If you’re at the top spot, you’re converting a lot better than your competitors. Since you’re converting a lot better, Amazon’s going to determine that your ads are more relevant.
Relevant Ads: Pay lesser, convert better
Since your ads are more relevant, Amazon allows you to pay less than your competitors to own that top spot, plus you convert better. It’s like a double benefit that you get from the conversion rates. Overall, more clicks lead to sales. And I pay less per click than my competitors. It can give you a huge advantage.
Aim for the top spot
Yes, it does eat margin but if your competitor is going to get the spot, they’re probably going to have to pay more and they’re not going to get as many sales. That’s a key thing to keep in mind too. If you can afford to own that top spot that means that you’re doing a lot of things really well. And I would take a lot of time to think through if you really want to give that up.
To now more about maximizing efficiency, watch this video: