Walmart Introduces Keyword Bidding for Sponsored Products: What Sellers Need to Know

Introduction

In a significant move for e-commerce sellers, Walmart has recently introduced keyword bidding for its Walmart Sponsored Products program. This development brings new opportunities for sellers to fine-tune their advertising strategies and reach potential customers more effectively on the Walmart Marketplace platform. As a digital logistics platform, we at FreightAmigo understand the importance of staying ahead in the ever-evolving world of e-commerce. In this article, we'll explore what this new feature means for sellers and how they can leverage it to boost their presence on one of the largest online marketplaces.

Understanding Walmart Sponsored Products

Before diving into the specifics of keyword bidding, let's briefly review what Walmart Sponsored Products are and how they function:

Walmart Sponsored Products is a cost-per-click (CPC) advertising platform designed for Walmart Marketplace sellers. It allows merchants to promote their product listings by displaying them prominently in search results and other high-visibility areas on Walmart.com. The key benefit of this program is that sellers only pay when a shopper clicks on their ad, making it a performance-based advertising model.

Previously, the Sponsored Products program operated solely on a product level, with Walmart's algorithms determining ad placement based on relevancy. The introduction of keyword bidding marks a significant shift, giving sellers more control over their ad targeting and visibility.

The New Keyword Bidding Feature

With the rollout of keyword bidding, Walmart Marketplace sellers now have the power to select specific keywords they want to bid on. This means that ads will appear based on keyword matches, allowing for more precise targeting of potential customers. Let's explore the different aspects of this new feature:

Keyword Match Types

Walmart offers three types of keyword matches for Sponsored Products:

1. Exact Match: Ads will only show for searches that exactly match the specified keywords in the exact order. For example, if you bid on "squirrel hat," your ad will only appear when a shopper searches for that exact phrase.
2. Phrase Match: This option allows for more flexibility. Your ad can appear for searches that include your specified keywords, with additional words before or after. For instance, if you bid on "squirrel hat," your ad might show up for searches like "best squirrel hat" or "squirrel hat for kids."
3. Broad Match: This is the most flexible option. Your ad can appear for searches that include words related to your specified keywords, even if they're in a different order. For example, if you bid on "squirrel hat," your ad might show up for searches like "hats for squirrels" or "small pet clothing."

Campaign Types: Automatic vs. Manual

With the introduction of keyword bidding, Walmart now offers two types of Sponsored Products campaigns: Automatic and Manual. Let's examine the differences between these two approaches:

Automatic Campaigns

Automatic campaigns are the pre-existing option that sellers have been using. Here's how they work:

• Walmart's algorithms determine when to display your sponsored products based on various factors, including keywords in your product title, descriptions, category, and related items.
• Bids can be set and optimized at the product level.
• Ads can appear in grid search results, sponsored carousels across the site, and in the buy box on product detail pages.

Manual Campaigns

Manual campaigns are where the new keyword bidding feature comes into play. Here's what you need to know:

• Sellers can manually select the keywords they want to bid on.
• Your listings will appear to shoppers based on keyword matches.
• Bids are set at the keyword match level.
• Walmart provides a keyword suggestion tool that can help determine the most relevant keywords for your products based on historical performance.
• You can see up to 220 suggested keywords per SKU, ranked in descending order of relevance.
• Manual campaign ads currently only show up in search in-grid results.

Budgeting for Walmart Sponsored Products

Understanding how to budget for your Walmart Sponsored Products campaigns is crucial for success. Here are the key points to keep in mind:

• Minimum campaign spend: $1,000
• Minimum daily budget: $100
• You only pay when someone clicks on your ad (Cost-Per-Click model)
• Unused budget rolls over to the next day

For example, if you set a daily budget of $100 but only spend $20, you'll have a budget of $180 available the next day. This rollover feature ensures that your budget is only used when your ads are actually generating clicks and potential sales.

Tips for Running Effective Walmart Ad Campaigns

Now that we understand how Walmart's keyword bidding works, let's explore some strategies for running effective ad campaigns:

1. Structure Your Campaigns Based on Goals

Different campaign structures can help you achieve various objectives:

• For new product launches: Use broad match keywords to increase impressions and visibility. This approach allows you to cast a wide net and gather data on which search terms are most effective for your product.
• For long-term performance: Start with broad match keywords, then review your reports after a few weeks. Invest more in profitable keywords and remove non-converting ones to optimize your campaign over time.

