Many students have asked me how to start advertising for new products. How to do it correctly? In fact, there is no right or wrong in operational methods, only what is suitable or not. It is necessary to continuously review and summarize your own set of experiences during the process. Today, I would like to share some thoughts based on a complete lack of Amazon operations, hoping to be helpful.
Table of Contents#
01 / Types of Ads
02 / Advertising Budget
03 / Advertising Structure
04 / Conclusion
Types of Ads#
It is not recommended to start with SB or SD ads for new products; SP ads are more suitable for obtaining precise traffic.
If your product is a standard product or an accessory (like phone cases or auto parts), I recommend using precise targeting in SP ads in the early stages, with a fixed bidding model. The bid can be 150% of the suggested bid, which makes it easier to obtain more precise traffic.
If your product is a non-standard product (like clothing), I recommend using automatic ads in SP ads in the early stages, with a higher bid for close matches and a lower bid for broad matches. You can turn off related products and similar products in the early stages, and use a bidding model that only lowers the bid, with a bid of 150% of the suggested bid.
It is important to observe exposure and click conditions in a timely manner and adjust bids accordingly.
Advertising Budget#
Before setting an advertising budget, you must first create a sales plan, such as how many orders you want in the first month, and then develop a corresponding advertising budget based on conversion rates and CPC conditions.
Since I have worked with many standard products in recent years, I tend to rely on conversion rates. Therefore, in cases where CPC is relatively high, I usually adopt a phased plan (which implies that there will 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 get one order, resulting in a cost per acquisition (CPA) of $20.
First Stage: No organic traffic, budget = CPA * target orders
Second Stage: 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 afford. Ensure that each ad budget receives no less than 20 clicks per day under conditions of exposure and clicks without exceeding the target CPC.
Advertising Structure#
Before launching ads, you should complete the summarization and research of product keywords. Now that Amazon's backend has opened ABA data, it has become much easier to categorize.
Search rankings < 10,000 belong to major keywords, and search rankings < 100,000 belong to long-tail keywords. For some very niche and obscure products, try to capture all traffic sources; after all, capturing all traffic won't cost much.
The following content is based on standard products and is not limited to launching new products. This structure can be used in most cases, but it should be flexibly applied by combining various ad types based on actual conditions:
| Purpose | Ad Type | Target Content | Bidding Model | Budget | Ad Position | Notes |
|---|---|---|---|---|---|---|
| Ranking | Exact Match | Major Keywords | Fixed | 40% | Top 30% | The main focus is conversion rate; change keywords if it doesn't work |
| Keyword Expansion | Broad Match | Major Keywords | Only Lower | 20% | None | Can appropriately negate major keywords to avoid spending all budget on them |
| 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 order keywords; main focus is ACOS |
| Revenue | Automatic Ads | - | Only Lower | 10% | None | Preemptively negate keywords; main focus is ACOS; |
Adjust the advertising budget allocation ratio based on your own situation, and you can also implement it in phases for a stepwise increase in traffic.
The core element is to look at the conversion rate for ranking keywords and gradually optimize to reduce ACOS, with long-tail keywords primarily focused on ACOS.
Conclusion#
Do not be overly superstitious about advertising techniques. The greatest role of advertising is to bring traffic; whether it can convert depends on the competitiveness of the product.
Advertising cannot provide timely assistance; it can only add icing on the cake.