Lottery Campaigns | Amazon Ads

June 7, 2023

Today I'm gonna show you a type of campaign I call lottery campaigns that nearly every advertiser should test and is the perfect first campaign for beginners. My name is Cameron Scot and on this channel, we give you the tools and strategies to make you a better Amazon advertiser. Lottery campaigns work alongside your already existing campaigns and have a very simple campaign structure. If you're just getting an Amazon ads and you're thinking about launching your first campaign, this campaign is a great one to start with. Lottery campaigns leverage the power of a large product portfolio, and Amazon's ad algorithm to find cheap placements and clicks, getting you low cost conversions, and a low ACOS. At its simplest, a lottery campaign is an automatic targeting campaign with a single ad group with every single one of your products as an ad. That's right, every single one of your ASINs inside a single ad group inside of a single campaign. You can have up to 500,000 ads in one ad group.

Lottery campaigns work using low bids with a focus on using your placement adjustments at the campaign level to get low cost high converting ad placements. These campaigns are for and should be tested by anyone that's got at least a couple dozen products in their portfolio. The larger your product catalog, the more ammo you're giving Amazon to find ad placements for a long tail search terms and product pages with low competition,. And even sneak in impressions and low cost clicks on normally high competition and high cost search terms and product pages. You'll be surprised how many cheap clicks and conversions you'll get using this strategy with a large product portfolio. I've been testing several variations of lottery campaigns over the past few months, and they're quickly becoming one of my favorite campaign types.

In just a few months, I generate nearly 800 orders across all the different lottery campaigns I tested with an average ACOS of 18% and 19 cent cost per click with a large portion of those orders being first time sales for many products. I first posted about lottery campaigns in our Facebook group Amazon ads University a few months ago, so if you're not already a member, you can join for free using the link in the description. When I first started testing lottery campaigns. I started with two automatic targeting campaigns, each with just one ad group one lottery campaign for all of my ASINs and another lottery campaign for only ASINs that haven't yet sold. Both of these campaigns had all four targeting groups enabled close match, loose match, substitutes and complements.

I also tested several variations of lottery campaigns with different structures and product segments. For example, lottery campaigns with a different ad group for each product niche, lottery campaigns with only specific product type and lottery campaigns with up and down bidding. Some of these campaigns and ad groups performed okay, but not as well as my all ASIN in zero order ASIN lottery campaigns I started with both of which use down only bidding strategy and without any niche or product type segmentation. A big part of this is do the heavy focus on placement adjustments versus bid adjustments for optimization placement adjustments take place at the campaign level and apply to every ad group and target within that campaign. So when you have some ad groups or targets are performing well, and others that aren't, it can be difficult to dial in your placement adjustments.

This even became an issue for the all ASIN and zero order asin lottery campaigns that had all four targeting groups enabled, even though both campaigns performed well overall. When looking at your placement metrics, there's no way to tell which targeting group is contributing to which placement when you have more than one targeting group enabled for a campaign. And when you're looking at your targeting groups metrics, there's no way to tell how each one is performing in each placement when there's more than one, which can lead to some tricky decisions to make around your placement adjustments and your bid optimizations across all of your targeting groups. The solution of this is segmenting your automatic campaigns by targeting group so that you have one campaign for each of the targeting groups. One campaign for close match, one for a loose match, one for substitutes, and one for complements, although I consider complements very much optional as they don't tend to perform well in most circumstances.

Now when you're looking at your placement metrics, you know exactly which targeting group is responsible and can easily make placement adjustments and bid optimizations accordingly. As I continue testing new lottery campaigns, I'll continue to use a structure of one ad group per campaign with a separate campaign for each targeting group. So I have more control over my bids and placements.

When you first launch your lottery campaigns, you can start with all of your targeting groups enabled and segment later once you see there's a big difference in performance between them or you can just segment them right away and launch multiple campaigns, one for each targeting group right from the start. When launching these campaigns I recommend starting with a very low bid and placements, so you don't quickly blow through a lot of spend and slowly increasing your bids and placements over time. For your bids, you can start as low as just four to five cents. And for your placements 100% on your top of search and 0% on your product pages is a good starting point.

It can take a while for these campaigns to ramp up when you're starting with low bids and placements. So be patient and make adjustments every few days. It took about a month of incremental bid and placement adjustments for my first lottery campaign to really start seeing traction. If you're already running some form of lottery campaign, let me know in the comments how they're working for you. If you got any value out of this video, do me a favor hit the like button and subscribe so you don't miss out on any future content.

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