HOME & KITCHEN PRODUCT Founders

Simple Frameworks and Guide to Amazon PPC in 2024

Are you tired of running PPC campaigns that don't yield the desired results?

Do you find it challenging to balance your Total Advertising Cost of Sale (TACoS) while managing individual campaign costs?

Look no further.

We specialize in optimizing PPC campaigns to ensure that your overall TACoS is at a profitable level, even when individual campaigns may not seem profitable at first glance. 

Why Focus on TACoS for PPC Success? 

Insight: TACoS (Total Advertising Cost of Sale) represents the overall cost of advertising compared to the total sales generated. Unlike individual campaign ACoS (Advertising Cost of Sale), which focuses on the cost-effectiveness of a single campaign, TACoS gives you a broader view of your ad spend’s impact on your entire product line. 

By maintaining a balanced TACoS, you ensure that your advertising efforts contribute positively to your bottom line. Our approach ensures that even if some campaigns are in the testing phase or not immediately profitable, the overall strategy supports long-term profitability. 

Actionables: 

  • Set TACoS Benchmarks: Start by setting clear TACoS benchmarks based on your profit margins and business goals. Knowing your target TACoS helps in evaluating overall performance and adjusting strategies accordingly. When launching a new product, TACoS should be breakeven, if not slightly negative.

  • Regularly Monitor and Adjust TACoS: Monitor your TACoS on a weekly or monthly basis. Use this data to identify trends and adjust your campaigns proactively, rather than reactively. 

  • Integrate TACoS with Sales Data: Ensure your TACoS is analyzed in the context of overall sales data. A higher TACoS may be acceptable if it results in a significant increase in total sales volume or customer acquisition. 

 

How Do We Achieve This? 

1. Comprehensive Keyword Research 

Success in PPC starts with finding the right keywords. We go beyond simple keyword discovery: 

  • Primary Keywords: Identifying the main search terms directly related to your product. 

  • Secondary Keywords: Expanding to related terms that potential customers might use. 

  • Tertiary Keywords: Focusing on long-tail keywords that, while less frequently searched, offer high conversion rates when they do get hits. 

Insights: 

  • Competitor Analysis: Beyond identifying keywords, it’s crucial to analyze what keywords competitors are targeting successfully. This can reveal gaps in your strategy and provide opportunities for capturing untapped market segments. 

  • Seasonality and Trends: Consider seasonal trends and product-specific keywords that might fluctuate in demand. Keywords that perform well during holidays or specific times of the year should be noted and targeted accordingly. 

Actionables: 

  • Leverage Keyword Tools: Utilize advanced keyword tools like Helium 10, Ahrefs, or SEMrush to uncover a wide range of keywords. These tools can provide insights into search volumes, competition levels, and keyword variations. 

  • Manual and Automated Research: Combine automated tools with manual research to uncover unique keywords that may not be immediately obvious. Manually checking forums, product reviews, and customer feedback can provide insights into the language and terms customers use. 

  • Segment Keywords for Targeting: Break down your keyword list into specific segments (primary, secondary, tertiary) and assign them to different campaigns. This structured approach ensures that you’re targeting keywords based on their performance potential. 

 

2. Strategic Campaign Structuring 

Our three-tiered campaign structure ensures that every keyword is tested and optimized for maximum ROI: 

  • Auto Campaigns: This is where we start. By running a low-budget auto campaign, we capture keywords that you might not have considered. This helps identify unexpected high-performing keywords without risking a large ad spend. 

  • Broad Campaigns: Keywords identified in the auto campaigns that show potential are moved here for further testing. This stage targets major keywords and explores variations, filtering out those that don’t perform well. 

  • Performance Campaigns: Finally, the best-performing keywords are placed in exact match campaigns, ensuring they are used optimally to drive sales at a controlled cost. 

Insights: 

  • Data-Driven Decisions: By structuring your campaigns in a tiered approach, you make data-driven decisions at each stage. This reduces wasteful spending and increases the likelihood of discovering profitable keywords. 

  • Granular Control: This approach provides granular control over your ad spend, allowing you to scale up or down based on performance at each stage. 

Actionables: 

  • Implement Negative Keywords Early: Regularly review search term reports and implement negative keywords to prevent your ads from showing for irrelevant searches. This helps in reducing wasted ad spend. 

  • Weekly Performance Reviews: Conduct weekly reviews of each campaign tier. Adjust bids, move keywords between campaigns, and pause underperforming keywords to optimize budget allocation. 

  • Utilize Bid Adjustments: Use bid adjustments to increase or decrease bids based on device, location, time of day, and audience segments. This allows you to target more precisely and spend more efficiently. 

