To succeed in Amazon pay-per-click (PPC), sellers need to have an adequate campaign budget and the right amount of keywords. In this article, we will look at the correlation between your keyword count and your Amazon CPC budget.
“How many keywords is enough?” That’s a common question asked by Amazon sellers who’re setting up their Amazon PPC campaigns for the first time.
In fact, many Amazon sellers think that the more keywords they use, the better. Unfortunately, this is a big mistake. It is essential to strike a balance between keyword quantity and keyword relevancy.
Decide Your Budget for Amazon PPC
Before deciding on how many difficult words you need to add, it is essential to decide on your Amazon PPC budget. To get the best results, you should set a budget to get impressions for all your keywords. If your budget is too low, some of your keywords may not have a chance to impress because your Amazon PPC budget will be exhausted before they do.
Conversely, if you include too many keywords in your campaign, they will not perform well even if your budget is large enough. The reason is that Amazon’s PPC budget will spread unevenly across these keywords. As a result, about 40% of your keywords will have a chance of getting an impression while the rest will not.
In general, your Amazon PPC Campaign budget is entirely dependent on how much you’re willing to spend. Of course, your budget is limited. It is therefore essential to decide how much money you can set aside for your Amazon PPC campaigns.
On average, PPC campaign budget limits are somewhere between $20 and $50, and many sellers even spend up to $100 per ad campaign. In addition, your budget will also depend on what stage you are in in the product life cycle. For example, you usually have to spend more on product introduction. On the other hand, if your purpose is simply to maintain rankings for an old listing, $20 might suffice.
So, How Many Keywords Do You Need?
Once you’ve set a daily budget for your PPC campaign, it’s easy to determine how many keywords you can apply to each campaign. Here’s a simple formula to help you determine that:
Number of targets = Daily campaign budget / Estimated CPC
First of all, it is essential to determine the average CPC for the product category. Then all you need to do is divide that number by your daily CPC campaign budget. Thanks to that, you can quickly determine the maximum number of keywords that you can apply in a CPC campaign so that all of those keywords have a chance to obtain impressions.
You can estimate CPC in various ways, and one of the most effective is Amazon PPC Automatic Campaigns. It is not necessary to spend a lot of money on Automatic campaigns on Amazon. Instead, just wait for Amazon to bring you keywords and their average CPC to determine the Estimated CPC. You can also determine the Estimated CPC using the seller software tools, which help set budgets for future campaigns.
How Many Keywords is Too Many?
Amazon allows you to use 1000 keywords per ad group. However, should you make the most of this? – The short answer is no! There is no denying that using too many keywords does more harm than good.
Let’s say you have added up to 1000 keywords to your campaign. Of course, you won’t have the budget to have all of them obtain impressions. As a result, Amazon will assign impressions to your first 100 keywords. Then, Amazon allocates impressions to the next 100 keywords the following week, resulting in a “whacking a mole” cycle. So, it took you 10 months to fully optimize your campaign!
In general, we recommend adding up to 100 keywords per campaign. Also, you need to make sure to optimize your bids within a reasonable period!
What Is the Optimal Number of Keywords?
There is no honest answer to this question.
The optimal number of keywords varies according to the needs of each seller. In addition, it also varies according to the seller’s position in the product life cycle.
Even so, it is best to add about fifty keywords per ad group and a hundred per campaign. This allows you to manage your campaigns easily.
Don’t forget to focus on quality instead of quantity. You need to pick out the 100 most relevant keywords to ensure that you are spending your budget wisely!
When it comes to keyword management, if you are inexperienced, the best thing is to visit website to get help from experienced strategists.
What Is The Best Campaign Budget?
Last but not least, you need to determine the right budget for your campaign.
Based on the formula we have provided above, it is easy to determine the best budget for your campaign.
Rearranging the above formula a bit, you will get the following formula:
Daily campaign budget = Number of targets x Estimated CPC
As we recommend, you should use 100 keywords per campaign. So, use your Estimated CPCs (which are found from your auto campaign) multiplied by 100, and you will get the perfect daily budget for yourself.
In short, optimizing your Amazon PPC advertising campaigns is not an easy task. Although we have given you the optimal number of keywords, this requires a lot of experience.
So, if you are an Amazon Seller and planning Amazon CPC campaigns, please visit olifantdigital.com where you get answers to any questions related to your Amazon CPC campaigns.
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