Are my campaigns performing at their optimal level? Why aren’t my Sponsored Product ads converting? My ACoS is cutting into my profit margins—How do I fix this? Why aren’t my ad placements sending enough traffic to my listings? We find these types of questions come up A LOT with Amazon Sellers trying to maximize the performance of their Sponsored Product investments. Therefore we’re having former member of Amazon’s Seller Services team, Pat Petriello, and Top 250 Amazon Seller, Chad Rubin, demonstrate their proven methodologies for improving campaign performance.

1. Live Webcast:
Top Amazon Sponsored Product
Mistakes Draining Your Budget & Profits
Presented By:

2. Today’s Logistics
Session Recording + Slides Will Be Sent Out
Join in the Poll Questions!
Submit Questions to Our Panelists

3. Today’s Event Speakers
Pat Petriello
Head of Marketplace
Strategy
Chad Rubin
CEO & Co-Founder

4. Today’s Agenda
1) Not Fully Understanding Your Advertising Goals
1) Not Getting Granular Enough with Your Campaign Strategy
1) Not Using Data to Make Decisions
1) The Meaning Behind ACoS Calculation
1) Not Optimizing Your Listing for Conversion Rate
1) Seller who set it and Forget it

5. Mistake #1:
Not Fully Understanding
Competing Advertising Goals

6. CPC Strategy’s Advertising Triangle
1
3
2
VOLUME EFFICIENCY
SPEED

7. Understanding Your Goals Before Structuring Campaigns
1) Volume & Speed
a) You can grow volume quickly by maximizing exposure & impressions
through aggressive bidding, but you're going to sacrifice efficiency.
1) Efficiency & Speed
a) You can increase efficiency quickly by cutting out wasted spend which
entails cutting bids on inefficient keywords & pausing poor keywords
altogether.
1) Volume & Efficiency
a) You can increase both volume & efficiency in any advertising
campaign, but not on day 1.

9. Mistake #2:
Not Getting Granular Enough with Your
Campaign Strategy

10. Sponsored Product Campaign Structuring
SPONSORED PRODUCT CAMPAIGN SET-UP
AD GROUPS
CAMPAIGN NEGATIVE
KEYWORDS
KEYWORD MATCH TYPE
BROAD PHRASE EXACT
AUTO TARGETING
CAMPAIGN
MANUAL TARGETING
CAMPAIGN &
SINGLE ASIN
← Profitable Keywords
MATCH TYPE NEGATIVE
KEYWORDS

11. Manual & Automatic Campaigns
● Goals Will Determine Ad Group Differentiation
● Sellers can add up to 1,000 keywords per Ad
Group
● Give All Your Products a Chance to Perform
● Data Harvesting
● Actions are driven by your company’s goals
Automatic Manual

12. Keyword Match Types
AdGroup Harvest Goals
✓ Broad Match: 30-90
keywords
✓ Phrase Match: 20-40
keywords
✓ Exact Match: 5-20
keywords

13. Keyword Match Types & Negative Keywords

14. Mistake #3:
Not Using Data to Make Decisions
Emotional vs Data Driven Decisions

15. Three Must-Use Traffic Tools
Merchant Words
& MOZ & A9 Auto-Suggest
The Hashtag The Keyword
Research Report

16. How do you build what customers want?
Build what customers search for

17. The Hashtag

18. The Hashtag

19. The Search Term Report

20. The Search Term Report

21. Optimize For Traffic
That’s ½ the Battle
Do Keyword Research Write 50% for Humans
50% for Bots
Clicks Just as Important
as Conversions

22. Mistake #4:
The Meaning Behind the Advertising Cost
of Sale (ACoS) Calculation

23. Start by Setting the Right Goals
Maximize Profits Maximize Sales
There are two main goals for PPC

24. What’s a Good ACOS?
Maximize Profits Maximize Sales
Target ACOS Break Even ACOS

25. What’s a Good ACOS?
AMZ Fee 25%
35%COGS
10%
Overhead
30%Profit before
PPC spend

26. What’s a Good ACOS?
AMZ Fee 25%
35%COGS
10%
Overhead
30%Profit before
PPC spend
30%
Break
Even
ACOS

27. What’s a Good ACOS?
AMZ Fee 25%
35%COGS
10%
Overhead
30%Profit before
PPC spend
30%
20%
Break
Even
ACOS
Target Profit
Margin
10%
Target
ACOS

28. What’s a Good ACOS?
AMZ Fee 25%
35%COGS
10%
Overhead
30%Profit before
PPC spend
30%
20%
Break
Even
ACOS
Target Profit
Margin
10%
Target
ACOS
ACOS < 30%: ads are profitable
ACOS < 10%: hit your target profit margin

29. Only the Strong will Survive

30. Mistake #5:
Not Optimizing Your Listing
for Conversion Rate

31. Understand Your Conversion Rate

32. Math!
(Total Order Items
+ Total Order Items
B2B)
Sessions Amazon Conversion
Rate (%)
/ =

33. Benchmark Data

34. Benchmark Data
3% 5% 17% 6-8%
Good
Conversion Rate
Amazing
Conversion Rate
1-800 Flowers Your Average
Target

35. The 3 Things that Amazon Values the Most
1) Utilizing Sponsored Ads and AMS = $
2) Inventory is available Prime ( Fulfilled by Amazon) = $$
3) Conversion is made = Amazon gets a Referral Commission = $$$
The Perfect Amazon Transaction

36. Win-Rate Math!

37. $$$$ that Amazon Values the Most
1) Heaviest weight placed on conversions
2) Not all conversions are created equal
3) For same keyword, would amazon rather have the person buy 1
or 5?

38. Amazon Tracks Unit Session %

39. Propel Rank - Get Your Customers to Buy 2+ Units
Boost Your Avg Order Value

40. Mistake #6:
The Set it and Forget it Approach

41. Seller’s Typical Mistakes
1)Bidding
1)Keyword Selection
1)Advertised ASIN Selection

42. Today’s Recap
1) Understand Your Advertising/Business Goals Before Jumping in
1) Get Granular with Your Campaign Optimizations
1) Calculate Your Ideal ACoS before Creating Your SP Campaigns
1) Ensure You’re Using Data to Inform Decisions
1) Look at your Listing Conversion Rate Before Jumping into Sponsored
Products
1) Don’t Set it & Forget it!

43. Schedule Your Sponsored Products
Account Health Evaluation
www.cpcstrategy.com/amazon-services

44. BONUS
❏ The Amazon Conversion Spreadsheet I Use To Run
My Business!
AVAILABLE UNTIL
END OF DAY
TODAY
skubana.com/gold
PASSWORD: nuggets

45. Questions for Speakers?
Pat Petriello
Head of Marketplace
Strategy
Chad Rubin
CEO & Co-Founder