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Increase your Conversion Rate and lower your ACOS using Placement modifiers

Published on April 16, 2024

About this video

Hi guys, let's talk about increasing your Conversion rate and lowering your ACOS, everybody wants that. In this video, I'm going to share our exclusive Placement Calculator designed to streamline your campaign management and improve efficiency.

What You'll Learn: 1. *Analyzing Common Mistakes:* We start by examining typical scenarios where PPC placements are unoptimized, showing you what not to do. 2. *Tutorial on Placement Calculator:* Next, I'll guide you through how to use our custom Placement Calculator Google Sheet to adjust your bids effectively. 3. *Real-Time Optimization:* Watch as I make live changes to an account, demonstrating the impact of optimized placement settings. 4. *Estimating Better Outcomes:* Finally, we'll introduce our Conversion Rate Estimator to predict the benefits of your adjustments.

This video is perfect for Amazon sellers who are eager to improve their PPC themselves and achieve better results. Don’t forget to download our Placement Calculator from the link below, and let is know in the comments if you liked the Calculator.

Here's the link to our Placement Calculator: https://docs.google.com/spreadsheets/d/1LqgIRHzFBo8nMHi4SHOCrb0de_-DcAX9xaxaTMr7FhU/copy

For more actionable advice tailored specifically to your business, visit: https://www.amazoniappc.com

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Transcript

hi guys this is eigor from Amazonia PPC and in today's video I'm going to show you how to lower your acost and improve your ranking using placement modifiers also I'm going to share a free template for you guys so you can use that you can use to easily calculate the modifications that you need to make okay so let's start off with a perfect example so this is the account um that sells supplements but it's the same for every other category let's take a date range of around 65 70 days what you can see here is that for each placement that you can see there's a different uh there are different stats for example top of search you can see good good click rate solid conversion rate uh this conversion rate is actually around 20% and the rest of search follows with uh 7% I think and product pages you can calculate that product pages is somewhere around I don't know what what what will this be like like I don't know 12% anyway you can see that most of the budget is actually going towards rest of search and which has the the worst performance over here both in in it's catastrophic so by not looking at the placement uh stats you can easily think that it's something about CPC something about the targets that you chosen or competitors or whatever but many many times I I would say eight out of 10 uh nobody uh set the placements for the for the campaigns that I usually audit so what you can do here using the calculator that I'm going to present you now is you can uh limit your traffic uh and limit your traffic away from rest of search and product pages and concentrate only on top of search how to do that well here's the Magnificent calculator so um it's it it contains several uh different calculators that you can use on the left you can see like you can manually input your bit and you can see what's going to be the the end bid for example I put two for for all the others so for example if you have original bid of two with the uh increase of 200 it you end up with a $6 bit so what people usually get get wrong is that I think if you put a 200 increase that the end bit is going to be an increase of 200 from two but it's actually this this calculates the increase plus the original bit so you end up having a six now to avoid confusion I've created additional three column calculators so so you can easily calculate this one so for example if you have original bid of 0.35 you can easily select uh the placement that you've uh set up over here and you can see what the end bits going to to look like also uh there's an option for you for example if you want to have a end bid of 2.5 um and you have want to have original bit uh lower it immediately tells you uh what the placement modifi should be in order to and bid to to be as as desired and the third column is most interesting one it's it actually calculates it estimat Ates how much of of an increase you can expect after setting up the placements so let's do this live on the account so for example uh here are the targets you can see that cpcs mostly are branching from around $2 up to 3 point something Etc now this setting changing bits is uh easier obviously easiest obviously if you have single keyword campaigns on only few targets but this is also a good example how you can do this it's a timec consuming but it really pays off so for example you were going to have to use that calculator for each Target that youve uh input over here now if you have 100 of targets which you shouldn't have uh by the best practices then you're going to spend quite some time adjusting this and have or have your VA set up like this because once you do it it's really straightforward so what we're going to do here is that I'm going to estimate that for example this is the top performing Asin in um in a campaign and it has CPC of 2.65 now uh to calculate the actual placement adjustments we go into calculator and see okay I want to have an end bit of 2.65 uh at the end and I want my bit my CPC to be um that low that I don't actually win any bids for the rest of search and product pages now you can go crazy and and set that to be I don't know 0.3% and sorry not perc 0.3 dollar and that will that means that you will have to have a modifier of 783 33% and by having that kind of modifier it just the tra you won't see any traffic on rest of search or product pages if you in put it the that low base bit for the rest of search and product pages and every time that you actually are eligible for an auction for a top of search the system is going to take into consideration the increase that you willing to pay and you be eligible to bid for top of search only this is an old concept but still after so many years uh so many clients and sell so really neglect that okay so uh uh what we're going to do here I typically like to go as low as possible but let's do I don't know 0.5 okay yeah it's a nice round number so you're going to go ahead and change your or original bits of the targets to 0.5 and input the placement modifiers only for top of search here in this in this scenario so here uh I'm going to do one but you can do all the others so here you could you will going to you're going to input 0.5 as a modifier as a base bit 0.5 and go ahead and increase for top of search to what we had 430 so now wherever our top performing Asin is going to be an auction to win a placement uh if that's a rest of search Amazon is going to take 0.5 doar that we're willing to pay and obviously we're not going to win that uh same goes for product pages but if the auction is for top of search then we're going to probably win that because click to rate is good we have 20 something per of conversion rate and we're good to go uh it's worth noting that you can occasionally see some traffic on rest of search and product pages but that's going to be really low cost like uh like top of maybe 50% a click or even less for that so even if you land a sale that's going to be like you're going to have acos like 1% which is also good but most of the traffic is going to go over there yeah so uh now let's estimate the end results how we going to what we're going to be what we're going to end up with using only top of search modifiers here so let's use the calculator uh here you should input put your orders on other placements that you currently have this would be 12 + 5 is going to be 17 now input the spend for those two roughly it's going to be somewhere around 450 if my math is good 450 now inut the new placement conversion rate let's quickly calculate that that's 14 / 65 that's 2153 2153 and new placement cost per click is 2.49 2.49 what you get is that if you use this placement uh spend on the other two placements for top of search placement that's going to give you a 39 orders in instead of 7 that's an increase of 128% that sounds really good now this is an estimation the real time the real life scenario is uh can be can be a little bit different but in my experience I've seen really good results after performing this so yeah I'm going to share the link to this calculator feel free to use it uh claim it's your own I don't care really uh use it to your benefit it's going to be free for everybody in the description of the of the YouTube video just the only thing that you have to do is that if you like the Excel file please uh write that in the comment section and you're good to go you have my blessing to use it as long as you like okay guys thank you for watching and see you in the next video

