Updated: Oct 4, 2020
There are several placements on the Amazon platform where your Sponsored Product Ads are served. Try doing a browser-based search on the word "Sponsored" and you'll see at least 16 ads any search results page. But that's not all, your sponsored ads can show up on the add-to-cart page, the right rail under the buy-box, on non-search result pages such as detail pages, as well as off-Amazon.
Up until 2018 we had very little insight into how placements worked. But starting January 2019, Amazon started providing a little more insight into placements. Essentially they started sharing performance metrics on 3 placements: 1. Top of Search
2. Product Pages
3. Rest of Search
In addition, they provided the ability for advertisers to bid differently on the first 2 of these placements. Specifically, you can provide Amazon a placement bid modifier to increase your bids by 900% (wow, that crazy number) on a placement IF Amazon sees an opportunity for a conversion.
This may be good news for advertisers with deep pockets who can now bid aggressively on certain campaigns, but mostly this is Amazon's way to encourage more ad spend. Does Amazon explain the criteria by which they determine if an Ad would win an auction at a certain bid multiplier? No surprises here - they don't! Amazon's lack of transparency is rampant and as advertisers we are left to conduct our own tests to determine what really works for us.
We, at PPC Ninja were keen to understand the impact of placement on the effectiveness of an ad so that we can allocate the right bids multipliers and as a corollary, the right campaign budgets. So we sampled approximately 1000 campaigns to study ad placement effectiveness based on several KPIs, namely Sales, Conversion Rate and ACoS.
We were blown away by the results of our findings and shared it on a webinar. Click below to watch it now:
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