Spending some time filling out the Organization Template can simplify the process and make campaign creation a breeze. We will walk you through it and help identify what SKUs need to be advertised, categorize them correctly based on type and objective, and even come up with the best campaign names. Click below to download the template:
Identifying which SKUs to advertise
If you have sufficient margins on your products, there is no reason not to advertise your entire product catalog. Sponsored Products advertising can be a great vehicle to promote products and boost overall sales. However, if you have slim margins (less than 5-7%) then running ads can be expensive and unsustainable, especially in a competitive category. As with any other advertising or marketing channel, Sponsored Products Advertising requires you to “pay to play” and you have to be willing to spend a certain amount to see results.
To determine if a product is a good fit for advertising, it should meet all of the following criteria:
- Margin: Has a healthy margin (> 5-7%)
- Availability: Has sufficient units in stock or you have plans to restock
- Advertising need: Is it a product you are looking to promote or invest in, or is it in a competitive category and needs the increased exposure
Now that you have determined the products you want to advertise, you need to focus on organizing them!
Categorizing your products
The Organization Template is a simple tool to categorize your products. It is important to think of your products not only in terms of type of product, but margins and objectives as well. When you are establishing an effective and scalable campaign structure, you need to strike a balance between ease of management and the ability to target appropriately. The Organization Template will do this by:
- Grouping together similar products
- Accounting for margins
- Allowing you to get more granular in how you target products
Using your margins
If you don’t know what your margins are, don’t worry. Use the following formula to quickly calculate your margins for each product.
Determining your Objectives
Now that you have your product category and margin information, you need to determine the objective for each SKU. Your business objective is directly related to one of the 4 major stages of a product’s lifecycle (see image below). Need a reminder? Click here to review objectives.
- Launch: This objective, for new products, ties into the “introduction” phase of the product life cycle. Metrics to watch: Impressions and clicks
- Growth: As sales grow, you shift focus from launch to growth phase. Metrics to watch: Sales and orders
- Profitability: As your product moves from growth to maturity, you can target your campaigns for profitability--making money on each sale. Metrics to watch: CPC, Conversion rate and ACOS
- Liquidation: Once a product moves into the “decline” phase of the lifecycle, or you decide to retire an old version of a product to focus on the new, you target them for liquidation. Metrics to watch: Sales, orders and ACOS
Naming your campaigns
Make your life easy! Use a good naming convention for your campaigns and ad groups and it will go a long way towards easing campaign management. Use the following formulas to effectively (and simply) name your campaigns and ad groups:
How-to: Fill out the Organization Template
To further help, we’ve created a short video to show you how to fill out the Organization Template. Completing this template will help you:
- Simplify campaign creation by grouping key product information together which will allow you to quickly complete a bulk upload template
- Create an effective campaign structure based on category and business objective
- Provide a valuable resource for future reference and keeping track of changes to products over time
Next: Complete the bulk template