Introducing Always-On Placement Optimization for Sponsored Ads

By Danai Mushayandebvu on February 3rd, 2020

How does your Amazon Ad make it to the top of the search results page? Easy. All you have to do is find the right keywords, have strong sales history, understand the best placement and make your winning bid. Then continually monitor your bids to make sure you're not missing opportunities or overspending for your conversions. 😅 We get it. Very few marketers have time to make these changes as often as required. Perpetua now does this automatically, with no human input necessary. Introducing Placement Optimization - the latest iteration in a series of new releases designed by our team to help you drive maximum efficiency and effectiveness of your ad spend. To explain how poignant this new release is, it’s important to differentiate the nuances of each ad placement with consideration to how it will impact your overall strategy. As an example, Top of Search ad placements have a higher CPC (by virtue of the fact that it is in prime real estate) but as a subsequent result, a high conversion rate, while Product Page placements may get loads of impressions and a low CPC, but the conversion rate aren’t great. To set the same bid for all placements is less than ideal. Last year, Amazon introduced the ability to set a placement multiplier at the campaign level. This multiplier is applied to bids across the board for that placement.  For example, if you’re bidding $2 on shampoo with a placement multiplier of 2 for Top of Search, your effective bid for Top of Search would be $4. These multipliers can only go up, and not down, meaning that you can increase them to bid on more placements that aren't working well, but not decrease them on bids that are performing poorly.  As if it wasn’t hard enough to set bids across 100s of keywords, now you have to think about placement multipliers as well?  Now enabled by default across all goals, Perpetua will now automatically increase the Top of Search and Product Placement multipliers for placements that are performing well through Placement Optimization. As a busy marketer, this is one less thing you need to think about while knowing that you’re driving optimal campaign performance. How Placement Optimization works Top of Search ads are a coveted placement that can be expensive, effective or a mix of both. To drive the best possible results, our ad engine is always looking first for efficiency, and then identifies more opportunities to drive sales within your target ACOS. To be more specific, the following conditions must be met:

  • The campaign realized ACOS is less than the target ACOS

    • Going after Top of Search will invariably increase ACOS so we want to ensure it's aligned with the target

  • The budget utilization of the campaign is less than 90% on average over the past 14 days

  • No single placement has more than 90% of the campaigns spend

Conversely, Perpetua reduces the multiplier if the placement ACOS is greater than the target on your goal, or if your overall campaign performance is suboptimal. How this feature supports your Amazon growth goals: It’s widely known that the greatest limitation with respect to placement bidding is that multipliers can only be applied at the campaign level, not at the keyword level. Until now. Efficiency is a priority. Our ad engine does not inherently favour one placement over another, (i.e., it does not have any bias towards Top of Search over Product Page Placements, or vice versa). Instead, it chooses to increase placement multipliers based solely on performance. Putting efficiency aside, there are additional benefits to promoting a Top of Search placement across ACOS. You can learn more about these here. Once you've identified the flagship category keywords you need to own, boost them in a single keyword campaign. Our ad engine will then identify opportunities to drive more sales by pushing your placements to Top of Search and by maximizing the high price inventory within your given ACOS. Placement Optimization allows you to win maximum sales at the greatest efficiency across the board, like magic. To learn more about Placement Optimization or if you have any questions about Perpetua, send us an email at hello@perpetua.io.