9-Step Checklist to Ensure You Don’t Miss Out on the Golden Opportunities on Amazon PPC

Getting ahead of the big-player competitors on Amazon requires mastering your Pay-Per-Click campaigns. However, many sellers either under-optimize or over-optimize their Amazon advertisements, which leads to a not-so-impressive ROI.
Do not worry – we are here to prevent your campaigns from leaving money and potential opportunities on the table.
Let’s dive into 9 proven steps that will help you optimize your Amazon PPC and earn more while maintaining a low ad spend:

Step 1: No-Sales Search Terms Identification

You do not want anything to do with search terms that are dragging down your listing’s exposure and sales. These are terms that are just taking up dead space and do not contribute anything significant to your listing.
  • Trigger

These are the search terms that have received a minimum of 5 clicks and haven’t generated any sales over a time period of 60 days.

  • Purpose

To identify and remove No-Sales Search Terms from your ads on an ongoing basis to prevent your ad spend from going to waste.

  • Timing

We recommend that you find and treat these search terms on a weekly basis.

  • Recommended Action

The Ad Group level search term should be negative EXACT matched in order to block future ads for showing up for that particular search term.

  • Exceptions

Consider seasonality, product launches, as well as different search term forms present within a similar ad group that are still generating profits.

  • Expected results

Step 2: Low-Performing Search Term Optimization

Frustrated with constantly seeing your clicks lead to nowhere? If your clicks aren’t converting like you had hoped for, then you may want to prevent your ads from showing up for those search terms that are irrelevant to your targeted demographic.
  • Trigger
These are search terms with a minimum of 1000 impressions and a CTR significantly lower than campaign average (0.15 maximum) that have resulted in no orders over the last 60 days.
  • Purpose
To get your ad in front of only those audiences that are in need of or may already be interested in your product (ideal buyer demographic) instead of marketing to irrelevant audiences.
  • Timing
Perform this step every week, based on your CTR data.
  • Recommended Action
The Ad Group level search term should be negative EXACT matched in order to block future ads for showing up for that particular search term.
  • Exceptions
Keep in mind the profitable search term forms belonging to a similar ad group.
  •  Expected results

Step 3: No-Sales Keyword Elimination

Sure, some of your keywords might be generating clicks. But if you aren’t getting sales, then these are essentially No-Sales Keywords and you should not be heavily spending on them.
  • Trigger

These are keywords that have generated at least 5 clicks at a minimum bid of 0.20 but no sales for the last 60 days.

  • Purpose

To minimize your ad spending on keywords that are not leading to sales.

  • Timing

You should identify and reduce your ad spend on these keywords weekly.

  • Recommended Action

Your bid should be reduced to $0.15. We recommend setting your new bid to CPC*0.6 and reducing it further by 40%, alternatively.

  • Exceptions

Keep in mind the profitable search term forms belonging to a similar ad group.

  • Expected results

Step 4: Low-Performing Keyword Optimization

Further refine your PPC campaign by pinpointing keywords that don’t really have a lot of potential to offer to your listings.
  • Trigger

These are the keywords with a consistently low CTR (maximum 0.15) that have received a minimum of 1000 impressions with a bid minimum of 0.20 and have failed to produce any sales over 60 days.

  • Purpose

Block your ad from displaying for keywords that are collectively irrelevant to your ideal buyer demographic. 

  • Timing

This step should be performed weekly.

  • Recommended Action

Your bid should be reduced to $0.15. We recommend setting your bid to CPC and reducing your bid amount by 40%, alternatively.

  • Exceptions

Keep in mind the profitable keyword forms belonging to a similar ad group.

Step 5: Managing High ACOS Keywords

Are you spending way too much on keywords that might not be profitable for your campaign in the long run and even for the short term? Overspending on low profitability keywords can cost you more in the future than you may realize.
  • Trigger

These are keywords with an ACOS range of 100%-999% that have received at least 1000 impressions over the last 60 days. Minimum bid is 0.20 and the current bid is higher than the current CPC.

  • Purpose

Find and treat keywords that generate sales but result in a high ACOS (Ad Cost of Sales) to minimize overspending.

  • Timing

This step should be completed weekly.

  • Recommended Action

Set your bid to CPC and reduce it by a margin of 40%.

  • Exceptions

Keep in mind the profitable keyword forms belonging to a similar ad group.

  • Expected Results

Step 6: Managing Moderate ACOS Keywords

Managing your moderate ACOS keywords is the next important step to boosting your ROI after dealing with high ACOS keywords.
  • Trigger

These are keywords with an ACOS range of 50%-100% that have received at least 1000 impressions over the last 60 days. Minimum bid is 0.20 and the current bid is higher than the current CPC.

  • Purpose

To assess and manage keywords with ACOS between 50% and 100% and reduce the average CPC of over-budget keywords.

  • Timing

This step should be performed weekly.

  • Recommended Action

Set your bid to CPC and reduce it by a margin of 20%.

  • Exceptions

Keep in mind the profitable keyword forms belonging to a similar ad group.

  • Expected results

Step 7: Managing Low ACOS Keywords

Next, make sure that you fine-tune your low ACOS keywords for even better PPC campaign results.
  • Trigger

These are keywords with ACOS lying between breakeven% and 50% or 20%-50% – with a bid minimum of 0.20, and the current bid is higher than the existing CPC. These keywords must have received at least 1000 impressions over a period of 60 days.

  • Purpose

To manage keywords with ACOS between breakeven and 50% for enhanced profitability.

  • Timing

Weekly, as part of continual improvement.

  • Recommended Action

Set your bid to CPC and reduce it by a margin of 10%.

  • Exceptions

Keep in mind the profitable keyword forms belonging to a similar ad group.

  • Expected Results

Step 8: Rectifying Over-Optimized Keywords

The excess of anything is bad, and this is true in every scenario, even in the case of keyword optimization.
  • Trigger

Over-optimized keywords are those with an ACOS of maximum 25% over the past 60 days, and the current bid is either equal to or less than the current CPC.

  • Purpose

To identify and correct keywords that have been excessively optimized that may have been causing reduced campaign visibility and performance.

  • Timing

Weekly, especially if you notice your campaign performance drop unexpectedly.

  • Recommended Action

Bump up your bid by a margin of 20%.

  • Exceptions

Keep in mind the profitable keyword forms belonging to a similar ad group.

  • Expected results

Step 9: Cleaning Up Your Converting Search Terms

Give your campaigns a final polish by managing and correcting your overly-optimized search terms.
  • Trigger

These are the search terms that have produced a minimum of 3 orders and 3 net sales within a 60-day date, while considering completed negative search term status and excluding specific ASINs.

  • Purpose

To manage and rectify overly optimized converting search terms to improve overall campaign targeting and minimize wasted spend.

  • Timing

This should be done weekly.

  • Recommended Action

Negative matched search terms must be archived to restore running ads.

Before You Leave

Striking that sweet balance between over and under-optimization and maintaining a decent conversion rate on your PPC campaigns is key to continue getting awesome returns on your ad investment.
Make sure you follow the above steps to leave your competitors behind in the Amazon PPC game and consistently earn the ROI you deserve!