In this episode we go through Amazon PPC: Sponsored Ads. Learn how to steal sales from competitors, what the important terminology is, what are the key ways to set up your campaigns.
Time-Stamped Show Notes:
• 01:07 – What Amazon PPC is and why it should be used.
• 03:40 – How you can steal some of your competitor’s sales.
• 05:33 – Several reasons why PPC is used.
• 07:49 –Wilson shared his experience about sales velocity in Amazon.
• 13:24 – Amazon PPC Algorithm.
• 14:33 – The difference between auto and manual campaigns.
• 19:53 – Is a keyword worth more testing or should be a negative keyword?
• 22:11 – Ways that you can increase the click through rate.
• 26:08 – Amazon’s bidding pattern for the sellers.
• 29:24 – Advertising cost of sale. (ACOS)
• 32:11 – The difference between budget and bids
• 34:51 – Lifestyle Optimization Topic: No Zero Days.
Resources from This Interview:
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Disclaimer: As with any digital marketing campaign, your individual results may vary.
Full Transcript of The Episode
KenjiROI Intro: [00:00:00] Are you looking to optimize your mindset and lifestyle for success in today’s business world. You’re in the right place. This is where you get to build your freedom. To promoting through Facebook and selling on Amazon. Welcome to Actualize Freedom with your host, Wilson and Danny.
Danny: This is actualized freedom the no bullshit podcast for hacking your freedom through selling on Amazon and lifestyle optimization. My name is Danny Carlson.
Wilson Lee: [00:00:44] My name is Wilson Lee. Today we are gonna be sharing with you some of the experiences of, [00:00:48] What is AMAZON PPC? How do we use it? Why do we even use it? How it Works. How you set it up and basically an overview of this whole thing called PPC. Lifestyle Optimization we’ll gonna be can be talking about “No Zero Days” mean. [14.3]
Danny: [00:01:07] And we’re going to be getting into that at the very end here. So let’s start out with what is Amazon PPC and why should we use it. So this is going to be a really basic overview here we’re not going to go to nitty gritty on the details we want to make sure that everyone actually understands why we should be using this platform on how it operates. It is a lot different than a lot more advanced advertising platforms out there. Facebook ads and Google AdWords are much much more complex that could take many years of expertise to really get nailed down and many many thousands or tens of thousands or hundreds of thousands of dollars. Not to mention Amazon sponsored ads while it is simplistic. It is also very important to note it is here. So let’s dive right into that. So the main advertising platform on Amazon is just called Amazon sponsored ads.
[00:01:57] You access that through your Seller Central dashboard. So everyone who has a regular Seller Central Account on Amazon, that should be 99% of you guys, you will have access to the sponsored ads there. So let’s talk about a few places where these ads are actually going to show up so you’re scrolling on Amazon. [00:02:16] Where do a lot of these ads actually show up on the search results page, Wilson.
Wilson Lee: [00:02:20] Well, the #1 thing it shows up is the top three products, that you put your search term in when people search for it. [10.7] So I think that’s where the majority of the sponsored ads shows up. And also the last three. So on every page, depending on how much you’ve been, it would actually show up at sequential order just throughout the day and just keep showing up.
Danny: [00:02:45] They will show up, typically Amazon changes that around a lot. But the very top two spots on the searches of page are usually sponsored. Usually the few on the bottom. Now, [00:02:54] Amazon is actually starting to put some sponsored ads right in the middle of the searches also kind of like a sandwich top the middle in the bottom usually will be sponsored and you’ll see that little they’ll be a little sponsored text next to it. [12.8] So a lot of people they have try to scroll past sponsored ads but a lot of people don’t even know the difference, so click right on them. So that’s why it works really well. To other places, sometimes they actually show up in the sidebar, on the side there that show up in something called a headline ad which is a special type of ad. They’ll be talking about a second rate and have multiple products up in the very headline. You have a little bit more branding control over there, you can put some text there. And one really powerful way is you can get them to shop on the competitor’s listings.
