Prepping Your Amazon PPC Advertising Strategy For Prime Day
Prime Day has become two of the largest shopping days in the world. Sellers are often excited about the opportunities that Prime Day represents. However, many don’t understand the preparations needed to get a great ROI and ACoS. The Sellozo team hosted the webinar ‘Prepping Your Amazon PPC Advertising Strategy For Prime Day’ to tackle many of the concepts that sellers need to focus on when getting ready for Prime Day.
This webinar goes through statistics for previous Prime Day’s so you understand the impact Prime Day will have on your Amazon PPC. The team also outlines many misconceptions about Amazon advertising on Prime Day. Lastly, the panel outlines many strategies to efficiently use Amazon PPC on Prime Day and to enhance your ROI and ACoS.
:30 – Outline of the Panel – Dustin Kane, Kris Gramlich, Brock Gettemeier
What Happened During Prime Day 2020?
2:40 – Top Category Performance
4:09 – Search Volume Increases
5:45 – Amazon Ads Year-Over-Year Growth During Prime Day 2020
6:36 – Cost Per Click (CPC) Performance
8:06 – Click Through Rate (CTR) Drop
9:26 – Combining Tactics Ad Placements
11:15 – ACoS Performance
What To Expect During Prime Day 2021
12:39 – Amazon Sponsored Video Ads
14:02 – What to expect in 2021
Tactics To Consider For 2021
15:34 – Amazon Sponsored Video Ads
16:23 – Using Sponsored Brand Ads, Store Spotlight Ads, and Sponsored Product Ads Together
Budgeting For Prime Day
17:14 – Should you raise budgets? And if so, by how much?
19:12 – Are you using Sellozo? If so, you can utilize bulk campaign budget adjustments.
Misconceptions About Prime Day & Amazon Recommendations
20:17 – Should I be using the dynamic up/down bid strategy?
Using Relative Bid Adjustments
21:43 – What are relative bid adjustments? How do I use them?
22:36 – Should I raise bids? If so, on what targets?
Should I Be Participating In Amazon Prime Day as a Seller?
24:20 – Should I be participating?
26:08 – What are the best campaigns for Prime Day advertising?
27:50 – ACoS is bottoming out 10% below my target. What should be done?
28:32 – Would you dedicate a large portion of your budget to Sponsored Brands Ads due to the relevance of Sponsored Video Ads?
29:40 – Any recommendations for improving search term subject matter for Prime Day specifically?
30:55 – Best practices for building sales during Prime Day?
31:34 – Should you give a discount coupon instead of reducing the price?
32:52 – Do I need to create an Amazon campaign if my product is already in Prime or is it already going to be advertised?
33:35 – How much should I increase my ad spend for Prime Day?
34:44 – How do I build a bigger audience?
35:48 – What’s the lowest ACoS you’ve seen in Sponsored Display Ads?
38:45 – If you had one thing to do to prepare for Prime Day, what would you do?
39:12 – If we missed the deadline for Lightning Deals, what else can we do?
40:42 – So much of the Amazon Advertising feels like the rich get richer. How can we outsmart not just outspend our competition?
42:00 – Outside of Prime Day, with the goal of aggressive growth, would you add a small Top of Search multiplier to aid in the growth?
43:30 – Specific target ACoS for Prime Day. What is it?
44:42 – What would a preemptive strategy look like for your best product? A change of bids set up before a big event like Prime Day?
45:33 – Prime Exclusive Discount page says the window for submitting a deal is closed. I thought you said it was still open. Am I missing something?
47:00 – Any last-minute recommendations?
Other Prime Day Resources:
Prepping Your Amazon PPC Advertising Strategy For Prime Day
– Alright, let’s go ahead and get started here, guys. Everyone, thanks for joining us today. It is almost here, Prime Day. It’s going to be Monday and Tuesday of next week. And so today, we are going to just do this webinar where we’re talking about prepping your Amazon PPC advertising strategy for Prime Day. And we’ve got our Head of Support on with us, Brock Gettemeier. He’s an absolute expert in all things PPC, so we’re excited to do this. I’m Dustin Kane. I’m an Account Executive here at Sellozo. Also, I’ve been selling on Amazon since 2014. And Kris?
– Hello. Yeah, my name’s Kris Gramich. I’ve also been selling since 2014, I’m an Account Exec with Sellozo. Dustin and I talk to sellers all day and just kind of help everybody out.
– And we’re pumped to have Brock on with us. Brock, tell us about yourself.
– Yeah, so I’ve been in Amazon for, yeah, about the same, even longer, I guess. And yeah, I get the pleasure of working with sellers and all day long. And so looking forward to doing kind of some last-minute Prime Day evaluation and kind of last-minute planning or maybe re-evaluating, so it’s perfect timing for this.
– Absolutely, so the way we’re going to structure this is we’re going to just go over some facts about Prime Day. There are some really interesting trends that we’re going to discuss. And the whole time we’re going, please put your questions in the chatbox. We’ve got a lot of questions that came in earlier when you guys were registering. We’d like to have you guys put any questions you’d like answered in the chat. We’re going to spend at least the last half of this webinar answering direct questions that you have. So we’re going to be talking about everything from budgeting adjustments for Prime Day to misconceptions about Prime Day advertising, relative bid adjustments, and even if you should be participating. These will be really interesting topics as well.
