In the last month, the demand for online orders in the United States and Canada has exploded and has forced Amazon to make an immediate investment of 500 million dollars to reinforce its workforce with more than 175,000 workers . This is not the only change the marketplace has area code denmark mobile made: although Amazon’s online advertising platform continues to function normally, it is experiencing significant fluctuations in its data.Amazon Sponsored Products Impression Drop Analysis
Since the end of March, advertisers on Amazon in the United States have experienced a downward trend in the number of impressions of their Sponsored Products due to the changes that the marketplace has recently included in the algorithms that regulate its advertising platform. It is important to note that this trend only affects Sponsored Products , while the behavior of other advertising formats has not been alteredAlthough impressions are declining, the number of clicks remains constant , causing the CTR of these ads to skyrocket to almost double the figures that the ads reached before the update. Thus, the traffic to the products has not changed, so the results of the advertisers have remained stable . Mind you, most of the lost impressions come from ads placed in locations other than the top of the first search page.
The update of the Amazon advertising platform has highlighted the importance of the distribution of bids for Sponsored Products based on their location within the marketplace. Currently, it is a decisive aspect in the design of campaigns to achieve greater control over investmentPILAR MARTÍNEZ , SENIOR DIGITAL MARKETING CONSULTANT AT LABELIUM GROUP
How are the CTRs behaving by type of locations?
The performance of Sponsored Products will largely depend on their location within the Amazon advertising platform. In this way, the ads placed in rest-of-search are registering the worst CTR rate compared to those that occupy positions on product pages or top-of-search. In fact, if we compare the latter with the rest-of-search placements, the CTR of the ads is multiplied by 20 in the case of the top-of-search and by three in product pages.The main characteristics of each location are:
Top-of-search : Ads appear at the top of the platform’s first two search engine results pages. This position has a higher price in the bids, because the best positions usually go to the best bidders. The products that appear on the first search page accumulate a CTR of 67% of the total marketplace.
Product Pages – Refers to Sponsored Products that appear on product description pages, gulf email list as well as all non-search related positions. Typically, the performance of these pages is 10 times lower than the top-of-the-search ads, but this does not mean that they are not interesting within the campaigns designed on the Amazon Advertising platform.
Rest-of-search: these are the products that appear in the central part and in the lower part of the second page of results onwards. Amazon does not allow you to modify the results of this location, so the smartest thing to do is to set your bid first and then make modifications in the other two available locations to adjust the results of the proposed strategy.
Optimize for placements in Sponsored Products campaigns
In light of the results analyzed following the drop in impressions in Amazon Advertising, we can conclude that there is no reason for concern on the part of advertisers . The reduction of impressions leads to an increase in CTR, as click behavior remains stable
The introduction of changes in Amazon’s advertising platform is a constant. Advertisers who take them into account more quickly in their campaigns achieve a substantial improvement in results.
PILAR MARTÍNEZ , SENIOR DIGITAL MARKETING CONSULTANT AT LABELIUM GROUP
However, advertisers must fine-tune their campaigns and be careful when optimizing their placement strategy: raising investment in top-of-search is driving higher click-through volume and therefore higher spendThe current volatility makes having an expert Amazon Advertising partner a great help to ensure that campaigns on the platform achieve satisfactory results. In this sense, Labelium’s experience as a global e-retail agency is a guarantee for advertisers thanks to its deep knowledge of the platform and its orientation towards results.