In the process of on-site advertising and optimization, sellers also need to pay attention to keyword bidding and deduction, keyword quality score, advertising product ranking principle, etc.
Under the current Amazon advertising ranking algorithm, the display ranking of advertising products is not simply based on keyword bidding as the only measurement indicator. In addition to bidding, the quality score of keywords is also an important factor affecting the ranking of advertisements. In short, “self-bidding is a reference, and keyword quality score is an important factor.”
The keyword quality score is the weight of keywords in advertising activities, but this score only exists within the Amazon system and is not disclosed to sellers, so to a large extent, we can only determine the keyword quality score by speculation.
Based on years of operating experience, it is believed that there are two stages in the change of keyword quality score: when the advertisement is turned on and when the advertisement is running.
When the advertisement is turned on, the factors affecting the keyword quality score mainly include the consistency between the keyword and the product, the matching degree between the product details and the category, and the consistency between the consumer intention retrieved by the system and the product details. If the above contents are highly consistent, the keyword quality score is high. From this perspective, in order to improve the keyword quality score, product optimization is the key.
In the operation of advertising, factors that affect the keyword quality score include click-through rate, order conversion rate, rating star and advertising continuity (ad interruption will affect the weight of the product, which will lead to a decrease in the keyword quality score). If the above factors are good, the keyword quality score will rise, otherwise it will fall.
Combining advertising bidding and keyword quality score is the basis for the ranking of advertising. For example, there are three sellers A, B, and C. For the same advertising keyword, their bids are $1.8, $2, and $3 respectively. At the same time, the keyword quality scores of the three sellers are 10 points, 7 points, and 4 points respectively. Multiplying the bid by the keyword quality score, their advertising ranking scores for the keyword are 18 points, 14 points, and 12 points respectively. As a result, although seller A’s keyword bid is low, it has the highest advertising ranking because of its high keyword quality score, and sellers B and C are ranked in turn.
Next, let’s take a look at how the in-site advertising is charged.
From the advertising data report, we can see that the actual deduction of advertising is often lower than our own bid, and further analysis will find that the deduction is different each time, sometimes high and sometimes low. The deduction of in-site advertising is directly related to the deduction formula of Amazon’s in-site advertising.
In order to make the operating environment fairer and the advertising deduction more reasonable, the actual deduction of pay-per-click advertising types in the Internet industry will refer to the bid of the same advertising position competitor, and the Amazon platform is no exception. In the Amazon system, the actual deduction formula for in-site advertising is as follows.
Actual advertising deduction = (the bid of the next one X the quality score of the next one) / your own quality score + 0.01
For the example above, the actual deduction of the three sellers A, B, and C is A seller (2X7)/10+0.01=1.41 US dollars, B seller (3X4)7+0.01=1.72 US dollars, and the actual deduction of C seller will also refer to the bid of the advertisement ranked one lower than C seller.
Since your own keyword quality score, competitor’s keyword quality score, competitor’s bid, etc. are all changing at any time, even if the seller’s own keyword bid remains unchanged, the actual deduction generated by a single click will fluctuate.
How can we improve the keyword quality score and reduce the advertising deduction without affecting the advertising effect?
There are three suggestions.
Optimize product details to make the product details as consistent as possible with the category node and conform to the consumer’s search habits.
Increase click-through rate and conversion rate, and attract consumers to click with textured main pictures, competitive prices, and high-star reviews. At the same time, you can also guide precise groups such as self-media “fans” to purchase products by clicking on ads, thereby increasing conversion rates.
In addition to bidding in different time periods, if the difference between the advertising bidding price and the actual deduction average price is large, you can save advertising costs by lowering the bidding price. The specific operation is to use the average price of the last 7 days as a reference, and the next bid can be set to the average price of the last 7 days plus 3 to 5 cents. This adjustment can save advertising costs and will not have a big impact on the ranking of ads.