– Sometimes it’s better to stay on the sidelines for something like this for certain products. So we’ll be talking all about that. And we’re gonna also be talking a little bit about, right now, some facts about it. So these are some things that happened in 2020, Prime Day 2020. One thing that I think we want to highlight is that 2020 was a little different. It happened on a completely different date. It was in October. So some things were skewed. There was a lot of holiday shopping oriented there. So a lot of times you’re looking at Prime Day, 2020 might be an outlier. It might be better to look at 2019 to see trends that you might want to replicate in 2020 since they were at the same time. But you can see here on this first chart the categories that really sort of dominated on Prime Day last year. This is separated. This is Amazon branded. So you can see electronics with Amazon-branded was huge. I mean, everyone’s buying Fire Sticks. They’ve got these deals. All of their electronics went through the roof. But non-Amazon-branded, household essentials were big, health and beauty, toys and video games, home and garden, electronics. You can see the categories that really drove a lot of the Prime Day sales in 2020.
– Yeah. Brock, do you see any out here that kind of surprises you?
– No, no. I mean, especially last year, Amazon pushed so hard on their own products because of the environment, the pandemic, what was going on, the fact that it was in October. And so, you know, the only thing I would say is just that Amazon’s not going to change that this year. They’re still going to be pumping up their own products more than anything, their own electronics, more than anything. Honestly, I’m surprised, the only thing that I think will change is I think the apparel is definitely going to continue growing this year, as well as some of their other more household products. I think Amazon’s going to be pushing for their own in-house brands a little more aggressively this year on those so I wouldn’t be surprised if those increased this year.
– Cool. Take it away, Dustin.
– Yeah, so you can also see where the search volume increases throughout Prime Day. And this will go, this will really be a big factor in your Prime Day strategies with your advertising. You can see, leading up to Prime Day, the search volume barely raises, stays fairly flat. And then on Prime Day, you get a huge spike. And then there’s a little less volume actually on the second Prime Day. Brock, what are your insights on this search volume?
– Yeah, yeah. So I think the big thing is remembering that just because impressions are going up, it doesn’t necessarily mean conversions are going up on those days. So even though you are seeing a day, two days, even three and four days prior, we are seeing more impressions, we need to keep in mind that these might be people that are looking for Prime Day. So they’re browsing ahead of time. And, and the rest of the data is going to show this, but we see a lot more shoppers that are coming on wanting to find a deal or wanting to take advantage of a promo, but not necessarily the fact that they’re coming on with the intent to immediately buy as you might get on a normal day. So even though you’re seeing a boost on the days leading up to Prime Day, you might want to consider those could be browsers instead of people with intent to buy.
– Yeah, and that one there, the one day prior, I mean you could be getting some add to carts there, people adding products to cart, kind of way to see if that Prime Day deal is going to hit for that product. So it is kind of neat to see that it’s a slow gradual increase, but that one day before, it really starts to pick up like compared to the previous days after that. So this is kind of interesting stuff here to look at. This next one, what do you see here, Brock?
– Yeah, yeah. So this one’s actually quite interesting. I think that this one’s going to be totally different when we have the date for next yeah, for this actual Prime Day coming up next week. And the main reason for that is sponsored brand video ads becoming so relevant. So sponsored brands, formerly headline search ads, have been growing dramatically, and we’re seeing additional placement throughout the SERP as well on product pages. And now with the addition of sponsored brand video ads showing so high up on the page and on the other competitor product pages, I think that sponsored brands is going to grow even more dramatically. The one thing here is just what the return actually is going to be like. So you can see here, the cost per click goes up so much on sponsored brand ads. And that’s something you’re definitely, well, we’re going to talk about it more, but you got to consider that big time.
– Yeah, and this next one touches on it. I mean, this is the cost per click cost percentage, how much it increases. And this chart is based on the four weeks prior to Prime Day and then the days leading up and during Prime Day. And you can see it. I mean, the cost per click dramatically increase. 10% increase in cost per click on the second Prime Day, which that’s interesting. They’re higher on that one than Prime Day one. They are still pretty high. But that’s going to be a huge factor in how you set up your Prime Day strategy is understanding that, and that’s why we’re going to talk a lot about later on, is it a good idea, maybe to sit it out if you’ve got a certain product where this might not be profitable, or if you’re almost out of inventory or any of those destinations. What’s sticking out to you, Brock, here?
– Well, this is pretty much expected to be honest, right? You know, it gets really expensive. Everyone has gotten emails from Amazon telling them to increase their bids, launch new campaigns, get more aggressive. So this is just something to keep in mind when considering what actions you should take on Prime Day. It gets more expensive, a lot more expensive.
– Yeah, and I like how this Prime Day two, those are all people that were advertising on Prime Day one, and they’re like, “I gotta get more of this.” And they’re like, it’s like, give me more, give me more, give me more. So they’re increasing their bids, trying to get some more sales there before, obviously, it dies down a little bit. Alright, take it away.
– Well, this next one just shows how much buyer habits change on Prime Day and how much they become more window shopping, shopping around. I mean, your click-through rates drop on these. So what’s sticking out to you, Brock, here?
– Yeah, it’s the same as we were talking about before. You know the intent to buy is so much lower on Prime Day, and you’ve got to think the value of Prime Day is the fact that Amazon is driving. I mean, I got a text this morning. I literally, got a text this morning from Amazon announcing Prime Day, and I have my notifications set up very minimally. And so, you know, I get maybe a text from Amazon two times a year, three times a year. And so this is one of those examples where they are going to drive traffic to Amazon, and they’re going to do everything to bring people there. But you know, if I see that there’s going to be Prime Day, I get a notification on my phone, email notification, I don’t actually know what I want, right? And so, you know, maybe some offers are compelling enough I’m going to go on and shop. And we’ll see that in some of the other data. But we also got to keep in mind here, the click-through rates are dropping because people are browsing. They have lower intent to buy because they’re shopping around. And it’s just, again, very important to keep in mind when evaluating your overall strategy on participating in Prime Day.
