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Experience with Amazon (AMS) advertising
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Robin
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May 05, 2018 02:06PM

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Thank you, Sarina. I've had a similar experience with promo sites. It seems that most of the followers are authors, and not readers willing to pay for books. Black Sun works a bit differently than most. They audit your website, create back links, optimize SEO , and much more. I'm giving it a try. Will get back to the group on results.

Hi Ann, I have seen the same thing from time to time. I assume their software has bugs in it.

Cost: $18.46
Impressions: 124003
Clicks: 108
Avg cost per click: $0.17
Avg impressions for click: 1148 ( sub 1000 in the last two weeks and trending down over the 8 weeks)
Books sold attributed to adverts: 7
Total net cost after royalties $7.90.
Average cost to sell each book $1.13 (more efficient than any of my promos, but still a negative ROI).
I've now got 11 adverts running for 3 books, still building up my AMS Keywords, (b/w 270 and 440 depending on the advert). I've revised my blurbs, categories, and Amazon 7 Keywords during the last two months.

No, I'm saying that everything was going along just fine, the impressions were going up each day and then, all of a sudden, they started going backwards. This happened once before but it was just one day and I figured it was a glitch. But this went on for several days in a row on multiple campaigns - either the impressions went backwards or the clicks went backwards. I'm waiting to hear back from them on all fronts. I have been promised that there is a team looking into it. We'll see. Meanwhile, I'm not selling any books because I'm getting no impressions. One of my clicks reappeared.
I'm glad I keep a paper trail. At least I have pictures I can send to support my complaint, particularly after I was told that what I described was impossible.

Looking forward to hearing about your experience.

I've moderated my expectations about what an AMS campaign can do for an indie author. Ads - even across several platforms - are just a compliment to other marketing tactics (in-store signings, reviews, word-of-mouth, etc).
It's also apparent that the sheer volume of self-published books has led to a deluge of sponsored product book ads and if yours is buried many pages behind other authors', few potential readers will see it. So, beyond tracking ad performance metrics, it's helpful to see where your ad actually appears relative to competing ads 'in the lineup' at the bottom of the page once your campaign goes live - especially if you used popular genres and authors as your keywords.
Does anyone have any insight about: 1) how AMS defines an 'impression'? Does it count equally as an impression whether your book is on the first page (where its likely to be seen) vs on page 74 (and hence invisible)? 2) if you're seeing few impressions for keywords that should fit your book like a glove, does boosting your CPC bid enhance your ad's chances of getting more impressions?
Thanks!

- Expect modest results on this platform especially for indie authors without an established readership; AMS ads compliment (but most certainly don’t replace) other essential efforts to promote a book and build a base (e.g. book signings have been far more successful than AMS ads to date – though signings have their own challenges).
- Though initially, results will be modest, so are costs. For indie authors with a nano-scale budget, AMS ads are a good ‘laboratory’ to test assumptions about a book’s potential readership and how to reach them.
- As many others have noted, the best keywords seem to be genres that you think your book fits within, authors that you assume readers may find similar to your work, and titles of books with motifs/plots/characters similar to your own. There are several paid or free tools to generate the boatloads of keywords that are gist for the mill in determining what ultimately works in connecting a given book to a readership that might actually buy it.
- In experimenting with keywords, we all know that our own work is utterly unique and impossible to categorize (gentle sarcasm intended), but for this exercise, staying humble and looking for genres/titles/authors in spaces similar to our own work is helpful.
- There are any number of places to get free or paid expertise that may (or may not) better inform you about navigating AMS. However, the platform remains something of a black box with regard to how its algorithms translate an author’s keywords and bids into targeted ads for a given book. Predicting what will work and determining whether it was customer psychology or a nuance of AMS (or a combination of the two) that drove a particular keyword’s success is tricky. Even the definition of ‘impression’ isn’t clear – probably it doesn’t mean actual eyeballs on a particular ad given that many sponsored product ads are buried many, many pages deep. Having said that…
- There is value in pouring over the metrics generated by your campaign for leads on who might buy your book and how to reach them with follow-up efforts.
It’s a trial and error process…

So every bit of tribal lore or any short cuts are very, very welcome.

