Mastering your Amazon advertising strategy is no easy task, but thanks to years of research and testing performed by our Amazon advertising experts, we’ve compiled details on our game-changing bidding philosophy, Search Term Isolation. In this article, we’ll talk about the key components you’ll need to understand and execute this search term isolation strategy in your Amazon Advertising. Keep reading for a bonus video at the end of the article to walk you through how Search Term Isolation can help you optimize your Amazon advertising today!
Mastering Amazon Bid Management
In the world of Amazon’s Sponsored Products, you need to understand the difference between a search term and a keyword. A keyword is a word or phrase selected by you, the advertiser, as something you want to target and have your product pop up for, whereas a search term is an actual search that was entered by a consumer. Each broad or phrase match keyword can have thousands of related search terms.
What you may have not known is that Keywords are “buckets” of search terms. And with Amazon, you can only set one cost-per-click bid for each keyword. This means if you set a bid of $2 for the keyword Cape, all of the related search terms like Dracula Cape, Adult Cape, etc will also all have the bid of $2. If there are particular search terms in the group that are bad for you, you can’t bid down. And on the flip side, if there are search terms that are good for you, you can’t bid up.
The essence of proper bid management is figuring out how to isolate your top-performing search terms and take control of their bidding specifically. This process is something we call Search Term isolation.
What is Search Term Isolation?
Search Term Isolation is a strategy that combines campaign structure with a specific bidding philosophy of isolating search terms. Search Term Isolation is focused on the idea of isolating the search terms that drive conversions and managing the bid exclusively on that search term alone. At the same time, if you have search terms that don’t convert, you can isolate them as negatives or simply keep the bid really low. Together, this creates a flywheel that keeps your campaigns (and Ad Dollars) targeting only towards the best keywords, with the best bids.
Confused? Don’t be! We’re ready to show you how this Amazon advertising strategy has been actively changing the way brands manage their Amazon advertising campaigns.
How to Set Up Campaigns for Search Term Isolation
First, create one Auto and two Manual campaigns for each group of products. In one of your manual campaigns, bid on solely broad match keywords—let’s refer to this as our Research Campaign. Since these keywords are a broad match type, as we spend money, the campaign will show for many new search terms that might drive sales—hence the name research.
In your other manual campaign, bid only on exact match keywords—we’ll refer this as our Performance Campaign. We only add search terms to this campaign if they’ve made a sale in the Auto or Research campaign.
It’s important to negate search terms from your Auto and Manual Research campaigns after adding them to your Manual Performance campaign to accelerate the Search Term Isolation process.
When a search term from your Auto or Research campaign makes a sale, you’ll want to pull it out and add it to your Performance Campaign as an Exact Match Keyword. At the same time, negate it from your Auto & Research Campaigns. This isolates that search term and ensures the next time this search is made by a consumer, your Performance Campaign will pick it up—at your desired bid—and make the sale. You can do this by manually reviewing the search term query report or using a technology that has the capability to auto-search-term harvest.
Isolated Search Terms ultimately allow you to manage the bid on exactly that search term, rather than the entire group of search terms related to that keyword. This is the most effective Amazon advertising campaign strategy you can utilize to scale while truly managing ACoS & profitability.
Search Term Isolation—The Best Amazon Advertising Strategy Video:
Watch the above video to see how a properly set up and Search Term Isolated Amazon advertising strategy can lead to a reduction in your ACoS and increase your revenue through proper campaign setup, structure, organization, and optimizations.