The article titled “Discovering the Power of Benchmark Reports for Amazon PPC” offers insights and findings from a video by My Amazon Guy, titled “I’ve Managed 29-Million Dollars in 2023 PPC Spend on Amazon – Here’s What I Learned”. The video, which is part of a beginner Amazon FBA seller playlist, covers topics such as average TACoS, competition for search results on Amazon, the cost of selling on the platform, conversion rate, metrics and benchmarks for Amazon PPC performance, and more. The author, who has managed nearly $30 million in Amazon PPC over the last six months, shares their own statistics, highlights the importance of PPC spend, and discusses the challenges of maintaining profit margins while spending on PPC. The article concludes with an invitation to explore benchmark reports and offers a free benchmark report.
In the video, the author of My Amazon Guy shares their extensive experience and the lessons they have learned from managing almost $30 million in Amazon PPC over the course of six months. They discuss important metrics such as average TACoS and conversion rate, emphasize the significance of spending on PPC to increase visibility and get on page one of search results, and delve into the costs and fees associated with selling on Amazon. Additionally, the author responds to comments and questions, addressing topics like brand search terms and low TACoS metrics. The article highlights the importance of respectful communication on social media and invites readers to share their own benchmarks while offering a free benchmark report.
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1. Introduction
This article discusses the key insights and takeaways from the video titled “I’ve Managed 29-Million Dollars in 2023 PPC Spend on Amazon – Here’s What I Learned” by My Amazon Guy. The video is part of a playlist aimed at beginner Amazon FBA sellers and covers various topics related to Amazon PPC (Pay-Per-Click) advertising. The author of the video shares their findings and statistics, having managed nearly $30 million in Amazon PPC spend over the last six months. The article will provide a comprehensive overview of the video, highlighting key insights and discussing topics such as average TACoS (Total Advertising Cost of Sale), competition for search results on Amazon, the cost of selling on the Amazon platform, conversion rates, and more.
2. The Power of Benchmark Reports for Amazon PPC
Before diving into the specifics of the video, it is important to understand the power of benchmark reports for Amazon PPC. Benchmark reports provide valuable insights and data that can help sellers measure their performance against industry averages and identify areas of improvement. These reports enable sellers to set realistic goals, make data-driven decisions, and track their progress over time. By comparing their performance to industry benchmarks, sellers can gain a competitive edge and optimize their PPC campaigns effectively.
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3. Overview of the Video
The video titled “I’ve Managed 29-Million Dollars in 2023 PPC Spend on Amazon – Here’s What I Learned” provides a comprehensive overview of the author’s experience managing a significant amount of Amazon PPC spend. The video discusses various metrics and benchmarks, as well as the challenges and strategies involved in running successful PPC campaigns on the Amazon platform. The author emphasizes the importance of PPC spend and its impact on visibility and sales.
4. Insights from the Video
During the video, the author shares several insights and findings based on their extensive experience managing Amazon PPC campaigns. These insights include key statistics such as generating over $107 million in ad sales, maintaining a 27% average ACoS (Advertising Cost of Sale), and achieving a 12.1% conversion rate. The author also highlights the increase in average TACoS over the past year, indicating the growing competition for search results on Amazon.
5. Average TACoS and Its Increase
TACoS, or Total Advertising Cost of Sale, is a crucial metric that measures the effectiveness of PPC campaigns on Amazon. It represents the percentage of ad spend relative to total sales generated from those ads. The author discusses the average TACoS across their managed accounts, which currently stands at 10%. However, they mention that a TACoS of 10% is lower than what they typically advocate for, which is in the range of 11-15%. The increase in TACoS over the past year indicates the rising costs of PPC advertising on Amazon.
6. Competition for Search Results on Amazon
The video highlights the intense competition for search result rankings on Amazon. The author uses the example of the keyword “Boo basket Halloween” to demonstrate how most of the top search results are ads, and even organic listings require significant PPC spend to secure a place on the first page. They emphasize that spending on PPC is crucial for sellers aiming to achieve higher visibility and sales on Amazon.
7. The Cost of Selling on the Amazon Platform
Selling on the Amazon platform comes with various costs and fees that sellers must consider. The author explains that sellers should view Amazon as a one-third partner, as the fees associated with selling on the platform can significantly impact profit margins. These fees include referral fees, fulfillment costs, and storage fees, with Amazon often accounting for 35-38% of overall gross sales. The author acknowledges the challenge of maintaining profit margins while balancing significant PPC spend.
8. Conversion Rate on Amazon
Conversion rate is a key performance indicator for any Amazon seller. The video highlights that a good conversion rate on Amazon typically falls within the range of 8-12%. The author reveals that their combined accounts achieve a 12.1% conversion rate, which they consider to be strong. This statistic demonstrates the effectiveness of their PPC strategies in driving sales and highlights the importance of optimizing conversion rates.
9. Responding to Comments and Questions
The video addresses comments and questions from viewers, which were received through social media platforms. The author engages with the audience, providing explanations and clarifications on various topics. They respond to questions related to the influence of underperforming clients on overall metrics, the impact of big brands overshadowing smaller spenders, and the role of branded search terms in driving sales. The author emphasizes the importance of respectful and informed communication on social media platforms.
10. Conclusion
In conclusion, the video titled “I’ve Managed 29-Million Dollars in 2023 PPC Spend on Amazon – Here’s What I Learned” provides valuable insights and statistics based on the author’s extensive experience managing Amazon PPC campaigns. The video emphasizes the importance of benchmarking and utilizing benchmark reports to measure performance. It highlights the significance of metrics such as average TACoS, competition for search results on Amazon, the cost of selling on the platform, and conversion rates. The author invites viewers to explore benchmark reports and encourages them to share their own benchmarks. Overall, the video serves as a valuable resource for beginner Amazon FBA sellers looking to optimize their PPC campaigns and achieve success on the Amazon platform.
