Amazon PPC can be said to be a science. There a lot of sellers complain their advertising performance is too poor, even they don’t clear about the report of the ad. Sadly, if you don’t know how to analyze the data of your ads, the money you have spent will be dull.
So this article will share some tips to choose the effective keyword for your PPC and adjust your PPC keyword strategy.
What is Amazon PPC?
Pay-per-click (PPC) advertising is a method where an advertiser pays only for the advertisement that a potential buyer clicks and views the product. Amazon PPC (Pay Per Click) is an auction system in which advertisers can bid on keywords. The seller can increase their sale with it.
When Amazon customers do a product search, the seller with the highest bid for the relevant keyword will win the auction, and their product advertisements will be listed as “sponsored products” in the search results.
Categories about Keywords
Successful keyword-targeted campaigns target keywords that will drive impressions, clicks and sales. However, If your keywords are too general, you might spend a lot on ad clicks without purchase.
Firstly, let’s category keywords. Generally, it will have 3 types: Descriptive Keywords, Functionalism keywords, Branded keywords.
1. Descriptive Keywords: These keywords often have high search volume, such as chiffon dresses, handbags, LCD TVs.
2. Functionalism keywords: These usually describe your product can solve the problem, such as aroma humidifier, Apple emergency charging, etc.
3. Branded keywords: The name of your products and brands. These keywords may not contain commercial nature, but they are the top excellent keywords in the buying funnel.
You have to fully understand your products, explore the advantage of your products, and take appropriate keyword to it.
When running an automatic campaign, the seller does not need to set keywords. Amazon will automatically analyze the keywords of your Listing, and then display the products on the relevant Listing details page. This kind of display is not based on specific keywords but based on your product is consistent with the information on the corresponding Listing detail page.
In the manual campaign, sellers need to choose keywords.
How to choose keyword for your PPC?
- Filter recommended keywords.
When the seller selects the listing for advertising, the system will automatically recommend the corresponding keyword list for the seller to choose.
There are many keywords in the recommended list that are consistent with product information, which can import accurate traffic for sellers. However, there are also many keywords that do not match the product itself and target customers very well. So it is better for the seller to filter and select the keywords one by one.
- Choose keywords from the perspective of common sense in daily life.
As a seller, you should first be a product expert. Based on your familiarity with the product, you should sort out the product name, and then think about it. The words that consumers may use are sorted out and added to the list of advertising keywords.
- Combined with auto campaign.
In the automatic campaign, Amazon will do the keyword research by automatically. During run the automatic campaign, sellers can copy the well-performing keywords from the automatic campaign to the manual campaign.
- Use Captain BI to collect and sort out product-related keywords.
Sellers can also use Captain BI to analyze their product keywords when placing manual advertisements. Through big data analysis, sort out more advertising keywords.
In addition, sellers also need to pay attention to the choice of keyword matching methods.
Keyword Match Types
During the manual advertising setup process, the Amazon system provides three matching methods for keywords: Broad Match, Phrase Match, and Exact Match. What is the difference between these three matching methods? How should the seller choose?
1. Broad Match: This match type offers your ad broad traffic exposure. A search term will match if it contains all the keyword terms in any order. Broad match also includes the plural form of the keyword, related searches, and other variations that are close to the keyword.
If your product is relatively unpopular and has a very small audience, you can use broad match to increase impressions and clicks.
2. Phrase Match: This method relatively restricts a certain exposure, which must contain the exact phrase or sequence of words. Taking coffee cups as an example, these words will display advertisements: coffee cups, blue coffee cups, coffee cups blue, Red coffee cups for traveling, coffee cup (singular), coffee cups (misspelling), cups coffee (different order).
3. Exact Match: The search term must exactly match the keyword or sequence of words in order for the ad to show, and will also match close variations of the exact term. Exact match is the most restrictive match type but can be more relevant to a search. The exact match also includes the plural form of the keyword.
If the conversion rate of broad match is higher than the phrase match and exact match, it means that there are no keywords corresponding to the search term in your account. You can download the report and add it.
Compared to adding keywords, analyzing performance data is more important.
If you check the performance data everyday, maybe it is difficult for you to get something new. Because the data is too small, and the daily fluctuations are different. Date range is too small, it will make us more and more anxious.
Therefore, it is recommended that you’d better choose “last week”, “last month”, “this year” and “all time” as the date range. Of course, in addition to these time intervals, you can also check the time interval yourself, such as choose 7 days as the date range.
Metrics should be focused
This is the first metric that needs to be analyzed. If Impression performance not well, it must be related to the following factors.
- Listing optimization: if the listing optimization is too poor, Amazon cannot identify the detailed content of the listing, and there is no way to achieve accurate matching. At this time, the exposure of the advertisement will naturally be less.
- Keyword bidding: if the keyword bidding is too low, the advertisement will be placed on the lower page, and the exposure will naturally be less.
Things will get easier if you find the problem. Either optimize the listing, or increase the keyword bidding to let the advertisement run to the top page.
With enough exposure, clicks are the second thing we want to observe metric. If an advertisement is delivered and there are only a few clicks, naturally there will not be too many orders.
Regarding the number of clicks, two things need to be paid attention to:
- The number of clicks: Definitely, the more the number of clicks is the better. If there is only a few clicks, the advertisement is meaningless.
- Click-through rate (CTR): If the CTR is not high, the main things you have to do is to optimize the listing. Especially the optimization of the main image, title, price, review and other content that can be seen on the search result page. Different categories of products have different CTR ratios, but in any case, CTR is also should be maintained at a level of about 0.5%).
3. Order volume
With a certain amount of clicks, we can jump directly to the order volume. Compare the order conversion rate of your own organic traffic and see how the order conversion rate of advertising traffic is.
If the advertising conversion rate is flat or higher than the natural conversion rate, it is naturally gratifying. At the same time if the advertising conversion rate is much lower than the natural conversion rate, one possibility is that your ads are clicked intentionally or unintentionally by competitors.
In this way, we can adjust our bid strategy by bidding on our own advertisements by time periods, lower the bidding during non-peak sales hours, and increase bidding during peak sales hours.
ACOS is indeed important in an advertisement. You must know, it is not enough if you just observe this metrics and lack of the analysis of the above-mentioned metrics.
Almost every seller expects that ACOS can be as small as possible, but this can only exist in expectations.
Generally speaking, it is acceptable if ACOS is less than or equal to their own gross profit margin.
ACOS less than gross profit margin, the sales directly brought about by advertising are profitable, ACOS greater than the gross profit margin means that the sales directly brought about by advertising are at a loss.
But we must also realize that a core metric that affects ACOS is the unit price of the product. For products with low unit prices, ACOS tends to be high, while for products with high unit prices, ACOS is always relatively low.
But the high and low ACOS is just A relative value. At the beginning, even if the ACOS value is high,, as long as the total advertising cost you is not much, it is still acceptable.
1. The listing you want to run ads should be carefully selected, it is better for you to focused listings. Decentralized advertising is not as good as focused on advertising.
2. For multiple products of the same series, you’d better advertise the ASIN that you are currently focusing on. After you get success on the ASIN, you can go to the next one.
3. For the listing with multi-variants, it is enough to select the ASIN that is most in line with the public’s preference.
At this point, have you got some ideas? Of course, if you have different opinion with it, I am glad to hear from you!
Need to know more for PPC? Check the ultimate guide!