Amazon PPC Strategy: Why Fewer Keywords Deliver Better Results

Amazon PPC Strategy often pushes sellers to bid on as many keywords as possible to get maximum visibility. Intuitively, more keywords should mean more clicks and sales. Right? Not necessarily. In practice, overloading campaigns with hundreds of keywords dilutes budgets and clouds the data, making it difficult to identify what truly drives sales. By contrast, a lean, high-intent approach, using a handful of carefully chosen keywords, channels your budget where it counts.

This article explains why fewer keywords can boost your Amazon PPC performance, backed by real-world data and expert insights. We’ll also draw on competitive examples (like Canopy Management’s emphasis on conversion-focused tactics) and point you to proven MyBrandGenius resources (e.g., our guide on using Amazon’s Search Query Performance Report) to help you refine your keyword strategy.

The Pitfalls of “Keyword Bloat” in Amazon PPC

Many sellers fall into the trap of keyword bloat, targeting hundreds of search terms in hopes of capturing more traffic. However, this “spray-and-pray” method often backfires. When you spread a limited budget across 200+ keywords, most terms get so few clicks that you can’t determine their value. For example, one analysis showed that a $300 budget split across 25 keywords generated an average of only 6 clicks per keyword, yielding no clear winners. This leads to diluted budgets and poor data quality. Bulleted drawbacks include:

1) Budget Dilution

With too many keywords, your daily budget gets thinly spread. Only a few high-bid terms might consume most clicks, while many others get negligible traffic.

2) Insufficient Data per Term

Few clicks per keyword mean low statistical confidence. It becomes nearly impossible to tell which terms convert; any result is within the noise.

3) Difficulty Optimizing

Excess keywords create “noise” in your reports. Identifying the top 10–20 percent that actually drive sales is like finding a needle in a haystack.

4) Lower Bid Efficiency

Few clicks per keyword force low bids to stretch the budget. Your ads might never win impressions on any but the cheapest terms, capping reach.

5) Wasted Spend

Irrelevant or very broad terms can siphon clicks from uninterested shoppers. Without negatives, the budget is wasted on poor matches.

In short, more keywords do not guarantee more sales. They often just scatter your budget, as one blog warns: “casting the widest net” may end up catching nothing worthwhile.

Why a Focused Keyword Approach Works

In contrast, trimming your keyword list to the most relevant terms leads to laser-focused spending and clearer insights. Here’s why concentrating on fewer, high-intent keywords generally outperforms bloated campaigns:

1) Concentrated Budget

With 10 - 30 top keywords, each term gets a meaningful share of the budget. You can bid aggressively on the ones that convert, ensuring they show up when buyers search. For example, dedicating enough budget for 20–30 clicks per keyword (the “20 clicks rule”) can produce a clear signal of performance.

2) Better ACoS Control

Fewer keywords means tighter bid management. You can adjust bids quickly when performance changes, and pause underperformers without monitoring hundreds of terms. One case study showed dropping ACoS from 48% to 22% simply by cutting non-performing keywords and doubling down on the best 20.

3) Higher Relevance & CTR

By focusing only on high-intent, long-tail keywords (e.g., “wireless earbuds for running,” not just “headphones”), every click is more likely to be from a qualified shopper. This boosts click-through and conversion rates.

4) Cleaner Data for Optimization

Narrow campaigns generate clearer performance data. You quickly see which terms convert and which don’t. This “cleaner” data streamlines decision-making.

5) Simpler Management

Managing 20 or so keywords is far easier than hundreds. It leads to faster updates, simpler reporting, and less risk of overlap or mistakes. Tools and automations (like Helium 10 or Amazon’s built-in bidder) can then be more effectively applied.

6) Stronger Organic Signals

On Amazon’s A10 algorithm, consistent conversions on key terms can boost organic ranking for those search terms. In other words, fewer keywords with higher conversion power can improve your overall visibility and sales more than a broad, unfocused approach.

According to one summary, “fewer keywords mean… more precise spend, cleaner data, easier campaign control, and better ACoS.” This ethos is echoed by experts: campaigns should prioritize purchase intent and profitability over raw impression counts.

Data-Driven Case Study: Spending $300 on 25 vs. 5 Keywords

To illustrate, consider this real example from a PPC analysis. A seller had a $300 budget to test keywords.

Campaign Type	Keywords Targeted	Budget	Avg CPC	Total Clicks	Conversions/Clicks per Top Keyword	Outcome
Broad (Diluted)	25	$300	$2.00	150	Avg. 6 clicks per keyword, no term >10 clicks; 0 sales[7]	Campaign paused with no winners; data too noisy.
Focused (High Intent)	5	$300	$2.00	60	2 keywords got 20+ clicks; 1 conversion (others paused)	Clear winners identified; ACoS dropped, organic rank improved.

Table 1: Comparing a broad keyword test vs. a focused keyword test.

