Common Amazon PPC terms explained

If you have been selling on Amazon, you must have heard about Amazon PPC advertising. It’s the most powerful and cost-effective way to get your products in front of customers and drive sales.

Now, if you are a newbie, you might wonder what Amazon PPC is and how does it work. There are many terms which you are seeing mentioned within Amazon help pages and you don’t understand them. This article will address some common expressions and provide you an explanation:

What is Portfolio?

Portfolios consist of campaigns that are grouped together and linked to a distinct Advertiser Account.

What is the daily Budget?

The daily budget is the amount of money an advertiser sets to spend on a campaign each day. It can be set to a daily maximum or a daily average.

What are dynamic bids down only?

If a click is less likely to convert, the bid is reduced by up to 100%.

What are dynamic bids up and down only?

With the “Dynamic bids – up and down” strategy, Amazon will either decrease or increase your bids based on the purchase probability. The bids here can also be lowered by up to 100%

What are fixed bids?

The fixed bid will be your default bid and any manual adjustments you set will not change based on the likelihood of conversion.

What are ad groups?

Ad Groups are a group of ads that share the same set of keywords and products.

What is Bid?

bid is how much you’re willing to pay for a specific action

Broad Match Campaign

With broad match campaign, the shopping query must contain all the keyword terms or close variations.

Words can be in any order and contain additional words.

When to use

Broad match will deliver to a large audience since it is not restrictive.

Use it when you’re starting a sponsored ads campaign from scratch and/or don’t know specific keywords your target market would use.

Example:

Customers look for “baseball caps”

Eligible

Cool red baseball cap

Caps for Baseball

Ineligible

Sports cap

Baseball hats

Phrase Match Campaign

With phrase match campaign, if customers use the exact phrase, or close variations, and be in the same order as keyword term.

The shopping query may contain words before or after keyword term phrases.

When to use

Phrase match will reach a smaller audience than a broad match but can target more specific searches.

Use it when you think you know what your customer is searching for.

Example (baseball cap)

Eligible

Red baseball caps

Baseball caps for kids

Ineligible

Caps for Baseball

Baseball red caps

Exact match campaign

With an exact match, the customer’s shopping query must be the exact word or phrase, or very close variations.

The shopping query needs to be in the same order and cannot contain additional words.

When to use

An exact match will reach a very specific set of customers.

Use it when you are certain what your customers are looking for (e.g. high-performing keywords).

Example (baseball cap)

Eligible

Baseball cap

Baseball caps

Ineligible

Red baseball cap

Caps Baseball

I hope this will help you to design and optimize your PPC campaigns effectively.

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