3 Sponsored Products Ad Placements & How to Use Multipliers to Win Them

Meridith Andrew

November 13, 2020

If you’ve ever run ads on Amazon, then you’re probably familiar with one of the most popular ad types on the platform: Sponsored Products. These cost-per-click ads feature a single product and, when clicked, take the searcher directly to the Product Detail Page for that product.

While many advertisers are using Sponsored Product ads to promote their products, not all understand the different placement options for these advertisements, or, more importantly, how to better control which placement they get.

In today’s post, we’ll teach you about the three placements available for Sponsored Product ads as well as their pros, cons, and uses. We’ll walk you through how to know where your ads are showing and how they are performing based on their location. We’ll teach you how to better control where your ads are shown and why you should care about ad placement anyway! Finally, we’ll use a case study to demonstrate how leveraging ad placements can be a game changer for your ad strategy.

1. Top of Search

The most sought-after spot to land a Sponsored Product ad is on the first page of search results, at the top of the page. This is one of the first places customers searching for products will see, so if you want your product seen this is the place to be! Because Sponsored Products operate under a CPC model, the highest bid for a keyword will determine which product gets this premium placement.

The search volume for a given keyword helps determine how many slots there are for ads at the Top of Search. If there is low search volume and traffic, fewer ads will be shown. Conversely, if there is high search volume and traffic, more ads will be shown.

If you’re not sure how to tell which products shown are ads and which are organic, you’re not alone! This is one of the benefits of Sponsored Product ads—they blend in with organic results quite well. However, the distinction under the photo of the product that says “Sponsored” can help you tell which products are ads and which are not.

Sponsored Product Ad Placement Top of Search Results | Pattern Ad Tips

Most brands and products typically see their best Sponsored Product return come from this placement, but it is also the most difficult placement to land, due to the competitiveness of the space. The cost-per-clicks tend to be the highest in this location. You might see only 5% of your ads served here.

So, where do the rest of your ads show, then?

2. Rest of Search

Apart from the top of the first page, there are other places within search results where ads can be served. They can also be placed alongside and within the organic results further down the page and on subsequent pages of results. Lower bids that did not win premium placements can land ads in these spots. Any ad that is within or alongside organic results but not at the top of the first page is considered rest of search.

Sponsored Product Ad Placement Rest of Search Results | Pattern Ad Tips

The main benefit to rest of search ads is that these placements are cheaper. The main drawback is that fewer customers will see them and click on them.

3. Product Detail Pages

The last place a Sponsored Product ad might show up is on Product Detail Pages. These ads show up underneath the product listing and typically showcase products similar to the one featured on the detail page.

Sponsored Product Ad Placement on Product Detail Pages | Pattern Ad Tips

This can be particularly useful if you are trying to land ads on a competitor’s product pages. This way, as customers are browsing those products, they can encounter an advertisement for your product.

Product detail page placements typically cost less than Top of Search placements, but can definitely still provide value to you based on your strategy.

How do I know where my Sponsored Products ads are showing?

To know where your ads are showing and how they are performing based on those placements, simply run a Sponsored Products Placement Report in the reports section of the advertising portal. Once you’ve run the report, you will be able to see how many of your ads were delivered for each placement, how many were clicked, the average CPC, total orders, total spend, and total sales.

In the example below, you can see that only 3% of the ads were shown at the Top of Search, but 71% of the sales came from this placement, as well as a return 3x higher than in any other placement.

Determining Where Sponsored Product Ad Placement Is Through Amazon Reports | Pattern Ad Tips

With this information, what could be done to better control where the ads are served?

Controlling Sponsored Products ad placement with placement multipliers

Perhaps you’re trying to get a higher percentage of your ads to serve at the Top of Search. Maybe you’ve found that the return is greatest for you on Product Detail Pages because of the lower CPCs. Regardless of the reason or strategy, you can influence where your ads serve to some extent through the use of Placement Multipliers.

Placement Multipliers essentially tell Amazon that you are willing to bid higher—a certain percentage higher—for a specific placement. So, for example, if you are bidding $1 for the term “hair brush,” if you add a placement multiplier of 200% for the Top of Search, you are saying that for that placement, you are willing to increase your bid by 200%—from $1 to $3.

You can use Placement Multipliers for both Top of Search and Product Detail Pages.

We recently used this strategy to help one of our partners get more of their ads on the Top of Search.

Case study: RoAS up 23x, CTR up 78x

We work with a major supplements brand that was struggling with obtaining a strong non-branded Return on Ad Spend (RoAS). Looking into the placement report, we were able to determine that the magnitude of difference in RoAS between Top of Search and the other placements was extremely high.

We decided to test what would happen by drastically decreasing bids across the board, but using a Placement Multiplier to increase the bids only in cases where they would serve at the Top of Search.

In three months, we saw that although impressions decreased on the whole, almost all ads that were served landed in the Top of Search premium placement. Spend also dropped because we stopped paying for placements that weren’t performing well. We were left with an incredible increase in efficiency in our campaigns, seeing the RoAS increase 23x and the click-through-rate increasing 78x!

Clearly, knowing about Sponsored Product Placements plays long-term dividends. Don’t waste any time or money—download a Placement Report today and start taking advantage of Placement Multipliers! Want to learn more about how Pattern’s advertising team works our magic? Reach out to get a demo today here and download our Experts’ Guide to Amazon Advertising Strategy below!

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Sept 27, 2022

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters](https://www.reuters.com/business/sustainable-business/amazon-drives-renewable-energy-push-with-71-new-projects-2022-09-21/) Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/26/prime-early-access-sale/) --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News](https://ecommercenews.eu/shopify-launches-new-localisation-tool/) Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News](https://uk.news.yahoo.com/etsy-600-million-on-marketing-ceo-154054219.html) --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/22/meta-to-slash-costs-by-10-over-coming-months/) DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/21/dhl-partners-with-quadient-to-offer-smart-locker-delivery/) The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](https://ecommercenews.eu/online-fashion-market-worth-e175-billion-in-2025/)
Sept 22, 2022

How an Amazon SEO Agency Should Be Serving Your Brand

If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.

Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.

At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise  are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead. 

What is an Amazon SEO Agency?

An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.

A great Amazon SEO Agency partner will:

Prioritize Your Success

Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance

Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS. 

To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.

Provide Detailed Competitive Insight

A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.

It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.

Reduce Your Ad Spend Over Time

Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins. 

Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.

Amazon SEO Optimization and More

As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.

Contact us to learn more about our SEO optimization services.

Sept 20, 2022

4 Ecommerce Marketplace Consultant Must-Haves

Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces. 

Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.

So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.

Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products. 

What is an Ecommerce Consultant?

An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.

An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.

Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.

1. Brand Obsession/Specialization/Passion

At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services. 

2. Proven Results

It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.

3. Wide Range of Marketplace Expertise

It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.

4. Network of Resources

The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.

Achieve Your Ecommerce Goals With Pattern

Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces. 

With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.

Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.