2. Align Keywords with Product Listings

To improve the relevance and effectiveness of your ads:

• Use keywords that appear in your product title and description. This helps ensure that your ads are shown to shoppers who are looking for products like yours.
• Regularly review and update your product listings to include relevant, high-performing keywords.

3. Utilize Walmart's Keyword Suggestion Tool

Take advantage of Walmart's keyword suggestion tool to:

• Discover new, relevant keywords for your products
• Understand which keywords have historically performed well for similar products
• Prioritize your bidding strategy based on keyword relevance rankings

4. Monitor and Adjust Your Campaigns Regularly

Successful advertising on Walmart requires ongoing attention and optimization:

• Regularly review your campaign performance using Walmart's reporting dashboards
• Adjust your bids and budget allocation based on performance data
• Test different keyword match types to find the right balance between reach and relevance
• Consider seasonality and market trends when planning your campaigns

Analyzing Your Results and ROI

Walmart provides a comprehensive self-serve dashboard of reports to help sellers monitor their campaign performance. Here are the key dashboards and metrics to focus on:

Keyword Performance Dashboard

This dashboard provides detailed insights into how your chosen keywords are performing. Key metrics include:

• Keywords searched
• Bids applied
• Match type
• Impressions
• Clicks
• Units sold
• Click-through rates
• Conversion rates
• Total attributed sales revenue
• Ad spend
• Return on ad spend (ROAS)

Daily Performance Dashboard

This dashboard breaks down your metrics day-by-day, allowing you to track progress over time and identify trends or anomalies in your campaign performance.

Page Type Performance Dashboard

This report shows which pages are displaying your ads most frequently and how they are performing on each page type. This can help you optimize your campaigns for specific areas of Walmart.com.

Brand Performance Dashboard

For sellers with multiple brands, this dashboard segments metrics by brand, allowing you to compare performance across your product portfolio.

Item Performance Dashboard

This report breaks down metrics by individual SKU, helping you identify your best and worst-performing products in terms of ad performance.

Platform Performance Dashboard

This dashboard shows how shoppers interact with your ads across different platforms, including desktop, mobile, and app. This information can help you tailor your strategies for different device types.

Key Metrics to Focus On

While all these dashboards provide valuable insights, there are a few key metrics that are particularly important for assessing the effectiveness of your campaigns:

1. Total Attributed Sales Revenue

This metric shows how many customers followed your ad and made a purchase. It's a direct indicator of your ad's effectiveness in driving sales.

2. Return on Ad Spend (ROAS)

ROAS is calculated by dividing your total attributed sales revenue by your ad spend. It essentially shows your return on investment for your advertising efforts. A higher ROAS indicates that your ads are efficiently driving sales relative to your spending.

3. Attributed Related Sales Revenue

This metric shows how many customers clicked on or saw your ad, then went on to purchase a product within your campaign (not necessarily the exact product they clicked on). It's a useful indicator of how your ads are driving overall sales for your brand on Walmart.

Getting Started with Walmart Sponsored Products

For sellers looking to take advantage of Walmart Sponsored Products and the new keyword bidding feature, here are the steps to get started:

1. Ensure you're an approved Walmart Marketplace seller
2. Set up your Sponsored Products account through Walmart Seller Center
3. Create your first campaign, choosing between Automatic and Manual options
4. Set your budget and bids
5. Select your products and keywords (for Manual campaigns)
6. Launch your campaign and monitor performance regularly

Conclusion

The introduction of keyword bidding for Walmart Sponsored Products represents a significant opportunity for sellers to enhance their visibility and drive sales on the Walmart Marketplace platform. By understanding how to effectively use this new feature, sellers can create more targeted and efficient advertising campaigns.

As a digital logistics platform, FreightAmigo is committed to helping e-commerce businesses navigate the complexities of online selling. While we focus on streamlining your supply chain and logistics processes, tools like Walmart's Sponsored Products can help you reach more customers and grow your business. By combining efficient logistics with smart advertising strategies, sellers can maximize their potential on the Walmart Marketplace and beyond.

Remember, success with Walmart Sponsored Products requires ongoing monitoring, analysis, and optimization. Start small, test different approaches, and continuously refine your strategies based on the data you gather. With persistence and a data-driven approach, you can leverage this powerful advertising tool to boost your visibility and sales on one of the world's largest e-commerce platforms.