Is Your Amazon Ad Spend Paying for a Rocket to Mars?
Episode Description
In this episode Ali & Zamir dive headfirst into the common misconception surrounding Amazon advertising: that higher bids guarantee more visibility.
Hear how click-through rates (CTR) significantly influence the value of bids, and how focusing on optimising listings will lead to higher engagement. Amazon's payment structure is primarily based on clicks, not impressions, meaning that having a compelling listing can lead to better ad performance even with lower bids.
This episode also highlights the importance of using Amazon's Brand Analytics to understand competitive metrics for both paid and organic visibility. Remember - CTR x Bid = Value to Amazon
Key Takeaways:
Amazon advertising works on a pay-per-click model, emphasising clicks over just impressions.
High click-through rates can lead to lower bids while maintaining visibility on Amazon.
Brand analytics provides crucial data for targeting click-through and conversion rates effectively.
The relationship between bid amounts and click-through rates is vital for advertising success. Amazon prioritises products that convert well, impacting both paid and organic rankings.
Understanding Amazon's revenue model helps sellers optimize their advertising strategies.
Quote of the Episode: