Sponsored Products & Amazon Organic Rank
We know “search” is the primary way that customers look for products on Amazon. Shoppers will browse for items by entering keywords, which are matched against search terms for a listed ASIN.
In addition to factors such as price, availability, selection, and sales history, well-chosen search terms will increase a product’s visibility and sales.
In general, better-selling products tend to be listed towards the beginning of the results list. As the number of sales for a product increases, so does the product’s placement.
Nick Sandberg, Marketplace Channel Analyst at CPC Strategy conducted a test to find out if aggressive bidding on the right product keywords would not only increase sales, but also improve organic rank and organic sales.
The Amazon Sponsored Products Methodology
Step 1. We tested two ASINS and picked 4 keywords to track organic rank for.
Step 2. We established a 1 week baseline, beginning 1/12/16, for how these products ranked without engaging our strategy.
Step 3. After 1 week, (on 1/18/16), we turned on those campaigns and began aggressively bidding on those keywords in an effort to increase their organic rank and organic sales.
Amazon Organic Rank Results:
We compared organic ranking prior to test campaigns vs. highest peaks during test campaigns.
Keyword 1 – improved ranking from #10 to #8
Keyword 2 – improved ranking from #303 to #53
Keyword 1 – improved ranking from #9 to #6
Keyword 2 – improved ranking from #5 to #3
The Amazon Organic Sales Results with Associated Costs
“The below tables show 18 days of sales prior to our campaigns and 18 days of sales when our campaigns were running. We also included the Sponsored Products spend (on the specific rank driving keywords) so that we could see the net increases after the 18 day test period,” Sandberg said.
“As you can see we improved metrics in all important areas of product discovery and buyability.”
Sponsored Products Amazon Organic Rank Conclusions
“For a short 18 day test on 2 ASINS, I am confident calling this strategy a success,” Sandberg said.
“We were able to increase organic ranks on several key search terms. Furthermore, we were able to prove that increasing organic rank strongly contributed to an increase in organic sales.”
“I’d like to mention that these strategies could be applied to periods of time longer than 18 days and a larger selection of ASINS to produce even better results. Also, we achieved this using only Sponsored Products.”
What this test indicates is that spending above that normal level of ACOS, on the right keywords, not only produces sales through SP advertising, but also drives up rank and increases organic sales, where volume is much higher.
“The key here is picking the right keywords per product and bidding intelligently while tracking organic rank, and increases in organic sales,” he said.
So, ultimately do sellers care more about organic rank tracking over time or net business impact of advertising?
“Both, but if I had to pick one from a seller’s perspective my answer would be organic rank tracking.”
“What we do in Sponsored Products is two things, generate revenue, but most importantly – drive rank for certain keywords to boost organic sales.”
“Anything sellers can do to better understand organic rank as it relates to overall sales is something they should absolutely pursue. After all, the Holy Grail of Amazon sales data would be knowing the percentage of shares and contributions that each organic search is having on your overall sales for a product. So, by being able to understand what terms are driving the most sales in Sponsored Products we can infer organic searches work similarly.”
For more information on Amazon Sponsored Products influence on organic rank, email [email protected]