HOW TO OPTIMIZE YOUR AMAZON PPC ADVERTISING CAMPAIGNS | 3 HACKS YOU NE #Best Education Page #Online EarningED + STEP BY STEP WALKTHROUGH

what is up ninjas welcome to part 2 of

the PPC collaboration with jungle scout

and that lifestyle ninja today we are

going to go over Gregg shoulder and

watch him optimise the PPC campaigns

that we created on the jungle Scout

Channel last week so if you haven't

checked out part 1 make sure you head

over to the jungle Scout YouTube channel

to see us create a PPC campaign from

scratch so Gregg welcome we are very

excited to watch you optimize these

campaigns Kevin thank you very much for

having me I don't want to waste any time

so let's dive right in so if you guys

saw part one which I encourage you to

watch Kevin set up these campaigns

they've been running for 8 days now and

we've starting to get some data which is

really good so I'm inside my seller

central account I'm going to go in dirt

izing campaign manager and this is where

all of the PPC campaigns live and you

can see we have a number of them down

here real quick I'm just going to search

to make sure we're only looking at the

ones that we set up last week our 8 days

ago and as you can see we start or

starting to have some good data here in

the date range column I do have October

11th through the 19th those were are the

dates worth of data that we have so far

and just as a reminder it says it's

somewhere in here I think it's here but

the sales can take up to and normally do

take up to 48 hours to show so right now

I had the date selected as yesterday but

this is really they're really probably

not showing sales unless they happened

on the 18th October 18th okay so listen

point let me let me just really watching

right because a lot of times my students

will come to me and they'll say hey you

know I've spent $100 $500 on PPC but I

have zero sales right so it's very

important what Gregg just said I want to

reiterate it it does take up to 48 hours

for sales data to actually propagate and

show in your PPC dashboard so you know

if you are seeing some spin and you're

not seeing sales and you've only waited

like two days give yourself a little bit

more time so it's really important point

to show that it doesn't actually show up

for up to 48 hours yeah it's a really

good point real quick let me just walk

you through what we're looking at here

even though I know a number of you guys

already know it obviously the campaign

names that we set up they're all

this our manual and automatic campaigns

we had a pretty aggressive daily budget

because we knew we wanted to record this

video eight days later and we wanted to

make sure there was plenty of impression

so if you get some good data so you can

see how we optimize it you don't have to

set your budgets as high but the

impressions this is how many times these

ads were shown on results of pages

almost a quarter million times which is

a lot this is how many times people

clicked on them which in return this

that means how much we get billed of

course our spend the CTR is the click

through ratio the CPC that's the cost

per click so each time someone clicks on

an ad an act like in this campaign we

got billed 68 cents how many orders

we've had from it so 120 orders from PPC

and only eight days which is pretty dang

good and of course how many sales in our

overall eight cost the a cost is the

advertising cost of sale so just to make

number is easy here if my product was

selling for $10 and a cost of 31.7%

would be three dollars and seventeen

cents so 31% of that the revenue is what

the advertisement cost me sorry

advertising and loss of sales what that

stands for

a cost I'm just like kind of a simple

way that I like to remember it is

basically let's say you have a product

and you have a 50% profit margin right

so if you're a cost is 50% that means

that you're using 100% of your profit

margin to make that sale on PPC right so

you want your a cost generally to be a

little bit lower or preferably a lot

lower than your profit margin yeah and

real quick let's just talk about how to

figure out on your break-even a cost all

right let me zoom in to make sure you

guys can see this well but what I'm

talking about here is at what point does

the eight costs is it profitable for us

and what point are we losing money on

each PPC sale from it okay so the my

item right now is selling for $21.95 all

right the landed cost for this product

into Amazon is four dollars and forty

cents

and the Amazon fees through this product

it's pretty big it's pretty heavy I know

I looked it up before this or $10.90

okay so this means my profit is my

revenue - my landed costs - my Amazon

fees before PPC every time I sell them

these products on Amazon and make $6.65

okay so to figure out our break-even a

cost what we can do is we can divide our

profit pre-pre PPC divided by our

revenue and this gives us a percentile

here so just that's right you guys are

all do this let me do x 100% to make

sure that this a little bit easier for

you guys so our break-even a cost for

this particular product is 30% all right

Kevin does that make sense how you

figure this out

it doesn't make sense could you could

you just maybe explain a little bit um a

little bit deeper how you get that 4.4

what does landed cost mean for people

who are watching and they don't

necessarily know what that is yeah

absolutely

the cost to manufacture my product is

about three dollars okay so I pay the

factory about three dollars for my

particular product that being said

that's just what it costs to get it made

