Types of Amazon CPC Ads

Conversion rates are higher on Amazon than on search engines like Google because shoppers have a stronger intent to buy when they go to marketplaces. Amazon CPC campaigns allow you to capitalize on marketplace traffic by placing one of three types of ads in front of potential customers.

Amazon Sponsored Products Ads

Sponsored Product ads give you the most bang for your buck out of the three CPC ad types. There are manual and automatic targeting campaign types. Manual targeting is where you will choose all your keywords and bids. Automatic campaigns give Amazon the control of what keywords to bid on and you set a maximum bid. We’ve found that a mix of both campaign types tends to drive the greatest success.

Amazon Sponsored Products

One of the main reasons for Sponsored Product ads’ superb performance is that there are nine opportunities per SERP for your ad to place. Furthermore, these ads do not look like as a typical ad; they resemble a normal listing, so shoppers are typically less hesitant to click than they are with other ad types.

Sponsored Product ads also provide opportunities to place your ads inside other product listings under “Sponsored Products related to this item.” This placement typically gives you more visibility, but it yields a smaller return than SERP placement. 

In 2019, Amazon also introduced Product Targeting for Sponsored Products. Product targeting act essentially the same as traditional Sponsored Product ads, but you target specific products and product categories instead of keywords. You can even be as granular as targeting certain star ratings, price points, and brands in a specific category or sub category. These ads appear in the same SERPs as the product/category you are targeting, as well as inside product listings.

The last placement you can have for Sponsored Products is a display/retargeting ad outside of the Amazon platform. This is only possible with automatic targeting (as opposed to manual targeting). Amazon controls the campaign, so unfortunately you have no control over the keywords or products being targeted, only the maximum bid.

Kaspien AdManager

Kaspien has created a self-service software for Amazon ad management. Kaspien AdManager automates bid management and keyword optimization for CPC ads on Amazon. To date, it has driven over $48MM in sales, with an average 10:1 return on ad spend. 

We’ve used AdManager internally to run our partners’ campaigns for years. On average, we’ve seen AdManager increase Amazon sales by 30% and reduce ACoS by 50%! 

To use AdManager yourself, apply to the Beta!

Amazon Sponsored Brand Ads
(formerly Headline Search Ads)

Sponsored Brand ads are banner ads that feature 1-3 products (of the same brand) and a custom call out to shoppers. They appear at the top of the SERP, making them the first thing shoppers see after entering their search terms. Sponsored Brand ads are a great way to grow brand recognition, and if done correctly with the right landscape, can be a great way to drive more sales.

Sponsored Brand Ads

It’s worth noting that, because they have only one placement per page, Sponsored Brand ads are very competitive, making it tough to get traction. Additionally, if there are multiple sellers in a listing, these ads are particularly tough to generate a strong ROI because sales are brand-attributed. Sponsored Brand ads run continuously, regardless of who is in the buy box. This is in contrast to Sponsored Products, which only run when you are in the buy box. In other words, if you aren’t the only seller in the listing, you may be paying to generate sales for other sellers as well.

This trait means that you need to maintain a certain channel landscape to use Sponsored Brand ads effectively. They are best suited when you are the exclusive seller and the products already have good rank, as the strong rank will help your Sponsored Brand ads win the placement. With those conditions met, Sponsored Brand ads are an excellent way to promote multiple product lines and even introduce new product lines.

Amazon Sponsored Display Ads (Beta)

Sponsored Display ads are a good way to retarget relevant shoppers that have searched for, viewed, or already purchased your product or a similar product. This ad type is similar to an automatic campaign because you are not targeting keywords; instead, Amazon identifies specific shoppers to target and you set a maximum bid for the impression or click.

These ads can place both on and off the platform, which means these ads offer the greatest potential reach of the three ad types. There are three ways you can target shoppers with Sponsored Display Ads. The first is a CPC option, where you target shoppers who have viewed your product with off-platform display ads. The other two options use a Cost-per-Impression model. They target shoppers who have searched for or purchased your product (or something similar). These ads populate on and off the Amazon platform.

These campaigns have a lesser focus on ROI because of the nature of a Cost-per-Impression campaign; they’re intended to grow your customer base by increasing brand awareness and visibility rather than drive directly attributable sales. In that way, they are an investment in your brand’s long-term growth more than an immediate sales driver.

Determining Your Amazon Strategy

Before you start, define your objectives so you can create a purposeful Amazon strategy. With CPC campaigns, that means asking yourself do you want to focus on increasing brand awareness or driving sales?

If you already have good brand recognition, your marketing efforts can be more specific and focused on building relevance. Identify very specific keywords, branded and non-branded, to bid on. We call this “refining your traffic.” Consumers already know what products or services you offer, so your Amazon marketing can focus on winning ground in your category. This strategy also tends to be less expensive than the alternative because more specific keywords have less competition than more general terms.

If your brand is relatively unknown, you want to spread the word to as many shoppers as possible. Rather than refining your traffic to a targeted niche group to drive conversion rates up, your first goal should be to increase impressions. Bid on more general keywords, especially non-branded keywords, so that you can place your ads in front of as many shoppers as possible. Initially, your return may not be as high and bidding on general terms becomes expensive, but you will develop brand recognition, helping you gain a foothold in the market for the long term.

The Big Picture

Running and optimizing Amazon CPC campaigns is a crucial part of successful marketing, but their impact is magnified through a holistic marketing strategy.

Think about it: CPC campaigns are the midpoint in a consumer’s journey. First, off-site marketing draws consumers to marketplaces, where they see CPC ads. They then click on the ads and enter listings, where compelling photography and copy make the final sell, convincing shoppers to buy.

If you invest in quality marketing at every stage, you can increase the traffic entering listings and drive conversion rates up, ultimately growing your total orders.

Learn about a holistic Amazon marketing strategy in our free whitepaper, The State of Amazon Marketing.