� 1 PROCESS L.E.A.F THE � 2 � 3 Leader of the Largest Global Amazon PPC Community, Over 16,000 Members CANOPY MANAGEMENT, FOUNDER A FULL SERVICE AMAZON ADVERTISING MANAGEMENT AGENCY Brian R. Johnson is Widely Recognized as the the #1 Authority on Amazon Paid Advertising Brian R. Johnson Co-Founder of the #1 Amazon PPC Training, Sponsored Products Academy Founder & President, PPC Scope TEXT ▸ � 4 WHAT WE’RE TALKING ABOUT TODAY... Observe Your Target Audience and Adjust Campaigns & Keywords for Optimal Performance ANALYZE 3 Shift Ad Spend to the Highest Performing Ads FOCUS 4 Develop New Sales using the Ad Data to Scale and Refine Your Targeted Ads 2 EXPAND Build a Stable Foundation for Launching New Products 1 LAUNCH THE L.E.A.F. PROCESS � 5 � 6 • More effective new product launches • Scalable advertised sales • Profitable advertising campaigns • Higher organic keyword ranks • Increased marketshare • Brand defense from competitors BENEFITS OF THE L.E.A.F. PROCESS � 7 [L] Launch- This stage is all about setting up the proper campaign structure to build a successful foundation for your new product. Launching a new item on Amazon can be challenging and getting started is expensive, so you want to get it right! A good campaign structure will give you control over ad spend - spreading your budget between researching & ranking keywords. Once you identify what terms your products converts for, you can focus your budget appropriately and efficiently to achieve the greatest results. LAUNCH (L) � 8 [E] Expand- You now have data that you can use to derive actionable insights. In this step, the top priority is to use this new data to start to add new keywords to existing advertising campaigns, and change the bids of the keywords that are already performing. This is also the first time you can start to add negative keywords into your advertising campaigns, cutting away the keywords and search terms that are costing you the most while not producing sales. The key to setting ad campaigns up for future success is to focus on relevance toward the intended audience. EXPAND (E) � 9 [A] Analyze: Now that you have spent some time expanding your keyword set, it’s time to start analyzing your results to see where you can really find your “winning” and “losing” keywords. With a few weeks of data you’ll get more aggressive in adjusting keyword bids, blocking non-performing ads, and tuning advertising options. Identifying the terminology your audience is using helps to focus advertising and listing content. The primary goal is “watering” winning keywords and “pruning” losing keywords. ANALYZE (A) � 10 [F] Focus: Now that you have identified winning and losing search terms, keywords, match types, ad types and ad options — it is time to focus your ad spend where it returns the greatest ranking and profitability benefits. In this step, we consider which top-performing search terms, keywords, match types, ad types and ad options may be amplified for scalable success. The Pareto Principle (aka 80/20 principle) states that ~80% of all results are driven by ~20% of all actions. You will now take action on your analysis of the 20% that are driving 80% of the results you’re seeking. FOCUS (F) � 11 � 12 L Launch BUILDING A STABLE FOUNDATION � 13 � 14 [L] Launch- This stage is all about setting up the proper campaign structure to build a successful foundation for your new product. Launching a new item on Amazon can be challenging and getting started is expensive, so you want to get it right! A good campaign structure will give you control over ad spend - spreading your budget between researching & ranking keywords. Once you identify what terms your products converts for, you can focus your budget appropriately and efficiently to achieve the greatest results. ** For relaunching an existing product - you already have some data- so, start with FOCUS, then circle back to LAUNCH - reworking your structure, adding new campaigns and keywords.** LAUNCH (L) � 15 Purpose: Build a stable foundation for successful product campaigns Purpose, Timing, Exceptions Timing: Immediately when launching new campaigns Exceptions: If you have 3 products & brand registry then also create Sponsored Brand campaigns � 16 Know the product’s conversion rate PREREQUISITES WHAT YOU NEED TO KNOW BEFORE LAUNCH Know each product’s Breakeven values Know your Advertising Objective � 17 UNIT SESSION PERCENTAGE (USP) = Business Report Units Sold divided by Sessions Location: Business Reports > Detail Page Sales and Traffic A. Know the product’s conversion rate CONVERSION RATE (CVR) = Advertised Orders divided by Clicks Location: Campaign Manager, Advertising Reports Pro Tip: Advertised Conversion Rate (CVR) is commonly 1/3 to 1/2 that of Unit Session Percentage (USP) � 18 B. Calculate each product’s Breakeven Values BREAKEVEN ACOS % = Net Profit Margin % Per Unit Sold BREAKEVEN ACOS % = (Average Selling Price $ Per Unit) minus [ (Average Cost of Sourcing & Receiving The Product From The Manufacturer Per Unit + (Average Cost of Preparing & Delivering Goods to Amazon FBA Per Unit) + (Average Cost of Amazon’s Selling Commission Per Unit) + (Average Cost of Amazon FBA Fulfillment Per Unit) + (Average Cost of Your Company Overhead Per Unit) ] divided by (Average Selling Price $ Per Unit) multiplied by 100 BREAKEVEN BID $ = Breakeven ACoS % * CVR % * PRICE $ = (Breakeven ACoS %) x (Orders divided Clicks) x (Average Selling Price) Pro Tip: If you’re selling in a country that requires Value Added Tax (VAT), remember to include this in your breakeven calculations. � 19 C. Set your Launch Advertising Objective This is important because it drives strategy decisions. • UNITS SOLD : If you are shooting for maximum visibility to increase number of units sold each day (for organic ranking purposes) — your objective is Sales Velocity — requiring highest budget and aggressive bids on long tail (descriptive & highly relevant) keywords. • CVR : If you are shooting for an increased conversion rate (for organic ranking purposes + efficient ad spend) — your objective is Conversion Rate — requiring higher budget, tuning ads for placement & targeting groups to emphasize high-converting keywords and products only. • RESEARCH : If you are shooting for an inexpensive “soft launch” of your product to start some sales and collect data about your audience — your objective is Audience Targeting — requiring average budget, breakeven bids and ample keyword research. � 20 Competitor Titles KEYWORD RESEARCH Keyword Research Tools Relevance Filtering Potential Ranking Candidates