TechUp-24

THE SCIENCE BEHIND SPONSORED AD RANK ON AMAZON
Amazon does not give higher ad rank only on the basis of high bids.
Amazon has following formula to grant ad rank.
Bid * Likelihood to get the clicks (CTR) * Likelihood to get the sales (Unit Session Percentage)
Now, what do we need to deduct from it.
When you start ppc on a product, there is no data to show Amazon algorithm about the likelihood of getting clicks and sales so we need to rely on high bidding.
After you do ppc for a month or so, if your CTR and Unit Session Percentage is good then Amazon will start giving weightage to second (CTR) and third factor (USP) of formula and this will by default decrease the CPC required to gain the top ad ranks. So, it will help your ACOS to come down with the passage of time if your listing is well optimized.

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