Frequently asked questions

What are Amazon PPC placement modifiers and why do most sellers overlook them?

Placement modifiers are percentage adjustments applied on top of your base keyword bid to increase or decrease how aggressively you compete for specific ad placements: top of search on the first page, rest of search covering all other search positions, and product pages on competitor and complementary product listings. Most sellers set a base bid and leave the placement settings at zero, which means their budget distributes across all three placements equally regardless of how differently each one converts. Looking at placement performance data is the first step that reveals whether this default approach is costing you money.

How do I check which placement is draining my budget without producing results?

In Campaign Manager, open any Sponsored Products campaign and click on the Placements tab. This shows you impressions, clicks, spend, sales, and conversion rate broken down by top of search, rest of search, and product pages for that campaign. A 60 to 90-day date range gives you enough data to see meaningful patterns. If rest of search is consuming a large portion of your budget at a conversion rate that is a fraction of top of search, that is a strong signal that reallocating spend toward your best-performing placement would improve your overall ACoS.

How do placement bid adjustments actually work mathematically?

Placement adjustments are additive, not multiplicative. If your base bid is $0.50 and you set a top-of-search modifier of 400%, the effective bid for top-of-search auctions becomes $0.50 plus 400% of $0.50, which equals $2.50. The modifier increases your base bid by that percentage, it does not simply replace it. This is important to understand because if you want your effective top-of-search bid to reach a specific target, you need to calculate the modifier relative to your base bid, not as a standalone number.

What is the strategy of setting a very low base bid with a high top-of-search modifier, and when should I use it?

This approach involves setting your base bid to a very low number, such as $0.30 or $0.50, and applying a large top-of-search percentage modifier so that the effective bid for top-of-search remains competitive while the effective bids for rest of search and product pages are too low to win any auctions. The result is that almost all of your impressions and spend are concentrated on top-of-search placements where your conversion rate is highest. You will occasionally see very cheap clicks from the other placements, but the campaign effectively acts as a top-of-search only campaign. This is most useful when your placement data clearly shows that top of search is the only profitable placement for a given campaign.

How often should I review and adjust placement modifiers?

For most accounts, reviewing placement performance and adjusting modifiers every two to four weeks provides enough data to make reliable decisions while still responding to performance trends. Campaigns with very low traffic volumes need more time to accumulate meaningful data before modifiers are adjusted. For high-volume campaigns or during peak seasons, checking weekly is appropriate since budget distribution changes quickly when traffic spikes. The key is to make adjustments based on sufficient data rather than reacting to a few days of fluctuation that may not represent a real pattern.

Can placement modifiers be set at the ad group level or only at the campaign level?

Placement modifiers are set at the campaign level, which means the same modifier applies to every keyword and target within that campaign. There is no option to set different modifiers for individual keywords or ad groups within the same campaign. This is one reason why keeping campaigns focused on a single product or a tightly related group of keywords matters: when all your keywords share the same placement modifier, you want them to be similar enough in their placement performance that a single modifier setting makes sense for all of them.