Part 2: Unlocking the Potential of Placement Modifiers in Retail Media on Amazon and Walmart
#2 in BirdDog’s Retail Media Principles 4-Part Series
By Jeff Coleman, Chief Client Officer at BirdDog
Retail media has become an indispensable tool for eCommerce brands, offering an opportunity to capture consumer attention at critical points in their buying journey. Among the strategic tools available to brands, placement modifiers for advertising campaigns stand out as a game-changer. When used effectively, placement modifiers can optimize ad performance, drive higher conversions, and maximize return on ad spend (ROAS).
This blog post delves into the world of placement modifiers on Amazon and Walmart’s retail media platforms, explaining what they are, how they work, and actionable strategies to help brands leverage these tools for success.
What Are Placement Modifiers?
Placement modifiers allow advertisers to adjust their bids based on where their ads appear on the platform. These placements could include the top of search results, product detail pages, or other strategic spots on the eCommerce platform. By using placement modifiers, advertisers can allocate more budget to high-performing placements and scale back spending on lower-performing ones.
For example:
Amazon: Placement modifiers are available for Sponsored Products and allow bid adjustments for placements like “Top of Search,” “Product Pages,” and “Rest of Search.”
Walmart: Placement modifiers focus on areas such as “Search In-Grid” and “Buy Box,” enabling brands to target placements that align with shopper intent.
Understanding the nuances of these placement types is the first step to mastering this optimization tool.
Why Placement Matters in Retail Media
Shoppers behave differently depending on where they encounter an ad. For instance, ads placed at the top of search results often garner higher click-through rates (CTR) and conversions because they are the first thing users see. Conversely, placements on product detail pages may drive more engagement for comparison shoppers who are deeper into the buying funnel.
Here are some key factors to consider:
Visibility: Top placements ensure that your product gets the first look, which can be critical for competitive categories. According to Amazon, ads placed in the "Top of Search" position have been shown to achieve a CTR up to 2x higher than other placements.
Relevance: Ads on product detail pages can capture shoppers already showing interest in a similar product. Walmart data reveals that "Buy Box" placements lead to a 20% higher conversion rate compared to non-targeted ads.
ROI Optimization: Placement modifiers help you direct spend toward placements with the highest ROAS, ensuring efficient use of your advertising budget. A recent study found that optimizing placement bids can result in a 30% improvement in overall ad efficiency.
Placement Modifiers on Amazon
Amazon offers advertisers robust tools for customizing their bidding strategies. Here’s how to use placement modifiers effectively:
Top of Search (First Page)
Ads placed here often deliver the highest CTR and conversion rates. For example, Amazon reports that top-of-search placements can contribute up to 64% of total ad conversions in competitive categories.
Use placement modifiers to increase bids for this position, particularly for high-margin products or when aiming to dominate category search results.
Tip: Analyze your Search Term Report to identify keywords driving the most sales and prioritize them with higher bids for top-of-search placements.
Product Pages
These placements appear on the detail pages of related or complementary products.
Adjust bids for this placement to capture shoppers who are still in the consideration phase. Amazon data shows that targeting product detail pages can lead to a 15% higher engagement rate when paired with ASIN targeting.
Tip: Pair product page placements with ASIN targeting to increase relevance and performance.
Rest of Search
While less visible, these placements can still drive conversions at a lower cost. Internal benchmarks indicate that "Rest of Search" placements often have a 25% lower CPC compared to top-of-search placements.
Use conservative bid adjustments here to maintain efficiency without overspending.
Dynamic Bidding Strategies
Amazon’s dynamic bidding options (e.g., “Dynamic Bids – Up and Down”) work in tandem with placement modifiers to adjust bids in real time based on the likelihood of conversion.
Tip: Combine these tools to automate and enhance your bidding efficiency.
Placement Modifiers on Walmart Connect
Walmart’s advertising platform also allows brands to optimize their campaigns with placement-specific strategies:
Search In-Grid
These placements appear within Walmart’s search results, offering high visibility for relevant queries. Walmart’s data indicates that ads in "Search In-Grid" positions experience an average 18% higher CTR than ads placed in other areas.
Use placement modifiers to prioritize search in-grid for popular or seasonal keywords.
Tip: Regularly review Walmart’s “Keyword Performance” reports to refine your bid adjustments.
Buy Box Placement
Walmart’s Buy Box is a prime position that drives high purchase intent. According to Walmart Connect, securing the Buy Box can lead to a 3x increase in sales velocity for eligible products.
Adjust bids to secure this placement, especially for competitive, high-demand products.
Tip: Pair Buy Box bids with a strong price and inventory strategy to improve eligibility.
Product Carousel
Ads in this placement are shown on product detail pages and cater to shoppers comparing options. Walmart reports that carousel placements have a 25% higher interaction rate for complementary product categories.
Adjust bids for complementary or substitute products to capture additional sales.
Walmart Automation Tools
Walmart’s platform provides automated recommendations for bid adjustments. Leverage these insights alongside placement modifiers for optimized campaign performance.
How to Analyze and Optimize Performance
Effectively using placement modifiers requires ongoing analysis and adjustment. Here’s how to stay on top of performance:
Use Performance Reports
Both Amazon and Walmart offer detailed placement reports. Analyze these to identify trends and adjust your modifiers accordingly.
Key Metrics: CTR, conversion rate, ROAS, and cost-per-click (CPC) by placement. For instance, Walmart’s placement analytics indicate that high-performing placements often achieve ROAS 2x greater than platform averages.
A/B Testing
Test different placement bid adjustments to understand their impact on performance.
Start with small changes and scale up based on results. Amazon’s internal studies show that gradual bid increases often lead to more stable performance improvements.
Budget Allocation
Shift budget toward placements delivering the best performance. Research shows that reallocating 20% of ad spend to top-performing placements can improve overall campaign ROI by 15%.
Monitor for diminishing returns and adjust as necessary to maintain efficiency.
Seasonality and Trends
Adjust placement modifiers to align with seasonal demand or promotional periods. For example, increase top-of-search bids during Black Friday or Cyber Monday, when Amazon reports a 40% surge in search traffic.
Best Practices for Placement Modifiers
Start Small
Begin with modest bid adjustments to gauge the impact on performance before scaling up.
Leverage Automation
Use platform tools like Amazon’s dynamic bidding or Walmart’s automated recommendations to streamline adjustments.
Monitor Competitor Activity
Keep an eye on competitors’ placements and bid adjustments to stay competitive.
Focus on High-Value Products
Prioritize placement modifiers for products with high margins or strong sales potential.
Combine with Audience Targeting
Use placement modifiers in conjunction with audience targeting to maximize relevance and impact.
Conclusion
Placement modifiers are a powerful tool for optimizing retail media campaigns on Amazon and Walmart. By strategically adjusting bids for specific placements, brands can enhance visibility, improve efficiency, and drive higher ROAS. Success lies in understanding the unique opportunities offered by each platform, analyzing performance data, and continuously refining your strategy.
Whether you’re aiming to dominate the top of search results or capture shoppers comparing options on product pages, placement modifiers enable you to put your budget where it matters most. With a thoughtful and data-driven approach, your brand can unlock new levels of performance in the competitive world of retail media.