• Home
  • |
  • Blog
  • |
  • Amazon PPC Optimization: Simplifying Amazon Ads with the 80/20 Rule

March 20, 2024

Amazon PPC Optimization: Simplifying Amazon Ads with the 80/20 Rule

E-commerce brand owners, are you tired of pouring money into Amazon PPC ads without seeing the results you desire? If you’re looking to scale your brand on a tight budget, then the 80/20 rule is your key to success. In this comprehensive guide, we’ll unveil the secrets of Amazon PPC optimization using the Pareto Principle, a powerful strategy that allows you to focus on the 20% of your efforts that generate 80% of your result.

[00:00:00] Helping those in need worldwide.
[00:01:15] Introducing e-commerce expert Dr. Travis Zigler.
[00:03:37] Journey from optometrist to entrepreneur.
[00:04:48] Focus on top-performing products.
[00:14:47] Sponsored products key for growth.
[00:15:07] Sponsored Brand Video boosts brand, costly; Sponsored Products more economical.
[00:15:42] Master Sponsored Products for PPC.
[00:16:04] Amazon values conversion rate, sales velocity; prioritize high-converting keywords.
[00:17:10] Apply 80/20 rule to search terms; emphasize top-performing keywords.
[00:18:56] ACoS is a metric; prioritize sales, profit, TACoS.
[00:21:00] High ACoS can boost rank, profit.
[00:22:28] High ACoS but high conversion.
[00:23:21] Focus on profit, sales, not just ACoS.
[00:23:55] Prioritize profit over revenue; eliminate ineffective strategies.
[00:28:00] Start with small tests; scale winners with bids, budgets.
[00:32:09] Offer product variations; advertise aggressively.
[00:36:45] Focus on profits, streamline operations.

Who is Travis Zigler?

Our guide is led by Travis Zigler, a PPC specialist with a proven track record of exceeding sales goals. Travis has a unique background in optometry, and after establishing a successful private practice, he leveraged his entrepreneurial spirit to build a thriving brand focused on dry eye relief products. Through strategic planning and a data-driven approach to PPC, Travis achieved a successful exit from his company, setting his sights on empowering other e-commerce businesses to achieve similar feats.

Who is Travis Zigler?

Our guide is led by Travis Zigler, a PPC specialist with a proven track record of exceeding sales goals. Travis has a unique background in optometry, and after establishing a successful private practice, he leveraged his entrepreneurial spirit to build a thriving brand focused on dry eye relief products. Through strategic planning and a data-driven approach to PPC, Travis achieved a successful exit from his company, setting his sights on empowering other e-commerce businesses to achieve similar feats.

The Pareto Principle Applied to Amazon PPC

The Pareto Principle, also known as the 80/20 rule, is a fundamental principle that applies to various aspects of business, including Amazon PPC. In essence, this rule states that roughly 80% of your results will come from 20% of your efforts. By identifying and focusing on the top 20% of your products, keywords, and ad campaigns that drive the most sales and conversions, you can significantly improve your PPC performance.

Why Sponsored Products Should Be Your Focus

Many sellers mistakenly spread themselves thin across all of Amazon’s PPC ad formats. However, the Pareto Principle suggests that Sponsored Products ads should be your primary focus. Sponsored Products ads display your listings directly on Amazon product search results pages, putting your products in front of high-intent buyers who are actively searching for products like yours. This targeted approach not only increases your sales and profitability but also boosts your organic ranking by Amazon’s A9 algorithm, which rewards products with a strong click-through rate and conversion rate.

The 80/20 of the A9 Algorithm

Understanding how the A9 algorithm prioritizes product listings is crucial for optimizing your PPC campaigns. The A9 algorithm prioritizes two key metrics: conversion rate and sales velocity. Conversion rate refers to the percentage of visitors to your product listing who make a purchase. Sales velocity is the rate at which your products are selling. By focusing on keywords that generate high conversion rates and sales velocity for your top-performing products, you’ll not only improve your ranking for those specific keywords but also for related keywords.

