Amazon PPC advertising is not high - price, quality score is important
Often encounter sellers ask, why put in the PPC advertising, single click on the bid is very high, but still can not see their ads in the search results? In addition, in the perception of these sellers, the ranking of Amazon advertising is ranked by competitive bidding, with high prices.
But this is a misunderstanding of the rules of advertising in Amazon.
In fact, in the ranking of the station, there is a very important element, affecting the ranking of your advertising and the cost of a single click, that is the quality score.
Before we talk about the quality score, let's talk about the Amazon platform itself. As we all know, Amazon is an online shopping platform, the property of shopping determines that it will be ranked according to the conversion rate to a large extent. when the number of visitors is fixed, the more customers purchase ( click ), the higher the conversion rate, the higher the listing will be.
If the conversion rate is an external quantifiable number, the quality score is a dynamic relative value hidden behind. In general, the measurement of a quality score includes three elements: keywords, product information, and user's search intent; in addition to these three elements, the core factor that affects the quality score is the click amount and click rate; click amount to click on the total number of your listing, click rate is percentage, and the click amount divided by a ratio of the exposure.
In the system, the quality score is generally calculated as 10 points, the platform will be dynamically ranked according to the listing of all the ads in the system, accounting quality score score, that is, your quality score score is not only the embodiment of your own listing, but also reference to the competitor's listing. Further more, the quality score will eventually return to each independent key word for accounting, that is, for the same listing, different key words of the quality score is different, from this level, each keyword has its own independent ecosystem.
Understanding the concept of quality score, we can understand why some sellers are placing high bids but not in the front because their quality score is low.
The quality score affects both the advertising ranking and the actual cost of a single click, for example.
Suppose a, b, c three sellers, for the same keyword, a, b, c the bid is $ 1.80, $ 2.00, $ 3.00, and their quality score is 10, 7, 4. In this case, what is the advertising ranking? A, the ranking score of 1.80 * 10 = 18, b, the ranking score of 2.00 * 7 = 14, c, the ranking score of 3.00 * 4 = 12, therefore, a the advertising although low bid, but will eventually be displayed in the first, b, c two followed by row. This shows that it is not a bid to be placed in front of the advertising position.
So, what happens if a click occurs and the actual deduction is incurred?
The actual deduction of the advertisement in Amazon station does not only use its own bid as the deduction standard, but the competitor's bid also influences the final deduction, the actual deduction formula is as follows:
( the next bid * the next quality score ) / your own quality score + 0.01
As shown in a, b, c, the actual deduction will be ( 2 * 7 ) / 10 + 0.01 = $, b the actual deduction will be ( 3 * 4 ) / 7 + 0.01 = $ 1.72, c the actual deduction will also refer to the situation of an ad lower than c.
Through the above situation, we can know that to do the PPC advertising in the Amazon, we must do a comprehensive consideration and dynamic grasp of the various factors of advertising, only in this way, can make the input-output ratio to maximize.