Chapter 1: What is the main topic discussed in this episode?
For those that do not know, my name is Noah Wickham.
Chapter 2: How do suggested bids compare to actual cost per click?
I am our VP of sales and marketing here at My Amazon Guy. And we're going to be digging into a ton of PPC today and talking about some tips, tricks, doing some Q&A, everything that you might want to know about what's new in PPC and what strategies are working for the 400 plus brands that we currently manage.
So without further ado, Barris is asking, is it worth using PPC for product with low profit margin, like 2.5, et cetera?
Chapter 3: What strategies can be used for low profit margin products?
Ooh, Barris, Barris, Barris. So this is, and the reason I'm answering this is I want to just get into our content. We'll get to the stuff that Kevin wants to talk to here soon, but I want to talk a little bit to start out today about a really, I guess not frustrating topic, but it could be considered frustrating for many, many people.
Chapter 4: How can ACOS and TACOS be effectively managed?
And that is cost per click. One of the major things to always look at with your targeting is your cost per click and understanding how to actually judge a good versus bad cost per click. So we'll come over here, we'll start looking at some of this.
Chapter 5: What role does audience targeting play in Amazon PPC?
So you're going to see the total costing over here and let's actually filter this only by our enabled so we can actually get a good view here and we're going to customize our columns too. We want to get our cost per click in here. And so one of the major things to always understand with inside Amazon is your cost per click as a baseline average.
But not only are we looking at cost per click from baseline average, we also need to understand in general what we're going to be looking at for all.
look at this people i'm here no he has he has joined i i won't let the internet stop me from uh joining i had to figure out a workaround no worries we went through i'm glad to be here questions yeah we were asking some questions we were jumping right into the content barris had good question around some cost per click type stuff and so figured we'd just jump right in anything you want to cover before we continue
No, let's jump right in. Let's start learning. Let's start doing the fun stuff that everybody came here for and figure out ways that people can scale and do it more profitably with their ads.
Fantastic. All right, let's keep it going. So one of the major things, and this is one of my first tips when we're looking at advertising in general and understanding how to also sell effectively on Amazon is you have to understand what your average cost per click is going to be within any given category.
One of the major things you can always look at as well is this right here, the suggested bid.
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Chapter 6: How can new product launches be optimized for PPC?
The suggested bid is going to be given to you by Amazon. And so you'll see here that we have for this one, a 205 suggested bid, $1.54 to $2.56.
Chapter 7: What strategies should be applied in declining demand scenarios?
But our actual average cost per click here is only $1.21. And this is because Amazon suggested bid of 205 over here, with a bid range. And that bid range is going to be on the low end of what you can expect to get conversions from while also being on the high end. And then we have next to that, our actual bid. And this is where bid adjustments come in.
So you'll notice here that we actually have a 39% top of search with only a 95 cent bid.
Chapter 8: How frequently should PPC campaigns be optimized?
So how's that happen? Well, that's bid adjustments.
essentially what we're doing here is we're actually bidding 95 cents and we know that on average to get a click you're going to have to be somewhere between 154 256 but that only takes into accounts all of the different bid adjustments and so instead we only care about top of search so we bid adjust for top of search where our average cost per click is going to be a dollar 21
This is where essentially whenever you are going towards any type of keyword, any type of category, you really need to understand what is the core of your average cost per click for where you're actually converting. Because you'll also notice that we have a secondary here for a keyword group. Right, and this is less than 5% of top of search at $1.06 with our suggestion being $1.07.
And that is because this one has a bid adjustment down. We aren't bid adjusting specifically for top of search. Therefore, we're not actually showing up for it. This is where the core of understanding comes from when you are looking at trying to get into any category and trying to look at what your overall profit should be.
So going back to the question that Barris is asking here, where he's asking, is $2.50 too low of a profit margin? The answer is probably yes, but it really depends on your category and what your average cost per click is.
This is where essentially putting together a full function of what your average high relevancy keywords within what your niche are for an average cost per click, understanding what your profit margin has to be, and then also breaking into that, what is your tacos goal going to be? Because that's what a lot of people misrepresent is their actual tacos.
Because you can sit with around a 2.5 profit margin if let's say 80% of your sales are organic and only 20% of your sales are paid. Because you're only paying realistically let's say a dollar per click or a dollar 50 per click on 20% of those orders to drive up your organic ranking, your organic sales.
So we have a lot here that it's looking like people are between like, let's say a dollar and a dollar 30 is kind of the average across what people are saying here. And that's, Very true for most marketplace on Amazon where it's between a dollar and two dollars.
Now, there are some categories and, you know, would love to hear, Kevin, what the highest you've ever seen from a cost per click perspective is. The highest I have ever seen a cost per click perspective was thirty eight dollars per click. Well, not true. I've technically seen one that was at forty six dollars per click, but it was for like a single day. So that didn't really count.
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