Do you want to achieve very low ACoS for your PPC campaigns? I am talking about single digit ACoS of less than 5% especially when PPC cost are rising.
Of course you do! Read on.
If you have been selling on Amazon for a while, you’ll probably realized that there is not just a single path of strategy to take for PPC. Every expert will have their own preferred strategy that they used which worked well for them and PPC is in fact just that, a tool that can be used in many ways,
There’s no one right way to use Amazon PPC as long as it helps your brand secure sales and then your organic rank for the desired keywords.
I call this method the Bottom Feeder Method. (This was done through experimentation of my own)
What is the Bottom Feeder Method?
Bottom feeders usually comes with a negative connotation to them and are usually referred to as scavengers in the ocean that lives at the bottom that feeds of scraps. The leftover of the meal that other predators do not want. However, this group of creatures actually thrive and they grow in numbers on the sea floor.
Bearing that in mind, the Bottom Feeder method with respect to Amazon PPC is that we let the big boys fight it out at the top of search with their high budget and often high ACoS campaigns while the bottom feeder method will hunt for uncontested ad spots often for very low cost to gain impressions an thus clicks and sales.
And true to its principal, I usually pay less than $0.10 per click on this method which helped me achieve an effective ACoS of 3.26%! Even with $0.10 per click bid, the ad is still showing 320 impressions.
The average cost per click in this product niche is about $0.90 and rising due to competition and it seems every single competitor is bidding for top of search keywords which brings most of the bids up.
However, the entire ecosystem of Amazon’s ad platform need to be considered. Your customers are also viewing other pages of Amazon such as your competitor’s ASIN and other information pages.
So I thought, why not I’ll let every new seller or competitor fight it out among themselves for the top of search keywords and popular ASIN targeting campaigns while I go to the blue ocean area where no one is bidding on.
By the time some of my competitors have ran out of budget for their campaign, that’s also where this method shines!
And that’s exactly when it’s the birth of the Bottom Feeder Method!
How to Create a Bottom Feeder Campaign?
Creating a Bottom Feeder Campaign is very simple.
It’s exactly the same as creating a new auto campaign under sponsored product
Step 1: Create A Sponsored Product Campaign
Step 2: Name your campaign and set it to Automatic Targeting
By setting it to automatic targeting, Amazon’s algorithm will constantly be trying to find relevant ad spots be it relevant keywords or ASINs that is available. A daily budget of $50 is fine, and in reality, you are really going to be spending less than $1 per day.
Step 3: Set “Dynamic Bids – down only”
The whole purpose is to source for bottom feeder type of ad slots. You are not interested to bid aggressively where the competitors are fighting.
Step 4: Step bids according to targeting group
I love to keep close match and loose match targeting group slightly higher for greater impression exposure. Do note that this bid amount may differ depending on your product niche. For a niche with an average CPC of $0.90, $0.15 bids are good enough.
Step 5: Launch the campaign and laugh at your competitor
And now, you got a bottom feeder in your arsenal. Any leftover ads spot or scraps as I call it, your auto campaign will fill it for you for very cheap and the beauty of this is that they are still relevant clicks to your product!
Method Overview
There you have it, simple enough right?
Just do note that if you are experiencing super low impressions, your niche could be highly competitive and you may want to increase your bid slightly by 5 cents increment. Keep experimenting and testing until you find that you are getting a decent amount of impressions..
Also, I find that this campaign works very well alongside your other normal campaigns.
Try this out and let me know if this works for you.
Happy selling!