– And that really hits on this next one because you’ve got so many people searching around on Amazon, different buying habits, the impact of combining tactics, getting a combination of your ads in front of the customers can have a big impact. And you can look here 1.5X on your conversion rate higher, 24% ROAS increase if you’re leveraging sort of sponsored products for brands in a strategy. Are you seeing that a lot, Brock, as well?
– Yeah, and this is something that I feel like maybe people are seeing this information and they’re taking it the wrong way. And so I want to make sure that, you know, I think somebody was already chatting about this, just because you see these increased results, just keep in mind, we see these increased results whenever you’re dominating the page. We’re seeing that always, not just on Prime Day. So, you know, Amazon tells everyone to go out and launch all of these extra campaign types, display ads, sponsored brand ads, and new sponsored product ads. They’re literally sending emails out, and all you have to do is click accept and you have these campaigns launch. So many sellers take advantage of this but just think about this. If you would have dominated all of the search engine results pages, whenever you have higher click-through rates, right, and more intent to buy, that might even be more profitable than for you launching a special campaign just for Prime Day. So taking that top headline search ad, the sponsored product slots, then your organic slots, the more of the page your product takes up, you will increase your conversion rate and you’ll have a better return, and that’s because you have more repetition with the customer. So don’t necessarily just assume this means I should go ahead and launch this just for Prime Day because we see these kinds of results not just on Prime Day.
– And you’re building that brand awareness that everybody wants.
– Alright, well that takes us to the ACOS performance. Brock, what should people expect of other campaigns during Prime Day?
– So the big thing is here, this really is an average. And so I will say, you know, take this with a grain of salt because you can definitely expect, leading up to Prime Day, you will have an increase in ACOS just because the clicks are going up ahead of time and then there are more browsers. And so of course, everything costs more with a lower conversion rate. It’s a higher ACOS. The thing that I would take out of this is the day after Prime Day is an important thing for you to reevaluate how you wanna move forward. So yes, Prime Day we have so many more people coming on and purchasing in many niches. Your ACOS will go down, even though your clicks are going up. I said in many because it’s not in all. But in almost all niches, we see ACOS spiking up the day after Prime Day. It’s just something to consider, whether you want to continue running your bids as high as you are. Just think about it. Everyone got those Amazon emails, they’re raising their bids, they’re launching new campaigns, and a lot of them don’t turn them off until later in the day after, or even a couple of days after. It’s just something to consider. If you’re cautious about ACOS being too high, maybe pause that a little earlier.
– Alright. Let’s talk about what to expect now for 2021. Obviously, video in general is having a major impact. What are you seeing with this, Brock?
– Is this is super powerful. If you haven’t been leveraging a sponsor brand video ads, and you are a brand that has the capability to create video ads, I would just suggest trying to do so right away. They can be the most profitable ad in your account, or some niches, they’re already very saturated and they perform about the same as sponsored products do. That having said, it’s just so much more engaging. I mean, look at the data for the click-through rates. We have great click-through rates. We have great conversion rates. And again, it’s just one additional slot on the page. By the way, now it’s towards the top of the page where it used to be the bottom of the page of the SERP. But basically, if you want to dominate all the ads on the page, you go for the headline search ad up top, go for the sponsored products at the top. And then right below that, you’re going to see a sponsored brand video ad for a lot of niches. And so it’s just really powerful. This is going to be the first, you know, the year we really have most brands running sponsored brand video ads. So it’s hard to say what’s going to happen on Prime Day compared to the rest of the year. But the rest of the year, at least, video has been extremely profitable for most niches.
– I think these are going to be interesting. These are sort of what we’re going to expect in terms of the numbers. You can see, I find these fascinating that the average spends on Amazon for Prime Day is going to be $326. 77% of consumers plan to shop on Prime Day this year. That’s an enormous amount of shoppers. 81% of parents say they’re going to shop for back-to-school items on this Prime Day. So if that’s the category you’re in, that’s something to be aware of. And 40% of consumers lookout for deals from non-Amazon retailers on Prime Day, which I think it’s also really interesting. So Brock, anything about that really stands out to you?
– No, no. I think the important thing here is just niche by niche. Some niches will go up more than others, and this year is going to be really unique because of things opening back up. In some niches, we’re actually seeing pretty steep declines since things are opening back up. Obviously, if you’re selling supplies that fit in the pandemic, you’re very aware of it. But there are other niches that we’ve seen you wouldn’t expect that people do prefer to shop in person now, and now they’re able to do so. So comparing this data to last year, you know, I would just say consider the social environment, what’s going on, and think about your niche and how it’s being impacted.
– Brock says niche, I say niche.
– Tomato, tomato.
– Tactics to consider for 2021, 2021, gosh 2021. Here we go. Video. So what do you see here, Brock? If you have it, use it, obviously?
– Yeah. Launch it, launch it, launch it right away, launch it early. This is the one thing that I think you should probably do right now. And you’re barely going to make the cut if you want to do it for Prime Day. So sponsor brand video ads, they don’t cycle through all of the bids nearly as quickly. What I mean by that is every single bid is an auction. Every single ad, anywhere on Amazon, is an auction. And so for some reason, it takes Amazon way longer to give traction to new sponsor brand video ads. So this is one of those things you need to launch right away. You can’t wait until a couple of days before.
– I’m in the market for a grill. That looks like a nice one, too. Alright, so placements, we’re seeing placements all over the board now. we’re seeing placements on product pages. What do you want to touch here on, Brock?
