Back to Blog Part of: The Complete Amazon PPC Guide

How Amazon's Ad Algorithm Works

Understanding how Amazon decides which ads to show—and why some keywords get zero impressions—helps you diagnose problems and optimize effectively.

Amazon Ad Algorithm

Amazon's advertising system is an auction, but not a simple highest-bidder-wins auction. Understanding the mechanics helps explain why some keywords perform well, others get no impressions, and why the same keyword in different campaigns can produce different results.

The Core Formula: Bid × Relevance

Ad Rank = Bid × Relevance Score
Higher bids alone don't guarantee placement. Relevance is a multiplier.

Amazon uses a second-price auction modified by relevance. This means:

What Determines Relevance?

Amazon doesn't publish its exact relevance factors, but based on observed behavior:

Relevance Factors

  • Listing content: Title, bullets, description, backend keywords
  • Category alignment: Product's browse node relative to search intent
  • Historical performance: CTR and CVR for this product on this keyword
  • Sales history: Overall sales velocity and conversion patterns
  • Customer behavior: What products people buy after searching this term

Why Keywords Get Zero Impressions

This is one of the most common frustrations. There are three main causes:

1. Bid Too Low

Your bid doesn't meet the minimum threshold to enter the auction. Amazon has floor prices that vary by keyword competitiveness.

2. Insufficient Relevance

Your product isn't considered relevant enough for this keyword. Even a high bid won't help if Amazon thinks shoppers won't want your product for this search.

3. Low Search Volume

The keyword simply doesn't get searched often enough to generate measurable impressions. Check Brand Analytics to verify actual search volume before assuming bid or relevance issues.

Diagnosis Approach

First, check if the keyword has meaningful search volume (Brand Analytics). If it does, try increasing your bid significantly (50-100%) for a week. If you still get zero impressions, relevance is likely the issue—review your listing to ensure the keyword is well-represented in your content.

Do Campaigns Compete With Each Other?

Same Keyword in Different Campaigns

Yes, they compete. If you have "yoga mat" as an exact match in Campaign A and phrase match in Campaign B, both can be triggered by the same search. Amazon picks one to show based on a combination of bid and expected performance.

What Happens in the Auction

Amazon evaluates all your eligible ads, picks the one with the best combination of bid and expected performance, and enters that one into the auction. You don't bid against yourself—but you might be surprised which campaign ends up serving.

Do Match Types Compete?

Yes. Exact, phrase, and broad match for the same keyword can all be eligible for the same search query. Common misconceptions:

Myth

Exact match always wins over broad match

Fact

The highest performing combination wins, regardless of match type

Does PPC Affect Organic Ranking?

Indirectly, Yes

PPC doesn't directly boost organic ranking. But PPC drives sales, and sales velocity is a major organic ranking factor. So PPC → Sales → Improved Organic Ranking. The effect is real but indirect.

This is why aggressive PPC during launch makes sense: you're buying the sales velocity that eventually earns organic ranking.

Do Negative Keywords Affect Organic?

No. Adding a keyword as negative in your campaigns only affects paid advertising. It has zero impact on organic search ranking or visibility.

This is a common concern when sellers worry about negating relevant keywords. If a keyword is relevant to your product, negating it in PPC won't hurt organic ranking—it just stops you from paying for ads on that term.

Which Backend Fields Are Indexed?

Amazon indexes these fields for advertising (and organic) purposes:

Are Platinum Keywords Still Indexed?

Platinum Keywords were deprecated years ago. Any content in this field is ignored. Don't waste time populating it.

Minimum and Maximum Bids

Minimum Bid

Amazon's minimum bid is $0.02, but this is rarely practical. Effective minimum bids depend on keyword competitiveness—some keywords require $0.50+ just to enter the auction.

Maximum Bid

The maximum bid is $1,000.00 per click. Very few advertisers ever approach this, but extremely competitive keywords in categories like insurance or legal can see CPCs above $50.

Can I Add ASINs as Negatives?

Yes. You can add competitor ASINs as negative targets in product targeting campaigns. This is useful when:

Key Takeaways

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