Amazon has done an excellent job with its ads in making them look just like other product listings. It is quite amazing that about half of shoppers on Amazon cannot identify the difference between an advertised listing and an organic listing. So, where do Sponsored Product ads appear on Amazon? In this episode we talk about placements and where these show up for Amazon shoppers. We’ll also dive into placement adjustments, performance, and actions you can take to best utilize these features.
*Note that the average conversion rate and click-through rate for product pages and rest of search placements are 9% and 1%, respectively.
Amazon allows us to escalate bids within a campaign for both top of search and product page placements by using bidding by placement. This means we can take the bids we set for keywords and boost them to achieve certain placements. It’s important to note that we can only adjust bids for two (TOS and product page) out of the three placements within the campaign manager.
We tend to not use dynamic up and down bidding because we can lose control of the max bid, resulting in a very high cost per click, leading to a lot of wasted spend. Instead, we prefer using fixed bids or dynamic down bidding since this allows us to have a cap on our keyword or product target bid.
The key ranking factors for products are sales velocity and conversion rate. To boost your product ranking, launch a campaign with very specific parameters - high top of search setting & fixed bidding strategies. These results in a high amount of top of search impressions, which can drive more sales velocity at high conversion rates, which will increase overall product ranking.
Sponsored Products Placement Types [01:50]
Bidding by placements [03:00]
How to balance ACoS across different placement types [07:32]
Interesting feature with bidding by placement [10:03]
How dynamic bidding up and down can affect your placement settings [ 13:58]
Why do top of search placements convert better? [16:26]
When and how to use top of search placements [19:25]
Key takeaways [22:51]