– Yeah, page saturation, like dominating the page, the SERP, search engine result page. That is always a good thing. Just make sure you can afford to do so. So for example, if you are not maxing out your sponsored products and you’re running out of budget on your sponsored product campaigns, I would not be launching new headline search ads or store spotlight ads until you’ve maxed out your sponsored product. Just be intelligent about the opportunity costs. So, you know, Amazon tells you to launch sponsored display campaigns. If you were taking away from a sponsored product campaign to do so, there’s almost always going to return to you fewer sales.
– Yeah, that’s big. Figure out the sponsored product first, move to the sponsor brand after that, and then play a sponsor display.
– Alright, now we’re going to get into some major questions about budgeting for Prime Day. The first one is probably the most common question, this and bids, should you raise your budgets, and if so, by how much?
– So I think that you need to look at your business first in particular, the particular product in question first. Make sure you have enough inventory. So we are working with this nonstop, but the new restock limits are causing so many issues. And so the days of inventory have been reduced so much you need to seriously consider whether or not you should even be raising your budget’s or bids. So for example, if you are in a very healthy, you know, let’s say you’ve got 90 days coverage or more of inventory, I do think raising your budgets by at least 30 to 40% is a good idea for most niches. And the reason being is if you’re not going to raise your bids, you’re not going to get more aggressive, just be able to handle extra traffic because Amazon’s bringing in way more shoppers these days. So at the current levels, your conversion rate, your cost per click, there’s no reason for you not to be ready for more traffic. If you have a really high ACOS on that campaign, I mean, maybe you don’t raise the budget on that one. That would be the only other caveat there. And then inventory, if you’re anywhere worried about inventory running out, do not raise your budgets, do not plan to sell more or try to sell more by spending if you’re going to run out of stock as the result.
– And this goes back to that category slide we showed earlier, know your category. If your category is not popular, it doesn’t have a track record of showing an increase in sales during these Prime Days, maybe you don’t increase your budget and you just let it go normal because the other categories are the ones that are going to get all the traffic, or that’s where we’re seen anyways. So again, I think it’s figuring out your category, but also your inventory as well.
– And if you’re a category that doesn’t get a huge boost, certainly don’t go and launch a whole bunch of new campaigns right before or go in and raise all of your bids up by a huge amount. You know that is one of those things where it could just result in a spike in your ACOS and nothing else.
– Yeah, now, if you’re currently using Sellozo, then you know that through the UI, you can easily, you know, make bulk adjustments to your campaign budgets. You can also make bid adjustments in bulk, as well, so if you wanted to do a relative bid adjustment, which we’re going to touch on a little bit later, raise all your bids on your targets by 20%, you can do that really easily inside the Sellozo platform. Now let’s transition to some misconceptions about Prime Day because there’s a lot of them. And there’s a lot of emails that we get from Amazon that may tell us to do things that we shouldn’t do. For example, should you be using a dynamic up/down bid strategy?
– It’s Brock’s favorite question, I can tell.
– So I cannot wait to recommend dynamic up/down, and I can’t do it yet without, like, I’m looking forward to the day when this changes, you know, back in Google. Google has something very similar, and it’s great. It is not great on Amazon. I have seen where the only change in the account was one of those suggested Amazon emails that had a whole bunch of recommendations. They accepted those, and on 70 campaigns, they went to dynamic up/down, and it doubled their ACOS within a week. So I mean, it changed the entire month’s ACOS in one week. So I will say that, you know, based on the numbers, this is triggering over 90% of the time. So less than 90% of customers convert, which isn’t true at all. It’s more like a 9% conversion rate is typical on Amazon, you know, in that range. It doesn’t make sense to be literally bidding a hundred percent and higher if you’re using any kind of system for adjusting your bids yourself. I highly suggest going with dynamic down only or using fixed bid for Prime Day and every day for that matter.
– And next one we’re going to touch on is using relative bid adjustments. Let’s get into this question here. What are relative bid adjustments, and how do I use them?
– So relative bid adjustments, well, what that basically means is you want to adjust your bids in bulk by a certain amount. Whether it’s 20%, whether it’s up by 20 cents, all of that can be done in bulk in Sellozo. So if this is something you do want to participate in, and let’s say you want to get 50% more aggressive on your bids, a super-easy way to do that is going into the targeting tab, selecting the campaign, or all of your campaigns for that matter, and then select all of the keywords. And you can literally change, you know, 50 campaigns with thousands of keywords all at once by 20% up, 30% up, whatever you want. This is really powerful because maybe you don’t want to raise all of your bids for Prime Day, but the day after Prime Day, you want to drop your bids by say, 20, 30% for at least just one day, and then you bump them back up. You can do that and have control over the system and make that all through bulk, and it’ll take you a couple of minutes rather than hours of doing it manually.
– And you can do this in seller central as well, it’s just easier to do it in Sellozo, personally. Should I raise bids? On what targets?
– So this is one of those cases where lot of more often than not, I would suggest raising budgets and maybe even putting on a small increase to the top of sale search multiplier, say five 10% increase from wherever you have it now, if at all, over increasing bids. Amazon suggests increasing bids across the board, but because of that lower conversion rate, you’ve got to be careful. There are so many more people browsing that you’re going to have more clicks, and it could run out of budget really quickly. And so, for example, if you have any risk of running out of budget, raising your bids will only make that problem worse. And then it will actually lower your sales because you will have raised your average cost per click, run out of budget earlier in the day, and then your ads aren’t showing. And then on what targets? So if you did want to go to the targeting tab, filter down to your top performers. You can maybe filter down to the top 100 keywords that are below, say your targeted costs, let’s just say it’s 30%, you could filter down to all the targets that hit 20% and just raise those. I would suggest doing something like that, being selective about your bid increases, rather than just increasing your bids across the board.
