Find The Threshold for Keyword Negation in Amazon Ads
Are you interested in knowing the number of clicks you need to provide a search term prior to making it negative in Amazon Ads?
You're at the right spot.
In this article, we will discuss some important aspects you need to take into consideration when making a search term negation decision to use Amazon PPC.
Four Important Things to Consider When evaluating the search term negative for Amazon PPC
The "auto" or "broad" matching campaigns could result in ads for a variety of search terms that are not relevant.
Start by determining the relevance of the search terms you have chosen to use with the advertised product.
If the search term you are searching for isn't relevant to your business and you want to eliminate it in just a couple of clicks. This will stop you from bleeding your money on unrelated search terms.
2. Nature of Search Terms
You can classify all terms you search for into three distinct categories:
A. Branded Terms
Keywords that have a connection to the brand you represent (Example; Apple Air pod can be a trademarked term for Apple)
If it's a brand-name term, then we do not advise denying it after a certain number of clicks.
When evaluating the keywords of branded brands, it is important to consider the compatibility of the keyword to the brand's advertised product is crucial.
For example, if "iPhone charger" ad is shown in " iPhone USB - C Power Adaptor" This is okay, but if it is shows it on "MacBook USB adapter" then you may need to defy the keyword.
B. Visibility Terms
There are some key keywords that you will need to keep your visibility up to date to stay relevant and competitive in your field.
For example: A company selling gaming mouse might want to remain visible with high-intent keywords such as "RGB mouse" or "wireless Gaming mouse"
In this scenario we wouldn't recommend dismissing those search terms; instead, focus on optimizing the results by putting bids on them.
C. Generic Terms
Any other word or ASIN that isn't included into the two categories above could be considered to be as a generic name to describe your company's brand. In the event that it's not a general phrase then you should follow the following guidelines.
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3. Conversion Rate
If a term you search for meets the two above criteria, then you must look at the conversion rate for the product being advertised.
We suggest waiting at least 2x to 3x of the number of clicks for at least one conversion that is based on the price of the product's CVR.
For Example, if you're selling a home enhancement product with a conversion ratio of 15%, then you could expect to see an increase in sales after about every seven clicks. In this case, you should wait for fifteen to twenty-five clicks before eliminating a search term.
However, when you're selling an apparel item that has a rate of conversion at 5 percent then you should wait for between 50 and 60 clicks before eliminating a search term.
4. Max CAC & Average CPC
If you know the maximum price per order and the cost per click average it can help you in making a more efficient search term negation decisions.
Let's understand with an example:
Let's say that your maximum cost per acquisition of an order is $10. Your average CPC in the last thirty-day period is $0.25. So, you could sit for forty clicks (10/0.25) before removing any search terms.
How do I automate Negation in Search for Amazon Ads
Finding the appropriate threshold of clicks for each product and analysing the search term on a daily basis to discover terms for negation is not easy.
This is where you could make use of the KwickMetrics" target management" automation, along with the " Statistically Significant Clicks" feature.
This feature automatically calculates the optimal number of clicks needed for a conversion based upon the past results of your campaign.
If you don't wish to utilize the statistics calculated clicks generated by the system You can clearly determine your threshold of clicks in absolute terms.
Last Thoughts on Search Term Negation:
There's no one-click threshold for all brands and products on Amazon.
It should only be dependent on the key metrics such as conversion rate, maximum CPC and CPC of promoted products.
What are other aspects you take into consideration when denying the search term you are considering within Amazon Ads?
We'd love to hear from you via the comment...
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