Updated: Apr 8, 2021
Over the next 2 months I’ll be running another study (check out my recent foreign market keyword study in the works here). Amazon recently released the ability to increase your bid by up to 900% for the top of the page spot and for product pages. I also cover this topic extensively in my new 2021 Advanced Amazon Ads Author Masterclass.
I believe this to be a golden opportunity to stand out in an ever more competitive advertising environment. I'm also extremely thankful for the constant addition of new features as it allows authors who are just starting out and willing to put in the time, to still have the ability to rank and gain traction with the Amazon algorithm. If your ads aren't working, you can also check out the top 9 reasons here.
After reading an article by SellerApp I finally understood the importance of a new tool handed to us by the Amazon Overlords. In it - it shows that 85% of customers searching for something on Amazon will click the first few items at the top without even scrolling down. If I’m selecting all my ads to appear at the top by virtue of bidding super low for any other placement but super high for that top placement then I should receive more clicks per impression and ultimately have a higher CTR which we all know to be a core component of who’s ads get shown the most.
Amazon is very sneaky with its advertising methods. That's why I wrote this how to guide on figuring out your profitability. When searching for a product or book on Amazon we barely notice the little sponsored tag they throw on ads. Oftentimes these can be mistaken quite easily for what we perceive to be the top organic search results. It logically makes sense that what SellerApp reports, is a great indication of where you should be bidding for your ad to show.
We all know the saying though: To Assume makes an A$$ out of u and me. So we’ll be running a little study here at Advanced Amazon Ads.
Here’s the breakdown of what we’ll be doing.
I’ll be taking the campaigns of 10 books with ads already running and setting them all at a bid level that when increased by 900% puts them at the current bid level (As to not run up any insane costs). I will then compare the CTR of the period with a 900% increase in bid for top of page vs. the previous time period. If my hypothesis is correct we should see a higher CTR which in theory should lead to an increase in conversions long term. If we can agree on one thing, is that a higher CTR is always preferred. I will take 3 fiction books and 7 non-fiction books to do this with.
I’ll also be taking 10 authors' books who have not run ads before and start them out with this method. I will then take the average CTR for the first 60 days across all of my accounts and compare them to the average of these 5 books. I will take 3 fiction books and 7 non-fiction books to do this with.
If I see some significant changes in CTR without jeopardizing sales I will run an even larger study as I expand the approach to most of the accounts I oversee.
I will have each campaign set running for a full 60 days.
I encourage you to run some tests on your books with me and let me know what kind of results you see. This strategy could also be coupled with the Common Word Strategy.
- Alex Strathdee, Bestselling Author/Amazon Advertising Specialist/Technologist