This is very clear evidence of a refinement to Amazon\u2019s search suggestion feature.  This is clearly a better experience for users.  However, what does this mean for brands that are trying to advertise their products effectively on the platform? <\/p>\n\n\n\n

Why Search Frequency Rank Tracking is Critical for Amazon Advertising Optimization: <\/strong><\/p>\n\n\n\n

Optimizing Amazon Advertising is all about aligning business value (e.g. margin-per-click) to business investment (e.g. cost-per-click) at the most atomic level possible (consumer search term + product advertised).  In theory, this is a simple and straightforward concept: If I receive 100 clicks on the search term \u201cPower Drill Cordless\u201d and those clicks produce $2,000 in revenue which nets $300 in margin, my business value for this search term would be $3 per click.  Second-price auction theory tells me that if I set my Maximum Cost-per-Click for this search term at $3.00, I will then buy every available incremental margin dollar.  Easy peasy – I\u2019ll just buy some software that does this automatically for me and I\u2019ll be off to the races – right? <\/p>\n\n\n\n

Well\u2026 What happens when all of a sudden all of the people who are just looking for \u201cPower Drill\u201d are persuaded by a change in Amazon\u2019s Search Suggestions to instead search for \u201cPower Drill Cordless\u201d?  <\/strong><\/p>\n\n\n\n

We can assume that cordless power drills are slightly more expensive than traditional power drills.  We may also assume that the purchase intent for a cordless power drill of someone insistent on typing out the full phrase \u201cpower drills cordless\u201d is much higher than someone just searching for \u201cpower drills\u201d (every empirical study on search conversion rate supports the notion that as specificity of search increases so too does conversion rate for aligned ads).   As such, we can expect that conversion rate and ad click value for the search term \u201cpower drill cordless\u201d will plummet.  <\/p>\n\n\n\n

Most marketers don\u2019t track the shifts in Search Frequency Rank on a daily basis and won\u2019t catch this immediately.  What\u2019s worse, most Amazon marketers rely on dumb \u201cAI\u201d bid management solutions that will take 30 or even 60 days to catch and react to this type of change in conversion rate. <\/p>\n\n\n\n

This is another great example of why Momentum Commerce recommends a combination of smart marketing analysts working with flexible technology to create competitive advantage in Amazon Advertising.  <\/p>\n","protected":false},"excerpt":{"rendered":"

TLDR; Search Term popularity on Amazon changes as a function of consumer preference and interest.\u00a0 However, it can also change as a function of Amazon\u2019s search suggestion feature that helps users auto-complete their searches.\u00a0 As a result, savvy marketers should database the search term frequency rank for their most relevant search terms, track these values […]<\/p>\n","protected":false},"author":5,"featured_media":594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail-media"],"acf":[],"yoast_head":"\n