Should You Spend on Brand Keywords in Amazon Ads?
If you are organically appearing at the top of the search, you might wonder if it is helping your brand by spending on ads.
In other words, are your ppc ads cannibalizing organic sales?
We recommend experimenting with one brand search term.
Follow these steps -
Identify a search term.
Download SQP report for a week & plot the search term performance
Drop the spending by 25%. Wait for a week
Repeat step no 2
Repeat step no 2 for 2 more weeks.
With the data for 4 weeks, find the following -
Is your sales & conversion rate dropping or the same after reducing the spending?
How is your sales & conversion rate trending during the next 2 weeks?
Conclusion -
Your ads are driving sales, if your sales & conversion rate dropped. Continue investing in ads
If your sales & conversion rates are constant, sales are driven organically & you can reduce the spending. Monitor this for a few weeks though.
While you can analyze this in excel, there’s a better way that will save you a ton of time & effort.
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