 

3. Iterative Testing and Optimization 

We believe in continuous improvement. Each keyword and campaign is regularly evaluated and adjusted based on performance data: 

  • Weekly Tests: By running weekly tests, we determine which keywords perform well and adjust budgets accordingly. This minimizes wasted spend and maximizes ROI. 

  • Negative Keywords: If a keyword isn’t performing after a set number of clicks, we add it to the negative list, ensuring we’re not spending on ineffective terms. 

  • Performance Review: Regularly analyzing conversion rates and ACoS allows us to refine campaigns to ensure optimal performance. 

Insights: 

  • Test Different Match Types: Use different match types (broad, phrase, exact) to see how each keyword performs in different contexts. This can reveal opportunities to capture more traffic or improve conversion rates. 

  • Monitor Competitor Movements: Keep an eye on competitor ad strategies and adjust your bids and keywords accordingly. If a competitor stops bidding on certain keywords, it might be an opportunity to capture more market share. 

Actionables: 

  • A/B Test Ad Copy and Landing Pages: Regularly test different versions of ad copy and landing pages to see which combinations drive the best results. This helps in optimizing not just keywords but the entire user experience. 

  • Automate Reporting: Use automated tools to generate regular performance reports. This saves time and ensures that you’re always working with the most up-to-date data. 

  • Set Up Alerts: Set up automated alerts for key metrics like ACoS, CTR, and conversion rates. This allows you to take immediate action if a campaign starts underperforming. 

 

4. Focus on Long-Tail Keywords 

The ultimate goal is to identify long-tail keywords that yield the highest conversion rates. These niche terms often have less competition and lower costs but can provide high-value conversions, significantly boosting your TACoS. 

Insights: 

  • Target Buyer Intent: Long-tail keywords often reflect higher buyer intent. For example, “buy stainless steel garlic press online” is more likely to convert than just “garlic press.” 

  • Niche Dominance: By focusing on long-tail keywords, you can dominate niche markets where there is less competition, leading to higher conversion rates and lower costs. 

Actionables: 

  • Develop a Long-Tail Strategy: Start by identifying 5-10 long-tail keywords that align closely with your product offerings. Gradually expand this list based on performance data. 

  • Use Question-Based Keywords: Consider using question-based keywords that reflect common queries or pain points your customers might have. This can improve both your ad relevance and click-through rate. 

  • Leverage Content Marketing: Use content marketing strategies like blogs, guides, and FAQs to target long-tail keywords. This not only drives organic traffic but also improves the relevance and performance of your PPC campaigns. 

 

Advanced Insights and Actionables for Amazon PPC Strategies 

Building on the foundational PPC strategies, advanced tactics can help you fine-tune and optimize your campaigns for even greater success.

These strategies involve deeper segmentation, more targeted testing, and precise bidding adjustments to maximize your return on investment (ROI). 

1. Single Keyword Campaigns for Precision Targeting 

Insight: A single keyword campaign focuses on a high-performing keyword in isolation, allowing for maximum control over budget and bids. This approach is beneficial when a keyword performs exceptionally well in broader campaigns but may need more focus to maintain or improve its effectiveness. 

Actionables: 

  • Identify High-Performing Keywords: Use analytics to find keywords that consistently perform well across your broad campaigns. These should have a high conversion rate and a manageable ACoS. 

  • Create Dedicated Campaigns: Move these high-performing keywords into their dedicated campaigns with specific budgets. This allows you to allocate spend more efficiently and control bidding strategies without interference from other keywords. 

  • Monitor and Adjust: Regularly monitor the performance of these single keyword campaigns. Make bid adjustments based on performance data to find the optimal spend that maximizes conversions while minimizing ACoS. 

Incorporated Details: 

  • Broad to Single Keyword Strategy: As highlighted, start by identifying keywords that perform exceptionally well in your broad campaigns. Over a period (a few weeks or a month), if a keyword like "garlic press" performs well, create a separate broad campaign specifically for that keyword. This isolates the budget and allows you to focus on maximizing its potential without the dilution effect of other keywords. 

 

2. Batch Testing Campaigns for Comprehensive Insights 

Insight: Testing multiple keywords in smaller batches allows for a more detailed understanding of each keyword’s performance without overspending. This strategy helps identify which keywords should be scaled up and which should be paused or negated. 

Actionables: 

  • Segment Keywords into Batches: Divide your extensive list of keywords into smaller groups, such as 10-20 keywords per batch. This segmentation helps manage testing more effectively and prevents budget overspend on a single large campaign. 

  • Set Controlled Budgets and Bids: Assign a controlled budget to each batch campaign and start with competitive bids. This helps ensure that each keyword gets enough exposure to generate meaningful data. 

