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Amazon Advertising

Why Is It Necessary to Perform Regular Audits of Amazon Advertising?  Checklists for Amazon Advertising Audits 

Reading Time: 10 minutes

Are you unsure of how frequently to review the effectiveness of your advertisements?  

You’re missing out on a great opportunity to increase your sales and profits if your response was “once in a while” or “never.”  

You may wonder what an Amazon advertising audit is.
 
This is a comprehensive assessment process that looks at your current aim, metrics, results, and advertising plan.  It assists you in determining which aspects of your approach are effective, which are not, and what you can change to increase the RoAS.  

Consider it your vehicle’s tune-up! 

You wouldn’t operate a vehicle for years without inspecting the tyres, brakes, and oil, am I right?  

It’s also not a good idea to run your ads for months without auditing them. We’ll go over the importance of Amazon advertising audits for your business as an Amazon seller in this blog post, along with tips for doing them successfully.  

Continue reading!   

Why is an ongoing audit required for Amazon advertising?  

An effective advertising campaign’s management requires regular Amazon advertising audits.

Frequent audits assist you in comprehending the effectiveness of your advertising and informing the decisions you need to make to maximise your campaigns.
 
Here are some other justifications for performing regular audits of Amazon advertising:

Find novel prospects.  
You can find undiscovered keywords or untapped product prospects to target in your advertising campaigns by routinely reviewing your search term data and product reports. 

Consider switching the keyword “aluminium water bottle skinny” to a manual targeted exact match type if you’re promoting an aluminium water bottle and you see it performing effectively in your automated campaign.  

Increased control over the keyword is made possible by this change, which eventually improves advertising outcomes. 

Evaluate campaign results against goals.  
Setting specific goals is critical to any advertising campaign.
 
Regular audits help vendors determine whether their campaigns are in line with these goals.

By comparing key performance indicators (KPIs) to preset standards, you can draw informed conclusions regarding the efficacy of their advertising efforts and make necessary adjustments.  

For example, if your goal is to increase brand awareness, you should consider whether your ads are producing enough impressions. If you want to increase your profit margins, work on lowering the ACoS for your campaigns.

Optimise budget allocation.  
Effective budget management is critical to a successful advertising campaign. An ongoing audit allows you to analyse the budget allocated to various campaigns, ad groups, and keywords.  

By finding high-performing and cost-effective methods, you may reallocate budget resources to maximise their impact, ensuring that every advertising dollar is well spent.
 
For example, while examining your campaign report, if you notice that certain of your efforts are generating more conversions than others, you can reallocate your spending to high-performing campaigns to maximise your overall ROI.

Identify high-performing products.  
Audits can assist you in identifying your top-performing products and allocating your advertising spend appropriately.  

For example, if you sell apparel online, you may use an advertising audit to determine which products generate the most conversions and profit.  

Transfer the majority of your ad budget to these high-performing products while keeping a modest budget to test multiple techniques on the low-performing ones to determine which strategy works best for the products.

Make seasonal adjustments.  
If you’ve been selling on Amazon for a while, you know that sales velocity varies throughout the year. It varies with the seasons, holidays, and other external influences.  

Regular Amazon advertising audits might help you discover these seasonal shifts.
 
With this information, you can make the required changes to capitalise on seasonal trends and modify your advertising tactics to meet the individual needs and tastes of your target audience at various times of the year.

For example:  

Summer may see a surge in demand for outdoor and recreational products, but winter may see an increase in interest in cold-weather staples.
 
Adjust your marketing campaigns properly to capitalise on seasonal patterns and increase sales and ROI.  

Furthermore, conducting periodic advertising audits can help you detect industry trends and plan promotional efforts to increase visibility and appeal. 

Do these before you begin your advertising audits.
When it comes to managing campaigns, ad groups, keywords, items, and budgets on Amazon, there are numerous elements to consider and adjust. This can feel overpowering at times.

It is not always evident where to begin or what areas require improvement.

Sometimes everything goes so well that no big modifications are required. Remember that implementing too many changes too soon can be counterproductive. 

Before we go into the audit framework, it’s important to note that there is no one-size-fits-all solution. 

By putting yourself in the mindset of understanding your goals and asking probing questions about how you might optimise performance, you will have a framework that can be duplicated again and again. 

Recognise the dynamics of campaigns.  
You must have a thorough grasp of your campaign dynamics before making any adjustments to them. 

Consider the following questions for yourself:  

  1. Do you think ACoS is living up to your expectations?  
  2. At the current ACoS, are you able to consistently produce sales?  
  3. Do sales increase over time?  
  4. When you begin to analyse improvement opportunities, these questions will help you determine where to concentrate your efforts.  

For instance, there’s little use in trying to make improvements if your campaigns are close to your target ACoS.  

To boost your revenue, instead concentrate on reaching a wider audience.
 