Danny: [00:03:40] When you’re scrolling down you’re on a certain product and you’re going to scroll down to the reviews. You’ll see a big sidebar sponsored products related to this item and you can actually steal some of your competitors sales that way. [00:03:53] So like Wilson is saying the way this thing works is that you only pay, every time someone clicks on your ad so it can show up a thousand times but no one actually clicks on it then you don’t actually pay for that for that ad. So [13.1] that’s something that’s really beneficial about this compared to a lot of other advertising platforms out there. The last thing I want to mention in this section. There are other advertising platforms on Amazon. [00:04:17] The other biggest one that most people have access to is AMS, Amazon Marketing Services which does require a different type of account it’s Amazon vendor Express, is the easiest way to get access to that. [12.9] But recently announced Amazon is actually getting rid of their vendor express programs they’re giving it the ax. So we’ll see. We’ll see if we still are able to access AMS without actually being an Amazon vendor that was kind of a loophole that hopefully we still have open. But just you guys know we’re going to be talking for the rest of this episode about Amazon sponsored ads. The most basic one.
Wilson Lee: [00:04:52] Totally, and I guess before we dive deep of how we set it up, so on and so forth. [00:04:58] Why is it so important that PPC Campaign is such an integral part and success of running a business on Amazon? Do you want to explain a bit further on why is it so important? [10.9]
Danny: [00:05:11] Yes so there’s a lot of different reasons why you should be using it. [00:05:14] It’s not just to make sales at a profit. [2.3] I mean obviously that should be the main goal but a little lot of product categories it’s not really possible it’s so competitive with Amazon PPC that a lot of people are actually just losing money on the ads just so that they can gain their organic ranking for example. So let’s talk about a few examples of that. [00:05:33] So if you’re doing a product launch then part of the product launch you need to get a certain amount of sales to actually get your keyword ranking and show up on the first page of results. You get those regular organic sales so when your product launching you may want to be spending a lot more heavily just to get that sales volume there it’s not necessarily about profit. [19.1] You also maybe [00:05:55] want to bid really high on specific keywords [2.6] let’s say that your keyword is big dildo. You want to rank up to page one on big dildo so you could bid really high on that even if you’re losing money on every single sale, you’re driving more sales through the keyword big dildo and you’ll eventually get on to page one there. Also for [00:06:16] holding ranking the super competitive products you’re on Page 1 for a product you get lots of organic sales. But in order to stay there you have to get all these sales from PPC at a loss just to stay on that product ranking there. [12.4] And there are a few more interesting ones that aren’t the big case. But it’s also useful for so you can use it for a target audience research. [00:06:38] You can try out a bunch of search phrases tribe bidding for things that are related products to yours that you think that your audience might like [7.8] and maybe that’s a good source of a good source of actual sales through those PPC ads and then maybe for different variations are your products are bidding on some of those. And if a lot of people are actually buying your product through those keywords for variations of buy your product. Maybe you now want to actually go source that product and then that’s the next thing you want to branch out into. [00:07:09] It’s also good to acquire customers from competitors. [3.4] You can actually bid on keywords for your competitors brands and customers are searching for those brands then they might click on yours. You can also defend your brand against competitors. Seasonal promotions visibility less a really good little ones like that. Like I said those aren’t huge use cases but once you’ve got your PPC campaigns all optimized really well then you might want to start branching out into some of those uses for PPC.
Wilson Lee: [00:07:45] Totally. I think like from my experience I think you know. Amazon. [00:07:49] The number one thing that really determines how you rank is sales velocity. [5.3] So a lot of times if you want to be ranking on first pages, 5 per say you need to do a drive traffic to your listing. So you will sell more and the more money that you pump into your PPC Campaign, the more sales that you get. And in return, the higher ranking that you get. [00:08:12] The higher ranking that you get, then you’re automatically attract organic sales. And from there onwards, your PPC campaign will be scaled back down and lower the cost from a cost to 40 to 30, 20, an optimal level that you’re comfortable with in terms of your ranking, in terms of the organic sales that it brings in. So at the end of the day that’s the optimal ultimate goal that we want to achieve is keep beating this machine of bringing these sales and fix your eyeballs on your listing so you will be able to drive sales velocity to your listing. [37.0] And that’s the ultimate goal for this whole thing. That’s why a lot of people when it comes to launching campaigns including so much money on their PPC just driving up eyeballs to this.