– And again, you can do all of that inside Sellozo with our filter sets, and you can filter down to those specific targets like Brock said that are exceeding your target ACOS and then you’re able to make adjustments just on those targets. So it really makes that process a lot easier. Now I think this is the ultimate question, and it’s one people I don’t know if they’re really are considering this thoughtfully enough is should you participate? I mean, there is the fear of missing out. FOMO is real on this, but also this could be an opportunity for you to do something that could have a negative impact on your business, like sell out of all your inventory at a worse margin. I mean, that’s not something you want to do. So what are you looking at in determining whether you should be even participating in this at all?
– Yeah, and this is why timing makes so much sense here, doing this right before Prime Day. Look at your inventory right now and decide, do I have enough days coverage to justify increasing my sales dramatically? Because honestly, more of our sellers fall into the bucket of you should not be participating than fall into the bucket of participating will help them. If you’re in a product launch, you’ve got plenty of inventory, and you’re trying to build up your ranking, yeah, do a deal, do a Prime exclusive discount, do a coupon. You know, all of those things can be done last minute. Now, don’t do it the day before because there’s system crashes like 50% of the time the day before and the day of. But you can literally do that right now, and you would be set. That having said, established sellers that are being impacted by these restock limits more often than not we’re seeing this particular year because of the environment, you would benefit from just maybe increasing your budget or not even doing any of that and just benefiting from the increased total organic traffic.
– This is also a good play to liquidate inventory. If you’ve got a bad sell and you want to get rid of it, this is a good chance to get rid of it.
– Yeah, yeah. That’s great, especially if a lot of your competitors might be out of stock or low on stock right now. This is definitely a great opportunity to liquidate.
– What are the best campaigns for Prime Day?
– So shocker, they’re also the best campaigns for any day. Sponsored products just work on Amazon. So a lot of customers do not actually know that a sponsored product ad is even an ad. And so the conversion rates are so good on sponsored products. And to be honest, they’re reported lower than they really should be because of the other placements. But think of your top research placement on sponsored products, it truly is the best ad to be run. If you are not maxing out your sponsored product ads, I would not be moving over to headline search ads, sponsored brands, or definitely don’t even mess with the sponsored display if you aren’t maxing out sponsored product. Now, if you are maxing it out, I would first go to the sponsored brand video and headline search ads, and store spotlights. And I would max those out before I go to the display. And the reason being is I understand how hard Amazon is pushing all of the new audience targeting options and the product targeting through sponsored display, but it is so rare that you will outperform sponsored product or sponsored brand video. I mean, I’ve almost never seen it.
– And that’s how long Brock’s been doing this. He still calls them headline search ads. Alright, we’ve got questions. So we got to list here. Dustin, you want to go ahead and start taking away some of these questions, and we’ll just kind of back rapid-fire Brock here?
– Absolutely. Well, we’ve got the chat open. So please, if you’ve got questions, throw them in there. We’ll see if we can get to all of them in the time that we have, but we’ll start first with one that came in earlier. So ACOS is slowly bottoming out 10% below the targeted number, what should be done?
– So by bottoming out, I believe it’s lower than your current set target ACOS. If that’s the case, simply put, it sounds like you can get more aggressive so make sure you’re not running out of budget. So make sure you’ve got plenty of budgets. I would also look and see if you’re using a very small top of search multiplier, five to 10%, something like that. If you’re not, go ahead and I would put that on there. And then the next thing I would do is go ahead and start raising your target ACOS by five to 10% per week until you get to the point where you want to be operating. And just note that in the future, if things start going worse, you’re going to have to lower that target ACOS, but you can definitely use that as the main lever to pull. It takes about two seconds.
– Let’s get this one from Jake here. Would you dedicate a large portion of your budget to sponsored brand ads due to the relevance of the video ads?
– So the one thing I am concerned about is that sponsored brand video ads have been bouncing. They’re testing them in different placement options. So one week we’ll see them always at the top of the page, and then sometimes we’ll start seeing them towards the middle, and then suddenly, we’ll go three or four days where we won’t even see them on the first page. I’m assuming sponsored brand video ads are going to have high placement for Prime Day. I would just say, look at your return though. If you’ve already honed in, and you’ve been optimizing your sponsor brand video ads, and they’re performing better than your sponsor product, well then definitely put more of the budget towards those sponsored brand videos. But I would still put more towards the sponsored products if they’re outperforming. Because at the end of the day, I love page saturation just dominating the entire SERP with ads. But at the same time, I would much rather have my sponsored product campaign run all, both the Prime Days than take some of that budget, let it run out and run more sponsored brands that are at a higher ACOS.
– Let’s jump into another question here. This is less about PPC and more just in general. Any recommendations for improving search terms, subject matter, and listing keywords for Prime Day specifically?
– Well, I mean, be careful. You know, you can’t say this is a Prime Day deal and it’s not. So I would definitely be careful about that. To be honest, this is the exact same thing. Make sure that your backend search terms, your title, your description, your bullet points, everything’s just filled out in the best way possible. I personally don’t think it’s worth the risk of trying to sneak in one of those non-approved Amazon deals and calling it some deal or changing your photo to say like Prime Day. The algorithm’s getting really good at catching those. So I typically don’t change the actual listing copy before Prime Day, but it’s a good time to go make sure your backend search terms are filled out and your title is maximized. Just be careful. Don’t make changes. Like, you gotta make these today or tomorrow, to be honest with you, because the Amazon system crashes right before Prime Day so many years that I would not be planning things this weekend.
