A wise man once remarked, “I tried to pay attention, but attention paid me.” Now, more than ever, increased attention will pay dividends with your Amazon PPC efforts.
The world of Amazon is saturated with an abundance of information. The influx in news stories, company changes, and overall media attention can make following the company difficult. Moreover, finding valuable nuggets of information that are actionable for sellers can be even harder. That’s why we’ve been keeping tabs on the information that really matters.
The team at Ad Badger has been tracking all of the important metrics for Amazon sellers and PPC professionals for April, and we’re excited to share them with you.
The Important Questions
Obviously, data should be the driver that managers use to make decisions. This is even more applicable for managers of Amazon campaigns. In this game, all we have are the numbers, but there are some important questions to keep in mind when looking at PPC data.
Why are current stats important?
When rapid change is imminent, as it has seemily been for all of 2020, having the most up-to-date information is the best way to gain an edge on your competition. We released a similar stats post for March of this year, but that information has already changed and so has the landscape of selling on Amazon.
How can stats be utilized?
The most useful way to use the information in these posts is to see where you stand when compared to the averages. Of course, this will be different across industries, but if you are in a thriving industry and still struggling it may be time to change things up.
Where does this information come from?
The stats in this post are from our slice of the Amazon market. The sellers we work with come from a wide variety of industries. Rest assured, none of these sellers exclusively sell toilet paper and hand sanitizer, which would inflate the numbers.
Takeaway #1: Amazon is Here to Stay
The coronavirus epidemic and the ensuing migration to online shopping has solidified Amazon’s position atop the e-commerce throne. In 2018, we said that year would go down in history as the “golden age of Amazon PPC.” Turns out we were a couple of years early, and this year is on pace to be the best ever for Amazon sellers.
When the first few cases of COVID-19 came to the United States and the economy took a down-turn, no one was sure what the future held in regard to Amazon. However, the future quickly became clear as Amazon hired more workers and consumers turned to e-commerce for almost all of their shopping.
Takeaway #2: You Should be Advertising
A frightening trend that we’ve observed is the tendency for sellers to fall back on their organic sales during this time. Sure, activity on Amazon has risen and you may see what seems to be good results with this strategy. However, now is statistically the best time to be advertising.
Advertising Cost of Sales (ACOS)
Your ACOS is the total amount spent on ads divided by your total sales. For example, if you spend $0.25 on advertising and have $1.00 in revenue your ACOS is 25%.
The average ACOS usually hovers around 30%-40%.
Since March, ACOS has been falling dramatically. In April, however, the average ACOS was 25.92%. That is the lowest we’ve ever seen.
Click Through Rate (CTR)
Click through rate is the amount of clicks your ad gets divided by the total number of impressions the ad received. For example, if your ad has 1000 impressions and 5 clicks your CTR is 0.5%.
The average CTR, in a normal time, was 0.36%.
In April, the average CTR rose to an astonishing 0.64%! That means consumers weren’t simply perusing the listings on Amazon. Instead, they sought out products and made purchases.
Your conversion rate is the percentage of customers who purchased a product divided by the total number of clicks on the product listing.
The average conversion rate, prior to COVID-19 was 9.47%.
In April the average conversion rate was 10.08%. However, the average doesn’t tell the entire story. The average conversion rate eclipsed 10.5% seven times in April and surpassed 11% for three days.
These three metrics highlight the importance of advertising. With low ACOS and high CTRs and conversion rates, there has never been a better time to boost your PPC efforts.
Takeaway #3: Don’t Help Your Competition
Every seller who jumps out of the competition helps their competitors. With Amazon’s auction-based system, less competition means lower bids and a lower cost per click.
For April, the average cost per click (CPC) was the lowest it’s ever been at $0.66. Compared to the normal average of $0.90 to $1.00, the April average is incredible for sellers.
This change has been rapid. At the start of March, the average CPC was $0.80 and at the end of April CPCs had dropped to $0.62.
Hopefully you’ve been heeding our advice and kept your campaigns running. Advertising is cheaper and more effective than ever before.
Right now, it’s a perfect storm for Amazon sellers, and it’s important to strike while the iron is hot. We suspect that consumer buying habits will have changed, somewhat, for long into the future.
However, with the reopening of brick and mortar locations, some Americans will move away from Amazon as their primary source of purchasing.
Make sure to get the most out of the current situation. Obviously, this crisis has been tough on every American, but hopefully this climate for sellers will help companies that sell on Amazon stay afloat.
Discover Us on our PPC Den Podcast
If you enjoy supplementing your long reads with audio, we cover this topic on our podcast as well.
Listen to it in the episode below or find us on your favorite streaming platform, like Apple, Google, Spotify, and more!
