how-top-of-search-tos-adjustments-boosted-sales-by-114-in-a-week
Case Studies
September 27, 2024

How Top of Search (TOS) Adjustments Boosted Sales by 114% in a Week

114% sales boost with Top of Search bid adjustments

  • Why Top of Search (TOS) Matters
  • Week 1: Campaign Analysis
  • Week 2 Results: A 114% Sales Increase
  • Week 3 Results: Continued Improvement
  • Key Tips for Using Dynamic Bids and TOS Adjustments
  • Conclusion: TOS Adjustments Offer Stability and Growth

Top of Search (TOS) adjustments can significantly improve your Amazon PPC campaign performance, but many sellers overlook this powerful feature. By not leveraging dynamic bids for TOS placement, you could be leaving substantial revenue on the table.

In this blog post, we’ll walk through a recent case study where we implemented strategic TOS adjustments to boost conversion rates, revenue, and return on investment (ROI). We’ll also share important tips on how you can effectively use dynamic bid adjustments to optimize your campaigns for maximum impact.

Why Top of Search (TOS) Matters

When it comes to Amazon PPC, Top of Search placement is prime real estate. Ads shown at the very top of search results tend to have higher click-through rates (CTR) and conversion rates, making them crucial for maximizing your ad performance. By using dynamic bid adjustments for TOS, you can increase your chances of capturing these high-intent shoppers.

In our latest campaign, we extensively utilized dynamic bids to focus on TOS placement. The result? An additional $1.3k in revenue over just two weeks, all while maintaining a lower ACOS.

Week 1: Campaign Analysis

We began by reviewing the placement-level performance of our campaign as of April 10th. At this point, we had already applied dynamic bid adjustments (up & down) at 6% for TOS placement. While this generated decent results, we saw room for improvement.

To take things to the next level, we decided to increase our TOS adjustment to 25%. Our data suggested that this higher adjustment would be profitable without overspending. Simultaneously, we reduced bids on lower-performing keywords to shift more focus on TOS, and slightly increased bids on the high-performing ones to capture more relevant traffic.

Week 2 Results: A 114% Sales Increase

Within one week of increasing our TOS adjustment, we saw some impressive changes:

  • Sales increased by 114%: We generated an additional $911 in revenue in just one week.
  • Ad spend increased by 25%: Our ad spend only increased by $102, a small investment relative to the boost in sales.
  • CPC dropped: Despite spending more on TOS, our cost-per-click (CPC) dropped. This was largely due to reduced bids on underperforming keywords and the dynamic bid up & down feature, which automatically reduces bids when conversion likelihood is lower.
  • ROAS increased: Our return on ad spend (ROAS) jumped from 2.18 to 3.66, showing that our strategy not only drove more sales but did so more efficiently.
  • ACOS dropped by 18.5%: A lower ACOS indicates that we were able to scale revenue without overspending on ads.

Additionally, the spend distribution became more strategic—less ad spend was allocated to less profitable placements like product pages and rest of search, while more was funneled into TOS, where we saw the most significant return.

Week 3 Results: Continued Improvement

Two weeks after implementing the changes, the campaign performance remained strong, although not as dramatic as in the first week, which is to be expected. Even so, we still saw improvement:

  • ACOS was down by 10%: Maintaining a reduced ACOS means we continued to be more profitable.
  • ROAS remained high: ROAS stood at 2.8, slightly lower than the first week but still a marked improvement from where we started.

As a result, we’re confident that continuing to push higher on TOS adjustments will yield further gains. Our next steps involve testing even higher bid percentages for TOS to optimize spend distribution further.

Key Tips for Using Dynamic Bids and TOS Adjustments

If you want to see similar results in your campaigns, here are a few essential tips for implementing dynamic bids and TOS adjustments:

  1. Make Calculated Increments: Base your TOS adjustments on your current placement performance. Start small and gradually increase based on the data.
  2. Optimize Keyword Bids: If you’re focusing on TOS, consider reducing bids for lower placements like rest of search. This will push more of your budget toward the higher-performing TOS placement.
  3. Use Structured Campaigns: Dynamic bid adjustments work best when applied to campaigns with a clear structure. We recommend keeping the keyword pool under 20 keywords per campaign for more controlled and stable performance.
  4. Make Regular Adjustments: Keep an eye on performance and make frequent bid and placement adjustments. As long as you’re seeing positive changes, don’t hesitate to make incremental tweaks to maintain momentum.

Conclusion: TOS Adjustments Offer Stability and Growth

Based on our recent campaign analysis, dynamic bid adjustments—especially for Top of Search placements—provide more stable and profitable results compared to other placement strategies, such as product pages. We’ve also found that dynamic bids (up & down) tend to be more impactful than fixed bids or dynamic bid down-only strategies.

If you’re looking to drive more sales and improve your ad performance, we highly recommend experimenting with TOS adjustments. With the right approach, you can unlock significant gains in revenue while keeping your ACOS in check.

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