  • Evaluate Performance Regularly: Analyze the performance of each batch after a set period (e.g., one week). Identify which keywords are converting and which are not, and adjust or pause accordingly. Move successful keywords to higher-priority campaigns. 

Incorporated Details: 

  • Weekly Keyword Testing: As mentioned, breaking down large keyword sets (e.g., 200 keywords) into smaller batches for targeted testing is essential. Set up multiple smaller campaigns, each testing 10-20 keywords with a specific budget (e.g., $5-$10 per day). Review the performance weekly or bi-weekly to determine which keywords to scale up or shut down, ensuring a more controlled and focused approach to budget management. 

 

3. Product Targeting Campaigns for Competitive Advantage 

Insight: Product targeting allows you to directly target competitor products, enabling you to capitalize on weaknesses in their listings or capitalize on your product’s strengths. This approach is particularly useful when your product has clear advantages over the competition. 

Actionables: 

  • Identify Competitor Products: Conduct research to identify competitor products that are frequently bought alongside or instead of your own. Look for products with weaker reviews, higher prices, or inferior features. 

  • Create Targeted Product Campaigns: Set up campaigns targeting these specific products. Use ads that highlight your product’s unique selling points and competitive advantages. 

  • Test in Small Groups: Just like keyword batches, segment your competitors into small groups and test the effectiveness of targeting them. Adjust bids and budgets based on the performance of these campaigns. 

Incorporated Details: 

  • Competitor Product Segmentation: Start by identifying a few competitors with similar or inferior products. Set up product targeting campaigns in small groups (e.g., five competitors per group) to test performance. Focus on targeting competitor listings that have poorer reviews or higher prices, emphasizing your product’s superior features or value. 

 

4. Sponsored Brand Campaigns for Enhanced Visibility 

Insight: Sponsored Brand campaigns, especially those featuring videos or headline ads, can significantly boost brand visibility and product recognition. These campaigns require brand registry but offer valuable opportunities for storytelling and capturing customer attention. 

Actionables: 

  • Register Your Brand: Ensure you have brand registry on Amazon to access Sponsored Brand campaign options. This opens up additional advertising opportunities and access to advanced analytics. 

  • Develop Engaging Ad Content: Create visually appealing ads with compelling copy. If using video, focus on demonstrating the product’s benefits within the first 5 seconds to capture attention. 

  • A/B Test Creative Elements: Regularly test different versions of ad copy, images, and videos. Analyze which elements drive the highest engagement and conversion rates, and refine your ads accordingly. 

Incorporated Details: 

  • Utilizing Sponsored Brand Video: With Amazon’s sponsored brand video campaigns, it's critical to create hard-hitting videos that grab attention within the first 5 seconds. Use clear subtitles and straightforward visuals to showcase the product effectively without relying on audio, as users often view ads with sound off. Regularly test different styles and messages to optimize engagement. 

 

5. Sponsored Display Campaigns for Broader Reach 

Insight: Sponsored Display ads appear on and off Amazon, helping to retarget potential customers who have previously viewed your products or similar ones. This campaign type can effectively increase brand recall and drive conversions among high-intent audiences. 

Actionables: 

  • Leverage Retargeting: Use Sponsored Display campaigns to retarget users who have shown interest in your products or visited your product listings. Customize the ads to highlight unique features or offers that might entice them back. 

  • Optimize Ad Placements: Monitor where your ads appear (e.g., under the buy box, next to competitor listings) and adjust placements based on performance data to maximize visibility and conversions. 

  • Test Different Audiences: Experiment with targeting different audience segments, such as those who have purchased similar products or shown interest in related categories. This can help you find the most receptive audience for your ads. 

Incorporated Details: 

  • Display Ad Positioning: Focus on ad placements directly under the buy box or within competitor listings. Ads placed here can capitalize on immediate purchasing decisions by highlighting superior features or deals. Continuously monitor performance and refine ad copy or placement based on data trends. 

 

6. Advanced Bid Strategies for Maximum Efficiency 

Insight: Precise bid adjustments are crucial for maximizing profitability. Finding the sweet spot for each keyword or product can significantly impact your campaign’s effectiveness, particularly in competitive niches. 

Actionables: 

  • Bid Adjustment Testing: Continuously test different bid levels for your keywords and products. Look for the optimal bid range where conversion rates are high, and ACoS is within acceptable limits. 

  • Automated Bid Management: Consider using Amazon’s dynamic bidding strategies or third-party tools that automatically adjust bids based on real-time performance data. This can help you stay competitive without manually managing every bid. 

  • Monitor Competitor Bids: Keep an eye on competitor bidding strategies. If competitors are aggressively bidding on specific keywords, evaluate if matching their bids is worthwhile or if focusing on long-tail or less competitive keywords is more cost-effective. 

