Which two variables are used by the auction to determine which ad will display?
- ad spend, relevancy
- cost-per-click bid, relevancy
- pixels, cost-per-click bid ad type, budget
Explanation
Amazon uses an auction-based CPC inventory-buying model for the Sponsored ad campaigns. In this model, Amazon uses two factors Cost-Per-Click(CPC) bid and Relevancy to determine which ad will display.
Firstly, the Amazon algorithm determines if the sponsored ad is relevant to the product being sold using keywords, search history, etc.
After that, Amazon selects the most relevant sponsored ad with the highest CPC bid. The most relevant ad with the highest CPC bid wins the auction.