Deciphering the Amazon Advertising Quality Score

8. July 2019 in Amazon Advertising

Deciphering the Amazon Advertising Quality Score

Google’s ad quality score is a well-known factor that measures the combined relevancy of an ad, a keyword, and a landing page. Amazon on the other hand, keeps this metric a total black box. We are venturing a guess on what elements feed into the Amazon Advertising quality ranking. Read more here and take this into account for your Amazon Advertising and content optimization strategy!

How does the Google Quality Ranking work?

It’s no secret that Amazon has copied a range of features and logics from Google Ads: The auction based bidding model, keyword triggered ad placement and the bulk upload form to name a few. Thus, it is quite safe to assume that their quality score is a somewhat modified version of Google’s formula. Therefore, let’s first take a look at the latter one.

These factors feed into Google’s Quality Score:

  • Ad Relevance (relevancy for the keyword)
  • Expected CTR/click-through-rate (based on experience values)
  • Landing Page Experience (load speed, relevancy for the keyword)

The score is indicated on a scale from 1 to 10. Moreover, the combination of quality score and CPC bid results in the ad rank which determines the visibility of an ad (position on the search results page).

And what about the Amazon Quality Factor?

Based on what is known from Google Ads and the data that we have seen through our campaign bidding AI, this is our hypothesis on the main components of Amazon’s quality metric:

1. Ad Relevance

The first one is a given: The relevance of text ad (Google) or product ad (Amazon) for the search term is the admission criterion to an auction. If the basic relevancy, represented in the Amazon World by the eCTR (expected click-through-rate), is not given, you could raise your bid indefinitely and your ad would still not show.

2. Product Performance

The historical performance is the next ingredient that is added to the relevance mix. While Google basically takes into account the expected CTR of the keyword, Amazon is also interested in the sales potential of a product, which is composed by these two factors:

  • Number of Sales (basically represented by the sales rank)
  • Historical Conversion Rate (eCR/expected Conversion Rate)

3. Product Experience

The last factor is going a step further down the user journey. Google is assessing the landing page experience while Amazon follows suit with the equivalent in their world – the product detail page.

These aspects are important:

  • Ratings
  • Availability
  • Pictures/Videos
  • Content incl. A+
  • Returns

The Amazon Quality Formula

Based on this translation of the Google algorithm and data from millions of spent budget on Amazon Advertising, this is our hypothesis on Amazon’s Advertising Quality Score.

Ad Quality = Ad Relevance x Product Performance x Product Experience

Similar to Google, the final ad ranking is then calculated like this:
CPC x Quality Score

That means you have TWO possibilities to improve your paid visibility: Increase your CPC bid and / or improve your Ad Quality. While the first will lead to higher ACoS values and less profitability, the latter will bring your CPC down and increase your ROAS accordingly.

What is your opinion? Share your ideas with us, we are looking forward to new insights!

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