Ad Placement Changes: Higher CPC on Rest of Search, New Optimization Strategies

Rest of Search placement bid adjustment is a feature that allows advertisers to apply a premium to the Rest of Search (ROS) placement on Amazon Sponsored Ads, making it more competitive and potentially more costly. This adjustment can be used to optimize ad placements by increasing bids on placements that perform better.

The CPC on Rest of Search might be higher than on Top of Search because advertisers can now apply a premium to the Rest of Search placement. This increased competition for the ROS placement can drive up the cost per click, even though logically, the Top of Search placement typically has higher CPC due to its prime visibility, higher attention, click-through rate (CTR), and conversion rate (CVR).

To optimize Amazon Sponsored Ads using placement bid adjustments, you can:

• Reduce the base bids and use placement multipliers to increase bids on the placements that perform better.
• Optimize along with the base bids to control ROI.
• Regularly fine-tune to match bid changes and trends.
• Customize at a campaign level for more precise targeting.
• Structure campaigns more effectively with single-product focus, segregated match types, and low keyword density for better stability.

Using bid adjustments in Amazon Sponsored Ads offers several benefits, including:

• Greater efficiency: Bid adjustments help in allocating the budget more effectively towards ad placements that yield better results.
• Scalability: They allow for scaling ad performance by optimizing bids in line with the campaign goals.
• Control over ROI: Advertisers can control their return on investment by adjusting bids based on the performance of different placements.

Over 90% of the case studies shared by the author talk about bid adjustments as a key strategy implemented from the onset of the campaign.