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For any Amazon seller, mastering PPC advertising is crucial for product visibility and driving sales. However, managing PPC campaigns manually can be a time-consuming process. This is where automation comes in, freeing you to focus on other aspects of your business while keeping your ads optimized.
In this blog, we will discuss how to automate Amazon PPC campaigns to streamline your campaign optimization process and maximize the return on ad spend.
Understanding Amazon PPC
Before diving into automation, let's quickly recap what Amazon PPC is and how it works.
Amazon PPC is an advertising model where advertisers bid on keywords or ASINs relevant to their products.
When a shopper searches for those keywords or visits the targeted ASINs on Amazon, the ads appear either on the search result page or the product detail page. Advertisers pay a fee only when their ad is clicked, hence the term "pay-per-click.”
Why automate your Amazon PPC campaigns?
Automating your Amazon PPC campaigns offers several benefits:
1. Time Savings: Automating routine tasks like adjusting bids and managing keywords can help cut down on the time needed for campaign management. This gives you more resources to focus on strategic plans and expanding your business.
2. Improved Efficiency: Automated rules and tools can analyze large volumes of data quickly and adjust campaigns in real time based on performance metrics. This flexibility allows campaigns to respond dynamically to changes in the market, resulting in enhanced performance and more efficient use of advertising budgets.
3. Scale: Automation gives you the ability to handle extensive PPC campaigns involving numerous products and markets effortlessly. Regardless of whether you're expanding your product range or getting into new markets, automation guarantees consistent and effective campaign management, regardless of the number of campaigns.
4. Consistency: Consistency is key in PPC advertising. When automation is used to apply pre-established rules and strategies consistently across campaigns, it ensures a standardized approach. This consistency leads to predictable campaign performance, making analysis and optimization more straightforward and effective.
What can be automated for Amazon PPC campaigns?
1. Bid Management: Automatically adjust how much you're willing to pay for clicks.
2. Negative Target Optimization: Automatically exclude irrelevant search terms to save money.
3. Placement Optimization: Automatically decide where your ads show up for better results.
4. Target Harvesting: Automatically find new keywords to target for more traffic.
5. Budget Optimization: Automatically adjust campaign budgets to get the most out of your advertising budget.
6. Hourly ad optimization: Automatically adjust bids and budgets at different hours of the day.
Is Amazon ad console enough to automate Amazon PPC campaigns?
While the Amazon Ad Console has introduced some level of automation capabilities for various aspects of PPC campaigns, such as bids and budget management, it lacks the flexibility to make changes based on advertisers' specific goals and strategies.
Additionally, as of now, Amazon is not offering any automation for placement or keyword optimization. In this blog post, we will explore the automation features of the Amazon Ad Console, as well as third-party tools like Adbrew, which offer more robust automation options tailored to advertisers' needs.
How to automate Amazon PPC bids?
Regularly monitoring and adjusting bids is crucial for achieving your Amazon PPC campaign goals. Amazon offers three bidding options for automating this process:
Down Only Bidding Strategy: With this option, known as dynamic bids - down only, Amazon automatically reduces bids for clicks that may be less likely to result in a sale.
Up & Down Bidding Strategy: In the dynamic bids up and down strategy, Amazon increases bids for clicks more likely to convert and decreases bids for less promising clicks.
Rule-Based Bidding: This option allows you to set a target for return on advertising spend. Amazon adjusts bids up or down to meet this goal with each impression.
While Amazon's automation options can save time, they can restrict your ability to precisely control and monitor individual bid adjustments. This lack of granular control can make it difficult to optimize bids for specific campaign goals or react quickly to market changes. This is where third-party automation and intelligence platforms like Adbrew come in handy.
Adbrew enables you to define your own criteria and actions for bid adjustments on your preferred schedule. For instance, you can create rules such as:
By implementing such customized bid automation rules, you gain the flexibility to replicate your manual bid optimization procedures efficiently.
How to automate negative target optimization?
While managing your discovery campaigns on Amazon, such as auto, broad match, phrase match, or category targeting campaigns, you may find that your ads appear on irrelevant or low-converting search terms that may not be driving significant growth to your brand.
This is where negative target optimization comes into play.
The aim is to identify search terms that have received sufficient clicks but haven't resulted in orders for our brand, or have resulted in orders with excessively high Advertising Cost of Sales (ACoS).
By adding these terms as negatives, we ensure that our ads won't be displayed for them, thus reducing wasted ad spend.
Unfortunately, Amazon currently lacks an automated option for this process. You have to manually review the search terms of individual campaigns and identify terms that can be added as negatives.
Alternatively, you can download your Sponsored Ads search term report from the bulk sheet console and analyze it using Excel/Google Sheets, then add the identified terms as negatives through the bulk sheet.
