In the ever-evolving landscape of e-commerce, Amazon stands as a colossus. With millions of sellers and an extensive array of products, competition on the platform is fierce. To navigate this digital marketplace (and others) successfully, brands and agencies often employ various strategies to maximize their visibility and sales. One such strategy is the decision of whether to group SKUs/ASIN’s together for bidding or to create individual campaigns for each SKU. In this blog post, we will delve into the debate between grouped and separate campaigns, explaining why giving each SKU its dedicated campaign can lead to superior performance on Amazon. We will also provide a method of doing so without increasing anyone’s workload and actually make things easier and elss expensive.
Grouped SKUs: A Common Approach
When managing advertising campaigns on Amazon, many brands and agencies opt for grouping similar SKUs together under a single campaign. The rationale behind this approach is to simplify campaign management, reduce time spent on bid adjustments, and potentially save on advertising costs. Grouped campaigns can be especially attractive when dealing with a large inventory, as they streamline the process by applying a single set of parameters to multiple products. Truth be told, if anyone is managing their campaigns this way, they are probably not utilizing any machine learning or AI.
However, this approach has its limitations and can potentially hinder a brand’s ability to optimize its advertising efforts effectively. Let’s explore why individual campaigns for each SKU offer a more advantageous strategy.
The Power of Individual Campaigns
1. Granular Control
One of the primary benefits of creating individual campaigns for each SKU is the level of granular control it provides. When SKUs are grouped together, bid adjustments and optimization strategies are generalized, which can lead to suboptimal performance for some products. In contrast, individual campaigns allow for precise adjustments tailored to each SKU’s unique characteristics and performance.
2. Targeted Keyword Strategy
Every product has its own set of relevant keywords, and creating separate campaigns enables brands to target those keywords more effectively. This approach ensures that products are not competing with each other for the same keywords, reducing ad spend inefficiencies and improving overall ad relevance.
3. Better Performance Data
Separate campaigns provide clearer performance data for each SKU. This allows brands to analyze the success of their advertising efforts on a per-product basis, identifying top performers and underperformers. With this data, brands can allocate resources more effectively, shifting budgets and strategies towards products that show the most potential.
4. Improved Ad Quality
When each SKU has its own campaign, brands can craft ad creatives that are specific to that product. This tailored approach increases ad relevance, which can lead to higher click-through rates and conversion rates. A more engaging ad experience can ultimately boost a product’s visibility and sales.
5. Enhanced Budget Management
Individual campaigns facilitate better budget management. Brands can allocate budgets based on individual product priorities and revenue goals. This flexibility ensures that high-margin products receive adequate advertising spend, while low-margin items can be adjusted accordingly.
While grouping SKUs together in a single campaign may seem like a convenient way to manage Amazon advertising, the benefits of creating individual campaigns for each SKU cannot be ignored. The power of granular control, targeted keyword strategies, better performance data, improved ad quality, and enhanced budget management makes individual campaigns a winning strategy for Amazon sellers and advertisers.
In a competitive environment like Amazon, where every click and conversion counts, optimizing advertising efforts for each SKU is a sound investment. By recognizing the unique attributes and performance of each product and tailoring campaigns accordingly, brands and agencies can drive better results, increase ROI, and ultimately, stand out in the digital marketplace.
Managing campaigns this way and doing it effectively is nearly impossible for a human to do on their own. Aside from the bids and budget optimizations, they would have to ingest, analyze, and execute based on terabytes of data each day. Companies like Nimble Ads have built technology to automate the entire process. They key to success with these vendors is ensuring that your campaigns are set-up properly from the start. Although Nimble Ads is a partner of Cogent’s, we encourage brands to evaluate multiple solutions and find the best fit for their business. Nimble Ads offers free tests to prove their value so insist that others do the same. If you want to learn more about Nimble Ads, send me an email at firstname.lastname@example.org.