Anyone wishing to place advertising campaigns on Amazon via Amazon Marketing Services (AMS) can choose between headline search ads, sponsored product ads and product display ads. In the case of the first two advertising forms, the frequency of show depends on a keyword-based click bid. Relevant keywords are assigned to the campaigns and can be bid on with a certain amount. The higher the bid, the greater the probability that the candidate will win the keyword auction and his advertising will be broadcast.
What is the Win-Rate?
The higher the click bid, the more frequently my ad will be played. The point is to place a competitive bid so that the auction for the advertising campaign can be won for a specific keyword. If you set a certain amount X for an Amazon keyword, you win a certain number of auctions. The win rate indicates how high the share of won auctions in the total number of auctions is. The win rate is therefore an indicator for measuring the effectiveness of a bid. It is used as a control variable for determining the amount of the click bid.
Calculation of the Win Rate?
If a retailer wants to know the win rate, he can read it for his campaigns at AMS in the performance view at keyword level. If we assume that he offers 40 cents for a keyword: in this case, the win rate given might be between 0 and 25%. From 100 auctions it would come with this bid height thus to maximally 25 auction profits and thus radiations of its advertisement. He can now place a higher bid with the help of the specified win rate in order to increase the chance of winning the campaign.
How can I increase my win rate?
The easiest way to increase your win rate is without doubts to increase your bid. The highest offerer is usually also the one whose advertising is displayed. However, this also increases the advertising costs and you run the risk that the advertisement becomes no longer profitable. Those who do not want to increase their budget also have the opportunity to simply bid on other keywords in order to have the chance to indirectly increase in the win rate. If you search for keywords that are less competitive, you can achieve a higher win rate with a similar bid and thus provide more impressions. However, you should never disregard the keyword relevance in this moment. Not only the average click prices define the profitability of a campaign, rather also its effectiveness – and this usually correlates with the keyword relevance.