1) If your CVR for the KEYWORD PHRASE is greater than the market,
you can profitably rank the keyword.2) If your CVR for the KEYWORD PHRASE is less than the market,
you cannot profitably rank that keyword.So...
In scenario 1:
We throw PPC spend at the keyword until we rank. Then maintain and slow down enough to maintain rank.In scenario 2:
We do NOT spend a lot on PPC as we will never profitably rank until our CVR improves. Keep spend low enough to stay profitable.How do you find your CVR per Keyword Phrase?
- Brand Analytics (download week by week and aggregate)
- Or use Anthony Nguyen’s Jungle Ace
Applying the PPC Profitability Formula to Your Keywords
The formula is simple, but applying it correctly requires understanding where to find the data and what to do with it.
Here is how to get the numbers you need:
- Your keyword CVR: Pull your PPC Search Term Report. Look at the conversion rate for each keyword phrase individually.
- Market CVR: Use Brand Analytics under Search Query Performance. Look at the "Conversion Share" relative to "Click Share" for top competitors on that keyword.
If your CVR is 15% and the market average is 10%, you can profitably outspend competitors on that keyword because each click is worth more to you. Bid aggressively and push for top-of-search placement.
If your CVR is 8% and the market average is 12%, spending more on that keyword is a losing game. Either improve your listing to boost conversion or reallocate that budget to keywords where you have an advantage.
Review this analysis monthly. Your CVR changes as your listing improves, as competitors change their listings, and as seasonal demand shifts. A keyword that was unprofitable in Q1 might be profitable in Q4.
Frequently Asked Questions
How do I find the market average conversion rate for an Amazon keyword?
Use Brand Analytics under Search Query Performance report. Compare conversion share to click share for the top 3 products on your target keyword. This gives you a relative benchmark for the keyword.
What is a good conversion rate for Amazon PPC keywords?
Average Amazon conversion rates range from 8-15% depending on the category. Above 15% is strong and indicates your listing is well-optimized. Below 8% suggests the keyword is too broad, your listing does not match search intent, or your price and reviews are not competitive.
Should I stop bidding on Amazon keywords where I have a lower conversion rate than competitors?
Not necessarily. Lower bids can still be profitable if the keyword drives brand awareness. But do reduce your bids and budget allocation for underperforming keywords while you fix the underlying conversion issue.