- 2:20 Intro
- 4:54 Three important questions
- 9:00 Amazon isn’t going anywhere
- 13:40 Now is a great time to advertise
- 19:20 Don’t pause your campaigns
- 24:25 Strike while the iron is hot
- 29:30 Closing thoughts
- Sponsored Brand Ads Update: Now You Can Edit Creatives
- Amazon PPC Stats During COVID-19
- Seller Central Campaign Manager is Moving to Amazon Ad Console in 2020
- Taking Your Amazon Products & Campaigns Global: A Primer
- Best Practices for Selling on Amazon During COVID-19
- Principles and Mindset for Amazon Marketers During Coronavirus
- Coronavirus (Covid-19) and Your Amazon PPC Campaigns
- Incorporate “Adjust Bids by Placement” into Your Keyword Bids (Part 2): Multi-Keyword Campaigns
- Incorporate “Adjust Bids by Placement” into Your Keyword Bids (Part 1): Single Keyword Campaigns
- Grow Your Amazon Campaigns with Demographics Data
- What Consumer Behavior Says About You: Amazon Brand Analytics
- How to Raise Lifetime Value with Market Basket Report
- Search Frequency Rank: How to Identify Most Important Keywords
- Long Tail Search Terms: The Amazon PPC Silent Killer?
- ACoS: Amazon Platform Tax?
- 7 Tips to Get More Clicks on Amazon Ads
- LIVE Amazon PPC Campaign Audit
- Amazon PPC Keyword Research in 2020: RPSB Revisited
- Our Top Predictions for Amazon PPC in 2020
- 7 Bad PPC Habits to Kick in 2020 (And 3 Good Ones to Start)
- The PPC Tasks We Put on Our Project Management Tools
- A Data- Oriented Approach to Advertising in December
- The Wait is Over… Search Term Reports for Sponsored Brand Ads are Here
- What to Do When It’s Time to Sell Your Amazon Business with Coran Woodmass
- Ramping Up for Cyber Monday and Black Friday with Data-Driven PPC Strategies
- Amazon PPC Campaign Structure: 6 Layers of Complexity
- Amazon PPC Today vs. Yesterday: What’s Changed, What Hasn’t
- Make Your Best Keywords Better with Single Keyword Campaigns
- 6 Levels of Amazon PPC Mastery
- How to Advertise Commodity and Unique Products with Lukas Matthews
- Amazon SEO – Bridging the Gap with PPC
- Amazon’s New Sponsored Display Ads (Beta)
- Listener Q&A: Optimizing Placement Settings
- The Problem With Optimizing Low-Converting Products (And How to Solve It)
- 4 Reasons Why Lowering Your Bids Won’t Always Lower your ACOS
- What to Expect From 30 Days of Running Amazon Ads
- Should You Segment Your Branded Keywords in Amazon Ads?
- Promoting your Products with Amazon Coupons
- Three Effective Ways to Optimize Amazon PPC Bids
- 4 Things Amazon Does Better than Google and Facebook
- Amazon DSP with Kiri Masters
- Increase Conversion Rates for Sponsored Brand Ads
- Clickfraud, Who to Hire, and More Common Amazon PPC Questions
- A Data-Driven Approach to Prime Day PPC
- Improving Your Account With Amazon Reports
- The Complete Guide to Self-Auditing Your Campaigns
- A Round-Table Discussion About Placement Settings
- My 5 Predictions for the Future of Amazon PPC
- The Importance of Indexation for Amazon PPC
- Click Through Rate (CTR) Rundown
- An Introduction To Bulk File Operations
- The Latest Sponsored Brand Ad Updates
- Defining Your PPC Goals & Setting ACOS Targets
- Making Sense of New to Brand Metrics
- Should You Bid on Competitors’ Branded Keywords
- Our Gripes About Amazon Sponsored Brand Ads
- Amazon Advertising Launch Strategy for New Products
- The Ultimate Amazon PPC Roadmap
- How to Scale Using PPC – A Case Study
- The Star-Crossed Lovers (Organic & Paid Traffic)
- Cranking Up Conversion Rates
- All Things Negative Keywords
- The Dreaded Amazon Data Reporting Delay
- What We Love About Amazon PPC
- First Look on New Bid Options in Amazon
- Dissenting Thoughts on PPC Budgets
- The Strangest, Most Popular PPC Strategy: The Keyword Dump
- Product Targeting – Into the Great Unknown
- Campaign Naming Systems
- Hitchhiker’s Guide to Sponsored Products (Part 2)
- Hitchhiker’s Guide to Sponsored Products (Part 1)
- Amazon PPC Advertising Stats
- The Advanced Basics of Amazon PPC
- Amazon’s New Product Targeting Features
- The Bid+ Conundrum
- Why We’re Living In The Golden Age of Amazon PPC
Watch Mike & Stephen on YouTube
If you enjoy supplementing your long reads with video, well, hot diggity dog, you’re in luck! We cover this topic on our YouTube channel too.
Watch it below and please don’t forget to ‘like’ and subscribe.