How does it work?
Keywords:
The merchant can choose multiple keywords for each product and if the customer search term contains any of the keywords selected, then the advertisement bid would enter the auction. More the number of keywords selected for each, the more the chance of the product getting into the auction. You can also choose a negative match where you can choose certain keywords, especially specifications of your primary keyword such as color, size, etc., for which your bid won’t be considered. This could narrow down and specify the targeted audience and could display the ad to customers with higher buying chances.
Match Type:
In a broad match type, any search text having a mention of the selected keyword would be considered for advertising. Specifications or product descriptions in the search term, which may not be in the keyword won’t be considered. In the phrase match type, your ad would enter the auction only for search terms somewhat similar to the selected keywords.
Bid Amount
The average bid for non-competitive keywords is $0.20, while for a normal competitive keyword it’s $2. For highly competitive keywords, the average cost is $6. The difference between the Average cost of sale and the selling price can be used as the maximum bid amount. ..
The search term triggers any of the selected keywords, and then it’s the bid amount decides which merchant should be given the chance. The highest bid wins and that merchant product would be shown in the first place. And they only have to pay $0.01 more than the second won bid. Merchants can choose the bid amount for each keyword depending on its demand.
