Setting Up Amazon Automatic Campaigns

The purpose of setting up Amazon automatic campaigns is essentially to delegate the keyword selection process to Amazon. By simply providing the advertising budget, Amazon’s system selects keywords based on its own algorithms. The keywords chosen by Amazon come from your product listing and search terms, meaning the effectiveness of automatic campaigns is closely tied to the quality of your listing.

How to Use Automatic Campaigns?

Automatic campaigns are generally used when launching new products. Once the automatic campaign is activated, Amazon will select and categorize keywords. This process allows automatic campaigns to serve as a valuable keyword pool, from which you can select high-performing keywords to include in manual campaigns.

To filter keywords from automatic campaigns, you can refer to the Search Term Report in your Amazon Seller Central backend. By analyzing metrics such as impressions, clicks, and conversion rates, you can evaluate the performance of keywords.

1.Detecting Errors in Listings:

  • Method: Download the Search Term Report, filter for automatic campaigns, and review the Customer Search Terms. If the majority of customer search terms are irrelevant to your product, it indicates poor keyword relevance. This means your product may appear in unrelated product listings under the "Sponsored products related to this item" section. In such cases, check for errors in search term settings and optimize your listing, ensuring core keywords are relevant to your product.

2.Selecting High-Performing Keywords:

  • Criteria: Use impressions, clicks, conversion rate, and ACoS (Advertising Cost of Sales) to evaluate keywords. Prioritize impressions and clicks first, followed by conversion rate, and finally ACoS. Keywords that meet these criteria can be considered for manual campaigns.

3.Applying the 80/20 Rule:

  • Concept: According to the Pareto Principle, 20% of your efforts generate 80% of the results. Identify the top 20% of SKUs and keywords that drive the majority of your sales and focus on promoting these, while deprioritizing less effective SKUs and keywords.
  • Method: To identify these SKUs, compare daily data for each SKU, including impressions, clicks, click-through rate, ad spend, sales revenue, conversion rate, and order quantity. This will highlight the top-performing SKUs.

Similarly, to find the top 20% of keywords, use automatic campaigns to filter keywords and optimize your listings. Then, use manual campaigns to filter SKUs and track keywords. The goal is to minimize costs and maximize profits.