In Amazon’s fiercely competitive marketplace, advertising is a critical tool for sellers to drive traffic and boost sales. While many sellers rely on manual campaigns, a common question arises: Is there still value in launching manual exact match ads? The answer is unequivocally yes. Exact match campaigns play an indispensable role in optimizing ad performance and controlling costs. This article explores the underlying principles and offers actionable strategies to maximize advertising efficiency.
Keywords vs. Search Terms: The Foundation of Amazon Advertising
To grasp the necessity of exact match ads, it’s essential to distinguish between "keywords" and "customer search terms." Keywords are the terms sellers target in their campaigns, hoping users will search for them to find their products. Customer search terms, however, are the actual phrases shoppers enter into Amazon’s search bar. Broad match keywords cast a wide net, capturing a variety of search terms. Yet this approach has a significant limitation: sellers can only set one bid per keyword, leaving no room for granular control over individual search terms.
The Pitfalls of Broad Match: Inefficient Cost and Conversion Management
Each search term carries a unique cost-per-click (CPC) that fluctuates with market dynamics. Even with an aggressive bid, a broad match keyword won’t guarantee full exposure for all related search terms. Exposure and bids typically follow a normal distribution. For example, if the average CPC for "glue gun" ranges between $0.50 and $2.50, a $2 bid might capture most impressions but still miss some high-value exposures. A $1 bid, meanwhile, would yield minimal visibility.
Broad match also fails to address variations in conversion rates across search terms. Suppose "glue gun" matches both "glue gun" and "hot glue gun." If the former has a low conversion rate while the latter performs well, a single bid could misallocate resources. A $0.80 bid might overexpose the low-converting term while underexposing the high-converting one, inflating advertising cost of sales (ACoS). Conversely, if "glue gun" converts better, a low bid could forfeit high-value impressions.
Further complicating matters, broad match may capture long-tail terms like "mini glue gun," which could have strong conversion rates but require higher bids. Bidding below $1.25 might exclude these opportunities, while exceeding that threshold risks overspending on low-converting terms. Although negative keywords can filter out underperformers, identifying them accurately is challenging—especially with limited data.
In summary, broad match generates traffic but lacks precision in cost and conversion control. Lowering bids doesn’t always reduce ACoS, nor do higher bids guarantee better returns. This is where exact match campaigns become indispensable.
The Power of Manual Exact Match Ads: Precision and Performance
Exact match ads deliver unmatched accuracy by displaying ads only when a user’s search term exactly matches the targeted keyword. This specificity translates to higher-quality traffic, improved conversion rates, and—though CPCs may rise—more efficient spending. When migrating keywords to exact match campaigns, sellers should increase bids to maintain competitive visibility.
Strategies for Managing Keywords Across Match Types
A frequent dilemma arises when a keyword performs well in broad match: Should it be negated there after being added to an exact match group? The answer depends on performance data:
- High conversion, low ACoS, abundant orders: Keep the keyword in both campaigns. Boost its bid and budget in the exact match group to maximize exposure, while letting the broad match version continue performing.
- High conversion but high ACoS: Add the keyword to exact match with a lower bid, then negate it as an exact match in the broad group to curb costs.
- Low ACoS but few orders: Let the keyword accumulate more data in broad match before deciding.
- High ACoS and minimal orders: Assess whether to negate it immediately or monitor further, especially during product launches or promotions.
Conclusion: Mastering Granular Control for Advertising Success
Amazon advertising demands continuous refinement. Manual broad and exact match campaigns each have distinct advantages, and sellers must deploy them strategically based on product goals and market conditions. By understanding the interplay between keywords and search terms—and leveraging the strengths of each match type—sellers can achieve sharper cost control, higher conversions, and ultimately, superior ROI. In a crowded marketplace, meticulous optimization isn’t just beneficial; it’s essential for standing out.