Three effective techniques to lower your overall Amazon advertising cost in 2022

Amazon Advertisement Guide:

Amazon auction system works in a relative competitive way, if you place a bid slightly higher than competitor, you will win the auction. It does not mean you should place $2 Bid to win against $1.9 but $1.91 would work.

Here are some advertisement options to get maximum yield with low cost.

1. PPC Bids Placement

2. Less Competitive Keywords Targeting

3. Unit Session Percentage Analysis

 

PPC Add Placement:

Add placement is a relatively less known hence more profitable option in Amazon advertisement. If you go to Amazon advertisement console and click on a campaign you will came to see placement option with 3 Types of placements including, Top of the page, Product page and Rest of the page.

 

Products showing on top of the page with sponsored tag, after you search a keyword are placed by Top of the page placement option.Top-of-Search placements have incredible value. In addition to having better conversion rates, over 67% of clicks on Amazon go to products that are on the first row of the SERP. 

Rest-of-Search placement refers to the middle and bottom of the first page and anything on pages 2, 3, and 4 on to oblivion.Amazon will not let you make adjustments to Rest of Search placements, so it can be an effective strategy to determine your bids around the Rest of Search performance and then modify bids for Top of Search and Product Pages.

Products which are displayed under the product page, when you click on a product are placed by using Product page Placement option.Product Pages are Sponsored Product placements on the product details page, and all non-search placements such as the add-to-cart page.

How it works?

Placement options are displayed in percentage which means they would increase the bids by percentage. When Amazon noticed the increase in sales of particular product on specific keyword, it would increase your bid to the percentage you applied. For example if you applied 120% on top of the page, Amazon would increase your bid to 120% when it feels the ad is more likely to convert into sale.

Low Cost Strategy:

Mostly people would think 120% is a great increase and it would cost them a lot but if we place a lower bid along with placement, it would cost us little along with the sale. For that we should have to place lower bids on less competitive keywords and our bid would increase only when we are more likely to convert into a sale.

2. Less Competitive Keywords Targeting:

Another cost effective and profitable strategy in Amazon advertisement is bidding on less competitive keywords. As most of the people are bidding on more competitive and exact keywords but if we target less competitive or broader keywords, we could be able to capture that market share as well.

Bidding on less competitive keywords ultimately decreases your competition along with the Cost per click and enables you to get sales in minimum cost spend.

 

3. Unit Session Percentage Analysis:

Your conversion rate on Amazon is crucial to the success of your business. Do you know what your conversion rate is? Many sellers don’t. The metric you need to track is called your Amazon Unit Session Percentage Rate.

It is calculated using the following formula:

Unit session percentage rate = units ordered / # of sessions

Most people only analyze CTR (Click through Rate), CPC (Cost per Click) Impressions and Clicks but they leave the most important factor that is Unit session percentage.

How to Improve Unit session Percentage?

1. ·     Play with Color Psychology
2. ·     Encourage them to Add to Cart Instead of Buy
3. ·     Entice Them With a Promotion
4. ·      Making the Purchase Process as Simple as Possible

The more unit session percentage is, the more chances of conversion are. By engaging the audience with you ad you can increase unit session percentage and more likely can win a sale.