How Many Keywords Should You Use in a Campaign?
When it comes to Amazon PPC, one of the most frequently asked questions is: how many keywords should you add per campaign in Amazon FBA? The right balance of keywords is crucial for optimizing performance, managing budgets, and improving Amazon product visibility through keywords. Too many keywords can dilute your budget, while too few may limit your reach.
Want a quick expert breakdown? Watch this video for insights on structuring your Amazon PPC campaigns effectively.
This guide explores the best practices for determining the optimal keyword count per campaign and structuring Amazon PPC campaign management effectively.
Understanding Amazon PPC Keyword Strategy
Amazon's advertising ecosystem operates on a pay-per-click (PPC) model where sellers bid on Amazon advertising keywords to rank their products in search results. A solid Amazon PPC keyword strategy ensures that ads reach the right audience while maximizing return on investment (ROI). However, the number of keywords you include in a campaign significantly impacts budget allocation, campaign performance, and keyword indexing.
The Two Extremes: 1 Keyword vs. 1,000 Keywords per campaign
Some sellers believe in running single-keyword campaigns to gain precise control over bidding and performance, while others opt for broad keyword lists in a single campaign to maximize exposure. Each approach has its pros and cons:
Single-Keyword Campaigns: Offer precise control over performance and budget but require more campaigns to manage multiple keywords efficiently.
Large Keyword Lists (500–1,000 keywords): Improve visibility but often lead to budget dispersion, where only a few high-performing keywords receive most of the ad spend, leaving others underutilized.
Finding the Right Keyword Balance
Rather than choosing between extremes, a tiered keyword strategy for Amazon PPC provides an optimal balance. Here are some key considerations:
1. Amazon Algorithm and Budget Allocation
Amazon’s algorithm doesn’t prioritize the number of keywords in a campaign but focuses on performance metrics like CTR (click-through rate), conversion rates, and bid competitiveness. The challenge arises in budget allocation—if too many keywords compete for a limited budget, only a few get enough visibility.
Example:
You allocate $1,000 to a campaign with 100 keywords.
The majority of the budget is likely to be consumed by the top 5–10 keywords, leaving the remaining ones with minimal impressions.
2. Best Practice: The 10–15 Keyword Rule
Experienced Amazon sellers and Amazon advertising services often recommend adding 10–15 highly relevant keywords per campaign. This approach provides a manageable balance between reach and budget efficiency.
Why 10–15 Keywords?
Allows for effective budget distribution
Ensures that all keywords get a fair chance at performance testing
Reduces the complexity of managing campaigns with excessive keywords
Helps in easy optimization by removing underperforming keywords and replacing them with new ones
How to Structure Amazon PPC Campaigns for Maximum Efficiency
1. Segmenting Keywords by Match Type
To maximize ad effectiveness, segment your keywords into separate campaigns based on match type:
Exact Match: Provides high relevance but limits reach
Phrase Match: Offers a balance between control and exposure
Broad Match: Maximizes visibility but may bring irrelevant traffic
2. Using a Tiered Approach for Keyword Prioritization
An effective Amazon PPC campaign management strategy involves structuring keywords into different tiers based on:
Search Volume: High, medium, and low-volume keywords
Competition Level: Highly competitive vs. niche-specific keywords
Relevance to Product: Core product keywords vs. complementary terms
This strategy ensures that budgets are allocated efficiently and that underperforming keywords are regularly replaced with new, promising ones.
Managing Multiple Campaigns in Amazon FBA
If you sell multiple products, managing multiple campaigns becomes complex. To streamline this, follow these strategies:
Group Similar Keywords Together: Keep keywords relevant to a single product category within one campaign.
Utilize Negative Keywords: Prevent overlap between campaigns by excluding duplicate keywords from different ad groups.
Automate with PPC Tools: Leverage automation tools like Helium 10 or Jungle Scout for easier Amazon PPC campaign management.
