The Google Ads platform appears in Google Search as advertisements in the search engine results, but how does Google determine the order in which ads appear?
You might think it’s easy, but it’s not. To determine which position ads will show in, Google uses a formula called Ad Rank. Amazon PPC, too, ranks seller products on search engines similarly to Google AdWords. It is a popular practice that you will think of professional platforms offering Amazon PPC services nowadays.
We will discuss how the Amazon Ad rank system and the Google Ad rank system work together and how you can utilize them for amazon ppc management services in this article.
What is Amazon PPC?
Advertising on Amazon’s product and search pages is one method of promoting products and brands.The term refers to Amazon charging advertisers for each click made by a customer or user. A variety of Amazon PPC benefits are available to sellers, including advertising, brand awareness, sales opportunities, and store visits.
The products that appear at the top of the result’s page whenever a user searches for a product on Amazon with a keyword are those for which the highest bid has been placed by sellers for that keyword.
How does Google Ads fit into an Amazon PPC blog?
The AdWords service is owned by Google. A cost-per-click auction system and an ad ranking system are two of the biggest innovations to have come out of Google. Advertiser platform AdWords has been around for several decades. A lot of elements from AdWords have been incorporated into Amazon’s own platform instead of reinventing their own ideas. You can select keyword matching types like broad, exact, or phrase. You can also select negative keywords, and you can put them into an ad auction system.
Google AdWords was unique in the way advertisers were arranged on the search engine results page. To make the platform competitive, they created something that had been copied by both Amazon and Facebook: Ad “Quality” as an element of Ad Rank.
What is Google Ad rank?
Ads within the SERP are ranked by an auction determined by Google Ad rank. Ad rank is determined by a number of factors, including the amount bid, in the Google Ad auction, so the highest bidder may not necessarily win the bid, as with Amazon PPC. In search results, ad positions are determined by Ad Rank scores.
It is not necessarily the top bid behind the top search engine results ad that will appear first, but it is likely to have the highest Ad Rank behind it. Getting your ads to rank as high as possible is critical to getting the most clicks, so getting them to rank as high as possible is important. When determining its ad ranking, Google takes into account two factors: the CPC bid and a quality score.
CPC Bid: The maximum bid for a keyword
Quality Score: How useful and relevant your ad is to the customer
Combine both CPC Bid & Quality Score, and you’ve got Ad Rank.
Ad Rank = CPC Bid X Quality Score
How is Google Ad Rank calculated?
Although Google has never confirmed the exact Ad Rank formula, it has revealed the main ranking factors used within it. Known Google Ad Rank factors include:
- The bid (the amount you’re willing to pay to have your ad displayed)
- Expected click-through rate (CTR)
- Ad relevance
- Landing page experience
The bid
A bid is simply the maximum you are prepared to pay per click (CPC). As we’ve seen, as part of Google’s Ad Rank calculation, the CPC is likely to be given more weight, but it’s not the only consideration. It is generally the case that advertisers pay less than the maximum amount. In order to beat the CPC of the second-ranked ad, you will only pay enough to earn the highest Ad Rank.
But remember that you must be prepared to pay this price – especially if the competition for this search term is extremely high. If your business or you are unable to afford the investment, don’t inflate your bid to get noticed.
Expected click-through rate (CTR)
The click-through rate (CTR) of an advertisement measures how many users click on the ad and land on the landing page. When users are presented with an advertisement, the expected CTR gives them an estimate of how likely it is that they will click on it.
The likelihood of your ad becoming visible is calculated by considering the past performance of your chosen keyword.
Ad relevance
The relevance of your ads is determined by how much your bids align with the message you are trying to convey. Think about it this way: If someone searches for this keyword and my ad appears, will it be relevant?” If not, your ad copy must be rewritten.
It is essential that your ad text matches what the searcher is trying to achieve. You should make sure it is intriguing and encouraging to encourage a click, do not change your ad copy to become more relevant if your landing page does not match your ad copy.
Landing page experience
During the creation of ads, Google considers the user’s experience. Therefore, Google Ads will assess how well the link in your ad matches the search intent of the user. A combination of automated analytics and human judgment is used to determine the usefulness of your landing page.
How Amazon has Evolved Google’s Ranking
There are some similarities between how Amazon ranks its own ads, but they do have different motivations for doing so. Ads from Google are presented based on what was typed in a search query. At Amazon, ads are displayed based on what the searcher is most likely to purchase. An extremely important difference in what defines a “Quality” Ad.
Although Amazon does not use the term Quality Score, they use the same concept: combining a series of factors to help determine ad rankings. According to Amazon, ranking factors can be broken down into two types:
Performance Metrics:
CTR (click-through rate) history
Conversion rate
Overall sales
Relevance Metrics:
Product title
Description
Search terms
Seller name
There is no particular formula for Amazon Ad rank unlike Google, but it does take into account multiple factors to rank an Ad on their search results.
Conclusion
Google Ads and Amazon Advertising are both powerful advertising tools that are equally effective in online marketing campaigns. Despite their differences, they also have many similarities, so if you’re just getting started with PPC services, either one or both will be easy for you to learn.
If you are looking for some guidance and expertise on Amazon PPC management or Amazon PPC services, check out Urtasker for our PPC and ranking services at no additional cost.