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Amazon Advertising for Beginners 101
Recommended Strategies for Products with Little to No Advertising History
Recommended Strategies for Products with Little to No Advertising History

A set of recommended strategies and considerations for advertising new products or products with little advertising history.

Andrea Mamone avatar
Written by Andrea Mamone
Updated over a week ago

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Introduction

Within this article, we have organized key considerations for different phases of your Perpetua Journey:

  • Pre-Launch

  • Launch

  • First 2-4 Weeks

  • After 4 Weeks

Each section provides valuable insights to guide you in understanding what factors to consider both before and after your goals are launched on Perpetua. Enjoy your learning journey! 🧑‍🎓



Pre-Launch Phase Considerations

Getting ready for the launch of your initial goals on Perpetua is a crucial step toward ensuring your success. Here, we have compiled a series of considerations to guide you in preparing your strategy when promoting your new products or those with limited advertising history.

1️⃣ Review your Market and Competitors

For new advertisers on Amazon, understanding your market and competitors is paramount for a successful advertising strategy. Conduct thorough research to grasp the dynamics of your product category, identifying key competitors, market trends, and customer preferences.

Additionally, recognize the significance of the Cost Per Click (CPC) in your category. The CPC is a crucial metric influenced by competition, impacting the visibility of your ads. In highly competitive categories, expect elevated CPCs, and tailor your bidding strategies accordingly. By gaining insights into your market and competitors while considering the CPC dynamics, you can make informed decisions to optimize your advertising efforts and enhance your overall success on the platform.

2️⃣Market Trends and Seasonality

Stay informed about market trends and seasonality. Understand how external factors may impact consumer behaviour and adjust your inventory, pricing, and marketing strategies accordingly. Being proactive in response to market changes can give you a competitive advantage.

Find more helpful information about it from our Blog’s article “The impact of peak events on consumer purchasing habits

3️⃣ Define Your Advertising Goals

Clearly outline your marketing objectives. Whether you aim to drive brand awareness, increase sales, or launch a new product, your goals will influence how you allocate your advertising budget.


4️⃣ Product Retail Readiness

Improving product listings on Amazon requires careful attention to key elements. Start by optimizing your product title with relevant keywords, emphasizing features, and adhering to Amazon's title length guidelines. Ensure your product images are high-quality, showcasing multiple angles, and adhering to Amazon's image requirements. Crafting informative bullet points that concisely outline product features is crucial, helping customers quickly grasp the value of your offering. These initial steps lay the foundation for a compelling product listing that attracts customers and drives sales

🚨Note: Find out more on Product Retail Readiness in this other Help Centre article.🚨



Launch Phase Considerations

We will delve into best practices and strategies to keep in mind as you take your initial steps using our software and configuring your objectives in Perpetua. Let's get started!

1️⃣ Define your Target ACoS

Scenario

Recommended Target ACoS

Reason

Products with no advertising history

Establish a high initial Target ACoS (e.g., 50-70% and above).

Allows the ad engine to be adaptable, engage in bid experimentation, and competitively bid on targets to boost spending.

Initiating with a low ACoS limits the engine's aggressiveness, hindering confident spending due to the absence of previous data on keywords that would support a higher bid.

Products with little advertising history

Set initial Target ACoS close to historical realized ACoS.

A much lower initial ACoS reduces bids on all targets and may lead to a significant drop in spend/sales.

The engine may struggle to identify effective targets at these lower bid prices, potentially resulting in fewer winning bids on key targets crucial for driving sales.

Therefore, if your historical Realised ACoS was 25%, we recommend setting a 30% Target ACOS for your Perpetua goal.

Adopting an aggressive approach enables the engine to conduct thorough keyword research and experiment with competitive bids. This strategy facilitates gaining traction on impressions, clicks, and conversions, contributing to the momentum of the Amazon Flywheel




2️⃣Add Relevant Keywords

The Amazon search term report is crucial as it reveals the specific keywords driving user interaction with your ads. Analyzing this report enables advertisers to optimize campaigns by refining keyword targeting, adjusting bids, and tailoring ad content, leading to improved relevance and effectiveness, ultimately maximizing ROAS

Perform an exhaustive keyword investigation to identify the most relevant terms for your products. This may encompass, but is not confined to:

  • Category Keywords

  • Competitor ASINs

  • Branded Terms

  • etc.

Utilizing a keyword research tool can streamline this process. Accumulating a diverse range of keywords enhances the Perpetua engine's ability to discern the most effective ones.

Additionally, long-tail keywords prove highly advantageous due to their lower competition, cost-effectiveness, and increased likelihood of winning the Amazon auction compared to more competitive big-category keywords.



3️⃣Apply Bid Adjustments Right Away

Amazon provides suggested bid amounts for keywords.

Look at the suggested bids on Amazon for keywords that you feel are the most relevant and strategic to your campaigns. In examining the suggested bid prices, you can get a good idea of whether or not your bids on these keywords are high enough.

If you find that Perpetua is not bidding high enough, a fixed bid adjustment can be applied to your selected keywords. Higher bids contribute to your ad's success as they help the ad engine gather more data on a product without any advertising history.

These fixed bids should be applied for a minimum of 7 days to allow time for adequate data collection. A detailed explanation of how to properly set up fixed bid adjustments can be found here.

After launching, you can continue to add keywords to your goals that you think are relevant. From there, we recommend creating bid adjustments on the most important keywords to give the ad engine an idea of what kinds of keywords the product will/should be converting on.

Suggested Actions for Bid Adjustments

  • Restrict bid adjustments to a maximum of 5 keywords per goal; consider Target ACoS for larger adjustments.

