Reviewed By Jason Guerrettaz
Written By Sophie Williams
Published December 17, 2018
Updated September 25, 2024
As an Amazon FBA business owner, you should realize that the positioning of your Amazon sponsored ads can have significant impacts on your outcomes. In today’s post, you’ll learn about Amazon sponsored ads management and how you can optimize your ads to achieve your desired results.
Sponsored ads target the queries of shoppers about the products they searched for and can occupy high-visibility placements on Amazon, such as on the Amazon sponsored ad first page and on product pages, as well as anywhere customers spend their time. With Amazon’s data on where customers mostly spend their time, these ads are strategically positioned to capture attention and drive conversions, making them a powerful tool for reaching potential buyers at the right moment.
When it comes to Amazon sponsored ad management, even on mobile, the ecommerce giant delivers various options to help sellers enhance visibility and drive sales. Let’s take a look at some of the ad types:
Sponsored Product Ads: These ads show up at the top, sides, or within Amazon search results and on product pages, boosting product visibility and driving traffic to your listings.
Sponsored Brand Ads: These ads go beyond individual products, showcasing your brand logo and sometimes featuring a selection of your products. They aim to introduce new shoppers to your brand and direct them to your Amazon store.
Amazon Sponsored Ad: Inline ads. The ad is at the bottom of the Amazon Fire TV screen.
Sponsored Display Ads: Currently in beta, these ads extend your reach to third-party apps and websites, allowing select sellers to advertise beyond Amazon’s platform.
For larger investments, Amazon also offers display, video, and custom ad options, along with programmatic ad opportunities through Amazon DSP.
Top of Search offers prime ad placement at the top of the Amazon search results, positioning your ad within the first two listings. This spot typically delivers the highest conversion rates, but it’s also the most competitive and expensive option, attracting the highest bidders who want maximum visibility.
In contrast, Rest of Search Amazon ads are placed further down the results page, starting in the middle or bottom of the first page and extending to subsequent pages. While this placement is less competitive and more affordable, it doesn’t offer the same visibility. Unlike Top of Search, where bidding can be intense, Rest of Search sticks to your base bid, making it a more cost-effective choice but with potentially lower conversion opportunities.
Amazon’s ranking algorithm considers several factors to determine product placement. Seller authority, including activity history, feedback, and fulfillment methods, significantly impacts ranking. Consistent sales and sales velocity boost organic rank, while impressions and click-through rate (CTR) indicate product visibility and customer engagement. Conversion rate (CVR), reflecting how many views turn into purchases, is a metric that needs to be improved in order to rank.
Genuine customer interest is reflected in the store’s organic sales — a metric that greatly influences ranking. But the advantages of PPC ads cannot be discredited. They still help drive traffic, CTR, and CVR.
Internal sales from recommended placements and off-site promotions can also enhance a product’s rank. Finally, customer reviews are equally necessary, as they build trust and directly affect ranking.
Monitoring should be a regular part of your sponsored ads campaigns if you want to succeed. With observation and tweaks, you not only improve the performance of the campaign but also lead more users to your product listing. Eventually, you’ll witness the results as you see your listing going further up the ranks.
Higher positions in Amazon sponsored ads matter most when you’re targeting the top of the search placement on the first page of the Amazon SERP. This spot is highly valuable because it’s the first thing shoppers see, and nearly half of consumers aged 27-40 tend to buy the first product listed. This makes it the most profitable position for sellers, especially for high-volume, competitive keywords, where conversion rates are higher despite the challenges of securing the top spot.
To optimize ad position in Amazon PPC, closely monitor data and industry trends to stay competitive. Regularly track click-through rates (CTR) and conversion rates to gauge ad effectiveness. If CTR is low, experiment with different ad formats, headlines, and calls to action to boost engagement.
A low conversion rate suggests the need for product listing improvements or refined targeting. Additionally, focus on keyword targeting, strategic bidding, and listing optimization to maintain a low Advertising cost of sales (ACoS) and high Return On Advertising Spend (ROAS). Continuously adjust your strategies based on performance data to enhance profitability and sustain long-term success on Amazon.
The secret to achieving an excellent ad position that maximizes profitability is through the use of negative keywords.
Focusing on high-intent keywords while strategically using negative keywords helps balance ad position with profitability. It is a method of improving the targeting and efficiency of your campaigns. What’s more, you are minimizing wasted ad spend as negative keywords boost the effectiveness of your campaign. The bottom line is you get to keep more money.
The sophisticated algorithm used to determine Amazon sponsored ads is unlikely to be figured out on your first attempt. Moreover, most people assume that if they have run campaigns before in Google Ads, then they can transfer the same experience over to Amazon sponsored ads. Sadly, this is not the case.
You should always dedicate a significant portion of your time working on your business to tracking and improving your Amazon sponsored ad campaign’s overall performance.
The biggest mistake that most people make with sponsored ads is to focus solely on ACoS. You have to know the break-even point, including your product’s cost-per-click (CPC) conversion rate and the maximum amount of money you are willing to spend to acquire a customer. Then, you can generate the maximum cost per click that you can afford based on your daily budget while still remaining profitable.
The keywords that you are currently targeting might not be the best performing, which means that you need to come back and tweak these in the future. If you’re going to dedicate time to any one thing in your Amazon business, it should be sponsored ads and leveraging these to be as effective as possible.
You should always dedicate a significant portion of your time working on your business to tracking and improving the overall performance of your Amazon sponsored ad campaign.
Identifying concerns and correcting them before the campaigns begin to suffer in terms of performance can save money as well as effort in the future from having to go back and try to fix things all over again.
In this tips section, we’ll summarize all the points that are best to remember to help you make the most of Amazon’s ad options.
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