Danny: [00:09:04] Absolutely. And PPC can get pretty technical with the terminology and all the different metrics that you want to go into. So we’re going to be going into that a little bit here. [00:09:14] But to go into that even more like a real tactical nitty gritty stuff, I am going to be interviewing Mike Segar from PPC entourage here actually this week so I’m going to be asking him a bunch of that really the nitty gritty hard core details so to speak so you guys are going to want to stick around. [14.3] Sure sure sure that’s like media. Yeah definitely definitely. I posted in the Facebook group asking people what kind of questions I should be asking Mike. And everyone seems to be asking the real nitty gritty stuff so make sure you got the basics down here and then you’ll be able to understand everything Mike has to say for you guys.
Wilson Lee: [00:09:50] One of the questions I’ve always been asked, Hey Wilson, my a-cost is at 60%, should I just turn it off? Is it worth it, is it not worth it.I dont want to keep losing money. [3.0] As you said Danny, its not about making money through your PPC. What are your thoughts on that?
Danny: [00:10:07] Reasons that I outlined above. Those are a lot of scenarios where it actually is worth it to lose money on PPC.
[00:10:13] But that being said there is a certain point where you just you’re just dumping money and it’s not actually worth the benefit they are getting from it. You know if you’re spending ten dollars to make every single sale and you know you’re losing too much money every single sales not actually worth it. Another thing to keep in mind is that a lot of the time your campaign will take one month to two months at least to actually gain some good traction like Amazon. There’s no I don’t want to get too technical here but basically they give more traffic to the campaigns that they know are going to perform well. So is this brand new. Amazon doesn’t know they campaign is going to actually perform well yet so it’s going to get more traffic to the more aged campaigns but also has a lot more traction. Youve shown Amazon that you can actually make sales you actually click through rates and it’s going to perform well. Then they started giving you a lot more impressions more traffic more cheaper click prices and stuff like that. So definitely don’t turn it off for a week and then you’re like oh my goodness this isn’t working I wasn’t too much money and that shut it off because you haven’t gone through that initial period of one to two months of actually aging a campaign.
Wilson Lee: [00:11:27] Totally and I just want to share a personal experience with you guys. One of the products I launched, a few months ago. [3.7] And initially, for the first 12 days or so, I was spending a hundred and twenty dollars on my adcost budget every single day. My product was only selling at $25. So I was only selling 2 or 3 a day. For good, right 12 to 14 days, I was this really really worried because like Im losing money for the 12 days and my sales were not showing. As you said, campaigns take a while to mature. So at that time, I actually decreased my budget to around Eighty dollars.
[00:12:11] Surprisingly enough, after I decreased my ad budget, my sales went up. So consistently speaking, we are talking about 10-12 sales a day because I decreased it. [14.1] And I thought Oh my goodness! Like Im decreasing the budget,therefore, my price is going up, so after 7 days of doing that, I decreased my budget to even more to 50 dollars. Now onwards, I was selling 30 sales a day. Now, this sounds counterintuitive, and I think, this is not really the right way of doing it but it’s just to show you that as an example of how a listing would mature and as your ranking goes up. Amazon is much more of a flatline growth where you seeing that growth through your sales will be consistent for a period at a time. And all of a sudden it just picks up and it goes up another start. From there onwards, it consistently sells for 10-12 a day for like a week or two. So thats kind of my opinion. Do you have anything to add to that, Danny?
Danny: [00:13:24] That’s a pretty typical experience. [00:13:26] Another thing to think about is that Amazon PPC is an algorithm basically so doing things like lowering the budget maybe that’s going to kickstart the algorithm and trying to be more efficient. [11.6] Whereas if you have a really high budget it’s probably going to try that try out your budget of some of the key words are a little less relevant that actually aren’t working as well. But at the end of the day like I said it’s a pretty simple advertising platform. You don’t have a whole lot of controls so doing things like raising a lure in the budget and moving keywords around can give the algorithm just what it needs to actually perform a little bit better. You don’t really know.
Wilson Lee: [00:14:05] Totally,at the end of the day, give it time. Like every week, optimize your listing, optimize your keywords. Figure out your autocampaign and your manual campaign. Move your keywords around. Keep optimizing it and give it time to make sure. As we were seeing, you will see some seasoned result. At the end of the day, it’s not like you pop in a 100 bucks and then get your hundred bucks right away. It requires a lot of tinkering around who knows how it works but at the end of the day, it works. Definitely invest in that. [00:14:33] Actually, when we talk about autocampaigns and manual campaigns what is the difference between the two, Danny?