With the broad 25-keyword campaign, each term averaged only 6 clicks over the test, too few to drive sales or insights. In contrast, the focused campaign of just 5 keywords produced 12 clicks per term, with two keywords exceeding 20 clicks and one yielding a sale. The seller could then eliminate the three losers and double the budget on the top two keywords, resulting in much better ROI and improved product ranking.

Other marketers have reported similar results. For instance, Marketplace Valet’s clients saw ACoS drop from 41% to 24% by cutting 85% of their keywords (184 down to 27). The data are clear: when every dollar is concentrated on known winners, campaign efficiency skyrockets.

How to Build a “Fewer-Keyword” Amazon PPC Strategy

Adopting a lean keyword strategy doesn’t mean guessing blindly; it means strategic selection and testing. Here’s a step-by-step framework:

Step 1: Identify 5–15 High-Intent Keywords

Use tools and reports to find a shortlist of buyer-intent terms. Amazon’s Brand Analytics and Search Term Reports are invaluable – see our guide on using the Search Query Performance Report. Also, use tools like Helium 10, Jungle Scout, or DataHawk to uncover relevant long-tail queries. Focus on keywords that indicate purchase intent (e.g., product + use case) and have enough volume. Avoid broad or generic terms that attract window-shoppers.

Step 2: Use Small, Dedicated Ad Groups (SKAGs)

Organize each top keyword (or very similar keyword sets) into its own ad group. This allows maximum bid control and budget allocation per keyword[26]. With one keyword per ad group, you directly tie the budget to that term’s results. It also simplifies adding negative keywords to prevent cross-campaign competition.

Step 3: Allocate an Adequate Budget per Keyword

As a rule of thumb, plan for enough spend to achieve 20–30 clicks per keyword during testing. For example, if a keyword’s CPC is $2, set aside at least $40–$60 for testing (20–30 clicks). This yields statistically meaningful data. Too often, campaigns cut off keywords before enough clicks are recorded. By ensuring each keyword gets a fair test budget, you’ll know which ones truly convert.

Step 4: Set Up Negative Keywords

Block any terms or variants that could waste spend. For instance, if you’re selling “wireless earbuds,” you might negative-match “earbuds accessory” to avoid irrelevant traffic. As Canopy notes, “Your ultimate goal: SELL your product, not just gather clicks”[4]. Negatives ensure clicks are from likely buyers, not window-shoppers. Continuously update negatives using your Search Term Report.

Step 5: Iterate and Prune Quickly

Monitor performance weekly. Pause any keyword that shows no conversions after ~20 clicks or has a very high ACoS. Focus spending on the keywords with the best CTR and conversion rate. If a keyword hits a threshold (e.g., 20–30 clicks, CTR > 0.5%, CR > 5%), consider increasing its bids or budget. Conversely, kill the “fat”; underperformers should be retired so the budget shifts to winners.

Step 6: Leverage Campaign Match Types Strategically

Use exact match for your top high-intent keywords (to capture only the most relevant searches), phrase match for long-tail variations, and broad match sparingly (for discovery only). Proper segmentation helps maintain control while still exploring related queries.

Step 7: Watch Overall Budget Allocation

Split the budget thoughtfully between campaign types: some experts suggest 20% on auto-targeting (for discovery of new terms), 50% on manual-exact (conversion focus), and 30% on manual-phrase/broad (testing variants). The key is that each chosen keyword in a manual campaign gets enough spend.

By following these steps, you create a laser-focused campaign rather than a shotgun blast. Quality, not quantity, guides every move. In practice, implementing this approach usually means stopping adding new keywords until you’ve maximized current ones. Only after winning on your core keywords should you begin adding fresh terms (ideally in separate “discovery” campaigns).

Tools and Tactics to Enhance Your Focus

A focused strategy is bolstered by data and the right tools:

1) Amazon’s Search Query Performance Report (SQPR)

As detailed in our blog, the SQPR shows impression share, click share, and purchase share for specific queries. By analyzing this report, you can identify underutilized keywords with high add-to-cart or purchase rates, prime candidates to add to your short list.

2) Search Term Reports

Check the built-in Sponsored Products Search Term Report every week. It helps mine actual converting ASINs and keywords. Pick out terms that have driven sales and put them into manual campaigns.

3) Keyword Research Tools

Software like Helium 10 Adtomic, Jungle Scout, or Data Dive can cluster keywords by performance. These tools often highlight high-intent long-tail keywords you might miss manually.

4) Automated Rules & Bid Adjusters

Use Amazon’s rule-based bidding or third-party tools (BidX, Perpetua, etc.) to automatically bid up on keywords during peak hours or down on low-performers. But remember, even the best automation relies on having good keywords to begin with.

5) Negative Keyword Lists

Maintain and refine your negative keyword lists. Block any search terms that your top keywords shouldn’t overlap with. This keeps broad and phrase campaigns from eating into the budget of your exact-match tests.

