Golden keywords are keywords used in an Amazon ad to get profitable sales, preferably highly profitable sales.
One example of a highly profitable keyword is a spend of $6.19 making $185.50 in sales, as shown below:
At BookGoSocial we have created over 12,500 Amazon ads campaigns for authors over the past few years. What became clear from the data as we managed the ads was that small numbers of keywords, like in the above example, were producing most of the sales.
Our process of ad creation changed to focus our member's ad campaigns on Amazon onto the small number of keywords that were highly likely to get a high number of profitable sales for them.
We identified the keywords and the best methods of developing lists of these keywords for each book.
From the chart below you can see our Click Through Rate – the percentage of people who click after seeing an ad – rising this year as we developed our Golden Keywords program with the tactics you will find in our Golden Keywords guide available on Amazon here.
The Pareto Principle, also known as the 80:20 rule, states that on average, 80% of profits are achieved from 20% of clients. This 20% are also known as the vital few, which gives another name to this rule—the law of the vital few.
The Pareto Rule has been widely used in business and marketing applications. One of the commonly seen applications of the Pareto Rule in marketing includes:
80 percent of buyers come from 20 percent of people who click my ad.
This is a common observation based on the Pareto Principle in marketing. It is often seen that majority of the sales come from a small number of clicks. The Pareto Rule suggests that the author should focus on attracting more of the same type as the 20%.
This rule applies to all businesses, and authors are generally small businesses, to help identify the customer persona (type) that is really interested in your books.
But more importantly, when 80% of your royalties come from a small number of keywords, not the hundreds that some suggest are needed, it is a good idea to test and retest a Golden Keyword campaign for your book or books because of the potential impact on your royalties.
From a long tail (list) of keywords, the clicks with no sales can impact the overall performance of the ad negatively, turning a potentially profitable campaign into a loss-maker.
This type of result happens regularly. So regularly we decided to identify the likely best performing keywords early, to avoid losses on long tail keywords.
The Pareto Principle applies for Amazon Ads and is the principle we use for creating Golden Keyword campaigns.
If you want our Amazon ads Done For You Service, where we do the ad setup and management work, please click this link.
If you are a writer or a publisher who wants to be featured visit BGSAuthors - our dedicated site for authors and publishers.