Danny: [00:14:41] So basically an automatic campaign is 100 percent algorithm based so you just turn it on. [13.2] You set the budget and Amazon is going to do the rest so they will the algorithm will scan the listing and then based on whatever keywords in your listing and what category it’s in is going to you just choose keywords to bid on. The thing about an automatic campaign is that it will try a bunch of relevant especially if your listing has a bunch of keywords in there that maybe throw at all. It’s different for different products so certain products that are keywords are maybe similar to other completely different products than automatic campaign to be a disaster. It can be no bidding keywords that have nothing to do with your product but for other products. It’s got to perform really well because the key areas of what is your product. I’m very unlikely to actually be related to another product but it is a good idea. The automatic campaign can just come up with ideas. You didn’t even think so. So we get for that in the beginning. [00:15:40] A manual is you have to come up with all the keywords yourself. [5.2] You have a lot more control over it. But you have to do your keyword research. Get a list of keywords and actually set it up in a certain way so this is a good segway into talking about how I like to set up my PPC campaigns. So this is a pretty common methodology out there. There is quite a few different ones. Definitely, don’t just stick to this one. Try this out see how its working for three or four months and then try out some other methodologies as well.
Wilson Lee: [00:16:11] Totally, and I think with all the campaign area where you will be able to scoop up some really long-tail keywords, that you dont think might convert. And yet it’s converting at such a cheap cost.And this is where you can be able to scoop up these long tailed keywords that you know, like you get in the odd researches a month and out of a cost of 20 cents, 30 cents and these are the ones that would really allow you to roar an average cost down of your a-cost. And it’s the last thing that you really want to pay attention to when it comes to autocampaign. So you will be able to evaluate on a weekly basis. Check out the statistics look at which keywords are actually performing and Amazon will actually use up your budget because youre giving them money to spend. And of course, they are going to spend it all for you. So at the end of the day, you make sure that you keep a close eye on your autocampaign. It’s basically there for you not to just run week after week. You need to make sure that you tinker with it. And its much more of a testing ground for you to find different keywords.
Danny: [00:17:20] Jump right in to how I like to set up these campaigns. So I like to start always with an auto campaign whatever starting a brand new product. Turn off the auto campaign. At the same time as a manual campaign.
Wilson Lee: [00:17:32] So how much budget would you recommend for the auto campaign and the manual campaign? [14.3]
Danny: [00:17:34] I think it really depends on how competitive your product is. So for a product that’s doing like on average 10 units a day or something like that. It started out at ten fifteen dollars a day. But if you’re going after one of the crazy products where you need 100 units a day 200 units a day to actually get this thing ranked you know sky’s the limit outrank it depends on your budget and what you try to write for. So autocampaign. As a general rule 10-20 dollars a day to start out. Do a bunch of keyword research find your top 20-30 phrases using keyword research tools. I like I really like the new one keyword research by viral launch. I think did a really good job on that one. We are going to be doing a little video about that later actually. So start out, don’t put them all into a Broad match campaign.
[00:18:27] So what Broad match means is that I’ll say you put in the word balloon and it’s broad. So Amazon might extrapolate that to be big balloons or balloons with a smiley face or anything related to balloons with the words in front of or behind. [19.6] Once you have that running for a week. You come back a look which ones are the winners. Which ones are doing really well and put those in to a phrase match campaign the exact same keywords. Once you put them into the phrase matched and you’re going to want to remove them from the Broad match because that can interfere a bit. [00:19:05] So we’re going to explain the difference between a phrase match and a Broad match because these two are the most similar. Like I said broad can extrapolate out a big balloon or balloons with smiley faces that phrase matched could still extrapolate but not quite as much. [15.1] So if you have balloons then it can do big balloons for example but it wouldn’t extrapolate so much to say big balloons on top of a dildo, for example. I don’t know why anyone researching that my mind is trying to so it’s the same thing as broad but a little bit a little bit more specific.
Wilson Lee: [00:19:47] Exactly and you mention about like winning keywords. So I want to dive in a little bit deeper into [00:19:53] this. How do you put time on whether a keyword is worth more testing or whether it’s a negative keyword? What was the differentiate factor and what’s the threshold in your dictionary. [10.5]
Danny: [00:20:04] Yeah. So everyone’s going to have a different dictionary here. But for me I don’t like First off I don’t like to make any kind of decision on less than 10 clicks less than 10 clicks or like unless it’s a ridiculously bad click through rate.
