Principles of good practice
To ensure the success of your sponsored product campaign, it is essential to present a
compelling offer. Take the following recommendations into account:
● Create a campaign segmented by product characteristics, including category, brand, and
seasonal themes
● Highlight your best offers
● Automatically target keywords to streamline your advertising efforts
● Initial High CPC (Strategic Start): Can be a good strategy initially to gain visibility, gather data, and understand performance quickly. This is a temporary phase to kickstart your campaign.
● Emphasize savings by ensuring your price is attractive compared to the competition
● Display product availability (as soon as you have stock available on Vendor Center, you can sponsor your product), including current stock levels and fast delivery, to
reassure customers of quick and reliable service.
● Ensure you provide comprehensive information by accurately completing the product data
sheet and supplying relevant content, and photos.
Mistakes to avoid in your campaign
To get better results more easily and ensure your first campaign success, avoid the following
mistakes:
● Avoiding “Too High” CPC (Sustained Profitability): It’s crucial to avoid keeping your CPC at an unsustainably high level. You must track your CPA and ensure your advertising costs are in line with your product prices and profit margins. Continuous monitoring and adjustment of your CPC (whether manually or through automation) are essential.
● Setting the daily rate too low: choosing a daily rate that is too low can interrupt your
advertising during the day and result in lost sales opportunities
● Including too many products in your campaign can make them less effective. Choose your
products wisely to keep your campaigns focused and strong
● Duplicating products: avoid having the same product in two different campaigns because
this will have an impact on your CPC and, therefore, the profitability of your campaigns
How to optimize your campaign
Evaluate the Advertising Cost of Sales (ACOS) or Return On Ad Spent (ROAS) performance
KPIs of mature campaigns, specifically those that have been operational for a minimum of four
weeks:
● Identify under-performing products to remove them from the campaign. A product can be
considered under-performing for several reasons. For example: low impression rate, no
conversions and poor click rate.
● Lower the bids on high-performing products to approach the optimal CPC and improve
the ACOS.
● Segment your campaigns and ad groups to enhance targeting and
efficiency
●The benchmark for a healthy ROAS is between 4x& 8x”
Common challenges and their solutions
Challenge 1: Your product ads are not being seen enough (low impressions).
Solution 1:
1.Check Product Setup: Make sure your products are in the right categories and the overall listing process is correct.
2.Automatic vs. Manual:
– If using automatic campaigns: Switch to a manual campaign focusing on your best-selling products. Set your initial bid (CPC) higher than the average to gain more visibility.
– If no impressions at all: Double-check that you have not accidentally listed the same
product multiple times within the same ad group or campaign.
Challenge2: Your product is not winning ad placements, is not getting enough views for its potential, OR is not turning clicks into sales (low conversion rate).
Solution2:
1.Boost Product Listing Quality:
– Title: Use clear titles with relevant keywords (e.g., “waterproof outdoor camping tent”).
– Images: Add clear, high-quality photos.
– Completeness: Ensure all product information is filled out.
2.Optimize Your Ads:
– Avoid Duplicates: Do not list the same product in multiple ad groups or campaigns.
– Increase Strategic Bids: Raise the CPC of important products by about 10%.
– Remove Non-Converting Products: Delete products that get lots of clicks (80+) but no sales.
– Refine Keywords: Make sure your keywords are highly relevant to your product.
– Review Pricing: Compare your product price with what competitors are offering.
If you want to reach out to one of our Sponsored Products team, contact us here.