Moving Beyond ACoS: Focusing on the Right Metrics

Many sellers fall into the trap of obsessing over Advertising Cost of Sale (ACoS), a metric that represents the advertising cost per sale. While ACoS can be a useful metric in certain contexts, it shouldn’t be the sole factor guiding your PPC decisions. The 80/20 rule emphasizes focusing on the bigger picture, including overall sales, profit, and Total Advertising Cost of Sale (TACoS). TACoS takes into account all of your advertising expenses across various channels, providing a more holistic view of your advertising spend.

The Profitability Paradox

Many e-commerce sellers prioritize revenue growth over profitability. However, this approach can lead to a business model that isn’t sustainable in the long run. The 80/20 rule encourages you to prioritize profit by focusing on campaigns and keywords that generate the highest return on ad spend (ROAS). Travis Zigler shares a powerful example from his own experience, where he was able to significantly increase his client’s sales and profits by cutting unprofitable ad campaigns, even though it resulted in a decrease in overall ad spend.

Keyword Targeting with the 80/20 Rule

The traditional approach to keyword targeting involved casting a wide net and hoping some keywords would stick.

The Pareto Principle, also known as the 80/20 rule, is a fundamental principle that applies to various aspects of business, including Amazon PPC. In essence, this rule states that roughly 80% of your results will come from 20% of your efforts. By identifying and focusing on the top 20% of your products, keywords, and ad campaigns that drive the most sales and conversions, you can significantly improve your PPC performance.

Why Sponsored Products Should Be Your Focus

Many sellers mistakenly spread themselves thin across all of Amazon’s PPC ad formats. However, the Pareto Principle suggests that Sponsored Products ads should be your primary focus. Sponsored Products ads display your listings directly on Amazon product search results pages, putting your products in front of high-intent buyers who are actively searching for products like yours. This targeted approach not only increases your sales and profitability but also boosts your organic ranking by Amazon’s A9 algorithm, which rewards products with a strong click-through rate and conversion rate.

The 80/20 of the A9 Algorithm

Understanding how the A9 algorithm prioritizes product listings is crucial for optimizing your PPC campaigns. The A9 algorithm prioritizes two key metrics: conversion rate and sales velocity. Conversion rate refers to the percentage of visitors to your product listing who make a purchase. Sales velocity is the rate at which your products are selling. By focusing on keywords that generate high conversion rates and sales velocity for your top-performing products, you’ll not only improve your ranking for those specific keywords but also for related keywords.

Moving Beyond ACoS: Focusing on the Right Metrics

Many sellers fall into the trap of obsessing over Advertising Cost of Sale (ACoS), a metric that represents the advertising cost per sale. While ACoS can be a useful metric in certain contexts, it shouldn’t be the sole factor guiding your PPC decisions. The 80/20 rule emphasizes focusing on the bigger picture, including overall sales, profit, and Total Advertising Cost of Sale (TACoS). TACoS takes into account all of your advertising expenses across various channels, providing a more holistic view of your advertising spend.

The Profitability Paradox

Many e-commerce sellers prioritize revenue growth over profitability. However, this approach can lead to a business model that isn’t sustainable in the long run. The 80/20 rule encourages you to prioritize profit by focusing on campaigns and keywords that generate the highest return on ad spend (ROAS). Travis Zigler shares a powerful example from his own experience, where he was able to significantly increase his client’s sales and profits by cutting unprofitable ad campaigns, even though it resulted in a decrease in overall ad spend.

Keyword Targeting with the 80/20 Rule

The traditional approach to keyword targeting involved casting a wide net and hoping some keywords would stick.

Related Posts

Buying a Business Step 1: Decide

Buying a Business Step 1: Decide

Dominate Your Amazon Launch: The $30K in 8 Weeks Influencer Strategy

Dominate Your Amazon Launch: The $30K in 8 Weeks Influencer Strategy

Why Influencer Marketing Beats Amazon Ads Every Time

Why Influencer Marketing Beats Amazon Ads Every Time

E-commerce Empire or Epic Fail? Is Buying a Business Right for You?

E-commerce Empire or Epic Fail? Is Buying a Business Right for You?

Michael Veazey


Your Signature

Leave a Reply


Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}