What are Sponsored Products?

Sponsored Products operates on a real-time auction model, meaning you must compete against other advertisers for available ad placements. Each time a shopper visits a page where ads can appear, an auction is triggered to determine which ads will be displayed. 

Here is how it works:

• You set a bid – This is the amount you are willing to pay when a shopper clicks on your ad. You can manage bids at different levels to refine your advertising strategy, including: 

• Line item level – Set a bid for an entire grouping. 

• Product level – Adjust bids for individual products to prioritize high performers. 

• Keyword level – Optimize bids for specific search terms to target relevant shoppers. 

• Page type level – Control bidding based on where your ads appear, such as search results or product detail pages. 

Each category of products has a minimum bid, which is determined by us and displayed on the platform when you create a campaign.

This is how it ensures fair competition:

• Competing advertisers also place their bids for the same placement. 

•  A shopper visits our website and loads a page on which Sponsored Product placements are available to serve ads.  

• An auction is held in real-time, and the most relevant product wins the available ad placement. Winning an auction doesn’t just depend on your bid - our AI-powered engine will also predict which products have the highest chance of performing well. 

• If you win the auction, your ad is displayed in the placement, increasing your visibility to shoppers. 

• You are only charged when a shopper clicks on your ad, based on the final winning cost-per-click (CPC) price. 

Since you are competing against other advertisers in each auction, your ability to win and serve ads depends on having a strong bid and a relevant, engaging product offering.

By strategically managing bids, you can maximize visibility, control costs, and improve campaign performance. 

• Increased Visibility - Boost your products’ exposure by appearing natively across key placements, such as search results, browse pages, product detail pages (PDP), and the homepage (depending on available inventory). 

• AI-Based Automatic Optimization - Let our AI-powered optimization engine determine the best time and placement for your ads to maximize performance, based on the optimization model you choose. 

• Effective Performance Tracking - Get real-time, SKU-level reporting to monitor how each product is performing, helping you refine your strategy and optimize bids based on actual sales data. 

• Sales Attribution for Better Insights - Understand the direct impact of your ads on sales with closed-loop measurement, helping you see how your investment translates into revenue. 

• Cost-Effective, Pay-Per-Click Model - You only pay when a shopper clicks on your ad, ensuring that your budget is spent efficiently on engaged potential buyers.