Why Segmenting your Amazon PPC Keywords by Size & Colour can Help Improve TACOS & Return Rates
Segmenting your Amazon PPC campaigns by attributes like size and color can be a powerful strategy to improve your Total Advertising Cost of Sales (TACoS) and reduce return rates. Here's why breaking down your keywords by these specific attributes can lead to better campaign performance and ultimately, more sales.
The Importance of Segmenting by Size and Color
When selling products with variations, such as different sizes or colors, each variant can have unique appeal to different customer segments. This is where segmenting your PPC campaigns becomes crucial. By creating separate campaigns for each size or color, you can target keywords that are highly relevant to those specific attributes, leading to more precise ad targeting and better overall campaign performance.
Benefits of Segmenting by Attributes
Increased Relevance and Conversion Rates:
By targeting keywords that include specific attributes like size or color, you ensure that your ads are shown to customers who are looking for those exact product variants. This increased relevance leads to higher conversion rates because the ads match the shopper’s search intent more closely.
Better Control Over Campaigns:
Segmenting by size and color allows you to have greater control over your campaigns. You can allocate budgets more effectively, optimize bids for specific variants, and monitor the performance of each attribute more closely. For example, you might find that certain sizes convert better than others, allowing you to shift your budget to the most profitable campaigns.
Improved TACoS:
When your ads are more targeted, they are more likely to convert, which can lead to a lower cost per acquisition (CPA) and ultimately a better TACoS. By focusing your ad spend on highly relevant keywords, you avoid wasting money on less effective terms, which can improve your overall advertising efficiency.
Reduced Return Rates:
Ads that accurately reflect the product being sold (in terms of size, color, etc.) can help ensure that customers receive exactly what they expect, which can reduce the likelihood of returns. For example, a customer searching specifically for a "red large t-shirt" is more likely to be satisfied with their purchase if your ad clearly matches that specific variant.
Practical Steps for Implementing Segmentation
Identify Key Attributes:
Start by identifying the most important attributes for your product, such as size, color, material, or any other distinguishing feature. Use tools like Helium 10 to check search volume for keywords related to these attributes to ensure they are worth targeting.
Set Up Separate Campaigns:
Create separate PPC campaigns for each attribute. For instance, if you’re selling a t-shirt available in multiple colors and sizes, you would set up individual campaigns for "red t-shirts" and "large t-shirts". This allows you to monitor and optimize each campaign independently.
Monitor and Adjust:
Continuously monitor the performance of each segmented campaign. Look at metrics like conversion rates, CPC, and ACOS to determine which attributes are performing well. If a particular size or color isn’t performing, you can reduce the bid or pause the campaign to focus on more successful variants.
Single Keyword Campaigns:
For highly relevant keywords that perform well, consider placing them in single keyword campaigns. This allows you to target the top of search placements more aggressively and allocate budget specifically to high-performing terms without affecting other keywords in a broader campaign.
Conclusion
Segmenting your Amazon PPC campaigns by size, color, or other relevant attributes can significantly improve your ad performance by increasing relevance, giving you better control, and reducing return rates. This granular approach to PPC management allows for more precise targeting, which can lead to better TACoS and ultimately, higher profitability. As always, continuous testing and optimization are key to finding the right balance and ensuring your campaigns deliver the best possible results.
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