Create Profitable Amazon Ads with the Right Keywords

Mastering the art of keyword selection for your Amazon Ads can be the difference between getting lost in a crowded digital marketplace and becoming the sales leader in your product’s category. 

Before you begin your next Sponsored Ads campaign, learn how identifying the most profitable keywords and using them effectively can drive increased visibility, boost conversions, and ultimately, achieve sustainable profitability. 

Keywords are Key to Amazon Ads

Keywords are a crucial part of Amazon advertising, acting as the bridge that connects buyers to sellers. When Amazon users search for a product, they use specific terms to find what they’re looking for. These keywords are the language of the customer, and understanding this language is essential for any seller wanting to succeed on Amazon.

First, listing keywords help Amazon’s A9 algorithm match your products with potential customers. When you list a product on Amazon, you provide a title, description and other details. Amazon uses this information, along with the keywords you’ve chosen, to determine when and where to display your product in search results. Therefore, the more relevant your keywords are to what customers are searching for, the higher your product will appear in search results.

Similarly, Amazon ads keywords are essential for effective ad targeting. When you set up an Amazon ad campaign, you select keywords that you want to target. These are the words or phrases you believe shoppers will use when searching for your product. When a shopper types a search query that matches one of your keywords, your ad has the opportunity to appear in their search results. This means that by choosing the right keywords, you can ensure your ads reach the most relevant audience.

So, how do you perform effective keyword research for Amazon ads?

One way to start is by thinking like your customer. What terms would they use to describe your product? What problems does your product solve, and how might customers articulate these problems? Record all the terms that come to mind.

Next, look at your competitors. Which keywords are they targeting? You can often find these in the product title, description, and customer reviews of their product pages. Don’t just copy these keywords, but use them as inspiration to find new ones.

Amazon’s auto-suggest feature is another excellent tool for keyword research. Start typing a keyword related to your product in the Amazon search bar and see what other terms Amazon suggests. These are commonly searched terms and can be very valuable.

Additionally, make use of keyword research tools. There are many tools available online, both free and paid that can provide you with a list of potential keywords based on a single input term. Some of these tools can even provide information on the competition and search volume for each keyword, which can help you prioritize which ones to target.

Finally, remember that keyword research is an ongoing process. Customer behavior and trends change over time, so it’s essential to regularly review and update your keywords to ensure they’re still relevant and practical.

Keywords are the lifeblood of Amazon advertising and help ensure your products are visible to the right customers and your ads reach the most relevant audience. By understanding how to perform effective keyword research, you can significantly increase your chances of success on Amazon.

Match Types Matter on Amazon

When it comes to Amazon pay-per-click (PPC) advertising, Keyword Match Types are at the foundation of how sellers can fine-tune how their ads match up with customer searches. There are three main types of keyword matching: Exact, Phrase, and Broad.

Exact Match is the most specific type. When you use an exact match keyword, your ad will only show when someone searches for that exact keyword in the same order, with no extra words. This match type gives you the most control over who sees your ads but can also limit your ad’s exposure. It’s best used for highly specific keywords where you know exactly what customers are searching for. For example, if you’re selling a “women’s waterproof hiking boot,” using this as an exact match keyword will ensure your ad is only shown to customers who type this exact phrase.

Phrase Match is slightly less specific. With this type, your ad can show when someone searches for your exact keyword or your exact keyword amongst a sequence of words, making it more flexible. The critical feature of phrase match is that it allows you to control the word order. For instance, if your keyword is “waterproof hiking boot,” your ad could appear for “women’s waterproof hiking boot” or “waterproof hiking boot for women.” This match type helps target more broadly while still maintaining some level of specificity.

Broad Match is the least specific type. If you use a broad match keyword, your ad can show when someone searches for any word in your keyword, in any order, and even if they include extra terms. This type offers the broadest reach but also means your ad could show for less relevant searches. Broad Match is ideal for casting a wide net and capturing a large audience. However, monitoring performance closely is essential to ensure your ad isn’t appearing for irrelevant searches.

To utilize all these match types effectively, starting with a mix of all three is recommended. This approach will give you a broad reach (with Broad Match) while still targeting some specific searches (with Phrase and Exact Match). Monitor your campaign performance closely, and adjust your keyword match types based on the results. If a particular keyword performs well with one match type, consider testing it with another to see if you can improve performance further.

Remember, the goal of using different match types is to balance reach with relevance. You want your ads to be seen by as many people as possible, but only if they’re likely to be interested in your product. 

