When the customer's search is related to the keyword you are bidding, Amazon's PPC ads will appear. Keyword searches on Amazon (short-tailed keywords) are profitable to sellers because they themselves have very high sales potential. However, the short-tailed keyword competition is fierce. In all product categories in 2016, average winning bid of CPC rose about 20% .Incresed from $ 0.28 to $ 0.34 per click. Due to the intense competition for short-tailed keywords, sellerspirit's recommendations to sellers are:
3. to ensure the advertising costs of these words in line with their target profit margin.
Keep in mind that increasing of CPC keyword leads to higher Advertising Cost of Sale (ACoS), which means that your PPC costs can easily cover your profit if you are not careful. For sellers who run automatic campaigns only, we strongly recommend that you take the time to learn how to set up and optimize manually, as manually optimized campaigns provide more opportunity to control keyword. For example, you might want to use different keyword match types and use negative keywords to exclude expensive or irrelevant keywords that generate clicks but do not convert.
In manual campaigns, you can use broad, phrases and exact match. These three keyword match types provide varying degrees of keyword control, but we recommend that sellers use only broad and exact match types.
How to optimize my keyword to lower CPC?
Exact matching gives you the most control over your keyword CPC, because you can set individual keyword bids and adjust these bids based on your ad performance. The core of CPC optimization is keyword bidding test. You can make decisions to raise or lower your bids based on data only after you have collected enough PPC data. First, you need to calculate your target ACoS. By comparing your actual ACoS with your target ACoS, you can measure whether your ad has reached your target profit margin.
Four CPC optimization guidelines
1. If your actual AcoS is higher than your target ACoS, it means that you spend too much. In this case, you should lower your bids, it can test your ad spend without affecting sales.
2. If your actual AcoS is lower than your target ACoS, that means you still have a budget to spend. In this case, you should raise your bids and test whether your ad's exposure and sales can grow fast.
3. If a keyword has no any exposure rate, check your product category (also known as browse node) is correct or not, and make sure your listing or background keywords contain this keyword. If your product category is correct, and the keyword is also included in the listing, then you need to start to increase your bid to test whether the higher bid will make the keyword active.
4. If a keyword does not produce any sales for a long period of time and is not profitable even after the bid has been reduced, you should remove it from your "accurate" ad group and add it to your negative key word list.
Second, the long tail keyword strategy
For the seller , long tail keywords are very profitable because they occupy a large part of Amazon's existing keywords, which means they occupy a large number of valuable and cheap search flow. Long-tail keywords have less search traffic than short-tail keywords and therefore have less potential for sales. However, long tail keyword customer traffic will be more specific. When customers use a few specific keywords, they are more likely to be ready for the purchase, so you usually see a higher conversion rate. The main challenge with long tail keywords is that they are harder to find. The short-tailed keyword is a more concise, generic phrase that can easily be listed without a great deal of keyword research. In contrast, long-tailed keywords are typically composed of more specific, or vague search phrases used by customers.
Here's a two-step approach to building a long-tailed keyword list:
Step 1: Create and run an ongoing PPC auto campaign, review your search report (STR) and look for relevant search terms. However, because you want to build a long enough list of keywords, relying solely on your STR is often not enough.
Step 2: Use some Amazon long-tail keyword tool to generate additional lists of PPC keywords for your product. Your can search a lot such tool in Google, and if you want to use other keywords tool, sellerspirit is also a good choice.
Final Proposal Keywords: Brand Names
Experienced sellers in the Amazon PPC will know that Amazon often includes keywords in its automated campaigns that relate to a competitor's brand. Sellers may also find it profitable to include a competitor's brand keywords in their campaign targeting strategy. Conversely, do not put brands advertise on Amazon, or just use minimal ads, may divert their customers' traffic to the competitor's product listing page. So, be sure to bid on your brand name to avoid leaving advertising space to your competitors.