How to Analyze and Optimize Keyword Performance in Amazon PPC
Keyword performance analysis is crucial for optimizing Amazon PPC campaigns and ensuring that your ads deliver maximum visibility, conversions, and return on ad spend (ROAS). Effective keyword optimization involves monitoring impressions, clicks, conversion rates, and cost-per-click (CPC) to refine your strategy and eliminate wasted ad spend.
Step 1: Collect and Analyze Keyword Performance Data
To optimize keywords in Amazon PPC, first, gather data from Amazon’s Campaign Manager and Search Term Reports. These reports provide insights into how keywords perform, including:
•Impressions – How often your ad appears in search results.
•Click-Through Rate (CTR) – Percentage of people clicking your ad after seeing it.
•Conversion Rate (CVR) – Percentage of clicks leading to a sale.
•Advertising Cost of Sales (ACOS) – Ad spend as a percentage of revenue.
•Return on Ad Spend (ROAS) – Revenue generated for every dollar spent on ads.
How to Access Amazon Search Term Reports
1.Go to Amazon Seller Central and navigate to Campaign Manager.
2.Click on Reports and select Search Term Report under Sponsored Products.
3.Download the report and analyze keyword performance metrics.
Step 2: Identify High-Performing Keywords
A high-performing keyword is one that generates a good number of conversions at a profitable cost. Look for:
•High CTR and high conversion rate – These keywords attract engaged buyers and drive sales.
•Low ACOS with high ROAS – Profitable keywords that contribute to positive revenue growth.
•High impression share with consistent sales – Keywords that maintain strong visibility and conversions.
Optimization Strategy for High-Performing Keywords
•Increase bids slightly to maximize impressions and sales.
•Use exact match targeting to ensure the ad appears for highly relevant searches.
•Incorporate these keywords into product listings (titles, bullet points, backend keywords) to improve organic ranking.
Step 3: Identify and Eliminate Poor-Performing Keywords
Low-performing keywords are those that consume ad spend without generating significant sales. These typically have:
•High impressions but low CTR – Indicates that the keyword is not relevant to shoppers.
•High CTR but low conversion rate – Suggests the product listing or price may not be convincing enough.
•High ACOS and low ROAS – Shows that the keyword is draining your budget without delivering a return.
Optimization Strategy for Poor-Performing Keywords
•Lower bids to reduce wasted ad spend.
•Pause or remove non-converting keywords after testing for a reasonable period.
•Change match type (from broad to phrase or exact) to increase relevance.
•Use negative keywords to prevent irrelevant traffic and improve campaign efficiency.
Step 4: Use Negative Keywords to Improve Efficiency
Negative keywords prevent your ads from appearing for irrelevant search terms, reducing unnecessary clicks and wasted ad spend.
How to Add Negative Keywords
1.Go to Campaign Manager and select the PPC campaign.
2.Click on Negative Keywords under settings.
3.Add irrelevant keywords that generate clicks but no conversions.
For example, if you’re selling premium leather wallets, adding “cheap” or “free” as negative keywords prevents unqualified shoppers from clicking your ad.
Step 5: A/B Test Keyword Bids and Match Types
Testing different bid amounts and match types can help optimize performance over time.
Testing Bid Adjustments
•Gradually increase bids on high-converting keywords to see if higher bids improve performance.
•Lower bids on high-ACOS keywords to improve profitability.
•Use bid adjustments for placements (e.g., increasing bids for “Top of Search” placements).
Testing Match Types
•Broad match – Used for discovering new keyword opportunities but should be monitored closely.
•Phrase match – Provides better targeting while allowing variations of the keyword.
•Exact match – Best for high-intent shoppers looking for your specific product.
Step 6: Monitor and Adjust Regularly
Keyword performance changes over time due to seasonality, competition, and market trends. Regularly:
•Download and analyze Search Term Reports to track changes.
•Adjust bids and budgets based on ACOS and ROAS trends.
•Identify new profitable keywords to add to campaigns.
Final Thoughts
Regular keyword analysis and optimization are essential for maximizing ad performance and profitability in Amazon PPC. By identifying high-converting keywords, eliminating wasteful ones, using negative keywords, and continuously testing bids, sellers can refine their campaigns to increase conversions, lower ACOS, and improve overall ROAS.