How do you improve advertising conversions with low-budget campaigns?

A common question bothers not only one or two Sellers when they start their Amazon journey. Even though this method is not very scalable and doesn’t work for a long period, let’s take a closer look at the topic. Obviously, you must optimize your Product detail page (PDP) to increase your overall conversions.

But if you want to focus on traffic conversions, you have to:

• rank higher;
• advertise on Top-of-search (ToS) – 2nd or 3rd position preferably. This will help you achieve the highest Click-through-rate (CTR) and conversions. 
• utilize Sponsored Brand exact match Top-of-Search placement on your best converting advertised long tail keywords.

Why is low budget – high CR advertising not so scalable?

Because you are targeting only long-tail keywords (KWs). They are very specific to your product and do not necessarily have a high volume. You will most likely have a lower bid and Cost-per-click (CPC) but relatively high placements.

Bear in mind you will need to test a range of max bids. If your set max bid is too low, it wouldn’t even be detected by Amazon’s radar to increase the bid to the ToS.

It would be best if you found the right balance between the long-tail KWs, the smallest possible “maximum bid,” and ToS placements. Then, you can reach higher conversions and low fees campaigns. This way, 80%-90% of your traffic to that campaign should come from the ToS.

BONUS tip: Try tracking the Sponsored placements hourly and shoot for the 2nd or 3rd position. You can use different KW trackers for this purpose.

If you notice that your KWs are advertising at the 1st position, in most cases, you are overspending. In terms of results, we didn’t find a noticeable difference between 1st and 2nd/3d placements. But in terms of price – the gap here is significant. In several cases, when we test it, the cost to reach the 1st position is 30% higher than the 2nd one.

What is your strategy when you work with an already-launched product and a low advertising budget? Let us know below!