[00:20:20] So let’s go through [00:20:21] some of these metrics real quick lets [1.4] say that the key word that is made ten clicks and it is made zero sales. So that to me would be not a very good conversion rate is going to be just not performing is spending a lot of money on it. It still might be worth it ten clicks is not a whole lot. So if it made one sale after 10 clicks and no sale it would still be like 89 percent conversion rate which could be going to some category so then I would look at the click through rate the click through rate is is the ratio of people who saw the ad versus click the at. So if a thousand people see the ad and then 100 people click on it and that would be a 10 percent clicks rate right. In my mind click through rate of anything above point four is good and anything below point four is suspect or not. Again this is going to really depend on the product categories. Well some categories it’s you know 1 percent to 2 percent is pretty normal and good. So you’re going to have to kind of figure this out and get the lay of the land and your product.
Wilson Lee: [00:21:29] When you mentioned .4, what do you mean by .4? Like in terms of numbers. Is it 4 out of every thousand people who’ll be listing clicks to?
Danny: [00:21:40] So that’s a percentage. So that’s .4%.
Wilson Lee: [00:21:43] .4% is actually good for you?
Danny: [00:21:46] Oh absolutely. So, I mean clickthrough rate: if you’re getting a bad click through rate that’s probably a symptom of something that the customer seeing before they click on your listing is not enticing enough for them. [10.6]
[00:21:57] So that could be really low reviews if you’re if you have zero reviews and everyone else’s 500 reviews then I’m going to have a low click away. If your main image doesn’t look very good, and look crappy compared to everyone else can have a really low clickthrough rates. So, [00:22:11] the main image is one of the biggest ways you can increase the click through rate and actually get more people into your listing. [6.3] Not just for PBC but just on the search results page. If you have a nicer looking menu mission and everyone else then you’re going to get more people into your listing. Conversion rate doesn’t really play into this because the conversion rate doesn’t matter until you get people onto your listing right. So yeah for clickthrough rate, it’s the picture, your main image and your title and your reviews are the three big ones.
Wilson Lee: [00:22:44] I think just because the fact that you’re not getting any high clickthrough rate, doesnt mean your PPC Campaign sucks. It could also mean that your listing sucks. Or your title sucks, your picture is not inticing at all. At the end of the day, we need to make sure that the quality of your listing is at a standard. Is at a high standard, actually on that note. And I think you can speak a lot more to it because you know that it helps people, either their listing, the product photography and everything.
Danny: [00:23:18] Yeah I mean my agency [00:23:20] KenjiROI is a listing optimization specialized agency. We do product photography but a big focus on the main image because we know how important it is, to copyrighting for the listing, highlight optimization and everything like that.
Wilson Lee: [00:23:33] Totally, you have some resources on how do we help people set up their own photoshoot. [14.0] I, actually followed that myself. And my images are really kick-ass right now. And we can put that show notes below. So you can, if you want to learn more about how to shoot with HERO Images. Images that really kicks ass. Definitely check out his blog.It’s a really helpful resource for us.
Wilson Lee: [00:23:55] Excellent. I’ll put that on the show notes there. To keep going on and on how to set it up here.
[00:24:03] There’s one more piece of the puzzle that is exact match so once you’ve put the winners from broad match in the phrase match [7.8] and you’ve let that run for about a week or two weeks to get up enough data. Like I said you have to have enough data like at least 10 clicks to make some some changes to these keywords then you take those winners and put them into an exact match campaign. [00:24:25] So exact match is exactly the key where they put it. [3.3] So if you are betting on balloon then Amazon is only going to bid on balloon. They’re not going to bid on the balloon. They’re not going to bid on big balloon is it. You do want to keep the same keywords in both phrase and exact so you don’t want to take it out of phrase once you put it into exact. An exact match. [00:24:48] The reason you want it in these three different categories is because exact match has priority so whatever Amazon is deciding which as to show up they’re going to show the exact match, keywords first, and then the bid goes down the phrase match and then Broad match. [16.0] They typically do pay more for exact match for you are more likely to actually show up for the ads when you’re doing the exact match so you only want to be bidding on the key where you’re the most sure are actually going to be converting for you because you’re probably paying a lot more for it.
