Keyword Ads

Optimising Keyword Ads Performance

To use Keyword Ads effectively, it's important to understand your business goals, the ads'performance data and the Keyword Ads optimisation strategy most relevant to those goals. Here's a guide on how to optimise Keyword Ads based on your business goals.


To Increase exposure

Monitor these metrics for your Keyword Ads: 

  1. Impressions and Clicks rather than actual orders from shoppers
  2. Monitor impressions and clicks at keyword and product levels
  3. Click-Through-Rate (CTR) which measures your ads' effectiveness in driving shoppers to click on your ads and view your product detail pages 
  4. Keywords that are relevant to the advertised product tend to have higher CTR
  5. Keywords with high CTR are more likely to have a higher ad quality score and better ad ranking which can enhance impressions 
  6. Monitor CTR at keyword level


How to optimise your Keyword Ads if increasing exposure is your goal:

  1. For products that have not met the desired impressions level:
  2. Switch to broad match if you are using exact match 
  3. Add new keywords with broad match 
  4. Increase bid price for keywords with both good impressions and CTR, if there is room to improve their ad rankings 
  5. If you are on a limited budget, stop or lower bid price for keywords with both low impressions and CTR 


To Increase sales

Monitor these metrics for your Keyword Ads:

  1. GMV to see the sales revenue from your ads 
  2. Monitor GMV at keyword and product levels
  3. ROI to understand which keywords are bringing revenue effectively per ringgit spent on advertising
  4. Monitor ROI at keyword level


How to optimise your Keyword Ads if sales growth is your goal:

  1. Increase bid price for keywords with good GMV if there is room to improve their ad rankings
  2. Switch from exact to broad match for keywords with good GMV 
  3. If you are on a limited budget, stop keywords with low ROI which bring less revenue per advertising ringgit spent


If products continue to have low GMV despite ad optimisation at keyword level:

  1. For advertised products that are low-priced, re-allocate advertising budget for higher-priced products that sell well 
  2. Update product detail page with an attractive title, pictures and descriptions, and ensure that your price is competitive 
  3. For products that are not low-priced, if GMV does not improve after enhancing your product detail page and lowering your price, re-allocate advertising budget to other higher-priced products that sell well


To Increase profit

Monitor this metric for your Keyword Ads:

  1. Cost-Income-Ratio (CIR) at keyword level to understand the percentage of cost that comes from advertising for each keyword
  2. Check that your CIR is lower than your product's profit margin to ensure that you are profiting from advertising
  3. For example, if product A is sold at RM10 and your product cost is RM4, your profit margin is 60%, your keyword CIR should be lower than 60%

How to optimise your Keyword Ads if increasing profit is your goal:

  1. For keywords with lower CIR 
  2. Consider increasing bid price for these keywords if there is room to improve their ad rankings
  3. For keywords with higher CIR
  4. Lower bid price carefully to reduce cost-per-click while monitoring impression and clicks to make sure that they remain stable
  5. Consider switching from broad to exact match for keywords, while lowering bid price


If your advertised products continue to have many keywords with high CIR even after they have been optimised:

  1. Update product detail page with an attractive title, pictures and descriptions, and ensure that your price is competitive, to convert more clicks (which you are charged for) into orders
  2. If your CIR does not decrease after following the steps above, re-allocate advertising budget to other products that sell well 

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