Amazon Keyword Strategies for Success

Beyond match type, there are other Amazon ad keyword strategies that can make a noteworthy difference in the visibility and sales of your products. When properly optimized, these strategies can lead to more effective campaigns and ultimately, increase your sales.

One of the most powerful keyword strategies involves the use of long-tail keywords. These are particular phrases that customers use when they have a strong intent to purchase a product. Continuing with our hiking boot example, instead of using “hiking boots” as a keyword, a long-tail keyword might be “women’s waterproof hiking boots size 7.” This specificity means that while the search volume for long-tail keywords might be lower, the conversion rate is often much higher because the customer knows precisely what they want. Furthermore, because long-tail keywords are less competitive, they can reduce the cost of your ad campaign and give you a better return on investment.

Another necessary approach is to balance high-volume keywords and low-volume ones. High-volume keywords are those that have a high search frequency but are also highly competitive. While they can increase the visibility of your ads, they can also be more expensive to bid on. On the other hand, low-volume keywords may have less competition and lower costs, but they also have fewer people searching for them. 

Understanding their purpose and integrating each of these two types of keywords in your campaigns is the key to balancing them. High-volume keywords can help drive traffic and visibility, while low-volume keywords can provide more targeted reach and better conversion rates.

It’s also important for Amazon sellers to incorporate negative keywords into a campaign to enhance ad performance and prevent your ads from appearing on irrelevant searches. These are keywords you don’t want your ad to show for. For instance, if you’re selling new books, you might use ‘used’ as a negative keyword to prevent your ad from showing to customers searching for used books. Negative keywords help you avoid wasting money on clicks that are unlikely to convert into sales. 

Regardless of the strategies used, the result should balance reach and relevance. When achieved, Amazon sellers can enjoy more effective ad campaigns that lead to increased sales.

Maximize your Amazon Ad ROI

In most cases, determining a successful Amazon advertising strategy depends on the financial bottom line. Amazon sellers are looking to maximize their return on investment (ROI) so that for every dollar spent on advertising, they’re earning more in return. Focusing on results is fundamental to increased profitability and growth for your business.

One of the ways to maximize your ROI is by choosing the right targeting option. Amazon advertising offers two main types: Auto-Targeting and Manual Targeting.

Auto targeting is where Amazon’s algorithm automatically selects keywords based on your product information. It’s a great option if you’re new to Amazon advertising, as it requires less effort to set up and can help uncover valuable keywords that you might not have thought of. However, it also gives you less control over which keywords your ads target.

Manual targeting, on the other hand, allows you to choose your own keywords. This gives you greater control over your campaign and enables you to target more specific searches. Of course, it also requires more effort and a good understanding of keyword research.

When deciding between these two options, consider factors such as your experience with Amazon advertising, the time you have available for keyword research, and the specificity of your products. Auto-targeting could be a good choice if you’re just starting out or have broad-appeal products. Manual targeting might be more effective if you have more experience or niche products.

Another critical aspect of Amazon PPC optimization is understanding and utilizing different keyword bid strategies. These tactics determine how much you’re willing to pay for a click on your ad.

Amazon offers three bid strategies: Dynamic Bids – Down Only, Dynamic Bids – Up and Down, and Fixed Bids. The first one, Dynamic Bids – Down Only, allows Amazon to lower your bid when your ad may be less likely to convert to a sale. The second option, Dynamic Bids – Up and Down, allows Amazon to increase your bid (by up to 100%) when your ad is more likely to convert and lower it when it’s less likely to convert. The third option, Fixed Bids, keeps your bid the same, regardless of the likelihood of a sale.

To optimize bids for profitability and growth, consider your keywords’ competitiveness and your product’s profit margins. If you’re targeting highly competitive keywords or have low profit margins, you might want to use a more conservative bid strategy, like Dynamic Bids – Down Only. A more aggressive approach, like Dynamic Bids – Up and Down, could be more effective if you target less competitive keywords or have high profit margins.

While no single method will work for every Amazon seller, building a successful Amazon PPC ad campaign is worth pursuing. Choosing the right targeting option and bid strategy based on your unique circumstances and goals or finding an experienced partner to guide those decisions can fast-track your path to growth and help you achieve your Amazon sales goals. 

At Amify, partnership is the word that matters most 

While keyword research tips can be the start of a profitable ad campaign, they may not be enough to reach your goals. For many Amazon sellers, an experienced partner could be the most efficient path to profitability. 

Reach out to the experts at Amify to discover how our knowledge of Amazon best practices can inform your strategy for growth. You’ll see first-hand why our clients have an average growth of over 100% within our first year of engagement with their business. Schedule your free consultation today to learn more.