These tactics turn data into action. The goal is to continuously optimize a smaller set of keywords, which replace losers with new tests only when the budget and performance justify it.

Competitor Insights: Conversion First

Top agencies like Canopy Management also stress conversion-focused strategies that align with a lean keyword approach. For instance, Canopy advises shifting emphasis “from clicks to purchases” and bidding on keywords that drive actual sales. They highlight that long-tail keywords capture shoppers deeper in the buying funnel, exactly the kind of high-intent terms our strategy targets.

Canopy also emphasizes product profitability and ROI. They recommend analyzing product margins before ad spend. This dovetails with a focused PPC strategy: by channeling spend into keywords tied to your most profitable products, you ensure that every click contributes to the bottom line. Likewise, setting negative keywords to exclude irrelevant traffic is a core tenet for both broad and focused campaigns. Their mantra, “SELL your product, not just gather clicks,” underlines why more keywords aren’t inherently better. It’s better to bid on a few converting terms than waste money on unqualified traffic.

In short, while competitors deploy various advanced tactics (AI bidding, DSP ads, etc.), they all start by recommending a strong foundation of relevant keywords. Our recommendation to use fewer, high-conversion keywords is consistent with these expert views but takes it a step further by deliberately limiting scope to what works. A similar philosophy is found in industry blogs: one PPC guide notes that experienced sellers often cap campaigns at 10–15 highly relevant keywords for optimal results.

By contrast, as Canopy points out, running hundreds of keywords in one campaign can leave most of them starved of impressions. Both our analysis and competitors’ advice converge: campaigns should be prioritized and profitable.

Summing Up

In Amazon PPC, quality trumps quantity. A handful of high-intent keywords, each armed with sufficient budget, will outperform a vast, unfocused set. Real campaign data and expert analyses confirm that “fewer keywords consistently lead to more precise spend, cleaner data, easier control, and better ACoS.” When you invest deeply in the most relevant search terms, you shorten the path from click to purchase. You also signal to Amazon’s algorithm that those terms are winning keywords, which can boost your organic ranking.

Remember these key takeaways: Don’t cast too wide a net. Limit your keywords to what your budget can support. - Focus on buyer intent over search volume. Long-tail, specific phrases often convert best. - Use real data (not guesswork) to guide which keywords stay or go. - Iterate quickly. Pause or remove underperforming keywords each week and reallocate spend to the winners. - Leverage negative keywords and reports to refine your reach.

A laser-focused Amazon PPC campaign not only saves ad spend; it drives more sales and profitability. For further reading, check out our guide on using Amazon’s Search Query Performance Report to find high-converting keywords and ensure your ads show up for the right searches. By zeroing in on fewer keywords that truly move the needle, you’ll craft an Amazon PPC strategy that outperforms the competition in both ROI and growth.

FAQs

Q1: How many keywords should I target in my Amazon PPC campaign?

Ans: There’s no one-size-fits-all number, but a good rule of thumb is to start small, typically 5–15 highly relevant keywords per campaign. This ensures each keyword can get enough budget and data. You can always expand later by adding a few new terms in a separate “discovery” campaign once your core keywords are proven winners.

Q2: Why are negative keywords important in a focused campaign?

Ans: Negative keywords prevent your ads from showing on irrelevant searches, protecting your budget from being wasted. In a lean campaign, every click counts. By excluding unrelated terms (for example, negating “accessory” if you sell the base product), you sharpen your targeting. Canopy emphasizes that using negatives helps eliminate wasteful spending and keeps the focus on buyers who are more likely to convert.

Q3: How do I identify which keywords to prioritize?

Ans: Start by looking for keywords with clear purchase intent and good performance metrics. Tools like Amazon’s Search Query Performance Report (see our blog guide) reveal which terms have high Add-to-Cart or Purchase Share despite low visibility. Also, analyze your Search Term Reports to find actual converting searches. Sort your prospects by historical ACoS, click-through rate, and conversion rate, and pick the top performers for your focused campaigns.

Q4: What if I have a large product catalog?

Ans: If managing many products, still apply the principle to a product or product category. Group similar SKUs and use separate campaigns for them. Within each, choose only the top ~10–15 keywords per campaign. Use a portfolio or automated rules to manage multiple campaigns. The key is not to fill each campaign with every possible keyword but to allocate enough budget to a few core terms for each product.

Q5: When should I add new keywords to my campaigns?

Ans: Only add new keywords after exhausting the potential of your current ones. For example, once your best keywords are consistently hitting 20+ clicks with stable conversions and you’ve hit your target ACoS, you can begin testing new terms (ideally in a separate ad group or campaign). Always remove or negate any overlap. Never add dozens of new terms before evaluating existing performance – that’s how keyword bloat creeps back in.