When setting up pay-per-click (PPC) campaigns on Amazon, sellers generally go through three stages: keyword discovery, optimization, and scaling their Amazon advertising ranking strategy. While keyword research can be easier to learn, understanding how to optimize and scale using Amazon’s advertising tools is often more complicated.
Here, we’ll explain why and how you should optimize your Amazon advertising campaigns to rank for valuable keywords. Learn how to rank for exact match searches to drive organic traffic and build your brand on Amazon.
Optimizing for ranking keywords can mean a higher Amazon ACoS
Amazon sellers often focus on driving down the advertising cost of sales (ACoS) when trying to improve their advertising strategy. This percentage tells you how much of your sales you’re spending on advertising, giving you valuable insight into the effectiveness of your advertising campaigns.
However, keeping your ACoS low isn’t the only thing you should focus on, especially if you want to develop an effective Amazon advertising ranking strategy. In general, your campaign and keyword ACoS should stay under your average profit margins for you to make a profit. But even with a high ACoS, ranking for valuable keywords can be an effective investment toward long-term success as an Amazon seller.
Developing a strong brand identity on Amazon is the key to expanding your customer base on the platform. To do that, you need to optimize your Amazon advertising to drive organic traffic so more potential customers are aware of your brand and the products you sell.
How to optimize your Amazon advertising ranking for exact match searches
When optimizing your various campaigns, first, focus on keywords that are most valuable for your business and the specific products you sell. You’ll want to rank for seed keywords–one or two-word phrases that relate to your product categories and are used by your target customers and competitors.
Once you have keyword campaigns set up via the campaign manager, you can choose a specific campaign that contains valuable keywords you want to lead customers to your products. Follow these steps to optimize your Amazon ranking strategy:
- Select a campaign with keywords that you already rank for or that are central to your business.
- Click on the ad group and open the targeting section in the left panel.
- Customize your table columns to show Spend, Orders, Sales, and ACoS so you can keep track of your performance over time.
- Deactivate or reduce bids for poorly performing keywords from this ad group.
- If you’ve spent more than $10 to $20 and generated zero orders over the lifetime of this campaign, turn off that keyword.
- Then, take note of any “borderline” keywords, and change the date range to see the performance in the last one to two weeks.
- For keywords with a high ACoS (over 40%) over that period, deactivate them or lower the bid for your pay-per-click (PPC) ads.
- Once your brand reach has expanded, you can reactivate and test these keywords again.
Remember, that ACoS is not everything–ranking for valuable keywords can be worthwhile even if their ACoS is higher than expected. Effective keyword ranking strategies on Amazon allow you to expand your customer base and brand awareness by driving organic traffic.
So pay attention to how your branded search and other metrics are performing to see if ranking for keywords high ACoS is paying off in other ways.
Optimize your Amazon advertising ranking strategy with Sellozo
Remember, keywords can be a valuable tool even if they don’t lead to direct sales and a low ACoS. You can leverage keywords with an Amazon advertising ranking strategy that drives organic traffic to your Amazon store and product pages.
Over time, optimizing your PPC campaigns on Amazon can become time-consuming, especially as the number of products and keywords you have to manage grows. That can make it difficult to scale your business, limiting your long-term growth and performance.
With Sellozo’s Campaign Studio, you can automate how you discover and rank for valuable keywords, optimize Amazon campaigns, and adapt your ranking strategy as your business expands. Try a 14-day trial to test out our tools for your Amazon business, and learn more about our PPC automation and advertising solutions for Amazon agencies.
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