I also need to get it to Amazon's

distribution center so for this last

shipment you know I think I said it's

about two thousand units I paid the

factory like three dollars but then per

unit cost me about a dollar and forty

cents to get my product from the factory

to Amazon's distribution center so it

cost me four dollars and 40 cents to get

one of these units to Amazon's

distribution center a lot of people say

like well you're forgetting about photos

or anything else and it's like well for

me personally how I like to think about

it's like I've sold fifteen or twenty

thousand of these now if you're

factoring in the cost of what my photos

for two hundred dollars cost me at the

very beginning we're talking about

probably a fraction of a penny now so I

don't even worry about that but if it

makes you feel better you know feel free

to factor in a little bit of those

into the landed cost if you'd like right

and then how so how are you how are you

getting those Amazon fees to have you do

use the FBA fee calculator or what's

your method for finding that number you

can use the Amazon FBA fee calculator it

has been known to be a little bit

unreliable you can also get Amazon fees

from the jungle scout extension of

course or you can go into the into

inventory and go to manage FBA inventory

and right there it shows you what the

fees are for your particular product so

that was me that would be the pick pack

ship with the commission and that would

not include any long-term storage fees

if you know they end up sitting around

for a while but for this method I think

you know I don't want to over complicate

it and this is all how I always do it so

I think for as far as figuring out your

breakeven a cost since it's a little bit

of just like a rough number that you're

looking for anyway I think this is gets

you close enough definitely alright so

we know our break-even a cost this point

is 30% so let's go back real quick and

look at our campaigns so real quick I'm

looking at this top one let me zoom in a

little bit I know sometimes hard for

some of you guys to see

I guess that cut it off that's right so

the a cost for this top one is forty

eight point four percent all right so

they cost a hundred dollars right then

we can do this math really easily that

means it was a hundred dollars would

cost me forty eight dollars worth of PPC

clicks to make one sale all right same

thing if we go back with my profit

margins for my jungle Stakes at that

point it would be let's just say thirty

dollars worth of profit so I would have

lost eighteen dollars on that particular

sale all right right the one below it

this is twenty one point five percent

which is below my breakeven a costs of

thirty percent so I made a little bit of

money on each of these even after paying

for the clips what we're gonna do a

little bit later on this episode we're

gonna optimize these campaigns so that

we can get all of our a cost levels down

below or at my break-even point and

we'll talk a little bit about the

strategy of what you want to do that

we'll do that a little bit later because

yes sometimes you it is worth it to

spend right at the break-even or even a

little bit higher because Amazon rewards

higher sales velocity with higher

organic search rankings so it may be

worth it to lose a little bit of money

on PPC sales in return for higher

organic rankings but before we dig into

that too much deeper I want to download

something called the search term report

for you guys show you how to use it and

how it's super valuable for us so to get

there the easiest way that I always do

is just click on add reports it's in the

top right hand side of this particular

screen there's on the top line right

here there's a number of different

reports by default and shows up the

campaign performance report but I'm

gonna click over to the search term

report and then if you don't have them

scheduled automatically which you can do

with this edit button you'll have to

request the report and it takes about

like 10 minutes for Amazon to generate

this report so you guys don't have to

wait I went ahead and download this

right before we started and what we're

gonna do I'm gonna open up I said I'm

just gonna go ahead and delete this oops

we're gonna go ahead and delete all this

we can remember that it's 30% and in

order to manipulate this spreadsheet or

it's not even a spreadsheet this file

that I download from Amazon I'm gonna

use Google Docs so if you guys aren't

familiar or Google sheets it's low just

like Microsoft Excel it's totally free

this I prefer to use it because everyone

can access it and actually I like it a

little bit better so just search just

Google for Google sheets if you haven't

used it before and you can pull it up or

of course you can recreate this and

Excel as well so the search term report

that you download from Amazon is a txt

file which isn't very user friendly

however Google Docs does a good job

about turning the will call them columns

into the txt file the txt file into a

spreadsheet format which is much easier

to manipulate so I'm gonna click on file

I'm gonna go to import I'm going to

click on upload on the top select a file

from my computer

and select the search term report that

you just downloaded it will take a

second to upload it I usually select the

replace current sheet and under

separator character just leave default

by for detect automatically and one

little note guys is some people I've

found that my students and myself

included actually you it's it's

sometimes you can't download the search

