Posted by Nojus Latvinskas
Do you know what is one of the best levers you can pull for campaign optimization, yet it is the most overlooked aspect by Amazon sellers?
Amazon ad placements play a critical role in determining the success of your advertising campaigns. By strategically adjusting your bids based on placement performance, you can significantly improve your return on investment (ROI).
Placement bid adjustment involves setting a bid modifier on placements that perform better. This could be either the top of search (ToS) or product pages. Many brand owners and PPC managers overlook this essential step, missing out on valuable opportunities to enhance profitability.
To make informed decisions, gather and analyze data from your campaigns. Focus on metrics such as Advertising Cost of Sales (ACOS), Click-Through Rate (CTR), and Conversion Rate (CVR) to identify which placements yield the best results.
Once you've gathered the data, make minor adjustments to your placements by setting a bid modifier on the placement that is performing better. For instance, if the top of the search is more profitable than product pages, apply a higher bid modifier to capitalize on this advantage.
In a recent campaign optimization for a client's account, we discovered that ToS placement brought in sales at 39% ACOS, while product pages lagged at 458% ACOS. This 10x difference in ACOS prompted us to apply a 50% bid modifier on top of the search, resulting in enhanced profitability and improved ranking.
ToS placements usually offer higher CVR and CTR compared to product pages, creating a win-win situation for both ranking and profitability.
1. Download the "Placement" Report: Analyze your placements for every campaign.
2. Identify Top-Performing Placements: Focus your resources on the better-performing placements, whether it's the top of search or product pages.
3. Apply Bid Modifiers: Adjust bid modifiers for placements with lower ACOS, starting with a conservative 10/20/30% increase.
4. Monitor Performance: Update bid modifiers every two weeks and be ready to shift your focus if another placement begins to perform better.
Regularly optimizing your placements is a crucial part of any PPC strategy. By monitoring and adjusting bid modifiers, you can dramatically improve your campaign's ACOS efficiency and ranking benefits. Don't be afraid to start small and gradually increase bid modifiers to achieve your desired outcomes.
If you notice a shift in performance, be flexible and reallocate bid modifiers to maintain profitability and sales growth.
By implementing these strategies, you can effectively optimize your Amazon ad placements and enjoy increased sales and higher gross profit.