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Essential Amazon PPC Terminologies and Keyword Ranking Explained

Last updated on July 10th, 2024 at 12:30 pm

There is a lot to learn about selling on Amazon if you are new to it. It’s important to keep this Amazon list of terms handy if you’re new to selling on Amazon. Symbols and phrases are specific to each business. Knowing terminology helps you type faster.

Plus, knowing what a word that most people don’t use means makes us feel like we belong. If you don’t want to waste time, look at this Amazon PPC and product keyword rating.

Read More: SEO Goldmine Amazon Sellers Are Missing Out On

Impressions

Shopping customers see your ad on Amazon a certain number of times, even if they don’t click on it. This is called an “impression.” You can quickly see how well an ad is doing with this one of the most important measures in Amazon Advertising.

It’s best to start with how Amazon picks which ads to show to better understand what impressions are.

When you make a new Ad on Amazon, you have to complete a set of instructions. You can put in your keywords and your bid, which is the amount of money you are ready to pay. If someone looks for one of your keywords on Amazon FBA, this information is used to make the SERP (search engine results page).

But sometimes, two ads that are fighting with each other use the same keywords. Then Amazon has to decide which one to show. A method called Amazon PPC (Pay-Per-Click) auction, looks at several factors to pick the winning ad.

High Impressions, No Clicks?

Someone sees your Amazon ad but doesn’t click on it, which means the click-through rate is low. This indicates that you’re not addressing the right people.

Customers are very important to Amazon, so it penalizes ads that don’t follow this rule by lowering their rank. Because of this, you have to bid more and more to get your ad to show up. You’ll waste your money on this kind of effort.

To make things even worse, Amazon will not show your bid after a certain point, no matter how high it is. Because of this, marketers often complain that they don’t understand why, no matter how high their bid, their ads don’t get enough Impressions.

Tricks For Low Or No Impressions

  • Seller Central product data verification
  • Rule out these 3 scenarios that damage your impressions. Your advertising won’t be seen if all 3 questions are NO.
  • Is your product indexed for the keyword you bid?
  • Availability of your product?
  • Is your product winning the buy box?
  • Scenario 1: Product listing not indexed for keywords  
  • Your campaign may be set up incorrectly. You may have mistakenly used ASINs instead of SKUs while launching your campaign. Amazon FBA cannot advertise your campaign without SKUs.
  • You can:
  • To check if your listing is indexed, make sure your product is searchable on Amazon. Searching for your product shows that it’s indexed.
  • Visit Amazon’s search bar.
  • (2) Enter your product’s ASIN and the term you’re testing.
  • (3) Check Amazon’s search results for your product. YES means your product listing is indexed for that keyword.
  • If your listing does not display, add the keyword to any of these to get it indexed:
  • (1) Title (2) Backend search terms (3) Bullet points
  • 4 Product Description

Page Views On Amazon

When people visit your store within a certain amount of time, that number is called page views. Your store’s three-page view is counted as three-page views because each page is seen separately.

If your page views are low, it means that not many people are looking at your goods. This can hurt your web store. When the number of page views goes down, you should fix the problem as soon as possible. Your Amazon store could fail if you don’t get this traffic. Without it, you can expect fewer sales.

Your keyword list, product images, and title are some of the things you can look at. Page view numbers will go down if customers can’t find your listings or if they show up for search terms that don’t fit. Page views will also depend on how appealing your ads are.

Sessions

Sessions show you how many times a customer came into your store during a certain time frame. Every time a customer does something in your store, that’s a one-page view. It does count as one lesson, though, if they do all of these things at once.

Imagine a customer going to the food store and buying several things. That would be one session. It would be a second session if they forgot something and had to go back to the store.

The number of page views should always be higher than the number of sessions. This would mean that the customer is interested and looking at more than one product.

Making sure your listing images are in the right area, your images meet Amazon’s requirements, and you use the right keywords can help if you only get a few sessions a month.

CTR

Match Type Matters

Amazon FBA lets you set target keywords for your ad and also lets you match different types of searches. This is known as an Amazon Keyword Match Type. Exact Match usually gets more clicks than Phrase Match, Modified Broad, or Broad Match.

Phrase Match targets important keywords, while Precise Match targets very relevant keywords. Amazon may use close versions of those keywords, though.

Customers who shop online can use Broad Match to find your phrase or words that are similar in any request. Of all the types of matches, this is the most common. Whatever, this isn’t very relevant, so your CTR goes down.

One more thing: you might want to stop using Broad Match keywords that don’t get many clicks and start using Exact and Phrase matches on keywords that are usually related to your goods.

Relevancy Matters

There is a higher chance that shoppers who know and like the seller’s name will click on one of their ads. Higher click-through rates generally mean that people who shop online will find the ad useful. Highlighting important terms can help you get more clicks.

Any dealer can benefit from their Branded keywords the most. “Promoted keywords” are search terms that include the name of your business or line of products. Labeled keywords generally get the most clicks. Following closely behind are highly targeted terms and discovery keywords.

Watch out when you target—what a seller targets with Product Targeting can also change their CTR rate. 

Customer Buying Cycle Matters

If a seller targets buyers in the Post-Purchase part of the Customer Buying mobile, they should get a lot of clicks because these people already know and trust the brand or product. Additionally, there will be a lot of clicks during the Decision stage, when people are ready to buy.

PPC

Knowing how Amazon PPC works is helpful before you start using it. Breaking down how the Amazon pay-per-click ad sale works:

  • Someone searches Amazon for a “Earbuds.”
  • By using the keyword “AirPods,” Amazon gathers all the related ads.
  • Auction winners are the ads with the most bids.
  • Amazon shows the winning ad.
  • Buyers click on the best ad.
  • The winning advertiser gives the next-highest price.

