In the ever-evolving and cut throat Amazon marketplace, where visibility can make or break your business, a new report by Amazon sheds light on the game-changing significance of Top-of-Search Placements. This comprehensive study, conducted over a span of time, explores the impact of securing top positions on Amazon’s search results pages, offering crucial insights for sellers aiming to amplify their online retail performance.
Understanding Top-of-Search Impression Share (TOS-IS)
Top-of-Search Impression Share (TOS-IS) isn’t just another metric; it’s a strategic approach that can revolutionize your Amazon Advertising strategy. TOS-IS measures the percentage of times your Sponsored Products or Sponsored Brands ads appear at the top of Amazon’s search results, presenting your products with unrivaled visibility and prominence.
How is Top-of-search Impression Share calculated?
Scope of the Study
Amazon’s study encompassed a vast dataset, analyzing the performance of over 100,000 Sponsored Products and 40,000 Sponsored Brands advertisers in the United States. This extensive sample size allowed for a comprehensive understanding of TOS-IS’s impact across various product categories.
Key metrics evaluated
Image reference: Amazon
The study focused on two primary Key Performance Indicators (KPIs):
- Return on Advertising Spend (ROAS).
By examining the correlation between TOS-IS and these metrics, the study aimed to uncover the tangible benefits of securing top positions.
- Bid adjustments: The study evaluated the impact of bid adjustments on TOS-IS. By examining how advertisers who strategically adjusted their bids saw changes in TOS-IS, the study highlighted the importance of this approach.
- Daily campaign spend limits: The study also delved into the influence of campaign budgeting. It examined how increasing daily spend limits impacted TOS-IS, shedding light on the correlation between budget allocation and placement results.
- Campaign efficiency: To assess the overall campaign efficiency, Amazon examined the Return on Advertising Spend (ROAS) for advertisers with varying levels of TOS-IS. This analysis unveiled the relationship between top placements and campaign performance.
- Data collection and analysis: Amazon’s internal data formed the basis of this study. The data was meticulously collected and analyzed, allowing for insights into historical trends and patterns. This data-driven approach ensured that the conclusions drawn were based on substantial observations and not mere speculation.
Image reference: Amazon
Amazon’s study on Top-of-Search Impression Share (TOS-IS) yielded impactful results that underscored the importance of securing top placements on Amazon’s search results pages for Sponsored Brands and Sponsored Products campaigns. The study revealed significant lifts in both sales and Return on Advertising Spend (ROAS) for advertisers who effectively achieved higher TOS-IS percentages.
- Sponsored Products sales lift: Advertisers in the US witnessed a remarkable +150% lift in 14-day all-up sales for Sponsored Products campaigns when they achieved higher TOS-IS.
- Sponsored Brands sales lift: Similarly, there was a substantial +70% increase in 14-day all-up sales for Sponsored Brands campaigns that managed to secure prominent TOS-IS placements.
- Sponsored Products ROAS lift: Advertisers who focused on achieving higher TOS-IS percentages observed an impressive +8% lift in Return on Advertising Spend (ROAS) for their Sponsored Products campaigns.
- Sponsored Brands ROAS lift: For Sponsored Brands campaigns, there was a notable +4% lift in ROAS among advertisers who successfully improved their TOS-IS.
Image reference: Amazon
#1: Elevated sales and revenue
US advertisers experienced a remarkable increase in sales, with Sponsored Brands and Sponsored Products both showcasing substantial revenue lifts. With TOS-IS, consumers are discovering products more readily, leading to higher sales figures.
#2: Boosted campaign efficiency
The correlation between higher TOS-IS and improved Return on Advertising Spend (ROAS) was clear. US advertisers with a solid TOS-IS witnessed a significant rise in campaign efficiency, signaling the immense potential of top placements.
#3: Bid adjustments
The report reveals that bid adjustments are a pivotal driver of TOS-IS. Advertisers who strategically adjusted bids witnessed a notable lift in their TOS-IS, demonstrating the effectiveness of this approach in securing top positions.
#4: Daily spend limits matter
Increasing your campaign’s daily spend limit significantly impacts TOS-IS. For Sponsored Products, campaigns live for more than 75% of the day exhibited a remarkable lift, showcasing the importance of proper budget allocation.
#5: No correlation to cost-per-click increase
Surprisingly, higher spend to achieve a superior TOS-IS did not necessarily result in an increase in Cost per Click (CPC). This indicates that focusing on TOS-IS doesn’t have to come at the expense of higher costs.
Here’s what sellers can do to improve campaign performance
Armed with Amazon’s findings, sellers can take actionable steps to harness the power of TOS-IS. Here are a few strategic takeaways from our Amazon marketing consultants.
1) Use Top-of-Search bid adjustments
One of the cornerstones of Amazon’s study is the recommendation to consider Top-of-Search bid adjustments. This strategy empowers advertisers to strategically modify their bids within a range of 0% to 900%.
By increasing bids, your ads are more likely to secure prime positions in top-of-search placements, greatly enhancing visibility and click-through rates. The logic is simple: higher bids for these premium spots can significantly boost the chances of your products catching the eye of potential customers.
2) Increase campaign daily budget strategically with campaign budget rules
Amazon’s study underlines the importance of optimizing your campaign budget. To achieve this, you can employ Schedule-Based rules, adjusting your budget to align with significant events like Prime Day or Black Friday. By allocating more resources during these peak periods, you ensure your products are well-positioned to capitalize on increased shopper activity.
Additionally, Performance-Based rules can help you direct your budget towards campaigns that demonstrate high performance, maximizing the impact of your investment.
Furthermore, the study points out that campaigns live for more than 18 hours a day tend to yield better placement results. This insight reinforces the significance of consistent visibility to potential customers.
3) Optimize for top placements
Elevating your campaign’s performance hinges on optimizing for top placements. Amazon’s report underscores the link between Top-of-Search placements and enhanced sales and Return on Ad Spend (ROAS).
To achieve this, applying TOS Bid Adjustment levers is a valuable approach. By increasing your keyword bids specifically for top placements, you can enhance your Top-of-Search Impression Share (TOS-IS), leading to better visibility and ultimately improved performance.
4) Increase daily spend caps and in-budget time
Amplifying your daily spend caps is another strategy suggested by our Amazon PPC consultantsto bolster campaign results. By increasing your budget limits, you provide your campaigns with more room to bid and secure prime placements.
Moreover, extending the time your campaigns are within budget (at least 18 hours per day) ensures they have ample opportunity to capture shopper attention. This consistent presence can significantly contribute to improved placements and results.
Wrapping it up
Amazon’s report underscores the transformative potential of Top-of-Search Placements. By integrating the insights from this study into your advertising strategy, you’re not only enhancing visibility but also driving sales and efficiency.
As a professional Amazon agency, we’ll help you decipher these insights and translate them into actionable strategies for your brand. Get in touch with our Amazon Sponsored Ads management today, and let’s propel your Amazon campaigns to new heights.