What Is Amazon Paid Search Algorithm & How Does It Work?


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What is Amazon Paid Search?

Amazon paid search is a collection of advertising products. With Amazon PPC, the more people click through to your listing, the higher it will rank, and vice versa. So if you have a relevant and well-priced product, you’ll also start to see an increase in sales.

It allows you to promote your product listings on the Amazon website. It’s an easy-to-use, cost-effective way for retailers to gain visibility. In addition, it helps to drive sales in one of the most potent online marketplaces today.

Amazon advertising is a great way to reach millions of customers. But it’s essential to understand how it works before you start. There are many moving parts to advertising on Amazon. But it can take time to know where to start.  


How does Amazon Paid Search Algorithm rank your products? 

Amazon’s Paid Search algorithm uses a combination of factors to rank products in sponsored search results, including:

  • Bid Amount: The bid amount is the amount an advertiser is willing to pay for a click on their ad. The higher the bid, the more likely the ad is to appear at the top of search results.
  • Relevance: Amazon’s algorithm considers the ad’s relevance to the search query. More relevant ads are more likely to be shown to shoppers.
  • Quality score: The quality score measures how well the ad is performing. Ads with high-quality scores are more likely to be shown to shoppers than low-quality ones.
  • Ad performance: Amazon’s algorithm also takes into account the past performance of the ad, such as click-through rate, conversion rate, and purchase history. Ads that have performed well in the past are more likely to be shown to shoppers than ads that have not performed well.

How does Amazon pay search marketing work? 

Amazon paid search marketing is for everyone. It’s for more than just sellers who want to grow their businesses. It’s also for those looking for new customers and wanting to increase sales or revenue.

Any seller may utilize Amazon PPC. They sell on Amazon.com or any other platform like Fulfillment by Amazon (FBA).

What is Amazon PPC? 

Amazon paid search is a type of advertising that allows you to advertise your product listings on Amazon. It’s an efficient way to get exposure for your products and ranks higher in the search results, leading to increased sales.

Why should Merchants consider Amazon Paid Search?

There are several reasons why a merchant should consider using Amazon Paid Search:

  1. Increased visibility: Sponsored products can appear at the top of search results, which increases the likelihood that shoppers will see and click on the ad.
  2. Targeted advertising: Advertisers can target their ads to specific keywords and products, increasing the chances that the ad will be seen by shoppers interested in the product.
  3. Increased sales: By increasing visibility and targeting the right audience, Amazon Paid Search can help increase merchants’ sales.
  4. Cost-effective: Since it’s a pay-per-click model, merchants only pay when a shopper clicks on their ad, which can be a more cost-effective way to advertise than traditional advertising methods.
  5. Reach: As Amazon is one of the world’s largest marketplaces, being on it means reaching millions of potential customers.
  6. Brand building: Sponsored product ads can help build brand awareness, as they allow merchants to showcase their products to a wider audience, which can help to increase brand recognition and loyalty.

How Amazon’s Advertising Strategy is Used?  

You may develop and manage your advertising campaigns on the self-service portal. This portal is known as Amazon Advertising strategy. It’s a great way to promote your products, increase sales and reach new customers.

You can target your ads using paid search to customers looking for products like yours. It’s an excellent approach to gain exposure for your products at a minimal cost. Because you only pay when someone clicks on your advertisement and visits your product page. Advertising is a very competitive medium, with several suppliers battling for the same clients. To be successful, it’s essential to have an effective Amazon advertising strategy in place.

What is Amazon Paid Search?

You may advertise product listings on the Amazon website using their sponsored search service. As a consequence, you may boost your product’s visibility on Amazon. It will increase sales and garner more reviews.

Sponsored Brands, Sponsored Products, and Custom Product Ads. These three campaigns are Amazon’s three primary sponsored search alternatives.

The best way to get started is by creating a detailed action plan. Consider your goals, audience, budget, and other factors before launching an ad campaign. You may begin using Amazon PPC with Sponsored Products when everything is ready, where you bid on terms associated with your product. The volume of keyword searches and the competition level influence its price. You can also use the Amazon Keyword Planner tool to find the best keywords for your product.

What is Amazon Search Advertising?

Advertising product listings on the Amazon website using a variety of advertising solutions is called Amazon search advertising. It’s a great way to drive more traffic to your products and increase sales.

What are Sponsored Products?

Sponsored Products are ad units on product and keyword detail pages. They’re a fantastic way to advertise your goods to customers searching for related items and those who want to buy something new. Sponsored Products appear on the product detail page (and can also be added directly from a dashboard). The sponsored brands were formerly known as headline search ads. Instead, they are ad units that appear on the top of the search results page. Amazon’s sponsored items give advertisers a means to reach their target audience.

