Placement is the position on Amazon where an ad is shown. For Sponsored Products, Amazon groups placements into three: top of search (first page), the sponsored slots at the top of the first results page; rest of search, every other search-results position including later pages; and product pages, the ad slots on product detail pages and other non-search surfaces. Each placement is reported separately in the Placement report and can be given a percentage bid modifier in the campaign's bidding settings.
Why it matters
The same keyword behaves very differently by placement. Top of search usually has the highest click-through and conversion rate because the shopper has just typed a query and sees your product first, but the cost per click is highest there too. Product page placements are cheaper and reach shoppers comparing alternatives, but they convert less. Blending the three into one ACoS hides which one is earning its spend.
Placement modifiers let you bid more for a placement without raising the base bid for all of them. A base bid of $1.00 with a 50% top-of-search modifier bids up to $1.50 there and $1.00 elsewhere. The modifier range is 0% to 900%.
What moves it
- The base bid and the modifier together, since Amazon applies the modifier on top of dynamic bidding adjustments.
- The product's conversion rate, which decides whether the premium for top of search pays back.
- Competition on the keyword, which sets the price of the top slots.
- Ad format. Sponsored Brands and Sponsored Display have their own placement categories.
How we use it
We read the Placement report in every audit and every month afterward, keyword group by keyword group. Where top of search converts well above the other placements, we raise its modifier and lower the base bid so spend moves toward it. Where product pages do the converting, which happens with accessories and complements, we do the reverse. The goal is more of the budget on the placement that converts best for that product.