Amazon Sellers Cut Ad Costs with Longtail Keywords

This article addresses the issue of high costs associated with core keywords in Amazon advertising. It proposes a solution using long-tail keywords to reduce expenses. The article details how to select appropriate long-tail keywords based on category competition and introduces effective methods to improve ad quality score, thereby lowering CPC bids. This helps sellers maximize their advertising effectiveness and achieve a greater return on investment by targeting more specific customer searches at a lower cost.
Amazon Sellers Cut Ad Costs with Longtail Keywords

Many Amazon sellers face a common dilemma: while core keywords deliver strong performance in advertising campaigns, their high costs often make them unsustainable. Meanwhile, the vast pool of long-tail keywords presents another challenge—how to efficiently identify the most valuable ones amidst this sea of options. This article explores practical strategies to harness long-tail keywords effectively, helping sellers optimize their advertising spend.

The Art of Selecting Long-Tail Keywords in Manual Campaigns

Amazon offers two primary advertising methods: manual and automatic campaigns. Manual campaigns require sellers to select keywords or product targets, while automatic campaigns rely on Amazon's algorithm to match listings. For manual campaigns, keyword selection is critical. Here’s how to identify high-value long-tail keywords:

Step 1: Assess Market Size and Competition

Begin by estimating the market size for your product or category. Amazon classifies products into five tiers (S, A, B, C, D), but focusing on B-tier and above is advisable, as lower tiers have negligible sales impact. Analyze the competition level within your category to determine the best approach.

Strategy 1: Low or Uncertain Competition

If your category has low competition or if the competitive landscape is unclear, start with broad category terms and gradually expand to long-tail keywords. For example, for "table lamps":

  • Expand Related Terms: Use tools like Amazon Brand Analytics (ABA) to identify relevant long-tail keywords, such as "table lamp white" or "table lamp white dimmable."
  • Evaluate CPC Bids: Add selected keywords to your campaign and review Amazon’s suggested cost-per-click (CPC) bids. Assess whether the bids align with your product’s conversion rate and budget.
  • Choose Match Types: If the bids are acceptable, proceed with exact-match manual targeting. If bids are too high, pivot to alternative long-tail keywords.

Strategy 2: High Competition

For highly competitive categories, a more refined approach is necessary. This involves deeper keyword research and bid optimization, which will be covered in detail in a follow-up article.

Why Long-Tail Keywords Lower Advertising Costs

Long-tail keywords offer several advantages for cost-efficient advertising:

  • Precise Traffic: They reflect specific search intent, attracting higher-converting visitors.
  • Lower Competition: Compared to core keywords, long-tail terms typically have fewer competitors, reducing CPC bids.
  • Higher Ad Quality Scores: Amazon rewards ads with strong relevance, click-through rates (CTR), and conversion rates (CR) with better placements and lower costs.

Improving Ad Quality Scores for Cost Efficiency

Amazon’s ad quality score significantly impacts ad placement and CPC. To boost your score:

  • Keyword Relevance: Ensure keywords align closely with your listing’s title, description, and bullet points.
  • CTR Optimization: Craft compelling ad copy and imagery to increase clicks.
  • Conversion Rate: Enhance product listings with clear benefits, high-quality images, and persuasive content.
  • User Experience: Maintain product quality and reliable customer service to foster positive reviews and repeat purchases.

Conclusion

Mastering Amazon advertising requires continuous learning and experimentation. By strategically incorporating long-tail keywords and optimizing ad quality, sellers can achieve cost-effective campaigns that drive sustainable growth. These methods provide a roadmap to navigate the complexities of Amazon advertising while maximizing return on investment.