Are Product Reviews Important for the Success of your Amazon PPC Ads?

Positive reviews serve as a proof point to potential customers that you have a quality product they can trust, and so can help drive conversion. Whereas no reviews can often translate into no sales. So, developing a strategy to get a good number of positive reviews under your belt could really help to boost the success of your business’ Amazon advertising campaign.

If you want to gain quality reviews quickly, a more head-on approach is needed. Kicking off PPC advertising the moment a listing is published is a good idea. But to really maximise success, it’s considered best practice to launch an automated campaign so Amazon can assist you in finding pertinent keywords. You’ll experience some organic PPC benefits in terms of relevancy and may even see some sales to aid in obtaining those initial reviews.

That said, it’s always best to have a few reviews under your belt before you start advertising if possible. But, once you’ve gained a fair number of high-quality product reviews, what’s the best way of maximising the success of your Amazon advertising strategy? Here’s some best practice advice:

Should you optimise your product listings?

Yes. Working to ensure your listings are properly optimised is the most important thing to get right before beginning Amazon PPC ads. Complete optimisation of your listings will help to significantly increase sales.

Making your listing stand out is so incredibly important, because each click from your PPC advertising strategy will cost you money. The more you get right, the more effective your listing.

Here are some of the best practice rules the team here at Melody apply:

  • Only use high-quality images that showcase your product at its best
  • Highlight the product’s qualities, advantages and any USPs
  • Identify keywords that correspond to those in your ad campaign
  • Create a product title that is both keyword and content rich
  • Create bullet points that are descriptive, accessible, and clearly demonstrate the value the product offers.
  • Price your product competitively

Once your campaign has been fully optimised, you then need to think about what you need to do to measure its success.

What is ACoS and how much should it be?

ACoS stands for Advertising Cost of Sales. It is what Amazon refers to as the overall cost of PPC marketing for each item sold. It is one of the most important criteria for gauging the success of your campaign.

By dividing your overall advertising expenditure by the revenue from your PPC campaign, you may determine the AcoS percentage.

AcoS = total ad spend ÷ total ad-driven sales x 100

For example, if you spent £15 on advertising and those ads resulted in sales of £25, your AcoS would be 60%.

Several aspects of your product and your campaign objective will affect your optimal ACoS. Every product has a different one, and even the same product may have a different ACoS if your objectives alter over time.

For instance:

  • To increase sales and boost your organic search position, you might select an ACoS that allows you to break even on each product sale
  • For a significant product launch, you can choose for a higher ACoS that costs you money per sale but can be a long-term investment
  • If you want to make sure that every sale of a mature product reaches a minimal profit margin, you can decide to set the ACoS at a lower level

You must know the selling price of your goods, as well as all your costs, in order to determine the ACoS to break even on each sale:

  • Cost of goods sold (CoGS) is the price paid by you to your supplier for a single unit
  • Selling on Amazon and FBA transaction costs
  • Additional expenses include shipping, taxes, and tariffs, etc.

To determine your profit per unit, deduct all your expenses from the selling price. To calculate your break even ACoS, divide that amount by the selling price. Then, you can change it to be higher or lower depending on your objectives.

It is important to know exactly what you are doing before and during your Amazon ads creation, helping to ensure that your campaign is set up in a way to guarantee its success.

If you’re unsure of where to start, hiring a specialist Amazon ad agency may be the smart thing to do. Here at Melody, we help businesses across a range of sectors and industries succeed on Amazon.

Melody, WeWork, Aldwych House, 71-91 Aldwych, London ,WC2B 4NH, United Kingdom
+44 (0)203 923 4750

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