Using A/B testing to maximise results for your Amazon ads campaigns
As an Amazon seller, optimising your pay-per-click (PPC) campaigns is crucial to driving more traffic to your product listings, increasing your sales, and ultimately, growing your business. However, identifying the most effective strategies to achieve these goals can be highly challenging and time-consuming. A/B testing, also known as split testing, provides a data-driven approach to refining your Amazon PPC campaigns, enabling you to make more informed decisions and to take the guess work out of optimisation.
In this detailed article, we will discuss various strategies for A/B testing your Amazon PPC campaigns, equipping you with valuable insights to enhance your advertising efforts and achieve better results.
Importance of A/B Testing for Amazon PPC
A/B testing has emerged as a crucial aspect of any successful Amazon PPC advertising campaign. A/B testing enables Amazon PPC sellers to optimise their ads and maximise their return on investment (ROI). By comparing two different versions of an ad (version A and version B), sellers can identify which version performs better and make data-driven decisions to improve their overall campaign performance. This iterative process of testing, analysing, and refining ad elements can lead to significant improvements in click-through rates, conversion rates, and ultimately, business revenue.
The personal aspect of A/B testing comes into play when considering the unique characteristics of your target audience and the specific goals of your Amazon PPC campaign. Each seller has a distinct set of products, target customers, and objectives that require tailored strategies to achieve optimal results. A/B testing empowers sellers to experiment with various ad elements such as headlines, images, keywords, and bids, to identify the best combination that resonates with their audience and drives desired outcomes. By consistently running A/B tests and analysing the results, sellers can uncover valuable insights about their target market, refine their advertising strategies, and ultimately achieve a competitive edge in the Amazon marketplace.
Setting Up Your A/B Testing Campaign
Setting up your A/B testing campaign is an essential step in optimising your Amazon PPC strategies. This process allows you to compare two different versions of a campaign to determine which one yields better results, ultimately helping you make data-driven decisions for improving your advertising performance. To start, you'll need to identify the key elements of your campaign that you'd like to test, such as bids, keywords, ad copy, or targeting methods. Remember, the goal is to isolate one variable at a time, so you can accurately measure its impact on your campaign's success. It's also essential to establish a clear hypothesis and set measurable goals to help you gauge the effectiveness of your test.
Once you've identified the variable you'd like to test, create two versions of your campaign – one with the original element (the control) and another with the modified element (the variation). Ensure both versions are running simultaneously, and allocate equal budgets and targeting settings to guarantee a fair comparison. Make sure to run the test for a sufficient period of time, taking into account factors such as seasonal trends, sales cycles, and the time it takes to accumulate significant data.
As you analyse the results, keep an eye on key performance indicators (KPIs) like click-through rate, conversion rate, and cost per acquisition to determine which version of your campaign is performing better. Don't be afraid to iterate and keep testing, as the insights gained from A/B testing can lead to continuous improvement and a more effective Amazon PPC campaign.
Keep in mind the key components of a successful A/B testing strategy:
Identifying the elements to test, such as bids, keywords, ad copy, or targeting methods.
Creating a clear hypothesis and setting measurable goals.
Running the test for a sufficient period of time.
Analysing the results and identifying the best-performing version of your campaign.
Continuously analysing A/B Test Results and iterating on past performance
Analysing A/B test results is an essential step in optimising your Amazon PPC campaigns. This process involves comparing the performance of two or more variations of a specific component in your campaign, such as ad copy, images, or keywords. By determining which version yields the best results, you can make data-driven decisions to improve your advertising strategy and ultimately, your ROI.
As already discussed, when analysing A/B test results, it's crucial to focus on KPIs that align with your campaign objectives. Some common KPIs to track include CTR, conversion rate, cost per click, and overall sales. Remember that it's not just about the immediate numbers; you should also consider the long-term implications of your changes. For instance, a higher CTR might lead to increased ad spend, but if it results in a higher conversion rate and greater sales, it’s arguably worth the added investment.
It’s worth also noting that it's important to give your tests enough time to run and gather sufficient data before making any conclusions. This patience has served me well in the past, as it has allowed me to make more informed decisions and avoid making hasty changes that could have had unintended consequences. With this in mind, avoid at all costs making uninformed optimisations and making too many regular changes without the data to back it up.
Optimising Ad Creatives
An often neglected aspect of Amazon ads is the creative used in Sponsored Brand, Video and Sponsored Display ads and the effect this has on performance. it goes without saying that a well-optimised ad creative not only captures the attention of potential customers but also encourages them to click on the ad and ultimately make a purchase. This process involves fine-tuning various aspects of the ad, such as the headline, product image, and description, to ensure they resonate with your target audience. Continuous monitoring and analysis of ad performance, coupled with regular adjustments, are key to maintaining an edge over competitors and keeping your ads fresh and engaging.
A/B testing is an incredibly powerful tool for optimising ad creatives. This technique involves creating two or more variations of an ad, each with a different element or combination of elements, and running them simultaneously to determine which version performs better. By comparing the click-through rates, conversion rates, and other relevant metrics for each variation, you can identify the most effective elements and refine your ad creatives accordingly.
Consider running 2 ads within the same ad group housed within a Sponsored Brand campaign - here you can trial two different ad copies and analyse performance to see which variant works best with shoppers.
This iterative process helps you to continuously improve your ads and maximise the return on your advertising investment. One personal tip I'd like to share is to always start with broader variations and gradually narrow down to finer details, as this approach has consistently proven to yield the best results in my own campaigns. Remember, the key to successful A/B testing is to be patient and methodical, and to treat every test as an opportunity to learn and grow.
