Measure KWA's performance (ROI) and metrics to track.

1. General introduction

What is KWA?

• KWA (Keyword Advertising) is a form of keyword advertising on Alibaba, helping businesses display their products in front of the right potential customers when they search for related products.

• This is an important tool in the B2B model on Alibaba, helping Vietnamese businesses increase impressions, visits and conversion rates.

Why is it necessary to measure KWA's ROI?

• ROI (Return on Investment) helps evaluate the effectiveness of an advertising campaign.

• Not only knowing whether advertising brings customers or not, but also knowing the actual profitability of each dollar spent on advertising on Alibaba e-commerce platform.

Why is the ROI problem especially important for Vietnamese businesses?

• When opening an Alibaba Vietnam booth, many businesses invested in KWA budget but did not know how to analyze it effectively.

• Understanding and measuring accurately helps optimize advertising costs, increase revenue and increase export opportunities through Alibaba.

2. Understand the B2B model and KWA's role on Alibaba

What is the B2B model on Alibaba?

• This is a business-to-business trade model.

• Alibaba acts as a bridge to help international buyers find reputable suppliers, including Vietnamese businesses.

How does KWA work in this B2B model?

• When customers search for products (eg: “Vietnamese Coffee Beans”), Alibaba displays products with KWA at the top of the page.

• Businesses pay according to the number of clicks (CPC - Cost Per Click).

• KWA's goal is to attract high-quality buyers, increase inquiry rate and help the booth achieve higher export efficiency.

How is KWA different from regular advertising?

• KWA does not only display mass but focuses on users' actual purchasing behavior.

• KWA data is associated with indicators such as inquiry, conversion rate, RFQ response, helping you easily measure ROI accurately.

3. Important metrics to track when running KWA on Alibaba

Impressions (Impressions)

• Shows how many times your product is shown in search results.

• This index reflects the level of brand recognition on Alibaba platform.

• If impressions are low → need to optimize keywords or increase KWA budget.

Clicks

Number of times users clicked on your product ad.

CTR rate (Click Through Rate) = Clicks / Impressions x 100%.

High CTR proves that the product is attractive, the title and image meet the buyer's needs.

CPC (Cost Per Click – Cost per click)

• CPC helps measure the effectiveness of advertising spending.

• If the CPC is too high and the inquiry is low, it means the campaign is not optimal.

Businesses can ask the consulting unit to open an Alibaba Vietnam store to help refine keywords to reduce CPC.

Inquiry Rate

• This is the most important index on Alibaba e-commerce platform.

• Calculated using the formula:

Inquiry Rate = (Number of Inquiry / Clicks) x 100%.

• A high Inquiry Rate proves that the person clicking is a customer with real needs.

Conversion Rate

• Indicates how many inquiries were converted into orders or contracts.

• High Conversion Rate proves that KWA ads attract high quality customers.

Total Spend (Total advertising costs)

• Total amount of money the business spends on KWA in a specific period of time.

• Regular monitoring is required to evaluate budgets and actual profits.

Revenue Generated (Revenue from KWA)

• Is the total value of orders generated from customers coming through KWA.

• This is the basis for calculating ROI.

5. Factors affecting KWA's ROI

Product quality and detailed description

• Product titles need to have accurate keywords, clear images, and specific technical information.

• Content optimization helps increase click and inquiry rates.

Optimize the KWA keyword set

• You should group keywords according to each industry to avoid duplication.

• Combine short-tail and long-tail keywords to reach the right audience.

Store Performance

• Booths with optimized interfaces, certificates and quick responses often have higher inquiry rates.

• Therefore, please advise opening an Alibaba Vietnam booth to build a professional profile.

Customer Response Rate (Response Rate)

• Alibaba prioritizes displaying suppliers with high response rates and quick replies.

• If you respond within 24 hours, the likelihood of customers closing the deal increases by up to 60%.

Level of competition of the industry

• For crowded industries (such as textiles, electrical equipment), CPC may be higher.

• Therefore, it is necessary to adjust the budget flexibly and track data weekly.

6. How to effectively track ROI directly on Alibaba

Use KWA Dashboard in Alibaba Seller Center

• Includes sections: Campaign Overview, Keyword Performance, Conversion Report.

• Allows you to view each keyword's performance, CTR, CPC and corresponding revenue.

Combine data with Alibaba Analytics

• Alibaba Analytics helps compare results between KWA and organic traffic.

• You can know what percentage of overall inquiry KWA brings in.

Create periodic reports (Weekly & Monthly Report)

The report should include:

• Consumption budget

• Impressions & clicks

• Inquiry & Conversion Rate

• ROI by each product group

7. Conclusion:

• Measuring KWA's performance (ROI) is a mandatory step if businesses want to export through Alibaba effectively and sustainably.

• Tracking indicators such as CTR, CPC, Inquiry Rate, Conversion Rate helps optimize budget and increase actual revenue.

• To achieve high efficiency, businesses should:

- Understand clearly the B2B model on Alibaba.

- Coordinate with the consulting unit to open an Alibaba Vietnam booth to set up a professional KWA campaign.

- Optimize product content, respond quickly and retain long-term customers.

ALIBABA VIETNAM COMPANY - EXPORT E-COMMERCE FLOOR

• Head office: 19th Floor, Saigon Center Building, No. 67 Le Loi Street, Ben Nghe Ward, District 1

• Email: [email protected]

• Phone: (+84) 987 258 510

• Branch 1: 10th Floor, Becamex Tower, 230 Binh Duong Avenue, Thu Dau Mot, Binh Duong

• Branch 2: 9th Floor, TTC Plaza, Vo Thi Sau, Thong Thong Ward, Bien Hoa City, Dong Nai

• Branch 3: 123 Cong Hoa, Ward 12, Tan Binh, Ho Chi Minh City 700000, Vietnam