  • Choose a bid multiplier that brings a meaningful impact while staying within your comfort level.

  • Be aware that adjusting bids will likely increase your spend.

  • Set a time limit on bid adjustments, allowing Perpetua to learn and implement changes automatically based on successful experiments (7 days minimum recommended)

🚨Note: Our engine takes the data from these experiments and trains the algorithms for your specific account, using both good and bad results. All the experiments can be adjusted on the dedicated "Experiments tab", where you can change the bid, adjust the duration, or stop the experiment. With the ad engine's continuous learning, it will take all the data collected during the experiment to further improve its machine learning and better optimize goals. 🚨


4️⃣ Don’t Make any Further Changes

It is important to mention that the first 2 weeks are the most crucial ones for your Perpetua’s goals as they will undergo an experimental phase. Expect a potential slight increase in ACoS during this period. Additionally, ACoS may seem higher than actuality due to the attribution lag on sales. While your ad spend is calculated upon a shopper's click, actual sales may take up to two weeks to reflect. Patience is key during this phase, and though it might be challenging for a business owner, staying patient is crucial for the best outcomes.



First 2-4 Weeks Phase Considerations

5️⃣ Leverage Old Products

If you already have other products being advertised on Amazon, you can cross-sell your new product using Sponsored Display product targeting.


You can also run Sponsored Brands ads with your new product featured using a Branded targeting type. You can integrate this new product displaying it with your old products to your loyal customers.


6️⃣ Monitor Budget Utilization and Bid Adjustments

Budget utilization
Monitoring your goal's budget utilization is crucial for assessing its performance. If your entire budget is used up, your ads will stop serving, missing potential sales opportunities. On the contrary, if you observe that your goal consistently spends well below the daily budget you assigned, it could be attributed to issues like Retail readiness, Inventory levels, or Product errors.

Additionally, if your Target ACoS is set too low, your goal may struggle to spend effectively. To address this, consider adjusting the target ACoS upwards. This adjustment increases the optimization algorithm's flexibility, allowing the engine to bid more on keywords being optimized and potentially improving overall goal performance.


🚨 Note: Consider enhancing the Perpetua "Always-on Budget Optimization" strategy to prevent your SP goals from running out of budget. Find out more here. 🚨


Bid adjustments

It is important to evaluate the performance of your targets to which bid adjustments were applied to. The experiments tab allows you to have an overview of your active and expired bid adjustments.

  • Downward bid adjustments
    You may want to review those targets with no conversions over the past 2 weeks, and consider whether to pause it or apply a downward bid adjustment (x 0.7-0.8%) for 7-14 days.

  • Upward bid adjustments

    When targets are performing well, and CPC is within 10% of the current bid, apply a 1.1x increase for 7 days so the keyword or ASIN target continues to win placements.

7️⃣ Reduce Wasteful Spend by Pausing No-Converting Targets

In the initial 2-4 weeks, you might identify non-converting targets engaged in mere spending, leading to a rise in ACOS. Navigate to the Targets tab in your goal and assess these targets using Performance filters to identify inefficient ones.

For instance, consider criteria such as "Clicks ≥ 10" and "Conversions ≤ 1.”



After 4 Weeks Phase Considerations

8️⃣ Consider Isolate your Hero ASINs in a different Goal

Amazon selects which product gets the impression in advertised products within your Goal. Often some ASINs will have a higher ACOS which tends to bring the ACSS on the Goal up overall.

  • When advertising on all child ASINs under one parent, use the first 30 days of data to identify low performers (Ex low CVR or high ACoS compared to others).

  • Consider isolating your “Hero ASINs” in another goal, and keep advertising your low-performing ASINs in the current one

ACOS

Conversion Rate (CVR)


9️⃣Switch Goal Type from Universal to Brand-Based or Advanced

Examine the difference in ACoS between branded and unbranded segments by navigating to the Segments tab within the Goal. If there is a noticeable variance or substantial branded traffic, consider dividing it into either Brand-based or Advanced Goals.


When your advertising budget is limited, it's crucial to understand the minimum budget required for each goal. With Brand-Based and Advanced Targeting goals, as there are more segments involved, the minimum budget for each segment is set at $10.

🚨 Note: For Brand-Based and Advanced Goals, you will need to know your Branded and Unbranded ACoS at launch. You can launch Universal and move to a Branded or Advanced structure after 3-4 weeks when you have segment data. 🚨

🔟 Set up Keyword Boosts and Advanced Features

Once Goals have matured and new products are retail-ready, consider implementing Keyword Boosts for category keywords and/or more long-tail category keywords with lower CPCs. Be mindful that this strategy increases ACOS and should therefore be used sparingly if a low ACOS is the primary success metric.

Suggested Actions for Keyword Boost:

  • Select keywords that have proven success, but be aware that bidding optimization may be challenging if your product lacks a prior advertising history for a keyword. Moreover, boosted keywords with low search volume could encounter placement restrictions on Amazon.

  • Opt for Exact or Phrase keywords, avoid Broad, and select category keywords with substantial search volume that closely align with the characteristics and unique strengths of your product.

  • The ACOS applied to your Keyword Boost should be 50% greater than the keyword ACOS before implementing the boost.

🚨Note: Keyword Boosts reduce your PDP and Rest-of-Search bids to push to Top-of- Search, which is why this strategy should only be used if you can significantly increase your ACoS on the Boost. 🚨


Tips and Good to Know


Article last updated January 2024. If you find this information to be out of date, please contact hello@perpetua.io

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