Major Factors Affecting the PPC Placement

Zeeshan Riaz March 24, 2022

Amazon PPC advertising is one of the most efficient ways to build brand awareness and drive sales for sellers. It is probably because Amazon is the third most popular platform for advertisements, behind Facebook and Google. But do you know the factors affecting the PPC placements? Let’s talk about Amazon PPC, its advantages, What factors affect PPC, and where PPC ads are placed in the Amazon search engine.

Top Factors affecting the PPC placements on Amazon

For a given search term, if there are multiple relevant products, it is apparent you will have to compete for placement. Two crucial factors determine ad placement in such cases:

  • Amazon CPC. The bidder who puts down the highest amount wins since the majority of advertisers are willing to pay a higher cost per click than the other competitors.
  • Quality Factor. A potential buyer’s likelihood of clicking on an Amazon advertisement measures an advertisement’s quality. Therefore, this factor heavily considers the ad’s click history.

Amazon’s CPC bid should be higher than other advertisers, so the more chances are that your ad will appear. The quality of the ad is also an important factor. Generally, the better your advertisement is, the lower your bid will need to be in order to appear at the top of the page.

Factors affecting the PPC placements

How does “Adjust Bids by Placement” work?

The placement-based bidding feature can set bid multipliers between 0% and 900% for Sponsored Products.

In Amazon’s advertising platform, placements refer to specific areas of the website on which the advertisements will appear. By setting your bids by placement, your ads will be placed higher in contests for positions that are available within those placements when you choose to adjust your bids by placement.

As we now understand the purpose of this new feature, why do we need to adjust our bids by location?

The process is very straightforward. Each keyword and ad group has its own requirements and needs that must be handled accordingly. Nevertheless, every ad placement has its own unique pros and cons, and this can also make each unique.

The following are three options for where your ad will be displayed:

  • Top of Search results
  • Pages dedicated to products
  • Rest-of-search

Let’s discuss these hidden factors affecting the PPC placements.

Top of Search

We will now look at the highest converting and most lucrative ad placement available: Top-of-search result. A Top-of-Search ad is one that is highlighted in the first and second listings of the Amazon search engine result page. It is a much more coveted position and a much more expensive one, as the highest bidder will often be awarded the highest position in an ad rank.

The final bid price is determined by the use of the adjusted bids by placement feature in conjunction with the bid strategy selected. Positions at the top of search engine results are highly valuable. Over 67% of Amazon’s go-to products are found on the first page of the search engine results page, which means that they have superior conversion rates. Therefore, it is also important to consider the settings for Dynamic Bidding.

Pages dedicated to products

All Sponsored Product placements, including add-to-cart placements and product details pages, are considered Product Pages. Product landing pages can have a CTR that is 10 times lower than the placements found at the top of search engines. However, this does not mean that product pages are not valuable. In many campaigns, Product Pages generate more sales than placements across the rest of the search engine.

Rest of Search

The rest-of-search placements refer to everything that appears after page 1 and extends on through pages 2, 3, and 4 until oblivion. If you have a base bid for this placement group, your bid will apply to it.

It is not possible for you to adjust your placement in the Rest of the Search on Amazon. Hence, if the rest of the search process performs well, it may make sense to structure your bids around that and then modify them for the top of the search pages.

External Factors That Affect PPC on Amazon

If you do not consider the external factors, your search-paid strategy can be adversely affected by factors beyond your control.

We will examine 5 important factors affecting the PPC placements.

Date or period of the month

Although it may seem surprising, the time of the month can significantly affect the success of the PPC campaign for your company. The end of the month is often reported as the time when marketers witness an increase in traffic. Some people may be spending their disposable income because their bills have already been paid off, leaving them with disposable income to spend on whatever they choose.

The increased traffic may have a variety of reasons. However, if you are a marketer, you would be wise to increase your bids or your PPC ad budget during this month to capitalize on this.

Competitiveness

There’s no denying it. In order to succeed with your PPC strategy, you cannot ignore the competition. The competitive business environment greatly impacts your PPC campaign. Whenever your competitors reduce their bid budgets or increase them, you should monitor their actions closely and react accordingly. Intentionally bid more aggressively during an auction or drop out of an auction.

The weather

Those with difficulty comprehending that things beyond their control can impact their PPC campaigns may find it difficult to grasp. There is no doubt that weather has an impact on your PPC strategy, either negatively or positively. You can’t ignore the fact that weather changes can affect customers’ buying habits. For example, if you are selling sunglasses during the summertime, it will make more sense to increase your paid search bids during summer and not during winter.

Negative keywords

While negative keywords are often referred to as negative, they are, in fact, not inherently negative. The words we are referring to are those which may negatively impact your PPC campaign if not used correctly. Imagine, for example, that you sell wine glasses. If someone was seeking information about eyeglasses, you wouldn’t want your PPC ads to appear in the search results.

