Amazon ASIN Matrix — A Unique Approach to PPC Campaign
Imagine you did all things to optimize your bids, added negative keywords, removed unprofitable keywords, etc. But still, your sales are not growing. So, where is your PPC campaign lagging?
Most brands are not seeing the desired results in their advertising campaigns because they are treating all the campaigns in the same way. The top-performing campaigns don’t deserve the same as the low-performing or average-performing campaigns. All these campaigns should be optimized based on their performance.
Due to these problems faced by sellers, Amazon recently shared an ASIN matrix. This is a model, which will help sellers to make optimized decisions on products based on their sales and lifecycle.
What is an ASIN matrix?
ASIN matrix is a portfolio management framework that will help brands to decide how they can prioritize their different products by their degree of profitability.
This ASIN matrix is divided into four quadrants which are Star ASINs, Cash cow ASINs, Question mark ASINs, and Sitting dog ASINs. These four quadrants are defined by product sales and lifecycles. You can classify your ASINs by comparing the average of your product life cycle and sales. These four groups have different characteristics and can be optimized by specific recommendations.
By assessing each of your products to one of these four categories, you will understand which products you need to focus on to increase their sales.
So here, below, you can find the explanation of each group and how you can improve those ASINs.
- Star ASINs
Star ASINs are products that are recently launched and have above-average sales. These products will flourish in the marketplace, and they have the potential to grow. Product sales can grow further by creating campaigns with high visibility positions because they are already performing well.
So if you have a star ASIN, you can improve your product by launching campaigns that are above-the-fold placements, which will improve their visibility. You can also focus on relevant and similar products that broaden your reach.
2. Cash cow ASINs
These product ASINs have been in the Amazon marketplace for a long-time and have above-average sales. These ASINs are one of the most profitable ASINs in your PPC campaigns and can be kept running for a long time. You need to group all the cash cow ASINs together and run a campaign because it has to be optimized the same way. Before you group them, ensure you have similar keywords and a customer base for these products since you don’t want to end up ruining your spending. So that it will be easier for sellers to optimize those campaigns and improve their performance. These ASINs will have a good amount of reviews and these products can be advertised on the detail page of the competitors. So by adverting these ASINs, you can broaden your reach by targeting generic, related keywords. For example, if you are selling photo frames, and you know your products work well as gifts, then you can target keywords like “housewarming gifts” in your campaigns, in this way, you will be able to broaden your reach.
You need to focus on keywords relevant to your ASINs and competitors’ products to improve reach. You should also run ads on similar categories and details pages of similar products. This helps you increase the chances of conversions and gain a share of your competition.
3. Question mark ASINs
These ASINs are new on the Amazon marketplace and have below-average sales. For these ASINs, there is still scope for improvement. If you have this kind of product ASINs and you want to boost your sales, then you have to leverage promotions, coupons, and other offers. With all these, you should be smart enough to choose your PPC campaign strategy. Campaigns with question mark ASINs should require constant monitoring and stable optimization.
So if you want to improve your question mark ASIN, try to pair products that have deals or coupons which will encourage customers to purchase the product. You can also try remarketing your complimentary ASINs within your product price range with manual product targeting.
4. Sitting dog ASINs
These are product ASINs that are not new on Amazon and have below-average sales. These ASINs should be given more attention and work because they have been on Amazon for a long-time, but their sales are low. So if you want to fix these ASINs, you have to narrow down a list of top-performing keywords and create separate campaigns. Also, sellers can use Sponsored Products product targeting to show the product’s ads to customers who are already interested in your product. With the product targeting feature, you can target individual products and categories and filter them using prices, ratings, or brands. In these sitting dog ASINs, make sure you target products with a higher price and poor reviews.
So to improve these ASINs, you will have to select specific keywords which will mirror the query insights of a niche product. Also, you can re-engage with these niche audiences with the help of Sponsored Products product targeting.
Also, keep this point in mind, suppose you are creating a campaign during Prime Day, Black Friday, Halloween, Holidays, etc. Create those campaign groups separately because your cash cow ASINs and star ASINs should be included in these campaigns so that you can get more sales during the peak time.
If you follow these methods to improve your ASINs, then a sitting dog ASIN and question mark ASIN can be converted to a cash cow ASIN. For this, all you have to do is consistently monitor these ASINs. To make it easier for you to monitor your ASINs you can use the SellerApp dashboard. In the advertising section, you will get insights into your positive ASINs where you can find the total sales you have generated and the ACoS.
The most important thing is that you can’t just set your PPC campaigns and let go of them. You have to constantly optimize your advertising campaigns, which will help you to keep up with the competition. Optimizing your campaigns just doesn’t mean adjusting your bid, adding new keywords, etc, but it is strategic optimization. Amazon ASIN matrix is a strategic approach, which will lead you to scale your PPC revenue on Amazon.
To gain a comprehensive understanding of the ASIN matrix, I recommend reading the full blog post on the Amazon ASIN matrix.