Incorporated Details: 

  • Finding the Bid Sweet Spot: As noted, there’s often a specific bid range where a keyword performs optimally. For example, a keyword might convert well at bids between $0.70 and $1.00, but poorly at higher bids. Regularly test and adjust your bids to find this optimal range, which can vary significantly based on the competition and product category. 

 

7. Advanced Sponsored Brand Video Campaigns 

Insight: Sponsored Brand video campaigns are gaining popularity due to their engaging format. They allow you to convey more information in a shorter time, capturing attention quickly in a crowded marketplace. 

Actionables: 

  • Create Short, Impactful Videos: Develop videos that showcase your product’s key features and benefits within the first 5 seconds. Use captions and simple visuals to communicate effectively, even without sound. 

  • Test Different Video Styles: Experiment with various video formats, such as product demonstrations, customer testimonials, or animated explainer videos, to see which resonates best with your audience. 

  • Optimize Video Placement and Bids: Test different placements for your videos within Amazon’s search and product pages. Adjust bids based on the performance of each placement to ensure your videos are seen by the right audience. 

Incorporated Details: 

  • Quick-Hitting Visuals: Your videos should quickly demonstrate how the product works and why it's beneficial. Start with strong, impactful visuals within the first 5 seconds to capture attention immediately. Make sure all key points are clear without sound, using concise subtitles and engaging imagery. 

 

8. Sponsored Brand Campaigns and Retargeting for Long-Term Gains 

Insight: Sponsored Brand campaigns can also be used strategically for long-term benefits. While they may not always show immediate profitability, they can help improve TACoS by increasing visibility and overall sales volume. 

Actionables: 

  • Use High-Visibility Ads Strategically: Even if the initial ACoS is high, consider the long-term benefits of increased brand exposure and sales volume. This is especially effective in competitive categories where maintaining visibility is key to driving overall profitability. 

  • Retarget with Display Ads: Sponsored Display ads are perfect for retargeting customers who have viewed your products but did not purchase. This keeps your products top-of-mind and can drive repeat traffic to your listings. 

  • Monitor Long-Term Impact: Evaluate the overall impact on TACoS and organic ranking, not just short-term profitability. Sponsored Brand campaigns often help lift the visibility and conversion rates across your entire product line. 

Incorporated Details: 

  • Strategic Sponsored Brand Use: As mentioned, you might sometimes run Sponsored Brand campaigns at or even above break-even points to maintain visibility and improve organic rankings. This strategy can help increase overall product performance and drive down TACoS over time, even if individual campaign profitability is not immediately evident. 

THE TOP 1%

6 REASONS WHY FOUNDERS ARE SUCCESSFUL

1

Masters of Action

Successful founders take immediate action on their goals and understand that an imperfect plan executed today is better than a perfect plan executed next week. They also know when to offload tasks to experts, ensuring swift and effective product launches.

2

The Heroes of Their own Story

Product founders understand that their fate is in their own hands. They take ownership of their vision, defining their values, recognizing their strengths, and overcoming obstacles. They also recognize those that can help them bring their vision to life.

3

Dedicated to the Customer

At their core, product founders aim to change lives, help people, and create transformative products. It is a responsibility of the founder to get their product in front of their customers because they genuinely believe it will change lives for the better.

4

Lifelong Learners

There is no room for ego in the journey of a successful product founder. To stay on top of industry trends and best practices, they continually grow, accept feedback, and leverage the expertise of others, just as their customers trust in their products.

5

Hungry for Growth

Successful product founders are proud but never satisfied. Once they reach a goal, they are already looking ahead to what’s next. They are always looking for new ways to improve their customers lives.

6

Expert Communicators

Tough conversations are second nature for successful product founders. They say what needs to be said without sugarcoating. They know that clear communication with their team is key to driving valuable feedback and achieving mutual success.

About Us

HOME AND KITCHEN LAUNCH

Tendi is a movement for all product founders to reach more customers, transform lives, and build wildly successful businesses.

Founded by industry experts, we've partnered with over 200 product launches, creating numerous million-dollar success stories and helping tons of founders achieve significant revenue growth. We've accomplished this through our proprietary operational and marketing model tailored for Amazon success.

$10M+

Amazon Revenue

200+

Products Launched

10+

Years of Experience

Want to take your PPC Strategy to the Next Level?

By integrating these advanced PPC strategies into your campaigns, you can refine your approach, optimize your budget, and increase your overall profitability on Amazon.

Whether you’re looking to improve your TACoS, enhance brand visibility, or dominate your niche, our expert team is here to help you succeed.