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Top 5 Amazon PPC keyword Research Strategies | How to find keywords for Amazon PPC
What is Amazon PPC?
Amazon Pay-per-Click (PPC) advertising is part of Amazon’s internal advertising system. Through Amazon PPC, brands, agencies, and third-party sellers can target specific keywords to create advertisements for their products, which appear in Amazon’s search results and on competitor product listings. In this way, sellers can present Amazon customers who are ready to make a purchase with relevant products at the point of sale — and then measure their ads performance to identify which specific ads are driving conversions. Amazon then charges them each time a potential customer clicks and views their ad. It’s a highly effective technique to derive sales and rank organically.
Advertising Cost of Sales also known as ACos is the percent of sales spent on advertising. This is calculated by dividing total ad spend by sales. ACos must be lower than your products actual profit margins if your profit margin is 30% then your ACos must be lower than 30% to get into profit zone. For example, if you spent $4 on advertising resulting in attributed sales of $20, your ACoS would be 20% (i.e., $4/$20 = 0.20).
Formula: 100 ([total ad spends] ÷ [total sales])
Attributed sales are the total product sales generated within one week of clicks on your ads. Your sales data can take up to 48 hours to update so, don’t get worried if sales are not appearing. You can view the individual sales totals for advertised products and other products in the Campaign Performance report.
Impressions measure the number of times Amazon shows shoppers your Ad, regardless of whether they clicked on it or not. It is one of the key metrics of Amazon Advertising and can be used to check at a glance how well an Ad is doing.
The number of times your ad has been clicked by customers.
A click-through-rate also known as CTR is the total number of clicks your ad gets divided by the total number of impressions. A good example for understanding CTR is if you get 1 click on your ad per 100 impressions, then you’ll have a 1% CTR.
The average CTR on Amazon is 0.41%.
Formula: clicks ÷ impressions
Checklist to run a successful PPC:
1. Your listing must be well optimized it must contain relevant keywords and your back end also needs to be optimized.
2. Your listing must have more than 5 reviews in order to get the juice out of PPC.
3. Your Images must be attractive and should also contain life-style images.
4. Buy-Box must not be suppressed.
5. Your listing should contain all the information of your product to convert buyers.
6. NO keyword stuffing must be done.
Types of Amazon PPC ads:
There are three types of PPC ads in Amazon
1. Sponsored Products
2. Sponsored Brands
3. Sponsored Display
Sponsored Product ads appear in search results and product listing pages, and can closely resemble organic listings. This is the most common type of Amazon PPC ad. It is used by 66% of third-party sellers.
When creating sponsored product ads, there are two types of keywords targeting strategies a seller can use: automatic targeting and manual targeting. Let’s explore their differences
1. Automatic targeting
2. Manual targeting
The automatic strategy involves targeting keywords that Amazon’s algorithm determines are related to your product listing. Amazon algorithm takes these keywords from your products listing page. Over time, Amazon uses data that it collects from shoppers’ clicks and purchases, then adjusts the ads to better suit your listing and increase conversions. In Automatic targeting you don’t have to give amazon keywords.
Within automatic targeting, sellers can use four different keyword match types:
• Close match
• Loose match
In Close match ads appear when shoppers use search terms that are closely related to the product you’re advertising.
In Loose match ads appear when shoppers search keywords loosely related to your product.
In Substitutes match type to target shoppers who are considering products that are similar to your product, but sold by a different brand (i.e., a Cuisinart blender instead of a Kitchenaid blender)
Complements match type targets shoppers viewing detail pages of products that complement yours (i.e., paintbrushes to go with a paint set)
Note: Auto campaigns gives more keywords and is mainly used as research campaigns. The downside of Auto campaigns is that it lacks the optimization options that other ad types offer.
PPC KEYWORD RESEARCH