Amazon N-Gram Analysis – Reduce 35% PPC Ads Waste Spend

For Amazon sellers, running a successful Pay-Per-Click (PPC) campaign is not just about selecting the right keywords; it’s about understanding and optimizing customer search behavior. Without precise management of search terms and detailed data analysis, sellers can find themselves wasting significant amounts of ad budget on irrelevant or non-converting terms. One of the most powerful techniques to reduce ad waste is N-gram analysis—an advanced method that breaks down search terms into sequences of words to uncover trends and inefficiencies. In this guide, we’ll explore how N-gram analysis can help you optimize your Amazon PPC campaigns, cut wasted spend, and ultimately improve your bottom line.

What is N-Gram Analysis?

At its core, N-gram analysis involves breaking down customer search terms into smaller units of words, called “n-grams.” An N-gram represents any sequence of N words, such as single words (unigrams), two-word sequences (bigrams), or three-word sequences (trigrams). By analyzing these smaller segments, you can gain valuable insights into how different parts of a search query contribute to your campaign’s performance. Whether it’s identifying irrelevant search terms, adding negative keywords, or optimizing high-conversion phrases, N-gram analysis allows sellers to fine-tune their ads to achieve higher profitability.

1. N-Gram Analysis: Understanding Customer Search Terms

Amazon customers use diverse search terms to find products, and these search queries are critical for generating traffic and sales. However, sellers often overlook low-performing search terms, leading to wasted ad spend. With N-gram analysis, you can identify not only high-converting keywords but also long-tail phrases that competitors may have ignored, offering a hidden advantage.

a) Why Search Term Reports Matter

Amazon provides sellers with Search Term Reports that offer invaluable insights into customer behavior. These reports track which search terms generated clicks, impressions, and conversions. Analyzing this data regularly allows you to spot underperforming search terms and optimize your campaigns to prevent financial losses. Here are some best practices for utilizing these reports:

  • Frequent Review: Stay updated on your campaign’s performance by reviewing reports regularly.
  • Keyword Research Tools: Combine data from the reports with third-party keyword research tools for deeper insights.
  • Match Type Testing: Experiment with different match types—broad, phrase, exact—to refine your targeting strategy.
  • Utilize Negative Keywords: Regularly add irrelevant or non-converting terms as negative keywords to focus on profitable queries.
  • Monitor Key Metrics: Track KPIs like click-through rate (CTR), conversion rate, and return on ad spend (ROAS).

By mastering search term analysis, you can uncover opportunities to enhance your campaign’s performance and minimize wasted spending.

b) Organizing Search Term Reports for Better Insights

Start by generating a Search Term Report from your Amazon Ads dashboard. This report will provide details on search terms triggering your ads, including key metrics like:

  • Clicks
  • Impressions
  • Conversions

To pinpoint wasteful spending, focus on automatic campaigns and highlight search terms that have garnered a high number of clicks but no sales. These terms may drain your budget without contributing to your ROI. Filter, organize, and analyze this data to identify the weakest links in your campaigns.

2.N-Gram Analysis: The Secret Weapon for PPC Optimization

One of the key benefits of N-gram analysis is its ability to reduce wasted ad spend. Wasted spend often comes from terms that generate clicks but fail to convert into sales. If you have terms that have received 15 or more clicks without a single sale, those terms should be scrutinized closely. By identifying and excluding such terms through negative keyword targeting, you can ensure your budget is spent more efficiently.

Tips for Reducing PPC Wasted Spend

  • Set Click Thresholds: Establish a threshold for clicks before considering a term non-converting (e.g., 15+ clicks without a sale).
  • Look at Conversion Rates: Evaluate the conversion rate of each search term and compare it to your campaign average. Underperforming terms can be marked as negatives.
  • Use Broad Match Modifiers: Modify broad match terms to control the reach of your keywords, reducing the likelihood of irrelevant clicks.
  • Create Negative Keyword Lists: Build comprehensive lists to exclude irrelevant terms.
  • Track Campaign Performance: Regularly track metrics such as CTR, conversions, and ACoS (Advertising Cost of Sales) to make informed decisions about where to cut ad spend.
  • Experiment with Bid Strategies: Test manual and automatic bidding strategies to see which works better for your campaigns.