Wilson Lee: [00:25:19] Totally, and I think at the end of the day, what we have seen is about the relevancy, right? Because when I am searching for, you know— plastic cups. Some are with plastic cup with thick ice on it that shows up. It’s not really relevant to what Im selling. Because I dont have ice on what Im selling. Im only selling plastic cups. [25.8] The relevancy is something that is the reason why on that know, I think that’s exactly what we do with the manual campaigns. We put in the exact matches so thats what we manually put it. That’s where we can set up the winning keywords. Right? Something that we mentioned earlier was negative keywords. We dived in deeper in terms of what are negative keywords on negative matched keywords.
Danny: [00:26:08] Totally, so on the flip side here. [00:26:10] You’re gonna have a lot of keywords that don’t perform really well and are basically just wasting money.
[00:26:14] Amazon is still bidding on these keywords for you but you know they’re not converting while you’re spaceflights your money on the garbage is hurting the metrics of the overall campaign really low click through rates. [14.5] So you want to get rid of these right. What I like to do, instead of doing a negative match, if it’s on the fence, if it’s performing you know a little bit below what you like to see but it maybe is still picking up some good sales every now and then then I would try lowering the bid you could lower the bet by 20-25 percent and then come back next week. What are we optimizing again next and maybe is actually performing better. The a-cost is improving at the lower bid but for the ones that are really really bad out lower them to 2 cents or even worse just like totally not relevant you can get something called a negative match. [00:27:13] So it’s really important when in a negative matching, to do a negative exact match or else it can actually negative match a lot more words than you want. [9.9] So if you negative exact match balloon that Amazon will not bid for exactly that word balloon but if the negative phrase match balloon then Amazon is not going to bid on big balloon. It’s not going to be on balloons for children and it’s going to be a whole lot of different work. So you ought to be really careful when you negative matching to only use exact match unless the word that your negative phrase matching is totally irrelevant.
Wilson Lee: [00:27:49] Totally, an example of example which is really funny. That I thought which is very smart. [5.7] For example, Im selling coffee. Wilson’s coffee and I thought it would be a good idea for my ad to show up when people are searching for Starbucks Coffee. When people are searching for Starbucks, Wilson’s coffee is next to it so people will be buying my products. Basically I was bidding on it because I thought that you know, I would drive a lot more traffic to my own listing when that is happening. And as a result of that, my a-cost spiked up like crazy at 60-70%. Maybe because of the facts that I was bidding on starbucks people or were my product listing were showing up when people are searching for Starbucks Coffee. People didnt even want my coffee.They specifically looking for the brand of Starbucks. As a result it’s costing me of hundreds of dollars in PPC Campaign that did not convert. I thought that was smart because. Oh cool. This way I could actually highjack a listing in a sense that I put my eyeballs in the listing. At the end of the day, it just cost me a lot more. So that’s the reason why I took that off. And for me I actually don’t put in the two cents of negative keywords for bidding because it has such have been a bad nightmare with this whole thing. We are talking actually when we’re talking about a-cost, we dive in a little more deeper why. Why is a-cost one of the key metrics that we keep an eye on.
Danny: [00:29:24] So a-cost is just a really good metric because so first off, it stands for advertising cost of sales. [6.7] Let’s say that your product is selling for 20 dollars and on average it’s costing you ten dollars to make every sale through pay per click. That would be a 50% advertising cost of sale. So ideally what you want to be looking for is you want your a-cost to be less than your profit margin. So let’s say a profit margin is 40% than anything, any a-cost less than 40%. You’re still making profit. So that’s that’s a good metric people like to go buy a lot of people like to keep any keywords that are actually converting profitably because even if you’re breaking even on every sale you’re still getting that sale. Youre still getting that ranking juice that comes from their sales so it’s basically just like giving yourself ranking that way, right? When your a-cost is higher, like let’s say your a-cost is 50% and your profit margins only 40%.
[00:30:22] Now you’re losing money on every single sale that you make with PPC. [3.8] So that’s very careful to. You have to be very careful with your a-cost. The biggest probably the best metric of how they’re PPC is actually performing.
