Are your Amazon PPC advertising campaigns not converting? Read this article to learn some fixes you can start applying to your PPC campaigns today!
Running successful advertising campaigns is critical to capturing market share and driving sales, especially during product launches. Amazon PPC ads are one of the most popular and effective tools for Amazon sellers. Amazon PPC revenue typically accounts for 10–30% of your total Amazon revenue.
However, it’s challenging to master paid advertising, and doing it is an art. As a result, most sellers waste a lot of money on underperforming campaigns and, ultimately, struggle with low conversion rates.
If your Amazon PPC ads aren’t converting, don’t panic or give up. This article will explain and show you how to solve 5 Amazon PPC ad mistakes that negatively impact conversion rate.
What Is Amazon Pay-per-Click (PPC) Ads Conversion?
Amazon PPC conversion rate is the percentage of users who click on your product listing and buy it, calculated using the following formula:
Conversion Rate = Sales Conversions / Clicks
5 Reasons Why Your Amazon PPC Ads Are Not Converting
What a good conversion rate will depend on the price segment you are in and your niche.
However, the average Amazon conversion rate on Amazon is 9.5%. If your Amazon PPC Ads conversion rate is below this, it could be due to the 5 following reasons.
1. Not Monitor Your Amazon PPC Campaigns Regularly
Amazon PPC is not a one-time setup tool. Therefore, you can’t achieve high conversions and good long-term results unless you continuously monitor your B2B PPC agency campaigns and optimize them regularly.
- Review and evaluate keyword data in your campaign reports (at least once per day).
- Use the data report to change and optimize your targeting. For example, remove keywords not relevant to the customer’s search intent from your campaign by adding them to “Negative Targeting.”
That way, you’ll have more keywords that perfectly match your prospect’s search query to gain more clicks and sales. And, at the same time, raise your conversion rate and reduce your ACOS (Advertising Cost of Sale).
2. Not Bid For Enough Impressions
If potential customers don’t see your ads, they can’t click on them and convert to a sale.
Therefore, you should check the impressions in your Campaign Manager. If impressions are low, increase them so more users can see your ads and click on them.
Before running your ads, make sure your listing meets the majority of these 4 SEO elements:
- Contain at least 25 researched keywords relevant to your product
- Have a relatively reasonable price compared to similar offers from other sellers
- Use all 7 photo positions
- Have at least 1 review (positive)
Alternatively, you might consider increasing your bid. The more you play, the more likely Amazon is to show your ads. Therefore, it helps you achieve higher reach and more impressions. However, you must have a good understanding of the bidding strategy to get the best price.
On the other hand, it’s best to find a professional Amazon PPC agency to analyze your campaigns. They can identify weak spots quickly and give you valuable tips.
3. Not Pay Attention to Click-Through-Rate (CTR)
Click-through rate is calculated as follows:
CTR = Clicks / Impressions
For example, if your ad hits 10,000 impressions and 50 users click on the list, your click-through rate is 0.5%.
- The average click-through rate on Amazon is between 0.5-2%.
- 2-3% is excellent.
- If your CTR is less than 0.5%, it means that very few customers are clicking to view and interact with your product, and you need to optimize.
Today, customers have many alternatives, so it’s best to make the best first impression. There are 3 primary reasons for a low click-through rate:
- Bad featured image
- Bad listing title
- No or only a few reviews
- Optimize the featured image:Amazon uses it as your product thumbnail and shows up on your product search listings and Ad placements. Therefore, the featured image should stand out and describe your product best because the image is the first thing customers see when browsing through the search results. For example, show-specific on the featured image essential features such as selling in bulk or bundles.
- Optimize listing titles: Make sure it’s easy to read, avoid keyword stuffing, and follow Amazon’s guidelines.
- Always follow and ask for product reviews: You can add a review request in the successful purchase notification email and quickly resolve any feedback or complaints arising after purchase.
4. Not Optimize Product Listing
Your customer’s attention span is short, so you’ll only have a few minutes or even seconds to convince them of your product.
The main reason your ad PPC converts poorly is low-quality listings. It requires you to optimize your Amazon listing to the fullest. If you optimize your list well, you’ll boost both your PPC ad’s performance and your organic rankings.
Here are 6 aspects you should pay attention to optimize your list:
- Product title: Contains your brand name, main keyword, and most important product characteristics (material, durability, color, and special features like water resistance).
- Featured image: Choose a high-quality photo so customers can see your product as clearly as possible.
- Product images: Take photos from many angles to show your product from all sides and create a good feel.
- Additional information:Offer customers unique product benefits that may not be immediately apparent at first glance.
- Product videos:Produce high-quality videos, or you can register with the Trademark Registry to use genuine product videos.
- Bullet Points: Use about 5 bullet points of the essential core benefits of the product. Capitalize the most important words to make it easy for customers to see the most relevant features when scanning the list.
5. Offer Non-attractive Purchase Policy
Customers always want the best buying conditions. So one reason your Amazon PPC isn’t converting could be that your purchase policy isn’t convenient or attractive enough.
Try to put yourself in your customer’s shoes to understand why they won’t buy your product. Here are 3 criteria customers most often compare with competitors:
- Cost:Research to set product prices compared to other similar products from other suppliers.
- Inventory Quantity: Regularly reorder enough products to avoid out-of-stock situations and manage inventory to ensure availability.
- Fast delivery:Switch to a professional and reliable third-party carrier if your shipping time is too long.
All in all, when your Amazon PPC ads aren’t converting, the first thing you should do is analyze your campaign report carefully. Next, leverage this information to assess whether your current strategy is keyword-optimized and whether your bid meets the number of impressions. Then try to present your product in the best way, build the perfect listing, and offer good purchase terms (shipping, price, and reviews) to increase click-through rates and achieve higher conversions.
However, many Amazon PPC tutorials suggesting different strategies can confuse you and make it difficult to determine which way to go. If that’s the case, visit olifantdigital.com for a 100% free consultation from Amazon PPC experts.