Amazon Placement Bids Modifiers : How to Leverage it in 2023
Are you bidding the same amount for all your ad placements on Amazon?
If yes, then you’re missing out on a significant opportunity.
In 2020, Amazon introduced a new level of bidding control called “placement bids modifiers” to give advertisers more control over how much they want to pay for specific ad placements.
In this article, we will learn about the different Amazon placement bid modifiers available for various campaign types and how to utilize them to improve your campaign performance.
Sponsored Products Ad
Sponsored Products are the most common and widely used ad type on Amazon, allowing you to target a keyword or product to display your ads on the search result pages or product pages.
With Sponsored Products campaigns, Amazon provides you with placement-level data for three different placements:
- Top of search
- Product pages
- Rest of search
To access the performance-by-placement data in your existing campaigns, all you need to do is open any campaign and click on the “Placements” tab.
Upon doing so, you will be directed to a screen that looks like this.
Let’s discuss each of the three placements of Sponsored Product campaigns in detail.
1. Top of Search
This is the most sought-after placement for Sponsored Product Ads, located on the first page of search results at the top.
For most of the keywords, this is usually the best converting and, at the same time, highly competitive placement to show your ads, as all brands aspire to showcase their ads among the first few results to get maximum visibility.
You can set bid multipliers between 0% and 900% for Sponsored Products top of search placement.
2. Product Pages
Whether you are targeting a keyword or product (ASINs), your Sponsored product ads can also appear on the product detail pages and all non-search placements such as the add-to-cart page.
Here is how the Sponsored Products ads look on the detail page:
If your campaign is performing much better on the product detail page in comparison with the search result page, you can further increase your ads visibility on the product page, by increasing your bid by up to 900% for the Product Page placements.
2. Rest of Search
Rest of the search results refer to all the other sponsored results on the search page that are not placed at the top of the search results, such as the middle, bottom, and other results beyond the first page.
These placements are typically less competitive due to a large amount of available ad inventory. Previously, Amazon did not provide advertisers with the flexibility to adjust bids for these placements. However, starting in 2024, Amazon allows you to set placement modifiers for Rest of Search, similar to the other two placements
Here is how the rest of the search Sponsored Products ads results appear:
It is usually recommended to keep your base bid of the target based on the Rest of Search placement’s performance and then use placement modifiers to increase visibility of your ads on placements that are working best for a specific campaign.
Sponsored Brands Ad
The Sponsored Brands ad is an ad format that enables brands to showcase their products to people searching for relevant keywords or exploring similar products.
These ads are displayed on search result pages and product detail pages, making them easily noticeable to shoppers. Each ad can feature multiple products, brand names, logos, and headlines, helping to increase brand recognition and boost sales.
Similar to Sponsored Products, Amazon shares placement data on the same three levels:
- Top of Search on Amazon
- Product pages on Amazon
- Rest of search on Amazon
However, Amazon only allows you to adjust bids for “placements other than the top of search“. This means that you can only increase or decrease bids for both the product page and the rest of the search results combined.
Unlike Sponsored Products, you don’t get to see placement-level data for the Sponsored Brands campaign in the Ad console itself. Instead, you need to download the Sponsored Brands placement data through the Sponsored Ads report feature.
Here’s how you can access the report.
- Open the Sponsored Ads report from the left sidebar menu.
- Click on the “Create a Report” button.
- Choose the report category as “Sponsored Brands”.
- Select the report type as “Campaign Placement.”
- Choose the reporting date range and click on the “Run Report” button.
Once you have downloaded your report, it will look something like this, where you’ll get three different rows for each campaign, each representing a different placement, and their respective performance.
Furthermore, Amazon also offers you the option of automated bidding in Sponsored Brands campaigns. With automated bidding enabled, Amazon itself will increase/decrease bids for placements based on the likelihood of conversion.
However, if you prefer to take control into your own hands and adjust the ad placement modifiers yourself, then let’s take a detailed look at the different placements of Sponsored brand ads.
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1. Top of search
The ‘Top of Search’ Sponsored Brands ad refers to the first banner ad that a user sees at the top of all Sponsored products and organic search results.
Here is an example of a Sponsored Brands headline ad appearing on top of the search results.
While Amazon shares your campaign performance data for top-of-search placement, you don’t get the option to increase/decrease bids, and your base bids are always the bids that are considered in the auction for this placement.
2. Placements other than top of search
These are the placements that are not top of the search results, which include bottom-of-the-page SB ads, product page SB ads, and other SB ads appearing beyond the first page.
For placement other than the top of the search, you can increase or decrease your base bid by up to 100%.
How Adbrew automate placement optimisations?
Does manually analyzing the placement level performance of each campaign and then regularly adjusting placement modifiers based on the performance of campaigns sound like a lot of work?
Don’t worry! Adbrew can help by automating bid adjustment using simple rule sets. These rule sets allow you to set conditions for bid adjustments based on important metrics such as placement level impressions, ROAS (return on ad spend), sales, and conversions.
By implementing rule-set-based automation, you can eliminate the need to manually analyze each campaign regularly and make placement bid adjustments.
Frequently Asked Questions
What are Dynamic Bids on Amazon and do the placement bid modifiers work with dynamic bids?
Amazon offers three types of Dynamic Bidding Strategies that are Dynamic Down Only, Dynamic Up and Down (default), and Fixed Bids. These bidding strategies will increase or decrease your existing bid based on the probability of potential conversion. You can use an “adjust bids by placement” feature placement with all bidding strategies.
How do bidding strategies work on Amazon?
The bidding strategy determines how much you’re willing to pay for your ads to appear on different placements. They analyze factors like keyword relevance, user behavior, and historical performance to adjust your bids in real time, aiming to maximize your campaign goals.
How do placement modifiers affect my ad budget?
Placement Bids modifiers allow you to increase or decrease your bids for specific ad placements on Amazon, like top of search or product pages. This means your ad budget can be distributed more strategically, focusing on placements likely to bring higher returns. For example, a higher modifier for top of search might increase your cost-per-click (CPC) initially but could lead to more sales and ultimately a better return on your ad spend.
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