In this article, I will break down the thresholds set by Adspert for analyzing and qualifying search terms. If the search terms meet these thresholds, Adspert recommends them as criteria candidates for your Amazon Ads campaigns.
This is only one part of a much bigger process of how Adspert finds new keywords and ASINs for Amazon Ads.
Here, I will only focus on the thresholds related to search term analysis and qualification for Amazon Ads.
Let’s dive right in.
Important note: Do not confuse ‘Criteria’ with ‘Search Term’. A criterion is something you can bid on. A search term is what the users type in the search field that eventually leads them to click on your product ad.
How Does Adspert Analyze and Qualify Search Terms?
Before I share Adspert’s thresholds, let me quickly explain search term analysis and qualification process. This will help you understand how and where these thresholds come into play.
So: Adspert first syncs Search Query Report for your Amazon Ads. Then it starts with analysis and continues with search term qualification. Let’s have a closer look at both.
Search Term Analysis
Analyzing search term performance data: Once the data is sync and stored, Adspert analyzes the performance data for each individual search term over the past 30 days.
Comparing search term performance data with ad group averages: Each search term’s stats are then compared to different ad group averages. Adspert always dissects the performance data from different angles, resulting in different ad group averages. At this point Adspert also checks if search terms meet the thresholds.
Identifying outliers: This is where the key decision takes place. By comparing the search terms to the different ad group averages, Adspert identifies different outliers.
What is an ‘outlier’?
Outlier is any search term that significantly differs from the relevant ad group average, either positively or negatively. For example, an outlier can be a high-converting search term and also a low-converting search term.
Search Term Qualification
Adspert then compares the outliers to the Adspert-defined thresholds. If an outlier meets the thresholds, Adspert qualifies a search term as a candidate to be added to your ad groups.
So, thresholds are used in both parts of this process: search term analysis and qualification.
Now that you know how and where they are used, let’s see why Adspert uses them and what they are.
Adspert Thresholds for Criteria Candidates
Why Does Adspert Use Thresholds?
Because we don’t want you to waste your PPC budgets! After a search term qualifies and is added as a criterion to your campaign, you need to bid on it. And each bid can cost you money.
So, you probably want to get the most out of your marketing budget, right?
Additionally, Amazon Ads have a criteria limit: some ad groups can only contain up to 1000 criteria. After this limit is reached, you cannot add any new criteria.
If you were to add every single search term as a criterion to your ad groups, you’d reach that limit sooner or later and potentially miss out on valuable, high-converting criteria.
That’s why Adspert users own thresholds in search term analysis and qualification.
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Practical example:
If a criterion has only 1 click and 1 conversion, this is most likely not enough to be added to your ad group. Adding all criteria that have at least one conversion or one click can lead to too many criteria that are not relevant enough. This is especially important for ad groups that have too many criteria with the limit being 1000.
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In a nutshell, thresholds are an important piece of the big Adspert puzzle to maximize your profits.
Now that we understand why Adspert uses thresholds, let’s see what they are.
Thresholds Set by Adspert
High Click Value
Click Value is an internal performance indicator combining conversion value and conversion rates.
This is how Adspert uses Click Value thresholds:
Adspert compares average search term Click Value to the average of:
Ad group Click Value
Same criteria type and subtype Click Value
The average Click Value needs to be high enough to qualify as a criterion candidate..
Plus there need to be at least 3 conversions.
High Click-Through Rate (CTR):
The average CTR needs to be high enough in comparison to the average CTR of the ad group and criteria with the same type and subtype.
Search term needs to have at least 3 clicks.
Cheap Click:
The average CPC needs to be cheap enough in comparison to the average CPC of the ad group and criteria with the same type and subtype.
There need to be at least 3 clicks.
High Volume:
The average volume (cost or click) for this criterion needs to be high in comparison to the average volume of the ad group and criteria with the same type and subtype.
Search term should have a record of at least 10 clicks.
Important note: Some search terms do not meet the thresholds BUT this does not mean they are not optimized! They are still optimized in your Sponsored Products auto campaigns or via corresponding Sponsored Brands keyword.
Conclusion
This article breaks down how Adspert uses thresholds for analyzing and qualifying search terms in Amazon Ads.
The thresholds, including Click Value, CTR, Cheap Click, and High Volume, help ensure that selected criteria candidates meet specific performance results before being added to campaigns.
If you would like to learn more about the entire process of how Adspert finds new keywords and ASINs for Amazon Ads, read this article.