There are several advantages to using KU. Obviously, it’s one more channel to get your work in front of readers – potentially lots and lots of readers. A recently posted data analysis indicates that there are about 3 million KU readers. Further, these folks appear to both read and review books at higher levels than non-members. In addition, if your book is already published as an Amazon eBook, it’s an extraordinarily easy process to authorize its availability on KU.
However, there are disadvantages that indie authors need to consider before deploying KU. Among these are the potential for cannibalization of actual eBook sales where your profit margins are higher. After all, if you’re a reader using KU, why buy something that you’ve already paid to access with your monthly subscription? This is analogous to a conundrum from the traditional days of hard-copy books which when sold to a library meant potential readers could simply check a book out without buying it. Of course, then as now, many of these readers would only read your book as a library checkout and would never pay to own it.
My own experience is that Amazon eBook sales did indeed drop once I’d made my book available on KU. And while Amazon currently pays a 70% royalty on sales of my $5.95 eBook ($4.17), I only get about $1.25 for every 300 pages read on KU. Naturally, if you price your eBook at $2.99 (the lowest price that Amazon pays a 70% royalty for), the difference between a KU read and an eBook sale is smaller. However, whatever you set your price at, you’ll need to sell enormous numbers of books to make any significant money via KU – no wonder some writers take an almost factory production approach to their writing.
It’s tricky to quantitate exactly how many shoppers would have bought my eBook had it not also been available on KU given that I couldn’t control key variables including seasonal sales fluctuations, introduction of competing books by other authors, and changes in my advertising. However, a review of the profits before and after KU availability indicates reduced income. This implies that though KU may well have expanded my reader base (yeah!), this didn’t offset the drop in profitability (sigh!).
I’ll plan to observe this effect for several more months to better quantitate the net impact of the competing effects of expanded readership vs reduced profitability.
Another disadvantage for authors considering KU is Amazon’s prohibition against using other platforms to sell electronic versions of your book (at the moment, hard-copy sales are unaffected by this requirement). Of course, this creates a dependency on a single channel for your book’s electronic sales. However competing distribution channels for eBook distribution come with their own set of challenges including the need to format your book to meet their platform’s standards and the lack of compatibility across platforms. Further, at the moment, Amazon’s rivals simply can’t compete on reaching readers. Perhaps if Apple makes a serious effort with its Apple Books platform, this will introduce needed competition into this space.
Conclusion
For indie authors with micro scale operating and marketing budgets, KU offers a chance to dramatically increase your ability to potentially get your work in front of interested readers’ eyeballs. And you may derive some modest income from this effort at the expense of more profitable sales in other formats. In fact, this is a classic business challenge: do you opt for market share or higher margins. Anyway, for writers with little name recognition, KU is a useful distribution conduit though you’ll still need to market like crazy to get anyone to actually be aware of your book(s) and leverage this channel’s capabilities.

I find that KU offers income that I probably would not get through sales. Sometimes i.e. when I bother to monitor these things, I can see from the number of page reads in a single day that there must be at least X people reading a particular book and I have not had to do any extra marketing. My small budget for ebook and paperback sales does not need to be increased to cover KU nor do I need to spend even more precious time on visibility.
On the other hand, I am tied to Amazon. That suits me as a fairly new author (first book published in 2012).

I have found the 'average cost per sale' figure to be particularly useless for me, because two books I have been advertising have many images (99 and 45 respectively). Despite doing all I can to reduce image size, this results in massive download charges of $1.60 and 85c respectively. Until the new dashboard was introduced, I tried to keep a spreadsheet that calculated ROI monthly, but it was a lot of work.
The two advantages for me of the new layout are: showing each campaign separately; and being able to sort by column. None of you is my grandmother and you probably already know how to suck eggs, but I'll explain in detail what I do:
1. Calculate revenue per sale for each book (from Book Report or from the KDP dashboard). They turn out to be $3.04 and $3.77 respectively for the two Kindle books. Revenues for the paperbacks are $3.03 and $3.74 respectively.
2. Click the 'Columns' button and make sure that the 'Spend' and 'Orders' columns are displayed.
3. Click the 'Spend' column header once or twice until the highest spending campaign is at the top.
4. Compare Spend and Orders for each campaign where money has been spent. If no orders at all, make a judgement whether the campaign is worth keeping. If not, cancel or pause it. If some orders are shown, divide Spend by Orders to show the cost per order. If this is less than the revenue per sale, the ROI is positive. 'Orders' includes both Kindle and paperback, so I use the lower revenue figure (which in the above case is the paperback, $3.03 and £3.74) to compare with.
I usually check this at a glance and try to make sure the revenue is comfortably above the spend when deciding whether to keep an ad going. However, one can no doubt use it to do a proper calculation of ROI.
I need to be aware of weaknesses in this approach:
- I think 'Orders' includes KU downloads. Their revenue is much lower (about $1 per completed book) so the 'comfortably above' is important.
- The Spend and Orders figures are for the life of the ad, rather than e.g. last 30 days, but - time permitting - one can check out different periods.
Earlier in this thread, we've discussed clicks per 1,000 impressions, conversion rates, the need for lots of keywords and the advantages of trying and testing lots of ads.
I hope these comments on using the new dashboard are of interest.