What is Amazon Sponsored Products?
Sponsored Products is Amazon’s own advertising platform that allows you to create targeted ads that will display within Amazon search results, giving visibility to your products when shoppers search for keywords you bid on. Ads appear below search results and in an ad placements on detail pages.
We are getting great results on Amazon Japan. Take a look!
An Advertising Cost of Sales of under 10%. This is our benchmark and what we aim deliver to you.
**Advertising Cost of Sales (ACoS)
The percent of attributed sales spent on advertising. This is calculated by dividing total ad spend by attributed sales. For example, if you spent $4 on advertising resulting in attributed sales of $20, your ACoS would be 20%. The lower your ACoS the better your conversion.
Small Bowls – ACoS 5.3%
An advertising spend of ¥4424 resulting in ¥83050 in sales. A $44 ad spend to produce $830 in sales.
Medium Bowls ACoS 13%
An advertising spend of ¥6621 resulting in ¥51050 in sales. A $66 ad spend to produce $510 in sales.
These are the kind of results we can deliver to you.
How do we do it?
We take a Kaizen approach to setting up and managing Sponsored Product Ads.
Kaizen is the Japanese practice of continuous improvement, where big results come from many small changes accumulated over time.
Kaizen has several guiding principles that we apply to managing Sponsored Product Ads
- Good processes bring good results – setting up Amazon Sponsored Products correctly
- Grasp the current situation – understanding what Actual Cost of Sale percentage (ACoS) will deliver an optimal return on investment while increasing your products Amazon ranking to generate more organic sales
- Speak with data, manage by facts – make campaign changes based on all of your campaigns data
- Take action to contain and correct root causes of problems – this involves eliminating poor performing keywords, and can also involve changing a product’s main image, title or bullet points to produce a better click through and conversion rate
Sponsored Products Set Up and Management Service
1. We don’t run auto campaigns. We have tested them and find that they don’t work. It is just an ineffective and expensive way to discover what keywords not to use.
2.We research your product and market, understand your ideal prospect’s buying motivation and then build out a keyword list
3. We set up and run a broad match campaign
4. After several weeks we run a Search Term Report and look at your top converting customer driven keywords – these are keyword phrases typed in by customers that have resulted in sales.
The B cell in the spreadsheet below represents keyword phrases typed in by Amazon customers that have rested in sales
5. We take these customer driven keyword phrases and set up phrase and exact match campaigns
6. Refine and improve every week/month buy pausing ads that don’t convert and testing new customer query keywords
7 Get you a positive result. We shoot for a 5 to 30% of ACoS.
Already Selling On Amazon Japan?
Want to improve your campaigns and get results like this? Take a look at our done for you Sponsored Products management service.