Many students have asked me how to launch ads for new products. How to do it correctly? In fact, there is no right or wrong in operational methods, only what is suitable. It is necessary to continuously review and summarize one's own experience in the process. Today, I would like to share some thoughts based on having no experience in Amazon operations, hoping it will be helpful.
Table of Contents#
01 / Ad Types
02 / Ad Budget
03 / Ad Structure
04 / Conclusion
Ad Types#
For new products, it is not recommended to start with SB or SD ads; SP ads are more suitable for obtaining precise traffic.
If your product is a standard item or an accessory (like phone cases or auto parts), I recommend using precise targeting in SP ads during the initial phase, with a fixed bidding model. The bid can be 150% of the suggested bid, making it easier to obtain more precise traffic.
If your product is a non-standard item (like clothing), I recommend using automatic ads in SP ads during the initial phase, with a higher bid for closely matched keywords and a lower bid for broad matches. You can turn off related and similar products initially, using a bidding model that only lowers the bid, with a bid of 150% of the suggested bid.
It is important to monitor exposure and click-through rates in a timely manner and adjust bids accordingly.
Ad Budget#
Before setting an ad budget, you must first create a sales plan, such as how many orders you aim for in the first month, and then establish a corresponding ad budget based on conversion rates and CPC.
Since I have worked with many standard products in recent years, I tend to base my approach on conversion rates. Therefore, in cases where CPC is relatively high, I often adopt a phased plan (which implies that there may be losses in the early stages). For example: if CPC is $2 and the conversion rate is 10%, that means it takes 10 clicks to make one sale, resulting in a cost per acquisition (CPA) of $20.
First Phase: No organic traffic, budget = CPA * target orders
Second Phase: Organic orders account for 30%, budget = CPA * (target orders * 70%)
And so on. As long as the product is not very poor, over time, with more reviews and higher weight, organic traffic will increase, and CPC will decrease. Adjust the budget based on actual conditions.
For non-standard products, you can focus more on ACOS, planning a maximum CPC value that you can bear, ensuring that each ad budget receives no less than 20 clicks per day, as long as there is exposure and clicks without exceeding the target CPC.
Ad Structure#
Before launching ads, you should complete the summarization and research of product keywords. With the recent opening of ABA data in the Amazon backend, this has become much easier and can be categorized simply.
Search rankings under 10,000 belong to major keywords, while those under 100,000 belong to long-tail keywords. For products that are very niche and obscure, try to capture all traffic sources, as it won't cost much to capture all the traffic.
The following content is based on standard products and is not limited to launching new products; this structure can generally be applied in most cases, just flexibly adapt and combine various ad types based on actual situations:
| Purpose | Ad Type | Content | Bidding Model | Budget | Ad Position | Notes |
|---|---|---|---|---|---|---|
| Ranking | Exact Match | Major Keywords | Fixed | 40% | Top 30% | The main focus is on conversion rate; if it doesn't work, change the keywords |
| Keyword Expansion | Broad Match | Major Keywords | Only Lower | 20% | None | You can appropriately negate major keywords to avoid exhausting the entire budget |
| Inclusion | ASIN Ads (Exact) | Main Competitors | Only Lower | 20% | None | Mainly for quickly locating keywords and traffic |
| Revenue | Broad Match | Long-tail Keywords | Increase and Decrease | 10% | None | Can be long-tail keywords or keywords that lead to sales; the main focus is on ACOS |
| Revenue | Automatic Ads | - | Only Lower | 10% | None | Preemptively negate keywords; the main focus is on ACOS; |
Adjust the ad budget allocation ratio based on your situation, and you can also implement it in phases for a stepwise increase in traffic.
The core element is to monitor the conversion rate of the ranking keywords and gradually optimize to lower ACOS, while focusing on ACOS for long-tail keywords.
Conclusion#
Do not overly rely on advertising techniques; the greatest role of ads is to bring traffic, while whether it can convert still depends on the competitiveness of the product.
Ads cannot provide timely assistance; they can only add icing on the cake.