Sponsored products are items you can buy on Amazon that other companies promote. In most cases, these companies pay Amazon to display their products in sponsored listings, which makes them more visible to customers and allows them to reach more people.

Different Types of Sponsored Products on Amazon

Sponsored Brands (formerly Headline Search Ads) are ad units that appear on the top of the search results page. They’re displayed in a carousel format and can contain up to five products per ad unit for marketers that want more visibility than their standard organic listing. But don’t want to pay exorbitant prices; sponsored brand advertising is a great option.

Amazon has a few different types of sponsored products on the site.

The first is Amazon Storefronts:

These are storefronts created by merchants and brands to sell their products directly to consumers, often at a discount. Amazon is one of the most prominent players in this space, having created hundreds of storefronts. These storefronts can be found on the homepage of almost every category and on the right-hand side of every page in your search results.

The second type is Amazon Merchandising:

It allows brands and sellers to promote their products directly through Amazon’s website, including link ads and product search ads that appear when you perform specific searches. There are also sponsored listings under certain categories on Amazon’s site (like electronics). It also allows companies to use their brand name in association with other products or services they’re selling on Amazon’s platform.

What are Custom Product Ads on Amazon? 

Custom product ads are display ads for your products across other sites and apps in the Amazon Advertising network. Custom product ads can drive awareness, create demand, and increase sales.

Amazon’s custom product ads are a great way to reach your customers. They’re designed to look like other ads, so you don’t have to worry about making changes to your site or app just for them. The best part is that Amazon works with various ad networks and exchanges so that you can use different services for each platform. So, for example, if you have planned to run ads on Facebook, Twitter, and Instagram simultaneously, all three platforms will share one account and associated data.

Amazon’s Custom Product Ads are a great way to get your brand in front of customers actively searching for your offer. It also gives you the possibility of performing A/B testing so that you can see which ads perform best and then adjust them to be even more effective.

Different Types of Custom Products Ads

Custom product ads are display ads for your products across other sites and apps in the Amazon Advertising network. They appear as banners, text links, or as part of different ad formats like video or audio ads. These ads can also be used on third-party websites that use Amazon’s targeting tools.

There are two types of custom product ads—one is called a link ad (affiliate link), and the other is called an image ad (static image). You can choose which type best suits your needs depending on what customer acquisition strategy works best for your business model!

The Amazon Advertising network’s custom product advertising may use to promote your items. This is done by displaying them in an ad format on websites or mobile applications. For example, Custom product advertising makes it feasible for businesses that sell red shoes. It will appear in Google search results when a customer types in “red shoes.”

Sponsored Brands

Sponsored Brands is a way for Amazon to help brands build their presence on the platform. They can use it to help them reach more customers and sell more products.

Sponsored Brands allow companies to put their logo on any product they want without paying for marketing. This means that you don’t have to worry about budgeting for it, so you can focus on what matters: your product!

That’s right—the best part about Sponsored Brands is that there are no fees involved! As long as the item has a minimum purchase value of $20 and has been sold at least once in the last month, it qualifies for Sponsored Brand status.

It’s not just limited to big brands; any company with an e-commerce presence can use this program to grow its business by reaching new customers daily!

Sponsored brands display ads on the top of your search results page. You can use sponsored brands to promote your products, brand, and product categories.


Since it first introduced its Paid Search Ads (PSA) program in 2011, Amazon has been making waves in the advertising sector. It is now stretching its reach further with new services like Sponsored Brands and ChannelAdvisor. This will let you advertise directly on Amazon’s platform.

Amazon Paid Search (Amazon PPC) is a powerful tool that allows you to target customers based on their purchasing habits and interests. You can also use it to drive traffic back to your website, increase website visibility, and more!

So, if you still need to start your campaign, now is outstanding! Of course, it may take trial and error before determining what works best for your brand or product type. Urtasker provides complete Amazon services. Our experts will take care of your business on Amazon. 




Picture of Zeeshan Riaz <br> <span class="designation">Chief Operating Officer</span>
Zeeshan Riaz
Chief Operating Officer

With education and experience in IT. Law and E-commerce industry, I have successfully helped more than 250 E-commerce businesses worldwide to reduce their operational cost with cutting edge eCommerce Marketing Services. I do manage a team of more than 250 people team which includes Amazon, eBay, Shopify, website development, SEO and SMM experts.

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