(12.6) The ‘Aggressive Growth’ Model When Capital is Abundant – Amazon PPC Campaign Model

The ‘Aggressive Growth’ Model When Capital is Abundant – Amazon PPC Campaign Model

Eazyppc welcomes you to the article ‘The Aggressive Growth Model When Capital is Abundant’ – you should read and fully understand the previous articles, as Eazyppc uses terms and concepts that were explained in earlier lessons throughout this one.

1/ ‘Aggressive Growth’ – Prioritizing Growth – This is an advertising model that helps Sellers:

• Maximize the speed of revenue growth
• Achieve a high order volume in a short period of time
• At the same time, accumulate more Reviews faster.

Sellers should monitor the chart showing the change relative to the initial benchmark (0%) (from the Brand Metrics feature in Advertising Console):

• The number of Brand buyers (blue line), the number of buyers in the entire market niche (yellow line), and the number of buyers from Top Sellers in the niche (purple line)

A real-world Roadmap example using this model:

Growth Eazyppc has recorded with this model: +20–30% in sales per month over the first 6 months – TACOS is relatively high (20–35%)

• Evergreen Products
• Niches with more than 10,000 competitors

-> At month 7, after achieving significant sales volume, Sellers can reduce Budget to start generating strong profit.

-> With the maximum growth model, Sellers need an initial period (1–3 months – depending on the number of competitors) to improve organic rank – the product’s natural search position – and accumulate the first Reviews. Once the product reaches organic rank top 5–10 for main keywords with high Search Volume, this advertising model allows the product to capture organic Traffic -> High organic Sales (provided the Ratings star count is good enough)

This model is applicable when:

1. The Seller commits to a fixed monthly advertising budget. For example: a $1,000 budget for that ASIN, regardless of ACOS or TACOS results.
2. Trading profit for organic rank position
3. Need to scale fast
4. Ability to Restock inventory on time -> Going OOS (out of stock) will cause all organic rank positions to be lost.

2/ How to run ads with a growth-first approach:

• Research the core keyword set and estimate advertising costs using Amazon’s medium-to-high suggested bids for Sponsored Products, then adjust bids and keyword count so the estimate matches the allowed budget.
• Complete the full pre-launch advertising checklist
• Run all Sponsored Product campaigns within the advertising Portfolio, then gradually expand with Sponsored Display and Brand ads at low bids – note that bids for these two campaign types should start low and increase gradually.
• Optimize ad bids by Clicks & CVR to identify keywords with the best conversion rate.

3/ Differences from the ‘sustainable’ model

• Instead of gradually increasing bids and scaling/expanding ads to keywords and Search Terms with good ACOS as in the ‘sustainable’ model -> With the growth-first model, Sellers advertise on all keywords to:
  • Improve organic rank quickly across as many keywords as possible.
  • Discover more new keywords / Search Terms -> Increase the number of campaigns
• Optimize by Clicks & CVR instead of ACOS.