Technology changes

People are increasingly using their mobile devices to access the Internet through their smartphones, which has changed the way they access the web. Consequently, technological advancements have influenced the way people browse online, buy products, and even pay for them. In light of this, there is a need to streamline your PPC ads so as to reach people both through mobile devices and desktop computers in your marketing efforts.

The hierarchical placement system

What is the reason for the significantly higher conversion rates of Top-of-Search ads? There is a part of the answer in how Amazon identifies sponsored products on its search engine result page.

As a customer searches on Amazon, Sponsored Products appear on the first page of results almost indistinguishable from organic results. Furthermore, there is a great deal of value in placements in the rest of the search and on product pages. Accordingly, your average customer at Top-of-Search would think that every product on the site has highly positive ratings.

Beginners Guide to Amazon PPC Placement

What is Amazon PPC?

With Amazon PPC, you can advertise your products through Amazon Advertising, the Amazon platform that provides you with ads. The Amazon Advertising program enables sellers to increase brand awareness, sales, and customer visits to their Amazon Stores. Rather than paying when the user sees the advertisement, advertisers only pay when the user clicks on the advertisement. With the right strategy of factors affecting the PPC placements, you can win against your competitors easily.

What is the cost of PPC on Amazon?

There is a wide range of advertising costs associated with Amazon. It has been estimated that the average cost per click (CPC) is approximately $0.77 – the amount a seller pays for a click on their ad. HOWEVER, the PPC costs on Amazon tend to be on the low side, so yours may be higher or lower.

PPC Terminology: Basic Terms

Two terms are often used when referring to PPC on Amazon. These are:

  • Search Terms. Potential buyers type these terms into the search box on Amazon’s site. Usually, an advertisement for your product is displayed as the result of this search. You may find that the keyword is not spelled correctly, has other words associated with it, is spelled incorrectly, or may have the same meaning as the entered keyword.
  • Keywords. An Amazon ad will be displayed in the keyword of a seller that matches the keyword of a buyer. A seller may select which keywords they would like their Amazon ads to appear for based on Amazon Keywords.

PPC campaigns can be improved by identifying new keywords by analyzing search queries, which is a broader set than keywords. You can also use search term querying to identify terms that consume your PPC budget. Based on the keyword and the targeted keyword match type, Amazon determines whether your product will be displayed or not.

How to create an Amazon PPC strategy?

In order to build a solid Amazon PPC management system, the following elements must be considered:

  • You should experiment with each type of PPC campaign. You should also play with manual and automatic keyword targeting to see which is most appropriate for your brand.
  • Detailed keyword research should be carried out with a focus on related keywords as well as competing products.
  • It is highly recommended to set your daily budgets and default bids between 50-100% higher than what Amazon recommends when you are beginning.
  • During the course of two to three weeks, let the ad campaigns run before you run reports and make adjustments.
  • To find keywords for your manual campaigns, you can use ad reports from your automatic campaigns.
  • In order to adjust or remove a keyword from a manual campaign, ensure that it has at least ten clicks before making any changes.
  • The key thing to remember is that you should review your ad reports at least once a week, adjusting any keywords that need to be changed.

FAQ’s

What are the main factors that can affect PPC bidding?

The main factors affecting the PPC placements are:

  • Bids for your keywords. As a matter of fact, the most important factor influencing your keywords’ cost-per-click is your actual bid.
  • Quality Score. This determines the relevance of your Ads to the products you are selling.
  • Competition. Obviously, your competitors also bid alongside you for searched keywords. If they win bidding, then the game is in their hands.

What factors determine PPC?

4 factors determine PPC.

  • Size of the account

In general, the larger your account, the greater the likelihood that you will need a larger budget to maintain your ads throughout the day.

  • Area of Geographic Interest

Secondly, the geographical location you are targeting plays a significant role in the price. Your marketing budget will be higher if you are targeting an area with a high population since you will be competing against more advertisers.

  • Industry CPC

The cost-per-click (CPC) for the keywords you are targeting may differ based on the industry or niche. Some keywords can be found at a low cost, while others may vary between $5 and $25.

  • Percentage of conversions

Conversions are defined differently by different businesses. Conversions can take many forms. Some businesses define conversions as a strategy to gather data about prospective customers, while others define conversions as a monetary sale.

What are the challenges in PPC?

The five most significant challenges in PPC

  • Low Impression.
  • Too many keywords.
  • Badly structured account.
  • Brand keywords used by your competitors.
  • Search intent wrong.

What factors affect ROAS?

Your ROAS is affected by three factors:

  • Maturity of brands and categories.
  • The combination of a strong brand, a powerful product, and an optimized website.
  • Averaging the purchase price and the life cycle of the product or service.

Conclusion

We hope you understand how Amazon PPC advertising works, what factors affect your Amazon PPC, and where are your PPC Ads placed. Be sure to consult an expert before starting your PPC campaign if you are a new Amazon. However, if you follow our guide to factors affecting the PPC placements, you can improve your overall bid score. After all, No one wants to lose too much money by applying an ill-planned PPC strategy on your own.

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