AMS Vs Sponsored Ads (Digging into the Data)

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Taylor gives us his AMS vs Sponsored Ads update and some health checks

  • Taylor ran some comparison tests on AMS vs Sponsored Ads covering Headline and Product Display Ads
  • Comparing PPC Sponsored Products¬† to AMS Headline Ads and Product Display Ads
  • Figure out the health of your AMS vs Sponsored Ads
  • Test run using 18 bigger brands doing between $100k to $2.2m per month
  • Pulled the last 60 days of their sponsored products sales spend, sales, ACoS last 60 days
  • Then pulled the AMS Product Display ads and headline ads last 60 days spend, sales, ACoS
  • Divide spend from AMS to spend from sponsored products
  • What % of sales did AMS do compared to Sponsored

Results Showed

  • Sponsored products did $100k/month with a 35% ACoS
  • AMS did $30-35k/month at 20-18% ACoS

Test your own AMS health

  • Take the spend and sales from your AMS for the last 60 days
  • Then take the spend and sales from your sponsored products for the last 60 days
  • Put it into a Google sheet with three columns ‘spend’, ‘sales’, ‘ACoS’ for each AMS vs Sponsored ads for Products
  • The divide the AMS spend by the Sponsored Products spend, same with Sales
  • You should see in AMS is 25-35% compared to sponsored products
  • If your AMS sales is 80k and your sponsored products is 100k then it means your sponsored products suck!
  • Your sponsored product sales should never be that low – it’s a red flag
  • Take the spend and sales from your Sponsored Product Sales and this should be 3x your AMS always

Clickthrough Rates

  • Headline ad clickthrough is 2.2% to be healthy for directly relevant keywords (Max is 4.5-6% is better copywriting)
  • People’s headline ads usually suck and could be so much better with better copy
  • Best thing you can do is in AMS click the download arrow on your sales column and click it to download the last 60 days top 5 campaigns
  • Look at the click rate and read the headline ad
  • Buy the book ‘Words that Sell’ and improve your conversion rate

Manual Management and Bid changes

  • Vendor Express is shutting down Jan 4th 2019 – talk to your AMS rep if you’re worried
  • You can transition to Seller Central
  • No automated campaign management system and it trashed the transition for this client
  • You need software to automatically manage these bid if you’re transitioning
  • Taylor is building this software now

Product Display Ads

  • If you have one that’s really crushing it
  • Have 4 orders or greater at better than breakeven ACoS
  • Take them out and put them in their own campaign 87 cents and $20 budget
  • Then do a reverse ASIN on it and take the keywords and dump into a campaign
  • Tools for keyword research is ‘Merchant Words’ and the search term report
  • Got so many Merchant Word automations built around it
  • If there’s a generic name for something it’s usually the top keyword and most expensive keyword
  • 90% of Taylor’s success come from Data in the Search Term report – Amazon has the best data