a) Analyzing Automatic Campaigns

Automatic campaigns are excellent for broad visibility but can often result in irrelevant clicks. Regularly review search terms with zero sales but high clicks to exclude those that don’t contribute to your sales goals. By adjusting bids and adding negative keywords, you can improve the ROI of your automatic campaigns.

b) Manual Campaign Adjustments

In manual campaigns, closely monitor search terms with high ACoS and low conversions. These terms could be consuming a significant portion of your ad budget without delivering value. Sorting search term reports by ACoS can help you identify the biggest drains on your resources and take action by marking them as negative keywords.

3. Apply N-Gram Analysis to Your PPC Ads

N-gram analysis truly shines when applied to the intricacies of PPC search terms. By breaking down search queries into smaller components, you can identify patterns that lead to wasted spend or poor conversion rates.

For instance, consider the search term “Carolina shoes for men”:

  • Unigrams (1-word phrases): Carolina, shoes, for, men
  • Bigrams (2-word phrases): Carolina shoes, shoes for, for men
  • Trigrams (3-word phrases): Carolina shoes for, shoes for men

By breaking the search term down, you might discover that “Carolina” consistently results in clicks without conversions. In this case, adding “Carolina” as a negative keyword would save you from irrelevant searches, improving your ad targeting and budget allocation.

a) Splitting Search Terms for Deeper Insights

N-gram analysis helps sellers spot trends by analyzing the frequency and performance of word sequences. If your product is “men’s shoes,” but your analysis shows frequent searches for “women’s shoes,” you can quickly add “women” as a negative keyword to avoid irrelevant traffic.

b) Using N-Gram Analysis to Save Thousands

By negating just a few non-converting N-grams, you can save thousands of dollars over time, re-investing that budget into higher-performing terms. Sellers who adopt N-gram analysis often see a dramatic reduction in wasted spend and improved ad performance.

4. Traditional PPC vs. N-Gram PPC Optimization

While traditional PPC optimization focuses on broad keyword targeting, bid adjustments, and manual monitoring of overall performance, N-gram analysis provides a more granular and detailed approach. Here’s a comparison between the two:

Aspect N-Gram PPC Optimization Traditional PPC Optimization
Approach Breaks search terms into sequences (unigrams, bigrams, trigrams) Broad keyword targeting and bid adjustments
Wasted Spend Identification Identifies patterns in N-grams to exclude ineffective terms Focuses on high-click, low-conversion terms
Precision Highly precise targeting by analyzing smaller components of keywords Broad targeting with less emphasis on individual keyword analysis
Data Frequency Requires regular detailed analysis of N-grams Periodic overall performance review
Optimization Targets specific negative N-grams for more efficient spending Adjusts broad match types and general keyword strategy

Conclusion: Embracing N-Gram Analysis for PPC Success

In the ever-evolving world of Amazon PPC, N-gram analysis stands out as a powerful tool for sellers looking to gain a competitive edge. By breaking down search terms into meaningful components, you can uncover hidden patterns, eliminate wasted spend, and fine-tune your campaigns for maximum performance.

Remember, successful N-gram analysis is not a one-time effort but an ongoing process of refinement and optimization. Stay curious, keep testing, and let the data guide your decisions. With persistence and the right approach, you can transform your Amazon PPC campaigns from money pits into profit-generating machines.

Ready to take your Amazon PPC game to the next level? Start implementing N-gram analysis today and watch your campaigns soar to new heights of efficiency and profitability.

  <——————————————————————————————————————————————————————————————->

Need expert guidance on implementing N-gram analysis or optimizing your Amazon PPC campaigns? Don’t hesitate to reach out to us at info@amazonfalcons.com

. Our team of Amazon PPC specialists is here to help you navigate the complex world of e-commerce advertising and achieve your business goals.

Happy selling, and may your N-grams always convert!

Add a Comment

Your email address will not be published.

ENTER YOUR EMAIL TO GET FREE ASSESSMENT NOW !