for me part look the search term report

using the Google Chrome browser so if

you are getting errors I get errors all

the time trying to download the search

term report and it's the most important

report Amazon gives you by far in my

opinion for your whole business right if

you are getting errors in the Google

Chrome browser try Safari or Firefox as

I sometimes I have to use a different

browser to download it so make sure that

you're not you know letting that air

stop because you definitely need to be

using this report to you know make your

business more profitable and I'm gonna

walk you through all the columns in this

report but before we do that I just want

to make it a little bit easier to

manipulate so as you can see Google

sheets did a good job of splitting up

this text file into correct columns

however before we go any further I'm

just gonna click on Row 1 I'm gonna

click on the data drop down I'm gonna

select filter if you've never used the

filter function before in Google sheets

or Excel I would highly recommend it it

makes it much easier to work with these

spreadsheets because now what we can do

is we can click on this little funnel

looking button and we can create

different filters in here so we can

filter by a certain condition or an

easier way to do it is just to go

through here and check or uncheck boxes

so what I'm gonna do I'm gonna uncheck

all the boxes that are for my other

products because today I just want to

focus on the Jumbo Stix one so all right

I think and I just want to use the ones

that I'm Kevin set up last week I don't

want to use any of my old campaigns just

to make sure that yeah this is all very

relevant information ok so before you

know I had a whole bunch of whole bunch

more rows after doing that filter

Google sheets got rid of you know all

those items that I unselected so now I'm

just looking at the campaign's that

Kevin set up last week okay so obviously

campaign names easy to figure out the ad

group name that's what you said so again

it's easy um something that is very

important and the reason this is so

valuable is coms C and D they're amazing

so column C this is actually what the

customer typed in to the search field to

find your particular ad okay this is the

only place in Amazon that you can find

this information and as you can imagine

that's very valuable for us because that

means what is the actual cut you know we

think we know what our product should be

called but what our customers actually

search for to end up finding on this

particular product and then what's even

more important what a customer search

for find my ad and then purchase okay

I'm going to go with that a little bit

more shortly um for keyword let me let

me actually I'm gonna do one more thing

I'm gonna freeze this top row to make

sure you guys know what column we're

looking at I'm gonna skip the Astrix for

just for a second so um remember that

there's different match types we talked

about this a little bit in part 1 of

this series but I'm just gonna go over

it again

with a phrase match type let me start

with broad with a broad match type we

select the keyword okay and then it

doesn't matter if people search for

words before that keyword in the middle

of that keyword or after that keyword

the keyword are the yeah that specific

keyword can still be shown to the

customer with a phrase match type

you can't put keywords in the middle of

the phrase so with this one bamboo

sticks I couldn't do bamboo marshmallow

sticks if so that this particular match

type wouldn't be shown with a phrase you

can only add keywords before the phrase

or after the phrase and with an exact

match type it has to be the exact

keywords that you searched for with all

of these Amazon

kind of corrects or shows on for like

plurals so right here I have bamboo

sticks for my keyword but if someone

just searched for a bamboo stick they

could still be shown this or marshmallow

bamboo stick since this one's phrase

match they would still show that and

then they're also supposed to correct

for misspellings which it seems like

they do a decent job at but not perfect

Kevin before we go into further does all

that makes sense yeah it absolutely

makes sense do you want to touch on what

what the little asterisk means for

people that maybe don't know absolutely

so with these you know when I have a

keyword in here it's pretty clear right

I bid for bamboo sticks with a phrase

match type and this with the customer

search for was bamboo sticks three feet

and that that keyword was shown to them

because there was words after a phrase

match and the keyword that I searched

for well what's with what's the deal

with this this is an asteroid there's no

keyword here what this is is we set up

an automatic campaign okay with

automatic campaigns you don't bid for

keywords instead it's very simple to set

up as we kind of showed last week all

you do you click a few buttons and

Amazon at that point they decide what

search terms they think are relevant for

your listing and they show those to the

customer ok so there is no we don't

since we don't bid on keywords there's

nothing for Amazon to show here but

instead what we can still get valuable

information from this because this is

like what Amazon thinks our product is

okay um they're generally pretty good

but some might not be as relevant like

they showed it for Boy Scouts it's like

well that might be relevant Boy Scouts

probably hang out by fires like roasting

or whatever like dog towels that would

be something that's definitely not

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