However, if your campaign’s ACoS is very high, optimise it to lower unnecessary ad expenditure before raising your RoAS.

Don’t try to optimise every KPI at once. 

After getting a handle on your campaign dynamics and digging deep with the right questions, you’ll probably have several ways to fine-tune your campaigns. 

But trying to apply all these optimisation options at once isn’t the way to go. Instead, prioritise based on your goals. 

Ask yourself which changes will get you closer to your goals faster and which ones will fix any major issues. 

Keep in mind that you can’t optimise all your campaign KPIs at once. 

For example, if you focus on boosting impressions, your ACoS might not stay low. On the other hand, if you aim to optimise your ACoS, you might not get the maximum impressions. 

Another reason not to optimise all the KPIs at the same time is that you won’t be able to tell which action led to improvements in your campaigns. 

I can appreciate your desire to make quick improvements to your efforts. Therefore, it’s best to approach campaign audits as a methodical procedure in which you make changes gradually, observe how they impact the campaign, and then make more adjustments.  

Know which metrics to pay attention to based on your objectives. 
Understanding campaign dynamics is crucial before optimising your campaigns, as we’ve already covered. 

However, how can one determine which KPIs, given their purpose, to prioritise?  


Based on your campaign goal, we’ve enumerated all the KPIs you should pay attention to here: 

Alright, now that you know why it’s essential to regularly conduct Amazon advertising audits, let’s dive into the checklists you should use when auditing your advertising campaign. 

Amazon Advertising Audit Checklist 

Here are a few questions to ask yourself during the audit to assess your campaign performance: 

Is ACoS above target? 

Depending on your campaign goals or the age of the campaign, check if your ACoS is hitting the target or trending towards it. 

If it’s not, pause the bid on the keyword, product, or ad group with the highest ACoS. 

Note: Don’t pause any ad group without checking if the keywords or products within it are trending towards the ACoS target. 

If the campaign performance is on track, you might want to give the campaigns more time to show their full potential. 

Is it Easy to Navigate Your Campaign Structure?
 
Although planning advertising campaigns is a challenge for most sellers, it is a crucial component of an audit.

Optimising your marketing is easier the more organised you are.
 
For instance, if items are properly segregated into distinct campaigns, you can apply alternative bids, budgets, or tactics to them with ease.  

In addition, campaign organisation facilitates keyword grouping, efficient dayparting scheduling, A/B testing of various ad variations, budget allocation, and other tasks.

Therefore, make sure the campaign structure adheres to the hierarchy when auditing it.

Portfolio: Set up separate campaigns for different products under distinct portfolios. For instance, if you have two different products like “Sunglasses” and “Photochromic Specs,” they should each have their own portfolio. 

Campaign: Keeping a consistent naming convention for your campaigns helps you stay organized. For example, group products with similar goals into a single campaign and include as much detail as possible in the campaign names.

Here’s how to structure a campaign: 

Campaign goal | Product/Category | Campaign type | Campaign targeting 

Ad Groups: Create separate ad groups for different products based on targeting or keyword type. To simplify your campaign structure, we suggest having one ad group per campaign. 

Quick Tip: A consistent Amazon PPC campaign structure will make future audits more efficient. So, take the time to standardise your campaign structure to ensure smoother audits in the future.

In your campaigns, are you focusing on the appropriate keywords?  
When you initially start your advertising campaign, occasionally audit it to make sure the campaign is targeting the desired term.  

If not, you may need to use more relevant keywords in the backend and product listing to improve them.
 
Improved product understanding and improved keyword targeting will benefit Amazon.  

If you notice that the keywords being targeted by the automatic campaigns are correct, you may improve control and performance by moving the high-converting keywords to your manual campaign and filtering the keywords based on sales. 

How competitive are product and brand ad spaces?
 
You have to pay for advertisements for two reasons: 

Due to the fact that it increases sales,  
In order to prevent other brands from using your brand keywords to steal sales,  
When competing brands bid on your brand or product search phrase, this occurs. Alternatively, other vendors may place advertisements for the same goods under a different ASIN.  

In this situation, you should examine the number of different merchants that are competing for your brand’s keywords. 

If there are none, you can suspend ads for your own brand’s keywords.  
If there are other merchants, you must protect your brand by bidding on its keywords. 

The competitiveness of the phrase will determine the bid amount, but your goal should be to rank #1 for the keyword.  

Note: On the other hand, bidding on your own keyword might not be as advantageous as you might believe if you notice that the brand term has poor visitor volume.

Are your products’ high-converting keywords getting better every year?  
Examining the increase in your top-performing keywords reveals that the product is in style.  

Furthermore, it enables you to more effectively allocate your advertising money. For instance, you may find new, very effective keywords during auditing that are working well but aren’t ranking at the top naturally.  

To boost these keywords’ organic position and propel them to the top of search results, you might give them a larger budget. 

Is the ad budget being spent on pointless keywords?
 