– Yeah, this is a bad time to probably mess around with your images or the search terms. The last thing you wanna do is get your listing suppressed. Best practices for building sales during Prime Day?
– Budget. Just make sure you’re not running out of budget. If you are going to be doing coupons, Prime-exclusive deals, lightning deals, I mean, those are super effective. You just have to make sure your margin’s there. Obviously, we’re not talking about that very much right now because well, your lightning deals, all those opportunities have already passed so this is really last-minute planning. As far as last-minute options, coupons, the number one, prime exclusive deal, probably number two. Those two things are what I would look at for last-minute building sales. And then just making sure you have plenty of budget set.
– Yeah, you just answered this next question that came in, asking about coupons. Should you give a discount coupon instead of reducing the price?
– That’s different.
– That’s different. What would you?
– So those cost 60 cents, right? So that it does cost a little more. You know you got whatever amount the coupon is plus the 60 cents. But again, lowering the price, it’s not clear if the customer is actually going to be able to tell that you lowered the price. So yeah, you could do a sale price and you might get the strike-through price, but you might not. In fact, it’s a high likelihood on Prime Day that you won’t. So the Prime exclusive deal might actually be a better fit for you than lowering the price. I like coupons because of the badge. I like getting the badge, and don’t get me wrong, I’d love to have that red badge with the green coupon badge, but that’s pretty rare and you can’t bank on it. So I’d probably go for coupons if you want something to highlight that’s you’re special for Prime Day or Prime exclusive.
– I would always have coupons running, always. Just my personal preference.
– I mean, I like your margin, though. Some people, 60 cents could actually, plus the coupon value, the minimum coupon value plus 60 cents could cut into their margins to a point where they can’t justify it. And there are some niches that have that thin of margins, and, you know, you might be better off just increasing your budgets rather than putting that towards a coupon budget.
– Do I need to create an Amazon campaign, or if my product is already in Prime, is it already going to be advertised?
– This is a really good question. So technically speaking, Amazon sent me a text this morning about Prime Day, right? So they’re promoting everything on Amazon to more people. So even if you do not launch anything, anything, you just don’t even touch anything, you will have more traffic to your listing because of Amazon’s external advertisement. That having said, there are so many other things that you could do, like Kris suggesting the coupons. I mean, that is, the smallest coupon available for you is probably better than doing nothing at all, assuming your inventory is healthy, assuming your margin is healthy.
– Alright, let’s see, next question. How much should I increase my ad spend for Prime Day? We spent a lot of time touching on this in the earlier questions, but in general, what do you see there? How are you determining that?
– Yeah, I mean, it is a little niche by niche, but I like to increase budgets by 30 to 50% if I believe this is a niche that’s going to have a noticeable impact. I mean, some of them you might want to look at doubling your budget, if you’re in one of those electronic niches, for example. That having said, again, it’s more about the performance. So if you’re performing really well, and you’re not hitting your budget at all, why not double or triple your budget. If you’re performing really well at a good ACOS, you don’t want to run out of budget on Prime Day. You want that campaign to run the entire two-day period. So if you’re not running out of budget every day, you should definitely consider just raising it very high and not adjusting your bids. So when you adjust your bids and your budget, that things could go wrong because then you could start actually advertising too much on an unprofitable level.
– And if you’ve got questions, put them in the chat. We will get to them. The next question here is, “How do I build a bigger audience?” I think this is more off Amazon, but how would you use it, how would you build a bigger audience with Amazon?
– Yeah, I’m going to take this as more like brand awareness kind of. So I’m just going to assume you have a product that either your brand is relevant or its unique product, and you’re trying to build up a following, an audience. I mean, the big thing is just advertising more and more aggressively. That’s the easiest way to do it. The other thing that you can do is enter yourself into some of those deals. Again, it is a little bit too last minute, long gone for things like lightning deals and those things. But that is a great way to say, launch a product, a new product that you’re looking to do a deal for or early product life cycle stage that it hasn’t really become established, but you’ve been selling it for a while. Those are when you want to take advantage of those really large impressions, so a large audience, they have a large reach, offers. And again, those are like months ago, unfortunately. They’re gone.
– Alright, let’s take a question that came in from the chat. This is from Tamra and this is about sponsored display ads, and I don’t think it gets specific to Prime Day, but her question is, “What’s the lowest ACOS you’ve seen in sponsored display ads? We had everything set up by an Amazon team, and it’s performing horribly.” So I think on thing is.
– Tricky question.
– Yeah. One thing, I mean, I’ll let you touch on it, but yeah, take the Amazon’s team’s advice with a grain of salt, right?
– Yeah. Yeah. I used to live with some of them, believe it or not, years and years back before I worked at Sellozo. They’re a sales team. Just remember that they have, I mean, no matter what you call them, their goal is to get you to use more. They want to sell you more of Amazon’s features. And so if they are presenting something to you, I would highly recommend asking them, okay, what is the average ACOS I can expect, before just going for it because you need to compare the opportunity cost, which is your current sponsor product or sponsor brand campaigns. It is so rare for these Amazon launched sponsored display campaigns. Like, I’m thinking one in 10, maybe that I’ve seen. Less than 10% have hit anywhere near what sponsored brands or sponsored products will do. Yes, I have some niches that run sub 20% sponsored displays all day long. They were ones that we had to hone in, we’ve been optimizing them for a while, and we cut a lot off. So very selective sponsored display campaigns can run super-low ACOS, but in these particular product categories, we run sub 20% sponsor product ads, too. So it’s very common to see your ACOS being double on sponsored display, especially right as you launch it. If you’re optimizing it for a couple of months, it can come down, but I’d be very careful about launching new ones right now.
