"Advertising costs have gone up so much, but the effect is still so bad. It's almost over. It's really hard."
I believe this is the voice of many Amazon sellers this year.
Advertising costs continue to rise, but conversions are unsatisfactory, and profit margins continue to be further squeezed by operating costs.
Some sellers reported that the advertisement bidding of their own category was only more than 2 points before, but now it has been raised to the level of more than 5 or 6 points, which has directly increased by 2-3 times, which is really a headache.
And the increasingly high advertising costs continue to stimulate the sensitive nerves of Amazon sellers. The seller said that every time he saw the advertising fee, he was anxious, thinking: If the profit goes to the advertisement, is there any need to do it?
01
Advertising costs skyrocketed, why?
In recent years, with the continuous increase of seller advertising costs, Xiaojiang learned that the revenue of Amazon's advertising business is also rising. Amazon's financial report shows that advertising business has become the most profitable business department outside AWS.
According to Amazon’s official advertising statistics, in 2021, Amazon’s advertising revenue will reach US$31.2 billion, a year-on-year increase of 55%, of which advertising revenue in the fourth quarter accounts for nearly one-third of the annual advertising revenue. And this data is much higher than the 2020 advertising business revenue.
The root cause may be the continuous influx of third-party sellers and intensified platform competition, which has boosted Amazon's advertising revenue.
A simple understanding is that there are more and more people doing Amazon, and the products of each category are becoming more and more diversified. The location is limited, and everyone wants to occupy it.
If you look at advertising from the perspective of Amazon, a good advertising campaign can bring advertising revenue and order commission revenue to Amazon, bring a good shopping experience to buyers, and help buyers quickly find the products they need.
In addition, the traffic is distributed, high relevance and high conversion can continue to keep acos getting better and better, otherwise Amazon will choose other links to allocate advertising space when new links continue to enter, so as to maintain its advertising. Revenue and buyer experience.
Combining the two, it is expected that CPC costs may rise again.
Therefore, sellers need to find a more effective and accurate way of advertising traffic, so as to receive more and more expensive traffic. Spend the money that should be spent on the cutting edge and use it to better improve the effect of advertising, so as to avoid unnecessary waste.
The essential problem is difficult to change, so it is necessary to find out the part that can be optimized from itself.
However, it is often that many sellers open advertisements without perfection, resulting in a large amount of advertising fees being wasted, resulting in rising operating costs, increasing pressure, and eventually ending.
02
How many of these wasteful advertising operations have you won?
Although volume is a major reason for the soaring advertising costs, its own ability is also a major factor affecting advertising costs. Only continuous optimization from the inside out is the long-term survival plan in Amazon.
Why do you say that? Because many times, due to these behaviors of sellers, many advertisements are actually burning empty.
1. Only open one type of advertisement
This is a common problem that many novice sellers tend to make. For example, after opening the automatic advertisement, let it go and let the automatic advertisement run the data, and find that the data is not good, I start to worry, I don’t know what to do, and I think whether to optimize the listing or adjust the price?
Only open automatic advertisements and not study manual advertisements. The reason is still lazy. Many novice sellers think very well. After opening automatic advertisements, they can wait for the data they want and the orders they want. And the final result is often waiting for the advertising fee to explode, but it has no effect.
Therefore, sellers should be familiar with the types of advertisements on Amazon and learn how to use them together before advertising.
If you only open a certain type of advertisement, the final result will be that the traffic of the listing will be very single, and the order will be very unstable.
2. There is a lack of comprehensive keyword research and no segmentation and classification of keywords
Many failed advertising performances are attributed to the fact that the keywords researched by sellers are not related to the product, or they only use those few big words, and they are unwilling to spend a long time doing comprehensive keyword research, resulting in poor matching of advertising effects and large The cost of word advertising is high, and Acos can't control it, and the money of Bai Huahua keeps pouring out.
3. Failure to negate keywords in time or the negation method is incorrect
When running an advertisement, every time an advertisement is run, some words that are not related to the product will often appear, especially in the early stage of new product promotion. A lot of invalid words are eaten, and eventually this ad will also become a campaign with a poor Quality Score.
Of course, negative ads can filter out most of the junk traffic, save the seller's advertising costs, and get more product exposure, but sometimes the negative method is wrong, and it may also damage the structure of the ad and affect the ad exposure.
For example, when setting up a negative advertisement, the direct phrase is negative, which causes the negative advertisement to seriously affect the performance of other long-tail keywords.
For example, if the product is a wireless power bank, the irrelevant keyword "wired power bank" appears when running the advertisement. If you directly and accurately deny the irrelevant keyword of the wired power bank, it may cause the charging The word treasure and the exposure of its long-tail words were also affected.
Therefore, at this time, it is suggested that the precise negative advertisement of "wired power bank" can be turned off, and the wired power bank can be accurately negated again. In this way, the exposure of the word power bank and its long-tail words will not be affected.
Therefore, when negating ads, try to use precise negative settings to avoid affecting the traffic of product long-tail keywords and other keywords.
4. Frequent adjustment of advertisements or frequent adjustment of listings
Some sellers are eager to know the quality of the advertising data, and will adjust the advertising frequently, but they do not know that the advertising data of the platform is delayed, resulting in many potentially converted ad groups being wasted in the end.
In addition, the same is true for frequent adjustments to listings. In the course, we often mention the three major operations of listing: title, main image, and category.
A good adjustment is called optimization, a bad one is called destruction, and most sellers are more of the latter in their daily operations. Every adjustment to the listing will cause the Amazon system to re-evaluate the weight of the listing. If the weight of the listing drops after the adjustment, it will inevitably lead to a drop in the listing ranking, which in turn will increase the cost of PPC advertising.
5. Think that the higher the advertising bid and budget, the better
Some new sellers take it for granted when they do CPC advertising. They think that when the product cannot be sold, raising the bid for keywords can make the display position and ranking higher. Constant orders, but this idea is actually a big misunderstanding.
You first imagine something like this: If Amazon can set a high bid to occupy the advertising space, what will the platform become in the end?
That is, whoever has the money can occupy the advertising space, resulting in unguaranteed product quality, and users will gradually lose their trust in the platform. And Amazon itself, as a platform that cares about user experience, is contrary to its own philosophy.
Therefore, as long as your listing performance is better, the click-through rate and conversion rate will go up, and the higher the quality score, the less advertising costs will be spent.
6. Pause ads frequently
The delivery of advertisements should be continuous. If the advertisement is suspended, the weight of the keyword quality score accumulated in the early stage of the advertisement will be reduced during the suspension period, and the weight and ranking of the product will also decrease significantly, and the impact will be continuous. .
At this time, even if you increase the bid of the keyword, it is difficult to restore the conversion to the original state, so do not easily pause the ad.
In addition, the price of products has risen sharply, out of stock, bad reviews and other issues are also factors that affect the increase in advertising costs. Nowadays, more and more sellers feel that the cost of advertising is getting higher and higher. If the advertising is carried out as extensively as before, the cost will be unimaginable.
Therefore, in future operations, sellers need to be more careful, strategic, and refined in advertising placement.
Of course, the best thing for sellers is to solve free traffic, break through the proportion of natural orders, and avoid passive operation at high advertising costs.
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