Look through the search term information you have for the last 30 to 60 days to identify terms that are driving clicks but not sales.  

Include these terms in your campaigns’ ad groups as negative keywords.  

Amazon Advertising Audits Guide  
We have assisted Even Windscreen Supply Co., one of our clients, in lowering their advertising cost of sales (ACoS) by 65% through the use of negative keywords in their campaigns. 

Is your advertising running on duplicate keywords?

 
Check your search term report to identify duplicate search terms across different targeting options like phrase match, broad match, or exact match ad groups. 

Analyse the performance of these keywords in each targeting option. 

Keep the highest-converting targeting active and pause bids on the others. 

Typically, exact-match keywords receive the most clicks, so keep that in mind. 

Are You Under-Spending on Your Campaign or Ad Groups? 

Examine if your campaign or ad group spending consistently falls below your daily budget. If so, consider the following actions: 

First, check for any deliverability issues, such as losing the buy box or running out of inventory. If you lose the buy box due to price competition, consider offering a coupon, discount, or lowering your price to regain it from competitors. If your inventory runs out, Amazon will automatically stop running ads for the product. 

Next, determine if you’re bidding defensively on keywords, which may not improve your ad placement and could limit your sales potential. If your ACoS is lower than or close to the target, consider increasing your bids aggressively and monitoring the resulting sales increase. 

Finally, assess whether your daily budget is too high for the traffic potential of your search volume. This can happen with brand keywords due to low demand, so you may need to reduce the budget for these campaigns and reallocate funds to higher-performing campaigns.
 
Are you optimising your bids for better ad placement? 

Amazon sponsored product ads can appear in three main locations: 

  1. Top of the search 
  2. Rest of the search 
  3. Product page

To maximise conversions and visibility, increase your bids to secure the top position in the search results.

If your product already ranks organically at the top of search results, consider lowering your bid to target the rest of the search placement. This ensures your product stays visible as shoppers scroll down or move to the second page. 

Note: The extent to which you adjust your bids depends on the competitiveness of the keywords you’re targeting.  Are all products or search terms performing well? 

Amazon’s algorithm is designed to maximise sales, prioritising spending on profitable ad groups, search terms, and products, which is beneficial. 

However, if you’re new to Amazon advertising or launching a new product, you might lack sufficient data to optimise for conversions effectively. 

In such cases, analyse your search term reports to identify underperforming search terms. Move these terms into a new ad group and test them with increased bids. 

Run these ad groups for 2–3 weeks. If they still underperform, pause the ads for those groups. 

Conversely, if certain keywords perform well, continue using them and add the underperforming ones to your negative keyword list to minimise wasted ad spend. 

Which products achieve the best results in an ad group or campaign? 

Look over your advertised products report to see which products are performing the best and which are not keeping up with demand. 

If some products don’t live up to your expectations, do the following: 

Make sure the keywords you’re focusing on for these products are relevant. 

If your listings’ click-through rate (CTR) is low, improve them with excellent product photos, top-notch content, and product videos. 

Make sure your prices are competitive for similar products by comparing them to those of your rivals. 

Also, transfer the underperforming items to a different campaign or ad group
 
You can manage ad expenditures for high- and low-performing products separately, avoiding budget waste, by moving underperforming products to a new campaign or ad group. 

Are your brand ads targeting the branded keywords of your competitors? 

There are a number of benefits to using your brand ads to target the brand keywords of your competitors: 

It can draw clients looking for their products and divert traffic away from your rivals. 
It enables you to reach a market that is already considering the goods of your rivals, raising awareness of your own offerings. 

To increase the visibility of your brand, if you haven’t already, think about focusing on the branded keywords of your rivals. 

Are You Using Bid Modifiers Correctly? 

Amazon provides three types of bid modifiers:

  1. Dynamic Bids: Down Only 
  2. Dynamic Bids: Up and Down 
  3. Fixed bids 

Each modifier has its own advantages and disadvantages, but the best choice for you depends on your advertising objectives. 

If your goal is to decrease ACoS and boost profitability, opt for the ‘Dynamic bids—down only’ modifier. 

For product launches aiming to increase awareness and visibility, the “dynamic bids up and down” strategy is suitable. 

Avoid relying solely on fixed bids for your campaigns, as they can quickly consume a large portion of your ad budget. However, they can be useful for enhancing brand visibility. 

For further insights into Amazon advertising audits, refer to our comprehensive guide. 

Final Reflections 

Reflecting on each of these questions can reveal optimisation opportunities, which frequently provide great results. However, there are times when the relationship between action and effect is not immediately obvious. 

During such moments, it is critical to experiment with different chances to see which ones produce the best results.  

For example, if your sales have been down for a week, what actions should you take? Should you raise bidding, cut prices, or temporarily stop advertising for the goods to focus on another item? 

Testing each optimisation opportunity individually over time provides for effective measurement of campaign performance gains.

  

  

  

  

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