How to Maximize Amazon Listing Optimization to Minimize PPC Spend

Intellivy-Amazon-Listing-PPC-Spend

Navigating the Amazon eCommerce landscape as a seller can feel like the Wild Wild West with plenty of obstacles in an ever-changing environment. Whether it’s rising competition, algorithm changes, or additional fees, Amazon sellers are continually having to navigate a competitive marketplace. One of the most frustrating changes is mounting PPC (pay-per-click) expenses. While ad spend is an effective way to increase visibility and maximize reach, it’s no doubt a costly one.

Intellivy Survey Amazon PPC Spend

Like countless other sellers, you may find yourself grappling with the daunting task of balancing the escalating expenses of PPC (pay-per-click) advertising against other essential budgets. In a recent survey conducted by Intellivy, a staggering 73.3% of Amazon sellers revealed that they are losing sleep over the mounting PPC spend. We understand the struggle all too well. Another survey found that the average advertising cost of sale (ACoS) has grown from 22% to more than 30% since 2020, and it doesn’t seem to be slowing down anytime soon.

Although it may appear that the marketplace is evolving into a pay-for-play environment, demanding a larger share of your bottom line, there are a number of strategies that can help mitigate those PPC costs and make them work for your listing. Among them, optimizing and regularly refreshing your listings based on real-time data is a key tactic to ensure your advertising spend effectively targets the right audience and your organic reach is successful. Surprisingly, nearly 65% of those Amazon sellers surveyed by Intellivy survey are failing to prioritize listing refreshes. 

This oversight might feel small, but optimizing your Amazon listing can have profound implications on lowering your overall ad spend while still increasing your seller success and traffic to your listing. Let’s walk through why that is and how to make the most of your optimization strategy.

Your Amazon Listing Optimization Strategy Impacts Ad Spend

There’s a delicate balance when it comes to ad spend on Amazon listings, and it’s one that can feel overwhelming. A well-optimized listing is geared for Amazon search engine optimization (SEO) through strategic keywords, compelling copy, and high-quality visuals. Together, these elements make your listing relevant for the right searches and can appeal to your intended audience. It’s a ripple effect that can positively influence your overall PPC spend. 

Listing optimizations not only strengthen your organic ratings, but it also sets up your PPC campaigns for success. By effectively reaching your targeted audience, you’re more likely to experience higher click-through rates (CTRs) and conversions (CVRs), which means you’ll rely less on paid advertising to get in front of those audiences. 

  1. Higher Organic Visibility Means Less Reliance on Paid: Every seller aspires for their listing to rank among the top results when relevant keywords are searched on Amazon. While PPC campaigns can help, prioritizing organic visibility is a powerful long-term strategy. Well-optimized listings have a greater likelihood of being discovered by potential customers without the need for heavy ad spend. This might include optimized product titles, strong descriptions, and enhanced imagery. 
  2. Improved CTR and CVR Lowers Cost-Per-Click: Whether through paid or organic means, a high click-through rates (CTR) and conversion rates (CVR) is essential for e-commerce success. Engaging imagery and persuasive descriptions are the touchpoints that customers see first, influencing their decision-making process and desire to select your listing over others. Ultimately, these factors determine whether they make a purchase or not. As the CTR and CVR increase, the cost-per-click (CPC) can begin to decrease, meaning cost savings for you over time.
  3. Increased Quality Score on Amazon: Amazon’s algorithm assigns a Quality Score to listings, a metric that greatly impacts the visibility and effectiveness of your ads. The higher the score, the more relevant search intent is paired with your listing. Amazon offers lower CPC bids to accounts that have higher Quality Scores, which can decrease you on overall ad spend. 

How Often Should I Optimize My Amazon Listing? 

As previously highlighted, Amazon’s dynamic nature necessitates a proactive approach to listing optimizations. And still, while more than 73% of those surveyed know that rising PPC costs are a concern, nearly 65% of them aren’t focusing on optimizations. The solution? Our team of experts strongly recommend optimizing your listings weekly to stay ahead of consumer behavior and marketplace changes. This proactive strategy positions your listing to respond to emerging trends and data insights. 

Regular listing optimization also will continue to provide you with timely data insights, allowing you to experiment with listing elements and stay ahead of the trends. Embracing real-time data insights allows you to gradually reduce your reliance on excessive PPC campaign spend, maximizing the efficiency of your advertising. 

Here are some best practices to keep in mind along the way:

  • Consider Seasonality: Trends and holidays tend to guide shopping spikes so consider updating your listing for those popular times. This could include new imagery for gifting season or highlighting promotional holiday sales.
  • Strategically Audit: Weekly optimizations are essential, but we also recommend conducting a full listing audit at the top of each month to ensure you’re aligned with your goals. It’s a great time to determine if you need new imagery, want to revisit pricing, or revamp your descriptions. 
  • Remain Flexible: Algorithm changes and new policies are par for the course on Amazon. Stay ahead of impending updates so your listing is best positioned for them. Having flexibility to adapt to these changes will continue to provide you with a competitive edge. 

Which Amazon Listing Optimizations Should I Make?

The good news is you don’t have to know!  While reviews and audience data provide valuable insights for what appeals to your desired consumer, many Amazon sellers aren’t asking their customers the right questions. Enter Intellivy, an Amazon Market Simulation platform that offers visibility into what your consumers really think about your products, listings, and positioning. Intellivy provides you with a pool of 28 million consumers offering real-time feedback on your listing. Real customers mean really great insights you can utilize. These tools mean there’s no need for guesswork or relying on chance for success. Intuition is great, but Intellivy is fool-proof. 

5 Essential Polls for Optimizing Your Amazon Listing

Amazon optimization polls are indispensable tools in your listing arsenal, offering valuable insights and harnessing the power of real consumer preferences. Intellivy’s not only shares consumer results, but also easily breaks them down into a SWOT analysis, suggestions for improvement, and recommendations for how to beat competition. 

Here are five invaluable polls that will help guide you in your listing optimization journey:

  1. Purchase Barrier: Ever wonder what might cause a potential customer to hesitate before checking out? This poll provides clarity into possible objections as to why someone might not buy your product. You’ll be able to take that feedback and adjust with actionable solutions.
  2. Marketplace Poll: Create a simulation that compares your listing to competitors and see which one they would buy and why. This poll is a great way to test your listing without having to spend on ads. 
  3. Image Stack: The right imagery on an Amazon listing is invaluable. Does your customer want to see a lifestyle image of the product in use or detailed shots of the product itself? In this poll, consumers will pick their most and least favorite image that would entice them to make a purchase and share why.
  4. Competitive Comparison: Compare various image options for your block imagery against top competitors. Consumers will select their preferred image and share valuable feedback as to how you could improve the presentation.
  5. Ranking Comparison: Better understand which images should be placed first on your listing and understand the reasoning through a best-to-worst ranking feedback system. The result? Know which images are resulting in higher conversions.
  6. Dual Comparison: A simple A/B test approach that compares two listing or image options. Your poll insights will highlight what consumers care most about, whether it’s keywords, imagery, or options for customization. 

In the ever-changing landscape of Amazon, proactive strategy and continuous listing optimization tailored to your ideal consumer are pivotal for achieving profitability. Intellivy offers sellers a comprehensive solution, capturing data-driven insights, competitive analysis, and listing optimizations. Tailored specifically for Amazon sellers, our platform empowers you to make informed decisions, optimize ad spend, and stay ahead in the dynamic realm of Amazon.