What is an Automatic Advertising Campaign? In this method, Amazon targets advertisement to all relevant customer searches based on the information of the product. This is the easiest option for an Ads Campaign, which, nevertheless, can be very effective for increasing sales. And after recent updates to Amazon Sponsored Brands, you can set up such an Ad Campaign with higher accuracy. This will save you from misuse of the budget and lead to an increase in brand recognition and direct sales of goods.

The most important feature of an Automatic Advertising Campaign is that it helps to figure out whether Amazon understands/sees your listing. If Amazon shows your Ads on irrelevant search terms, then you have incorrectly filled out the listing.

Automatic Ad Campaign works by enabling sellers to choose their budget allowing Amazon to go to work and find keywords automatically. Amazon searches for matching keywords by product category, related products, as well as keywords in the product’s descriptions.

Pros

• This Amazon Advertising Campaign is easy to set up, most notably for those who are new to Amazon PPC.
• You don’t need to do the homework for the bidding of keywords or keyword research to determine the most relevant Amazon SEO keywords.
• This helps you to determine the long-tail search phrases for your future campaigns that are relatively hard to research even with the help of the most effective Amazon keyword tracking tool.

Cons

• Product page rank isn’t optimized based on the profitability and relevance of the Amazon SEO keyword. The fact that you don’t have control over the bids, your bid is similar for keywords that convert high, non converting, and low converting keywords.
• Amazon defines the search phrases/terms for which the product should be displayed, and this is not always profitable for you.
• Amazon sometimes shows Ads by irrelevant search terms.

How to Set Up an Automatic Advertising Campaign?

Sign in to Seller Central Account. On the homepage of your account, go to Advertising and then click Campaign Manager.

On the CM page, you will be prompted to set your budget for the campaign and the time or duration. This is relatively basic. If you have entered the information, click Continue.

You will select which product you want to advertise. You can select one item for every campaign.

After you have completed the information, you will be taken back to the Campaign Manager, where you will be informed that you have been done it successfully.

Amazon Sponsored Products Ads Update

Recent Amazon updates have allowed sellers to set up an Automated Ad Campaign more precisely. In this case, you do not need to dive into the configuration processes significantly. Amazon will continue to offer keywords that are most relevant to your product based on the listing and adjust the coding of impressions based on the selected bid. However, you have more control over this now.

Adjust your bid based on how closely your keywords fit your product and optimize your Ad Campaign in this way. Four options are available:

1. Close match.
2. Loose match.
3. Pages of those products that complement your product.
4. Pages with products similar to yours (for example, pages with products of your competitors).

The first two options relate to your product and allow you to enable/disable the display of Advertisements when the keywords exactly/not exactly match your Ad. Two other options are product-based targets and allow you to enable/disable Ads on product pages that complement your product or are its analogs.

How to Calculate the Cost of the Automatic Advertising Campaign?

Advertising cost of sales is the fraction of direct sales a seller made from Sponsored Products advertisements, or the whole brand sales made from Sponsored Brands, which resulted from an Ad Campaign. It's calculated by dividing the total advertising cost spend by the total sales from the Ad.

ACoS = total Advertising cost spend / total Advertising sales x 100.

Like for instance, once you spent $340 on ads and those Advertising leads to sales of $598, the ACoS would be 56,86%.

The minimum bid for every keyword is $0.02, and also there are just two keyword match-types that are supported for headline search Ads - phrase and exact match.

For any campaign, the budget is set for the day. There is no general minimum budget.

How to Reduce the Cost?

To optimize Advertising costs, you need to download an Advertising report after a while and find out Amazon keywords that are irrelevant. These keywords eat up the budget, so they need to be added to negative targeting.

Amazon bidding computation:

Average Order Value x Conversion Rate x Target ACoS = Your target CPC.

Conclusion

Creating an Amazon Advertising Campaign can help your products to attract targeted exposures. Setting up an Amazon PPC campaign is just the beginning of your journey to successful marketing in this leading online marketplace.