What is Keyword Bidding? A Comprehensive Guide for Walmart Marketplace Sellers

Introduction to Keyword Bidding on Walmart

As e-commerce continues to evolve, platforms like Walmart are introducing new features to help sellers increase their visibility and sales. One such feature that has recently gained traction is keyword bidding for Walmart Sponsored Products. This powerful tool allows sellers to target specific search terms and get their products in front of potential customers more effectively. In this comprehensive guide, we'll explore what keyword bidding is, how it works on Walmart, and how you can leverage it to boost your sales on the platform.

Understanding Walmart Sponsored Products

Before diving into keyword bidding, it's essential to understand the basics of Walmart Sponsored Products. This program is a cost-per-click (CPC) advertising platform that enables Walmart Marketplace sellers to promote their listings to shoppers based on search intent. When a seller participates in this program, their products appear under a "sponsored" banner, and they only pay when a shopper clicks on their ad.

Until recently, the Walmart Sponsored Products program operated solely on a product level, with ads shown based on Walmart's relevancy algorithms. However, with the introduction of keyword bidding, sellers now have more control over their ad placements and can target specific search terms that are most relevant to their products.

What is Keyword Bidding?

Keyword bidding is a advertising strategy where sellers can select specific keywords or phrases they want to "bid" on. When a shopper searches for these keywords on Walmart, the seller's ads have a chance to appear based on their bid amount and other relevancy factors. This approach allows for more precise targeting and potentially better return on investment (ROI) for advertisers.

Types of Keyword Matches

When implementing keyword bidding on Walmart, it's crucial to understand the different types of keyword matches available. These match types determine how closely a shopper's search query needs to align with your chosen keywords for your ad to be displayed. Walmart offers three main types of keyword matches:

1. Exact Match

With exact match, your ad will only appear when a shopper searches for the exact words in the exact order you specified. For example, if you bid on the keyword "squirrel hat," your ad will only show up when someone searches for precisely that term.

2. Phrase Match

Phrase match allows for more flexibility. Your ad can appear when a shopper searches for your exact keyword phrase, but with additional words before or after it. 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

Broad match offers the widest reach. Your ad can appear for searches that include words related to your keyword, even if they're in a different order or don't include all the words. For example, if you bid on "squirrel hat," your ad might show up for searches like "hats for squirrels" or "small pet clothing."

Automatic vs. Manual Sponsored Product Campaigns

Walmart offers two main types of Sponsored Product campaigns: automatic and manual. Understanding the differences between these can help you choose the best approach for your advertising strategy.

Automatic Campaigns

Automatic campaigns were the original option available to sellers before the introduction of keyword bidding. In this type of campaign:

• Walmart decides 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 on a per-product level.
• Your 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 keyword bidding comes into play. With this option:

• Sellers can manually select the keywords they want to bid on.
• Your listings will appear to shoppers based on keyword match types (exact, phrase, or broad).
• Bids are set at the keyword match level.
• Walmart provides a keyword suggestion tool to help you find relevant keywords based on historical performance.
• Your ads will only show up in search in-grid results.

Budget Considerations for Walmart Sponsored Products

When planning your Walmart Sponsored Products campaign, it's important to understand the budget requirements and how they work:

• 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 and only $20 is spent, you'll have $180 available the next day. This rollover continues, ensuring that your budget is only used when your ads generate clicks.

Strategies for Effective Walmart Ad Campaigns

To make the most of keyword bidding and run successful Walmart Sponsored Products campaigns, consider the following strategies:

1. Structure Your Campaigns Based on Goals

Tailor your approach to your specific objectives. For instance:

• To drive awareness for a new product, use broad match to increase impressions and utilize as many relevant keywords as your budget allows.
• For long-term performance, start with a wide net using broad match, then refine your strategy based on performance data.

2. Leverage Your Product Content

Use keywords that appear in your product title and description. This alignment can improve the relevance of your ads and potentially increase their effectiveness.

3. Regular Review and Optimization

After a few weeks of running your campaign:

• Review your reports to identify trends and insights.
• Invest more in profitable keywords that are driving sales.
• Remove or reduce bids on non-converting keywords to optimize your budget.

Analyzing Your Results and ROI

Walmart provides a comprehensive self-serve dashboard that allows sellers to monitor the performance of their Sponsored Products campaigns. Here are some key areas to focus on:

1. Keyword Performance

This dashboard shows detailed metrics for each keyword, including:

• Search terms
• Applied bids
• Match type
• Impressions
• Clicks
• Units sold
• Click-through and conversion rates
• Total attributed sales revenue
• Ad spend
• Return on ad spend (ROAS)

2. Daily Performance

This view breaks down metrics day-by-day, allowing you to track progress over time and identify any trends or fluctuations in performance.

3. Page Type Performance

This dashboard shows which pages your ads are appearing on most frequently and how they are performing on each page type.

4. Brand Performance

For sellers with multiple brands, this view segments metrics by brand, helping you understand which of your brands are performing best in Sponsored Products campaigns.

5. Item Performance

This breakdown shows metrics for individual SKUs, allowing you to identify your top-performing products in ads.

6. Platform Performance

This view helps you understand how shoppers interact with your ads across different platforms, including desktop, mobile, and app.

Key Metrics to Focus On

While the wealth of data available can be overwhelming, here are three key metrics to prioritize when evaluating your campaign performance:

1. Total Attributed Sales Revenue

This metric provides insight into how effective your ad was by showing how many customers followed an ad and made a purchase.

2. Return on Ad Spend (ROAS)

ROAS is calculated by dividing the total attributed sales revenue by your ad spend. It essentially shows your ROI and helps you understand how much revenue you're generating for every dollar spent on ads.

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 specific product in the ad they clicked on). It can help you understand the broader impact of your ads on your overall sales.

Getting Started with Walmart Sponsored Products

To access Walmart Sponsored Products and take advantage of keyword bidding, you need to be a Walmart Marketplace seller. If you're already selling on Walmart Marketplace, you can start exploring the Sponsored Products program through your seller account.

For those new to Walmart Marketplace or looking to optimize their logistics operations, consider partnering with a digital logistics platform like FreightAmigo. As a full-service, one-stop digital supply chain finance platform, FreightAmigo can help streamline your logistics processes, potentially making you eligible for programs like Walmart Free TwoDay Delivery, which can enhance your visibility on the platform.

Conclusion

Keyword bidding for Walmart Sponsored Products opens up new opportunities for sellers to increase their visibility and sales on the Walmart Marketplace. By understanding how keyword bidding works, structuring your campaigns effectively, and regularly analyzing your performance, you can make the most of this powerful advertising tool.

Remember, success with keyword bidding often comes from continuous testing, learning, and optimization. Don't be afraid to experiment with different keywords, match types, and bid amounts to find what works best for your products and target audience.

As you navigate the world of e-commerce advertising, consider how digital logistics solutions like FreightAmigo can support your overall strategy. By optimizing your supply chain and fulfillment processes, you can improve your eligibility for key Walmart programs and enhance your overall performance on the platform.