However, platforms like Adbrew allow you to simply set up rules to automatically identify underperforming terms and add them as negatives based on your defined criteria.
How to automate placement optimization?
Amazon provides placement-level data for three distinct placements of your Sponsored Product ads: Top of search, product page, and rest of search. Additionally, it offers the flexibility to increase your base bid by up to 900% for any given placement.
The best practice involves reviewing your Sponsored Product campaign across all three placements and adjusting the placement modifier percentage based on performance.
At present, this process cannot be automated. Therefore, you'll need to either utilize the bulk sheet to manually optimize these placements in bulk, which can save you time, or consider using a tool like Adbrew for complete automation.
Here's a general rule to illustrate how placement optimization could be automated:
By implementing such rules, you ensure that you bid higher for placements that drive positive results while reducing the modifier for placements that fail to deliver desirable results.
This approach enables you to make informed adjustments to your placement modifiers based on performance data, thereby optimizing your Sponsored Product campaigns effectively.
How to automate budget management?
Automating budget management involves allocating more budget to campaigns that are driving sales at a desirable Advertising Cost of Sales (ACOS), while reducing budget allocation to campaigns that are not yielding satisfactory results.
Amazon provides a feature called "Budget Rule" to automate the budget management process.
Here's how it works:
Firstly, it offers two types of rules: schedule-based and performance-based.
Schedule-based rules allow you to automatically increase the budget of a campaign during specific time periods.
On the other hand, performance-based rules enable you to increase your campaign budgets only when your campaigns meet certain performance thresholds, utilizing campaign performance metrics such as Advertising Cost of Sales (ACOS), click-through rate (CTR), and conversion rate (CVR). Amazon calculates these metrics using data from the previous 7 days of your campaigns.
Unfortunately, one drawback is that Amazon does not allow automatically decreasing campaign budgets if the performance is poor, as it discourages advertisers from reducing their ad spend on the platform.
With Adbrew, you get the full flexibility to increase or decrease your campaign budget based on its performance and budget utilization.
How to automate target harvesting on Amazon?
There could be many search terms that might be driving sales at a very good ACOS in your discovery campaigns, such as auto, broad, or category targeting campaigns.
A good ad management practice is to harvest such high-performing keywords and move them to manual exact match and ASIN targeting campaigns to gain more control over their bids, budget, and placement modifiers.
As of now, this is again something that cannot be fully automated using the Amazon Ad console, and you'll have to use a PPC automation software like Adbrew.
Here is what a rule would look like to automate this process:
Identify keywords that have received more than x orders with x% ACOS in the source campaign and then move them to the destination campaign.
Here, your source campaign would be the discovery campaign, and the destination campaign would be the performance/efficiency campaign.
How to automate intraday ad optimization?
Intraday ad optimization is all about adjusting your bids during different hours of the day and days of the week based on the hourly performance of your ads.
Since Amazon introduced the Marketing Stream, platforms like Adbrew have enabled users to understand their ad performance at an hourly granularity, subsequently setting up dayparting automation to adjust bids based on hourly performance.
Fortunately, last year Amazon also started providing hourly performance ad data and the capability to schedule bids at an hourly granularity within the Amazon ad console itself, allowing more and more users to adopt the intraday ad optimization.
To access hourly performance data, navigate to the Sponsored Ads Report section, select the campaign type, set the report type to “campaign,” and choose the time unit as “hourly.” This report will provide you with your hourly ad performance for different campaigns.
Once you have comprehended how your ads perform at different hours, you can open your campaign, navigate to campaign settings, scroll down to the bid optimization section, and click on "Schedule Bid Rules".
Now, simply define the percentage by which you want to increase your bids and for which hours. You can add multiple rules for different hours of the day to a campaign.
One drawback here is that even if your ad is underperforming during certain hours, Amazon won't allow you to decrease your bids; it only facilitates increasing the bids.
If you wish to both increase bids for well-performing hours and decrease bids for low-performing hours, you will need to use a solution like Adbrew dayparting automation.
Final thoughts on Amazon PPC automation
Amazon PPC automation is the key to streamlining your campaign management and maximizing return on ad spend (ROAS). However, while Amazon offers some helpful automation features, they lack the flexibility to be customized to your unique advertising strategy.
This is where PPC software like Adbrew shines. It empowers you to truly optimize bids, budgets, placements, and more through its combination of customized rule-building capabilities and AI-based automation.
About the Author
Shivam Kumar
Shivam Kumar is a Senior E-commerce Manager at Adbrew, a leading Amazon advertising platform empowering brands, agencies, and aggregators to unlock their full potential on Amazon with data-driven insights and automation.
Their innovative approach has been recognized by Amazon, making them a winner in Performance APAC and a finalist in multiple categories at the 2023 Partner Awards.
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