In most cases, when sellers are doing advertising, Amazon will give corresponding bidding recommendations according to the category and keywords. But have you ever thought about why, even if you choose the highest bid recommended by Amazon, the target keyword still cannot obtain the expected traffic and click-through rate?
Theoretically speaking, as long as your bid is higher than that of the second place, then according to the game rule of the highest bidder wins, you will win the first place in the advertisement ranking. At the same time, the actual expenditure of CPC will not be your keyword bidding, but 0.01 US dollars more than the second place.
For example, for the same keyword, Seller A bids 5.5 US dollars, Seller B bids 5.1 US dollars, and Seller C bids 6 US dollars. Then, Seller C wins this advertisement bidding with a bid of 6 US dollars and ranks first, and the actual expense of Seller C is 5.51 US dollars. How about that? Isn't it very simple? Then the only thing the seller has to do is to raise the bid and wait for the order.
In fact, although Amazon has not announced its CPC algorithm rules, through years of experience accumulation and communication with other seller friends, we conclude that in the CPC bidding, Amazon also has more hidden reference indicators, including bidding, CPC, advertisement rating, advertisement position, and quality score.
1) Bidding
The highest amount that the seller is willing to pay for a single click of the keyword, which can refer to the recommended bid range given by Amazon, or can also refer to relevant bidding data, such as the commonly used ZonGURU and other tools.
2) Quality score
The factors referred to by the quality score include the Listing detail page score, the relevance between CPC and the search term, buyer reviews and store ratings. Of course, the overall conversion rate and other performance indicators of the store also have a certain weight. In general, the quality score is related to the user experience, which is the information accuracy emphasized in the A10 algorithm, rather than maximizing benefits.
3) Advertising rating
The advertising rating depends on the bid and the quality score, that is, the advertising rating = bid x quality score, which is an important factor in determining the keyword ranking, and the higher the score, the higher the ranking.
4) CPC calculation
The bid of CPC refers to a lot of potential factors, so the highest bid of the seller in the advertisement does not play a key role in the listing ranking. Let's take "Kid Messenger Bag" as an example: For the same 1 keyword, there are 5 different sellers participating in the advertisement bidding. Among them, the seller D with the highest bidding price does not win the first place in the ranking; the seller C with the highest quality score does not win the first place in the ranking; and the seller A who wins the first place actually has a lower CPC expenditure than the sellers B and D who rank second and fourth.
Of course, Amazon comprehensively considers the dynamic bidding of the seller, the advertisement display position and the weight of the advertisement account. The algorithm is far more complicated than that in the table. But from this perspective, we can re-examine the logic behind the daily CPC.
