How Many Keywords Do You Need in an Amazon PPC Campaign?

How many keywords are enough keywords? It’s the question on every Amazon Seller's mind when they first set up their Amazon PPC campaigns. When it comes to keywords, many Amazon Sellers think its quantity over quality - that’s not true at all.There has to be a balance between keyword quantity and keyword relevancy.

Decide your Amazon PPC Budget

Before you can add keywords you need to decide on your budget. For a good campaign budget, you want to set an amount that will allow you to get impressions for all your keywords. If you set a budget that is too low, some of your keywords may not get any chance to receive impressions because your campaign will go out of budget before they do.
On the other hand, if you set a budget that’s big enough but have too many keywords in your campaign, it will spread unevenly across your keywords. Only about 40% of those keywords will be getting the chance to obtain an impression, the rest will not be getting any impressions.

Unfortunately, your funds are not unlimited. When it comes to setting your Amazon PPC Campaign Budget, it’s entirely up to how much you are able to spend. Figure out the costs of the rest of your business, and how much you can set aside solely for your Amazon PPC campaigns.
Generally speaking, campaign budget limits can be anywhere between $20 to $50. Amazon Sellers with bigger budgets even spend up to $100 per ad campaign. How much you spend on your ad campaigns will depend on the stage you’re at in your product lifecycle. For example, product launches generally need more PPC spending. If you are simply maintaining rankings for an old listing, even $20 for a campaign may suffice.

How Many Keywords Do You Need?

Have you set your daily limit for the campaign budget? Then finding out how many keywords you can feasibly have per campaign is quite easy. We like to use a simple formula we thought of ourselves.

You can easily determine your keyword “constraints” by using the above formula. First you need to research the average CPCs for the Product Category you are selling in, and then simply divide that by your daily campaign budget for a particular campaign. This will yield the maximum number of keywords you can put in a campaign, for all of them to obtain impressions.
Estimated CPCs can be found in several ways, one being running Amazon PPC Automatic Campaigns to research your niche. Automatic campaigns on Amazon are perfect for research, you don’t necessarily need to spend too much on them. Set a reasonable daily budget and just wait for Amazon to provide you with keywords and their average CPCs over time.
Another way to discover estimated CPCs is through seller software tools now available online. Programs offering such capabilities may prove useful when it comes to better budgeting practices surrounding your future campaigns.

How Many Keywords is Too Many?

You can add up to 1000 keywords per ad group for every ad campaign. Does this mean you should? No! Adding too many keywords is called keyword dumping, and it’s doing more harm than good. Keyword dumping is what leads to a vicious “whack a mole” cycle.
Let’s say you added 1000 keywords to your campaign. Your budget is definitely not enough to win impressions for ALL of them. What does Amazon do in this case? Amazon will try to allocate impressions for your first 100 keywords. You will get data for the first 100, and you will optimize your bids. Next week, Amazon decides to allocate impressions for the next 100 keywords. Now you have to optimize that set of keywords.
You will become stuck in this vicious cycle of constantly optimizing only parts of total keywords as Amazon rotates your budget through them. This is what we mean by “whacking a mole”, you whacked 100 keywords and another 100 pop up next time. It would take you 10 months to fully optimize your campaign!
Solution? Limit your number of targets in one ad group of a campaign to 100 maximum. Ensure you can optimize your bids in a reasonable amount of time!

What’s the Optimal Number of Keywords?

What is the optimal number of keywords per campaign then? There’s no sure answer to this, it varies from seller to seller. It even varies on where you are in the product life cycle. Overall though, based on our experience, you should add about 50 keywords per ad group, and 100 per campaign. This makes your campaigns manageable.
Remember, it’s not about the quantity but the quality. Curate the best, most relevant top 100 keywords you can find. Make sure you are spending your Amazon PPC budget wisely!
When it comes to curating keywords,you also have a few options aside from the traditional Amazon Automatic campaign route. Reverse ASIN Keyword tools await to help sellers navigate ad group keyword selection.

What’s the Best Campaign Budget?

How do you set the RIGHT campaign budget? At this point in time you have already run several ad campaigns on your initial budget. You may start to note it’s not the best possible budget you could have. You want to find the perfect budget that will evenly spread your funds across ALL your keywords.
Finding the best campaign budget is easy, you simply rearrange the formula we provided for figuring out how many keywords you need.

Now that you know about 100 keywords per campaign is optimal, you can use that in this formula. Remember, your daily budget should be enough to cover all your targets, whether it’s keyword targets or product targets. Use the estimated CPCs you found from your auto campaigns, multiply them by 100 targets, and find the perfect daily budget for you.

Final Thoughts

Figuring out how to structure your Amazon PPC ad campaigns can be stressful. Though we provided you with the optimal amount of keywords you should bid on per campaign, this was based on OUR experience.
The interesting thing about Amazon PPC is it varies so much from seller to seller. The best way to combat this is to let Amazon PPC management software do the heavy lifting for you. Simply automate your Amazon PPC campaigns and remove any margin for human error at all!

About the Author

I am Erika Sharma,  a Content Creator at SellerMetrics. Our mission is to help Amazon Sellers navigate Amazon PPC, by offering them the knowledge and tools to kickstart their Amazon PPC optimization process without hassle.

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