How Are Search Terms Analyzed for Bid Adjustments?
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Quick answer
Search terms are evaluated for bid adjustments by reviewing campaign-specific performance signals such as spend, clicks, orders, ROAS, ACoS, and conversion rates. This analysis distinguishes queries that are driving profitable visibility from those consuming budget without meaningful returns. Because top-of-search placements are competitive, bid changes should follow a clear pattern of underperformance or opportunity rather than a single bad day. A structured review of these metrics helps advertisers decide when to increase, decrease, or negate a term.
The goal is not to chase every metric in isolation. A search term may have a high ACoS but still assist discovery, while another may look cheap but fail to convert. A practical evaluation weighs several signals together before touching top-of-search bid adjustments.
Metrics That Shape Bid Decisions
When a search term is reviewed for a possible bid change, the most useful view is usually campaign-specific rather than account-wide. Spend and clicks show how much traffic a term is attracting. Orders and conversion rate show whether that traffic is producing purchases. ROAS and ACoS tie those two sides together, making it easier to see if a term is working profitably or eroding margin.
- Spend and clicks: Reveal whether a term is receiving enough volume to evaluate.
- Orders and conversion rate: Separate high-traffic terms from high-performing terms.
- ROAS and ACoS: Compare revenue return and cost efficiency against campaign goals.
Spotting Underperformers Without Overreacting
An underperforming search term is not always obvious from one number. A term can have strong clicks but weak conversion, suggesting the placement is visible but the audience or listing is not closing the sale. Another may convert well but have an ACoS above the campaign target, making a top-of-search increase riskier. Amazon Negative Keyword Tool by Todoza helps teams review these query-level signals and classify terms as candidates for negation, bid reduction, or further data collection.
Because that analysis is read-only and supports team approval, it can be used to shape a cleanup or adjustment plan without automatically changing live campaigns.
When This Matters Most
This type of search term analysis matters most when a campaign has enough data to make reliable decisions, but spend is creeping up without proportional returns. It is also useful when top-of-search placements are winning impressions but not converting at the rate needed to justify higher bids. In those cases, pausing a bid increase and reviewing query-level data first can protect margin while the team determines whether the issue is the bid, the keyword, or the product detail page.
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Related guides
Search term evaluation is the checkpoint before any top-of-search bid adjustment. By reading the performance data first, advertisers can move beyond guesswork and make more deliberate decisions about where to push for placement and where to pull back. For a broader look at that decision, see the guide to deciding whether to increase a top-of-search bid adjustment.