Pros and Cons of Single-Keyword Campaigns
Some sellers prefer single-keyword campaigns for better control, while others find them inefficient. Here’s a quick look at their advantages and disadvantages:
Pros:
Higher control over bid adjustments and performance tracking
Better optimization for specific high-traffic keywords
Clearer insights into keyword profitability
Cons:
Requires managing multiple campaigns per product
Increases workload and complexity
Can lead to inefficient budget distribution
How to Choose the Right Keywords for Amazon Ads
To find optimal keywords for Amazon ads, consider these best practices:
Use Keyword Research Tools: Helium 10, MerchantWords, and Amazon’s own Brand Analytics
Analyze Competitor Listings: Identify top-performing keywords from competitor PPC campaigns
Monitor Amazon Search Trends: Regularly check keyword ranking and adjust strategies accordingly
Refine Based on Performance Data: Remove low-performing keywords and experiment with new variations
Avoiding Budget Overspending in Amazon PPC
One of the biggest challenges in Amazon PPC is avoiding budget overspending. Here’s how to prevent wasteful spending:
Set Daily Caps on Campaign Budgets: Avoid burning through ad spend too quickly
Use Negative Keywords: Prevent irrelevant clicks and improve ROI
Monitor Keyword Performance Regularly: Pause or lower bids on low-converting keywords
Leverage Bid Adjustments: Increase bids for high-performing keywords while lowering bids for less effective ones
Importance of Amazon Keyword Indexing
Keyword indexing plays a crucial role in ensuring your product ranks well on Amazon. To enhance indexing:
Optimize Product Listings: Include high-priority keywords in titles, bullet points, and descriptions.
Run Automatic Campaigns: Identify new keyword opportunities that you can manually add later
Use Backend Search Terms: Add additional keywords in the backend to boost visibility
Striking the Right Keyword Balance
The ideal Amazon PPC keyword strategy depends on factors like budget, competition, and campaign goals. While adding too many keywords can lead to wasted ad spend, too few keywords may limit visibility. A tiered approach with 10–15 well-researched keywords per campaign often yields the best results.
For sellers looking for Amazon marketplace management solutions, professional Amazon advertising services can help optimize campaigns for better profitability and scalability. If you're struggling with Amazon PPC, consider reaching out to experts who can fine-tune your strategy for maximum success.
FAQs
1. How often should I update my keyword list in Amazon PPC campaigns?
Review your keywords every two weeks to assess performance. Remove underperforming ones that have high ACoS (Advertising Cost of Sale) or low conversion rates and add new, relevant keywords based on search trends and data insights. Regular updates help maintain ad relevance and optimize spending. Seasonal trends, customer behavior, and competitor strategies can impact keyword effectiveness, so staying proactive ensures you capitalize on the most profitable search terms.
2. Can I run multiple campaigns for the same product with different keyword sets?
Yes, running multiple campaigns with different keyword sets can help test various targeting strategies and improve overall ad performance. You can create separate campaigns for broad match, phrase match, and exact match keywords to analyze which performs best. Additionally, structuring campaigns based on branded and non-branded keywords helps optimize bidding strategies. Testing different targeting approaches, such as automatic and manual campaigns, allows you to refine your advertising efforts for maximum ROI. Just ensure your campaigns don’t compete against each other, which can lead to wasted ad spend.
3. Should I focus more on high-volume or long-tail keywords?
A mix of both is best. High-volume keywords drive traffic and increase brand visibility, but they often come with high competition and costs. Long-tail keywords, on the other hand, are more specific, have lower competition, and typically lead to higher conversion rates by targeting niche audiences. For a balanced PPC strategy, start with a blend of both, then analyze performance data to optimize your keyword selection. Long-tail keywords also help capture shoppers who are closer to making a purchase decision, making them an essential part of any successful Amazon PPC campaign.
4. How do I know if a keyword is profitable?
Monitor key metrics like ACoS (Advertising Cost of Sale), CTR (Click-Through Rate), and conversion rates to determine a keyword’s profitability. If ACoS is low and conversions are high, the keyword is profitable. Additionally, check the keyword’s CPC (Cost Per Click) and overall sales impact. High-performing Amazon advertising keywords should generate a strong return on ad spend (ROAS). Use Amazon’s reports to track keyword performance over time and adjust bids accordingly. Regular optimization ensures that your budget is directed toward keywords that contribute positively to your sales and overall advertising goals.
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