Sellers are interested in Amazon FBA because it uses a second-price sale system. What does “second-price auction” mean? A second-price sale doesn’t charge the winning bidder for their winning bid.

What is the 2.5 Rule?

Using a little math and a cool tool, the 2.5 Rule lets you guess how much Amazon PPC rates will be. It works based on a few ideas, which you should know first:

Ten percent of people who buy the goods end up buying it. One person buys your product for every ten people who click on it. 35% of your sales price is your goal ACoS. Let’s talk about how the 2.5 Rule works now that you know what these concepts mean.

ACoS

These Scratchable World Maps are for sale on Amazon. Ones where you scratch off a country when you’ve been there and found the word underneath. It’s only available during certain times of the year. It only sells well at times like Christmas when people are giving gifts. You should be as ready as possible when it comes to goods and Amazon Best Sellers Rank during this busy time.

Running Amazon Sponsored Product PPC at a loss during the slow season was the best thing we could do for this product. It looked like this for their seasonal ACOS:

There is less business nine months out of the year. The losses are still being made up for five times over by sales during the busy season. The SKUs were at the top of the Amazon Best Sellers Rank at the right time, which led to this.

Being aware of your overall goals for your PPC sales is important, as the above case shows. Yes, ads are usually only there to help you sell more products, and keeping Amazon’s affiliate commission (ACOS) low is a great plan for any business. 

You might want to change your mind about this, though, if you’re trying out a new product, making new PPC campaigns, or just getting ready for the busy season.

In the long run, it can be good for your sales to run PPC at a high Amazon ACOS for 3 to 4 weeks, which is the normal amount of time for new Best Sellers positions to settle. You can more than makeup for the loss this coming season with both PPC and organic sales.

At this point, we’ve talked about the times when a high Amazon ACOS is okay or even helpful. Now, let’s look at how to get low ACOS sales on Amazon.

TACoS

A lot of keyword research will help you find keywords that are relevant and will get you a lot of sales. You should look over your keyword list often and make changes as needed to get the most out of it.

To improve TACOS and cut down on spending on ads that aren’t needed, try filtering out useless search results with negative keywords.

Always keep an eye on your daily ad budget and make changes as needed to make sure it fits with your goals for making money. That way, you can reach your promotion goals without going too far.

Always look at data on success and change bid amounts as needed. To get the most publicity for the least amount of money, you should optimize your bids.

Test different ad placements, like top-of-search and product pages, to see which ones work best before you spend your ad cash.

If you stick to these best practices, your Amazon creative work will be more successful, and over time, your TACoS will go down.

How TACOS Changes Earnings Per Share

It is important to optimize TACoS, but you should also make sure that your earning margins are not hurt. The business could lose money if profit margins aren’t taken into account when TACoS is cut.

Take the case of an Amazon seller who sells electronics with a 25% TACOS and a 35% profit margin as an example. They could lose money if they don’t keep an eye on profit rates to lower TACoS. This is why it’s so important to figure out how much net profit the TACoS decrease brings in.

BSR

Each product on Amazon FBA has a number that tells you how well it sells in that area. This number is called the Amazon Best Sellers Rank. 

The way BSR works is based on lists. For example, the thing that sells the most would have a BSR of 1, which means it has a lower BSR. Sometimes every day, this rank is changed.

Naturally, BSR has some knowledge about what people want. This information helps a lot of business owners find best-sellers and see what trends are happening. While BSR is one way to figure out how popular an item is, it’s not the only one.

What You Should Know About Amazon BSR

It’s important to know where the BSR data comes from and how it’s determined before making any assumptions about a product’s sales based on it. In particular, remember these things:

BSR depends only on how much is sold. Amazon FBA ranks items in a group based only on how many times they are bought. There are other things that this number doesn’t look at, like how many reviews a product has.

A thing can have more than one BSR.  Each group gives an item its own unique BSR if it fits into more than one. 

A product can also be ranked within a section by BSR. For example, a selling page that shows a BSR for a product in the Toys & Games category might also show the BSR for that product in a more specific subcategory, such as Party Supplies, even though both are in the Toys & Games category. 

BSR is different in each country. For example, a product that is #1 in the UK might be ranked far lower in the Amazon Germany shops, like #90.

BSRs change all the time. Also, we know that BSRs change all the time because Amazon learns more about sales. It’s not entirely clear how often BSRs change.

As we can see, BSR is not as simple as it seems. We need to have a clear picture of what the product is and what niche it fits into before we jump to conclusions based on this number.

Budget

Fixed Daily Account Budget

You can set a fixed daily budget for each day when you set up your advertising plan. This goes for all of your advertising accounts.

The daily set budget tells you how much you can spend every day. For all of your budgets, the amount is set. Let’s say you have three PPC ads for Amazon products. There is $200 set aside for each effort. Your daily fixed account spending is $600, then.

If you get $400 in one day, all of your ads will stop running on their own. They are not going to run again until the next day.

You don’t have to set a limit, but you can if you want to control how much you spend each day. If you make a fixed budget, you will be able to handle it better.

Setting a daily budget is like an insurance policy for many companies. Avoiding this will keep your company from spending too much on marketing. Don’t worry about spending too much on your campaign; you’ll know how much you’re supposed to spend.

Navigate Amazon PPC like a pro with our comprehensive terminology guide. Understand metrics, campaign types, and targeting options. 

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