Targeting and Bidding Strategies
Targeting and bidding strategies are crucial components of any successful Amazon PPC campaign, as they directly impact your ad placements and the cost-per-click you will incur. When it comes to A/B testing your Amazon PPC campaigns, it is important to experiment with different targeting and bidding approaches to find the perfect combination that maximises your return on investment (ROI) while minimising your advertising cost of sales (ACoS).
There are two main targeting types - automatic and manual - and each comes with its own set of advantages. Automatic targeting allows Amazon's algorithm to decide which keywords and products your ads will appear for, which can save time and effort in keyword research. However, manual targeting gives you more control over the keywords and products you want to bid on, allowing you to optimise the campaign for better results. To effectively A/B test your campaigns, try running both automatic and manual targeting simultaneously and compare the performance of each.
In terms of bidding strategies, Amazon offers three options: dynamic bids (down only), dynamic bids (up and down), and fixed bids. Experimenting with each bidding strategy will help you uncover which one yields the best results for your specific campaigns, whether that means increasing visibility, driving sales, or improving overall profitability. As you analyse the results of your A/B tests, remember to keep an open mind and be willing to adjust your strategies based on the data. It's this iterative process that will ultimately lead to the most effective Amazon PPC campaigns for your business.
Manual campaigns offer customised bidding strategy settings. It’s worthwhile trialling down only to start with as this ensures greater control over the maximum CPC inputted by the bidder.
Strategies to use across each Campaign Type
Below we run through our key recommendations on which elements to run A/B testing on across each of the major 3 Amazon ads campaign types.
Sponsored Products
A/B Testing for Sponsored Products is another crucial component in optimising your Amazon PPC campaigns. This method involves creating and comparing two different versions of an advertisement, with the goal of determining which version performs better in terms of KPI such as click-through rates, conversion rates, and return on ad spend. Through this comparative analysis, sellers can identify the most effective strategies for their Sponsored Products campaigns and make data-driven decisions to improve their overall PPC performance.
When conducting A/B Testing, it is essential to focus on one variable at a time to accurately determine the cause of any performance differences between the two ad versions. Examples of variables to test include:
Keywords
Keyword Match Type
Promoted ASINs
Bidding Strategy
By systematically analysing the impact of each variable on your KPIs, you can refine your Sponsored Products ads to attract more potential customers and drive sales. Moreover, continuous testing and optimisation help ensure that your campaigns stay relevant and competitive in the ever-evolving Amazon marketplace.
Sponsored Brands
When conducting A/B tests for Sponsored Brands, it's essential to focus on one variable at a time to ensure that you can accurately determine the cause of any performance differences between the two ad variations. Some of the most common variables to test include headlines, images, and product selection. For example, you might experiment with different headlines to see which one generates the most clicks, or test various product images to identify which ones are most appealing to potential customers.
Given the greater variety of ad formats (display and video) and the adjustability offered with customising Sponsored brand creatives, this naturally provides greater opportunity to A/B test over and above Sponsored Product ads - especially surrounding tests focused on ad copy and creative.
Here is a example of tests to explore with your Sponsored Brand campaigns:
Ad format
Landing Page
Logo
Headline Text
Promoted Products
Custom Images
Video Copy (Sponsored Brand Video)
Sponsored Brand campaigns offer a number of different approaches in the types of ad formats used, products shown to shoppers and customer journey through the available landing page options.
A/B Testing for Sponsored Display
Sponsored Display campaigns allow you to target shoppers both on and off Amazon, reaching them as they browse product detail pages, search results, and even other websites. A/B testing can help you refine your ad creatives and targeting strategies to achieve better results and higher ROI for your Sponsored Display campaigns.
When conducting A/B tests for Sponsored Display, the process remains similar to other Amazon PPC campaigns. You'll want to focus on specific variables to isolate the impact of each change and gather meaningful insights. Here are some elements you can consider testing:
Ad Creatives: Experiment with different ad formats, images, headlines, and calls to action. Create variations that showcase your products in various ways to see which resonates better with your target audience.
Audience Targeting: Test different audience segments based on interests, behaviours, demographics, or specific product categories. This will help you identify which audience groups are most responsive to your ads.
Placements: Sponsored Display offers various placement options, such as product detail pages, search results, and other websites. A/B test different placement choices to determine which ones yield the best results for your campaign objectives.
Budget Allocation: Divide your budget between different variations of your Sponsored Display campaign to assess which allocation strategy generates higher click-through rates, conversions, and overall campaign performance.
Product Selection: If you're promoting multiple products within the same campaign, test different combinations of products to understand which ones drive better engagement and sales.
Bidding Strategies: Experiment with different bidding strategies to find the most effective approach for your Sponsored Display campaign. Test dynamic bids (up and down) or fixed bids to see which aligns better with your advertising goals.
Some final Thoughts
Phew! A lot to digest here with the myriad of different options available to brands in customising and testing multiple iterations of their ad campaigns. Throughout this guide, we have explored the significance of A/B testing for optimising Amazon PPC campaigns and driving better results for your business. By implementing data-driven strategies such as A/B testing for various ad elements, sellers can effectively refine their advertisements, leading to improvements in click-through rates, conversion rates, and overall revenue.
A lasting reminder, the key to success with A/B testing heavily relies in continuous learning, adaptation, and the strategic use of these testing frameworks to make informed decisions that maximise your return on investment. The more you lean into test and learn, the more this will become a natural and on-going process of your ad campaign management.
