The algorithm of sponsored products

It is understandable that when advertising through sponsored products, you may be curious about how sponsored products determine whether your ads are shown or not. Below, we are happy to provide more information about the workings of the algorithm.

Keep an eye on your daily budget

How great that you want to learn more about managing the daily budgets of your campaigns. It will help you make your campaigns more effective.

Below, you will find more information about the meaning of a daily budget, setting a daily budget, and how you can further optimize your campaigns based on the daily budget you’ve set. The goal is to achieve maximum results with sponsored products.

The algorithm works with keywords

Sponsored Products employs an algorithm to determine which items are most suitable for the keywords where you want to be visible. This is done to ensure the user-friendliness of the bol platform for visitors. Sponsored Products is capable of placing the most relevant products at the top, providing a positive shopping experience for visitors and encouraging them to stay on bol. However, relevance is not the sole factor; it is also crucial to bid competitively for visibility. Understanding how this algorithm works is essential to leverage it effectively with the right keywords.

Each time a customer visits a product, category, or search result page, the algorithm seeks out items that align with the customer’s interests. The more relevant the item, the higher the score. This score is significant when advertising through bol. If your item scores the highest, you have a greater chance of advertising for your chosen keyword. Often, multiple advertisers may compete to advertise on the same keyword.

How does that work exactly?

This score is determined based on several criteria. For instance, the algorithm considers the name of your advertisement, the category and brand of your item, the product description, and other characteristics of the item.

The algorithm looks at the click and purchase behavior of past users and makes a selection. If the data shows that customers searching for the keyword ‘vacuum cleaner’ often choose a specific brand in the price range of 300,- to 400,-, then these items receive the highest score for this keyword. The more your item deviates from this pattern, the lower the score for this keyword.

In addition, the bid you make is also crucial for your final score. When offering a product advertisement, you determine in advance how much you are willing to spend to advertise for this keyword. You pay this amount per click. If the keyword is popular or contains expensive items, the price is automatically higher. Ultimately, when all these criteria are combined, a final score is generated. This is how the algorithm determines who can advertise on the keyword. Your score is calculated based on the following formula:

Expected click-through rate for this keyword x expected conversion rate for this keyword x your bid.

Therefore, ensure that your item and product description align as closely as possible with the keywords you use for your advertisement.