Wilson Lee: [00:30:38] And that’s something we keep an eye on. Like what you were saying, it really depends on your purpose. Sometimes, it’s okay to be running at an a-cost of 60% when all your looking for is just to rank. Because you know for a fact that after a month, you can lower that down, substantially. Because now, you already have your organic sales. You are already ranking to first two pages. You dont need to push that juice anymore. At the end of the day, it’s like consider that as a cost of running a brand new business. If youre running a brand new business, you are spending a thousand of dollars on your grand opening campaign. So you consider that as one of the cost to drive traffic in, to drive eyeballs in, and to drive sales velocity. So you can be at the rank a little bit more.
Danny: [00:31:21] Yeah absolutely. [00:31:23] And there’s just a few more things about PPC you should touch on here. So this is a continual process here. [5.4] So I mean it can take months to get action to some keywords. Just because you’re raising your bids to the moon you’re raising your budget. You can raise to a thousand dollars a day and like ten dollars a click. But some of these keywords are not actually going to get any action for a couple months later. You can do some tricky things actually kickstarts and certain keywords a pretty technical but just realize that this is not. Sometimes it will take a long time to actually get any action on these keywords. [00:31:57] So it’s a continuous coming back, optimizing, lowering the bids of the ones that aren’t performing, negative matching the ones that are really not performing and raising bids on the ones that are performing and just continually coming back and optimizing. I like to do it once a week. [13.8]
Wilson Lee: [00:32:11] For sure. And I think, [00:32:12] one last thing that I want to cover for people who are not aware of PPC Campaign is, what is the difference between budget and also bids. [9.2] Just because I have a bid of 2 dollars doesnt mean, and a budget of a hundred dollars. Doesnt mean that every single day and Im spending a hundred dollars on keywords or words to phrase here.
Danny: [00:32:34] So yeah I mean your budget is usually you can set it on the ADS group level or the campaign level but let’s say it’s on the campaign you said for 100 hours a day. That is the maximum amount that Amazon is going to spend for you and that entire campaign. Whereas a bid is individually for a different keyword. So like the bid two dollars per click for the keyword balloon like and like the keyword balloon for children they could only bid a dollar twenty five for example then that’s the maximum you’re going to you’re going to pay per click for that specific keywords. [31.7]
Wilson Lee: [00:33:08] Sometimes,like you have a lower bid. It doesn’t mean it wont show up. It will shows up on the second or third page of sponsor ads. At the end of the day, really look at your products and see. That just because at the fact that you have a lower bid doesn’t mean its not going to performance as well. It will surely drive more traffic because you know sometimes people are looking for a 2nd page or 3rd page when it comes to shopping. Because they want to see more variety. They want to see it for whatever purpose that might be. When it comes to budget, initially, I was quite worried because, Oh my goodness, I was spending a hundred bucks a day on advertisement. But then, when I realized that, sometimes on that products that does not have a high search volume, their not actually going to fit that budget. Even if you set it a hundred bucks.
Danny: [00:33:50] Totally. [00:33:55] Like I said it comes back to relevancy and aging the campaign so like you can raise you’re raise your budget to a thousand dollars a day. But in the beginning it’s very unlikely Amazon is actually going to give you a thousand dollars a day with the clicks because you havent proved to them that your PPC campaign is actually going to perform well. [17.8]
Wilson Lee: [00:34:15] Totally totally. We’ve covered everything. I guess, hopefully everything in terms of crash course 101 of PPC Campaign, and the following episodes [00:34:23] next week, we will going to be covering a lot more in that how you are going to set up your campaigns,the guys from PPC Entourage are a lot more in depth, immediate strategies on how to do that. Definitely speaking for next episode. [13.7]
Wilson Lee: [00:34:39] We are going to end of with our Lifestyle Optimization hacks. So, we are going to be talking about No Zero Days. [00:34:51] Can you give me a five minute, actually a minute of gist of what is No Zero Days, Danny? [0.0]
Danny: [00:34:51] Limiting me to a minute I could talk for five or ten minutes about this No Zero [00:34:55] Days. This is a really interesting mindset or framework that I really latched onto. So this actually came from an old reddit post for 2014 that discussed super famous. [10.2]
[00:35:06] This guy had this post that it’s like I have no motivation. I can’t really achieve anything in my life and Im stuck and I can’t get anywhere and someone’s response just like totally went viral. [00:35:15] Basically, the whole concept is whatever you’re working on. You’re not going to let yourself have a zero day so let’s say you work working on fitness. If you do one push up that day then it’s not a zero day. [13.7] But if you just did nothing if you go to bed that night you had not done a single thing towards that goal and that’s zero day and you’re losing your momentum was not good for you is like psychologically it’s not good. So just by doing that one thing even if it’s only that one push up then keep your momentum is so much more difficult to get into a situation where you have to wake up one day and you haven’t been to the gym in a week and now it’s a lot harder to actually get back on the horse and start doing the exercise. So psychologically super good keeping the momentum and the small things can add up over time really easily to even if it’s only one push up a day.
