INFOGRAPHIC: Optimizing Your Amazon Ad Spend

April 12, 2023
2 min read

In this blog post, we'll take a closer look at the SQP Report and provide tips on how to use it to make informed decisions about your ad spend.

If you're an Amazon seller, you're probably aware of the importance of optimizing your ad spend on the platform. But how do you know when to increase or decrease your ad spend? Enter the Search Query Performance (SQP) Report - a tool that allows you to see how your product listings performed by search term on Amazon. By analyzing this data, you can identify opportunities for growth and profit optimization. In this blog post, we'll take a closer look at the SQP Report and provide tips on how to use it to make informed decisions about your ad spend.

Pull up the SQP Report, choose a keyword that you're currently bidding on through Amazon, and work your way through this decision tree with us.

Note: This is a process you can (and should) repeat for your top-spending keywords on a regular basis!

Step 1: Impression Share vs. Click Share

First, you need to look at these two metrics. If your impression share is higher than your click share, that's an indication that your CTR has some room for improvement. The opposite scenario shows that your CTR is pretty strong. Regardless of your answer, the next question to ask is the same:

Step 2: How is Your CVR?

NOTE: Your CVR (conversion rate) is not the same as your purchase rate! The Amazon SQP Report shows purchase rate, which is purchases divided by search volume for that particular keyword. You can find the CVR for both your product and the market average by dividing purchases by clicks. We recommend looking at CVR instead of purchase rate because it's a better indicator of user intent.

A lower-than-market CVR (regardless of your answer to Step 1) indicates you should be spending some time improving your PDP.

If your CVR is stronger than the market CVR, your PDP is strong and doing a great job of convincing users to purchase - congrats!

Step 3: Next Steps

Keep your ad spend level and improve your product listing title to improve your CTR.

Your CVR is strong, but there's more you can be doing to improve your CTR at your current spend levels. Check out our interview with Tyler Foster, resident Amazon guru, to learn more about how you can use the info in SQP to strengthen your Product Titles to drive higher CTR.

Consider decreasing your ad spend or pausing your campaigns. Optimize your product listing details to improve CVR.

Consider reducing or pausing ad spend on this keyword, and focus on improving your CVR. Our last blog post outlines 9 questions to help you optimize your PDP to improve CVR.

Consider increasing your ad spend.

Your CTR and your CVR are solid, and you can benefit from increased impression share with additional ad spend.

Our last word of advice is to make this a cyclical process. You should be re-evaluating keywords you're bidding on regularly to ensure your ad dollars are being spent efficiently. Good luck!

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