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How to Turn Around Unprofitable Amazon PPC Campaigns


If you’re selling products on Amazon but not seeing the profits you expect, your PPC campaigns might be the culprit. The good news? Unprofitable campaigns are fixable.

The secret lies in organizing your campaigns around Search Term Families (STF)—a strategy that helps you group keywords by buyer intent, optimize performance, and maximize ROI.

In this blog, we’ll break down how to use STFs, refine your campaigns, and turn your ad spend into a profit-generating machine. Let’s dive in!

What Are Search Term Families (STF)?

Search Term Families (STF) are groups of keywords that share the same buyer intent. Instead of scattering keywords randomly, you organize them into clusters based on what shoppers are searching for.

Example:

If you’re selling a “non-toxic water bottle for kids,” you might group keywords like:

“BPA-free kids water bottle”

“Eco-friendly water bottle for children”

“Non-toxic sippy cup”

These keywords all reflect the same intent: finding a safe, eco-friendly water bottle for kids.

Why STFs Work

1. Better Organization

Grouping keywords by intent creates a clear, structured campaign that’s easier to manage and optimize.

2. Deeper Insights

STFs allow you to measure key metrics like Click-Through Rate (CTR) and Conversion Rate (CVR) for each group. This helps you identify which families are driving results and which need adjustments.

3. Improved ROI

By focusing on high-performing STFs, you can reduce wasted ad spend and maximize profitability.

How to Organize Your Campaigns with STFs

Step 1: Group Keywords by Buyer Intent

Identify 20-25 high-volume keywords that share the same intent.

Create separate ad groups or campaigns for each STF.

Step 2: Organize Remaining Keywords

Group keywords outside your main STFs by search volume.

Use these groups for testing and discovery.

Stop Wasting Money on Marginal Keywords

If certain keywords have a 60%+ ACOS or aren’t performing well, don’t give up on them just yet. Instead, try these strategies:

1. Optimize Your Listing

Update Your Primary Image: Highlight key attributes (e.g., “non-toxic” or “BPA-free”).

Tweak Your Title: Reorder keywords to emphasize what matters most to shoppers.

Add Secondary Images: Showcase features, benefits, and use cases.

Include Top-Rated Reviews: Build trust with social proof.

2. Test Custom Creatives

Create split-testing campaigns with custom creatives tailored to specific STFs. For example:

Use different ad copy for “eco-friendly” vs. “non-toxic” keywords.

Test variations of your product images and descriptions.

Master Campaign Chaining

Not all products are the same, and neither should your campaigns be. Use a campaign chaining strategy to align your PPC efforts with your product’s lifecycle:

1. Discovery Campaigns

Goal: Uncover new keywords and search terms.

Use broad and phrase match keywords to cast a wide net.

2. Research Campaigns

Goal: Refine exact match search terms.

Analyze performance data to identify high-converting keywords.

3. Performance Campaigns

Goal: Double down on proven winners.

Focus on exact match keywords with strong CTR and CVR.

Hit Profitable Retargeting

For consumable products, retargeting is a game-changer. Set up campaigns to re-engage shoppers who:

Viewed Your Product: Use Sponsored Display ads to bring them back.

Purchased Before: Encourage repeat purchases with tailored messaging.

Pro Tip: Use custom creatives that speak directly to your audience’s buyer intent.

Use the Data That Matters

Don’t just look at surface-level results. Dive deeper with tools like:

Search Term Reports: Identify high-performing keywords and negative match opportunities.

Brand Analytics: Understand customer behavior and preferences.

Search Query Performance: Analyze CTR and CVR for each STF.

Example:

If an STF has a high CTR but low CVR, your listing might be the issue. Adjust your title, images, and bullet points to better align with shopper intent.

Pro Tip: Don’t Negative-Match Too Soon

When isolating exact match keywords in performance campaigns, avoid immediately negative-matching them in discovery and research campaigns.

Sometimes, these keywords perform better when left alone.

Amazon PPC doesn’t have to bleed your budget.

By organizing your campaigns around Search Term Families (STF), optimizing your listings, and using data-driven strategies, you can turn unprofitable campaigns into profit-generating machines.

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