Wilson Lee: [00:36:08] I totally agree with you and that’s exactly the reason why. You know every night, I choose to read a page or two and my wife is like why are you reading for just two minutes and thats it. Im like, Dude Im tired I want to go to sleep. At the end of the day, I promised myself that Im going to read every single day. It doesn’t matter if its a page or two because over time it’s going to make a difference. Overtime, Im going to make it to a habit of reading. Thats the reason why even as you know even as crazy as I get at the end of the night, I still spend time reading just a paragraph, a page or two. Because like you said No Zero Days and I think it’s super super important and when it comes down to it, that’s the reason why people make their bed in the beginning of the day. Because thats an accomplishment, they go home for a shitty ass day and go home and see that your bed is made and then you’re like, Damn. At least something is accomplished. It gives you the momentum to push forward.
Danny: [00:37:03] Oh absolutely. And his credibility with yourself too. You know you said you said you’re going to make your bed every day, you said you’re going to read every single day, and if you don’t do it then you know you’re ruining that credibility with yourself. Even if you do the one to two pages just for a couple minutes every single night, you can still go to bed knowing that hey I did it. I told myself I was going to do it and I did it. It build up that credibility and confidence with yourself over time. Instead of instead of deteriorating by not doing what you say say you’ll going to do.
Wilson Lee: [00:37:34] For sure. I mean, hey you guys let us know what are the 3 main, most important things, thats important to you. What are 3 simple hacks that you have in your life. Three things that you would do, that would actully help you achieve the No Zero Days. Leave us a comment below, start the conversation so that, that way, you keep yourself accountable, alright.
Danny: [00:37:53] Totally, we will start a little thread in the Facebook group too. To Start holding people accountable to their no zero days thing here. Start calling the people up.
Wilson Lee: [00:38:02] For sure. Let’s wrap this episode up. Let’s wrap up what we covered and what’s the call-to-action. [3.3]
Danny: [00:38:09] OK so to summarize this year familiarize yourself with all the places that sponsored ads show up on Amazon. Just try to notice when you’re scrolling around, try to notice different placements of them so you can get inside the psychology of where these are going to be showing up. It will give you a better understanding of how you can go about doing these ads yourself. The keyword research, use keyword tools like Merchant words, Helium 10, Seller tools, Scope or my new favorite one, keyword research by viral launch has some links for this stuff in the show notes for you guys. Go check out, figure out the best keywords to be used for your manual campaigns.
[00:38:45] Set up your first auto campaign. Go set up your first broad match campaign in a way that we set up there and then try no zero day and tried out for a week guys right now. Right when you finish this episode, I want you guys think of the three most important things that you’re working on. Could be your health fitness. Starting a business. A new product launch whatever it is and then commit to doing No Zero Days on that for a week. Just one small thing, at least on all three of those things for a week. [00:39:13] Then the topic of the next episode that were doing. What is the topic of the next episode, Wilson?
Wilson Lee: [00:39:16] We are going to be diving deep into PPC Campaign, we are going to be talking about the strategies thats immediate, the advanced level of how you are going to run your PPC Campaign. [10.0] Today, we talked about the overall gist of it. So make sure that, if you like this episode , you follow our next episode because thats when were interviewing the CEO of PPC Entourage, and make sure that you leave some comments below. Show us some love. If you guy wants to check out the show notes, all our links and everything go to www.actualizefreedom.com/11. That’s going to be the place where youre going to get all resources.
Danny: [00:39:54] Yeah all the links. Any of the tools that we mentioned in this podcast episode or some good blog post about some of this listing optimization stuff. You can check that stuff out there and as always please leave us a review on iTunes.Subscribe and we’ll see you on the next episode. Thanks for joining.
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