How to Conduct Competitive Analysis for Amazon PPC
Competitive analysis is essential for optimizing Amazon PPC campaigns. Understanding what your competitors are doing helps you refine your strategy, identify gaps, and improve performance. By analyzing competitor keywords, pricing, ad placements, and product listings, you can develop a more effective advertising approach that maximizes sales while minimizing wasted ad spend.
Why Competitive Analysis Matters in Amazon PPC
Amazon PPC is highly competitive, and bidding blindly on keywords can result in high costs without conversions. By studying competitors, you can:
•Identify high-performing keywords they are using.
•Understand their ad placement strategy and adjust your bids accordingly.
•Find gaps in their product listings and optimize yours to outperform them.
•Adjust pricing strategies to remain competitive.
Key Steps in Conducting Competitive Analysis for Amazon PPC
1. Identify Your Main Competitors
Start by identifying the top competitors in your niche. Search for your primary product keywords on Amazon and look at the top-ranking Sponsored Ads and organic listings. Competitors to focus on include:
•Direct competitors selling similar products at a similar price.
•High-performing brands dominating Sponsored Ads in your category.
•New competitors that are gaining traction quickly.
Use Amazon’s Brand Analytics (for brand-registered sellers) and third-party tools like Helium 10, Jungle Scout, and SellerApp to find competitors.
2. Analyze Competitor Keyword Strategy
Keywords are the foundation of Amazon PPC. Analyzing competitor keywords helps you discover high-converting search terms.
How to Find Competitor Keywords:
•Amazon’s Search Term Report (for Sponsored Products) provides insights into keywords driving clicks and sales.
•Use tools like Helium 10’s Cerebro or Jungle Scout’s Keyword Scout to reverse-engineer competitor keywords.
•Identify brand-specific keywords competitors are bidding on (e.g., “Nike running shoes” vs. “best running shoes”).
Actionable Steps:
•Bid on competitor brand names to capture their customers.
•Use long-tail keywords they may have overlooked.
•Identify low-performing competitor keywords and avoid wasting budget on them.
3. Evaluate Competitor Ad Placement & Bidding Strategy
Amazon PPC ads appear in different placements, including top of search, product detail pages, and rest of search. Understanding where competitors dominate can help adjust your bidding strategy.
How to Analyze Ad Placements:
•Search for key terms and note where competitors appear.
•Use Amazon’s Placement Reports to compare your ad performance vs. competitors.
•Check Sponsored Display ads on competitor product pages to see if they are targeting your listings.
Actionable Steps:
•Increase bids for “Top of Search” if competitors dominate that space.
•Use Product Targeting Ads to place ads on competitor product pages.
•Reduce bids on low-converting placements to optimize ACoS.
4. Study Competitor Pricing & Promotions
Price influences conversion rates and ad efficiency. If your competitors offer better pricing or promotions, your PPC performance may suffer.
How to Track Competitor Pricing:
•Use Amazon’s Pricing Dashboard to monitor competitor price changes.
•Look for Lightning Deals, Coupons, and Subscribe & Save discounts that competitors are using.
•Check if competitors are using bundles or multi-pack options to add value.
Actionable Steps:
•Adjust pricing dynamically if competitors frequently change prices.
•Offer limited-time promotions to compete with deals.
•Use Subscribe & Save to attract repeat buyers.
5. Analyze Competitor Product Listings
A well-optimized product listing can convert clicks into sales, reducing wasted ad spend. Compare your product pages to competitors and look for areas to improve.
Key Factors to Evaluate:
•Title Optimization – Are competitors using better keywords?
•Bullet Points & Description – Do they highlight unique selling points better?
•A+ Content & Images – Are their visuals more engaging?
•Reviews & Ratings – Do they have more social proof?
Actionable Steps:
•Improve product titles and descriptions to match high-ranking competitors.
•Invest in high-quality images and videos to boost conversions.
•Encourage customer reviews to build credibility and trust.
6. Monitor Competitor Advertising Spend & Strategy
Tracking competitor ad spend helps understand how aggressive they are in the PPC landscape.
How to Track Competitor Ad Spend:
•Use tools like Sellics, Helium 10 Adtomic, or Perpetua to estimate competitor ad budgets.
•Observe seasonal trends in competitor ad activity.
•Compare ACoS (Advertising Cost of Sales) to see if competitors are overbidding.
Actionable Steps:
•Avoid overspending on highly competitive keywords.
•Use dayparting (adjusting bids based on time of day) to outbid competitors when they lower bids.
•Shift budget towards less competitive but high-converting keywords.
Final Thoughts
A successful Amazon PPC strategy is not just about running ads but also about outsmarting competitors. By continuously analyzing their keywords, ad placements, pricing, listings, and ad spend, you can refine your strategy to increase conversions, reduce wasted spend, and maximize ROI.
Regular competitive analysis helps you stay ahead in the Amazon marketplace and ensures your PPC campaigns remain profitable and effective.