– Sponsored display ads, there’s a lot of different categories, product targeting, there’s audience targeting, test them out, but lower your bid. Go start really low, like 25 cents, 10 cents, and make your budget like 10 bucks, 20 bucks. Start really, really low. You don’t want to go in here doing dollar bids and a hundred dollar budgets ’cause it’s going to go crazy. So I would start small. I would test out all these different categories. They got a lot. Test them out, and then the ones that are meeting your ACOS goal, scale those up.
– Sponsored display product targeting has been the most cost-effective across the board. So some of the new audience refinements are looking promising, but it’s so select, and there are so many options that I can’t recommend just diving into that. But the one thing I will say is if you have top converting competing agents or defensive, your own brand, targeting products in a sponsored display campaign, product targeting, sponsored display product targeting is normally the most cost-effective of any display yet I’ve run.
– If you had one thing to do to prepare for Prime Day, what would that be?
– It would raise my budget on the campaigns that are advertising products that I have plenty of inventory on. So if I had one thing, I would check my inventory, and then based on that inventory, I would raise my budgets on the ones that I have too much of or plenty of.
– Alright, let’s take a look at the next one here. This is an interesting one. If we missed the deadline to create lightning deals for Prime Day, which was a long time ago, so there could be a lot of opportunities to miss that. What else could you do?
– Coupons, putting on an offer a coupon is going to be your next best thing. Yeah, it won’t say Prime Day on it, but a coupon is really effective because it goes for all users, not just Prime members. And then the other thing is the Prime exclusive. So I believe that window is still like all the way up until the last minute. So that is nice because it gives you like, a little blue badge. And this is new from last year, so you can’t really trust any of the data. But you get a little blue badge for Prime Day. And normally if you’re doing a Prime-exclusive deal, it just shows your strike-through price. And so I really do like having that blue badge because it’s unique and it makes people think that it’s like, “Oh, I got this text from Amazon telling me I should shop on Prime Day and there’s going to be all these deals.” And then they see this blue badge that talks that it’s Prime Day exclusive, and they kind of associate the two, where coupons you see all year round on products. Obviously, the downside is that it is exclusive for Prime members, and that could cut out some audience. So there are pros and cons to doing coupons and Prime exclusive. And you can stack them I discovered, but it’s kind of expensive when you’re stacking all of your coupons together. So unless you have a very high margin, I would probably pick one or the other.
– So much of Amazon advertising feels like the rich get richer. How can we outsmart, not just outspend our competition?
– That’s, ah, listing. Honestly, this is one of those cases where, you know, so many people in the industry think that you can just launch the same product on Amazon, and the reason it’s not being successful is, you know, they’re advertising. But a lot of times it’s just because of the established products, I’m guessing that’s the rich, the established products with tens of thousands of reviews are so established. What I would say is make sure you have a good product with a product differentiator that’s highlighted in the main photo and the title. And this isn’t just Prime Day, this is always. If you’re selling the same thing as everyone else on the page, you’re going to buy your way to the top, and it’s going to be expensive to stay there. But if you have a product differentiator, something that makes your product unique, you need to be able to show that to the customer before they make it to your listing. So in your photo, in your title, in the first part of your title, so it doesn’t get truncated. That is the most important thing you can do because it will impact your sponsor products, your sponsor brands, your organic, your click to rate, your conversion rate, and it gets that flywheel spinning, and it gets you the organic ranking you need to get more profitable.
– Let’s go back to the chat. Questions coming in from Jake again. Outside of Prime Day, with a goal of aggressive growth, would you have a small top of search multiplier to aid in this growth?
– And real quick, Brock, Jake is a Sellozo user.
– Awesome, so yeah. Yeah, I know Jake.
– Okay, just making sure you knew who that was, yeah.
– So just, I recognize his name. Hey, Jake. So I would say that it depends. I would go in and just take a quick look at your performance. Almost always, a five to 10% is not a bad idea. I wouldn’t be very careful about going higher than that. So I more, I lean towards a five to 10% on most products, just because most products it does make sense. They outperform it by five to 10% so you can justify it. But when you start going up into the 20, 50 range, that starts going into, honestly, I would just avoid it. What I mean by that is I use very high top of search multipliers when I’m doing a ranking campaign. And I want to trick Amazon’s algorithm into only seeing my data for the top ad slot. So I put a low bid in, and I put in a couple of hundred percent top of search multiplier, otherwise, I keep it to like five, 10, 15%. And that, in general, is a good idea to do, but you should always back it up based on the data, which you can see under your campaign settings, the performance on top of the search. In the rare case, you will see the top of search performs worse, and so obviously, you don’t want to put it there.
– Specific target ACOS for Prime Day, what is it?
– Ah, that’s really broad.
– You got an Amazon email, it might be. So yeah, I would say your target ACOS is always really determined based on the product life cycle and your goals of that product. If you’re in a mature, established, you have a good organic ranking, you might want to consider having a much lower target ACOS. I mean, that, that could be as low as… I mean, I work with some people in industries where it’s as low as 15, 10%, you know, in the target ACOS. And then I work with other industry leaders where they’re number one in the category, and they still have a 50 to 80% target ACOS because they want to make the barrier to entry, prevent their competitors from taking the organic slot, and dethroning that number one slot. They want to prevent that. And so they can do that by purchasing all of the clicks and making it so expensive that their competitors can not come in and take those slots. So I would say you really should pick your target ACOS based on your goals and your strategy and your product life cycle. And you shouldn’t just totally change that for one day, or two days in this case.
