How To Get Your PPC Campaigns Ready for Amazon Prime Day

Matthew Smokowski

Lead PPC Strategist

Mark your calendars. Amazon Prime Day is this Tuesday, July 12!

It’s the second annual sales event, and the big day essentially acts as a Cyber-Monday-in-July where shoppers can get extra savings. Prime Day is only for Prime subscribers, the subscription that includes two-day shipping, movie and music streaming and much more. If you don’t already have a subscription, you can sign up for a free 30-day trial here.

Since the company only has one year of experience to learn from, it’s still unclear as to how July 12 will run. Last year, the event proved to be a huge success in terms of sales, but there was a lot of negative feedback from customers. In particular, shoppers complained about cheap, dollar-store items being on discount rather than valuable items.

Either way, people are in anticipation of Prime Day 2016, and your brand needs to be ready. With only one day to spare, let’s talk about how to get your PPC campaigns ready for the big day!

Amazon’s Advertising Services

Amazon has a competitive advertising environment, so don’t underestimate what you should be bidding. That said, you don’t want to spend more than you’re comfortable with. The first rule of any PPC campaign is to only bid as much as you are willing to pay for a click.

Currently, the minimum cost-per-click for Sponsored Products is $0.02, but Amazon recommends at least a $0.05 bid to be competitive.

Amazon treats its PPC ads just as other online advertising services do. When a customer searches for a keyword, Amazon shows the top ads that are relevant to the keyword. There are a variety of factors considered when determining how the results will be displayed, and cost-per-click is one of them. You can read more about Amazon’s cost-per-click bids here.

Sponsored Products

If you’re already using Sponsored Products on Amazon, you have a good understanding of the impact it can have on how your products are discovered and how frequently they are purchased.

Going into Prime Day, we can safely assume that advanced advertisers will be demanding a lot of the attention. But don’t let this intimidate you.

Sponsored Products is the most effective way to create compelling ads that capture your audience's attention and helps them discover your products. The more you sell, the more your organic ranking will improve, encouraging you to show up in the Amazon SERPs.

Bidding on Ads

So should you be bidding up on Prime Day? Is it worth it when you know that advertisers are going to be extra aggressive?

We recommend breaking out separate Sponsored Products and AMS (Amazon Marketing Services) campaigns that are specifically for Amazon Prime Day. Elevate your bids on key items, or use the opportunity to build out campaigns that feature new products or seasonal items.

Determine how much you want to spend and for how long you want to advertise. Consider your target audience and when they are most likely to be shopping on the site.

Discounts and Promotions

Another factor to consider when setting up your PPC campaigns is price. While it’s true that shoppers are on Amazon to grab the best deals, don’t just jump in with the lowest offer. Discounts and promotions are advised, but you still want to make a profit.

Some sellers last year found that their attempt to be extremely cost effective disrupted their revenue flow. Look at the whole picture and determine the lowest costs you are willing to sell your products at. In other words, be competitive, but don’t sell yourself short.

Inventory Management

It’s crucial that you pay attention to your inventory on Prime Day. It really doesn’t matter what numbers you come up with if you don’t have the inventory to sell to customers. If possible, stock up on extra inventory just as you would over the holidays. If the goods are imported, be prepared to handle the orders and send out the shipments.

The amount of inventory you have will also determine how long you plan to run your PPC ads. If you have limited stock, running your campaign for an hour may be sufficient. Your goal is to turn a profit and properly invest your cash, so the right quantity of inventory and a competitive PPC campaign must match.

Bundling Items

A final element to think about is bundling your items. Amazon shoppers, in particular, enjoy bundled packages. Bundling your items at a discount makes them more attractive and can increase sales. It’s also a move that can make your PPC campaign unique compared to your competition.

When putting together bundles, use the opportunity to get rid of stock that is slower moving or aged. This way, you can clear out some of your old inventory and profit from it. Of course, you want the items in the bundle to provide value to your customers. If it looks like you’re trying to charge them for outdated products, you may compromise your relationships with them.

Final Thoughts

Amazon Prime Day is being held to high expectations. Amazon is promising twice as much inventory as Black Friday and Cyber Monday combined, and many of the deals will be going on all day long. The focus is on toys and TVs, but there will be plenty more items, including discounts off a Kindle Membership. Don’t miss the opportunity to be part of something big and amazing!

 

About the Author: Matthew Smokowski

Matt is a PPC Strategist for SEMGeeks. He has a background in English and Creative writing and experience managing PPC campaigns for popular local businesses. He excels at creating creative ad copy, landing page content, and progressive PPC strategy. Matt has become the resident Amazon and Instagram Marketing Expert.

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