– What would a preemptive strategy look like for your best products? Change in bids set up before a big event?
– Yeah, so your top sellers, if you have plenty of inventory and you’re already number one, I would focus on making sure that you don’t do anything that would lower your margin too much. So increasing budgets, putting on a little bit of a higher top of search multiplier than normal, you know, an extra 10% is a great idea. If you are not number one in the category, and you’re looking to get to number one, this might be a time where you say, “Hey, I’m okay breaking even for Prime Day if it means I increase my organic ranking dramatically.” And so you might want to add coupons, large deals, large budgets, bid increases, and use this as a way to leapfrog to the top of the organic search. So I would say it depends on your organic ranking.
– Okay, I got one here for you. The Prime-exclusive discount page is showing the sourcing window for submitting Prime deals is now closed. I thought you said we still had a few days left. Am I missing something?
– Yeah, I’ll have to take a look. I don’t think they’re closing that one this early. But to be honest, if you’re saying you’re already closed, I mean, that’s the window where you can submit them. Well, send that into us, and we’ll jump into them, and see if it’s already closed for people.
– What I’m seeing is this closed early, like this closed back in probably March or May. So when you get up to like, or maybe you’ve seen a difference in some of your accounts, Brock, but when it becomes, like for Black Friday and Cyber Monday, look for those deals in your account and submit those deals as soon as you see them. If you don’t want to do the deal, you can always cancel it at a later time, but you want to submit them as soon as you see them in there so that you don’t lose out on the opportunity because they’re going to close them down as it gets closer to those dates.
– I mean, you can always cancel at any time, but I recommend you can cancel it at least a day ahead. Because again, like the past couple of years, a lot of people have tried to cancel or delete coupons, and they can’t because the coupon portal will totally collapse and it just will not work the day of or the day before. So Prime exclusive, I thought was going to be available much later this year. So I’m wondering if they cut it off earlier than I anticipated.
– Alright, well, that’s all the questions we have. We have like 3, 4, 5 minutes left. If you got anything, you better put it in the chat now because this is your chance to have Brock answer it. So we’ll kind of hang out here a little bit. Dustin, you want to talk about some of our podcast and Sellozo’s free trial and just how people can get on demo and all that kind of good stuff?
– Absolutely. Yeah, If we get a question come in, we’ll ask it. I’ll stop talking. We’ll get to the question. But yeah, if you’re not currently using Sellozo, Sellozo is a platform that can fully automate and optimize your advertising for you. We optimize everything: sponsored products, sponsored brands, sponsored brand video, sponsored display. We have an amazing team. You’ve meeting Brock here. He’s the head of our support team. They’re phenomenal. So we also can manage your account for you. If advertising something you want to just take off your plate, you can let our team here, headed by Brock, actually manage your ads for you. If you’re interested in utilizing our tool, Kris and I would love to give you a demo of the platform. We also have a 14-day free trial and an onboarding call. So we really make sure that you’re comfortable using it. So if you’re interested, you can go to sellozo.com. You can click request demo. You’ll get either Kris or myself on that call. We’ll walk you through answer any questions. Kris and I will do anything. We’ll look at your listings. We’ll make sure it’s good for you to turn on ads or not if there’s more work you need to do. We’ll look at everything with you. And then once you sign up, you get that 14-day free trial. And of course, Kris and I will onboard you. So we’ll look at your campaigns with you, help determine things like budgets and target ACOS, and linking campaigns in our campaign studio, which is really cool if you’ve not seen the inside of Sellozo and our campaign studio. So please do that. You can go to sellozo.com, request a demo.
– Yeah, you got it. Go ahead, you got it.
– Additionally, Kris and I host a podcast, “Two Amazon Sellers and a Microphone.” Check it out. On any platform that streams podcasts, we’re there. We do it almost every single day. We bring in experts all over the Amazon space. So it’s not just Kris and I talking every day. We’ve got experts. Like right now, we’ve got a great guy on doing a five-part series. His name’s Neil Twa, and he’s going through every step of starting your business on Amazon. But we cover everything really in-depth with great, great people. I mean, Kris and I, it’s so fun for us. We learn something every day. So we’d love for you guys to be tuning in to that. We also live stream those so you could see the video if you want. That’s on Sellozo’s Facebook page, so you can subscribe or you can like Sellozo’s Facebook page. If you turn on notifications, you’ll be notified when we go live. You can see the video. And like I said, we do it almost every day. And then those videos also live on Sellozo’s YouTube channel, which you can subscribe to and get notified when we do new videos. Additionally, this webinar will be on the YouTube channel tomorrow. So you’ll be able to see a live recording of this tomorrow. And also for those of you that are in here right now, this will be sent to you in an email, as well as a discount.
– This is big.
– So look in your email tomorrow. If you’re not currently with Sellozo and looking to try it out, you will get a discount code in your email tomorrow, and then you can book that call with Kris myself, and we can get you onboarded and off and running.
– That’s it.
– All I got.
– I think we’re good. I think we’ve answered everybody’s question, Brock, so.
– Brock, do you have any last parting thoughts?
– Ah, I guess the last thing is just don’t accept those recommended emails unless you really look through them. You know, that person which was concerned about their sponsored display recommended emails, just be very, very cautious about accepting any changes right before Prime Day. I would definitely look at increasing total capacity rather than totally launching new campaigns right now.
– Good stuff.
– Thanks, everybody. Thanks, everybody for joining this. As I said, you’ll have the live recording on our YouTube channel and in your email tomorrow, and be looking out for that discount code. We’ll see you guys-
– See you all.
– On the next webinar.