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AEO practice questions

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Question 1Amazon advertising fundamentals and the retail ecosystem

Which Amazon advertising product lets a brand place a headline banner at the top of search results on the Amazon store?

  1. Sponsored Products
  2. Sponsored Brands Correct answer.
  3. Sponsored Display
  4. Amazon DSP

Explanation

Sponsored Brands are the headline ad format that appears above or within search results and can showcase a brand logo, a custom headline, and multiple products. Sponsored Products are single-product ads placed in search results and on product detail pages. Sponsored Display focuses on audience and product targeting across the Amazon store and beyond.

Question 2Amazon advertising fundamentals and the retail ecosystem

A seller wants to advertise a single ASIN and have the ad appear both in search results and on competing product detail pages. Which campaign type is designed for this?

  1. Sponsored Products Correct answer.
  2. Amazon DSP
  3. Sponsored Brands
  4. Sponsored Display

Explanation

Sponsored Products campaigns promote individual products and can appear in search results and on product detail pages through keyword and product targeting. Sponsored Brands require a brand registry and promote a brand storefront or product collection. Sponsored Display and DSP are separate programmatic offerings with different placements and setup.

Question 3Amazon advertising fundamentals and the retail ecosystem

What does the advertising metric ACoS represent?

  1. Ad spend divided by attributed sales Correct answer.
  2. Clicks divided by impressions
  3. Attributed sales divided by ad spend
  4. Attributed sales divided by total sales

Explanation

ACoS, or Advertising Cost of Sale, is ad spend divided by the sales attributed to those ads, expressed as a percentage. It measures how efficiently ad spend converts into attributed revenue. Clicks divided by impressions is click-through rate, and attributed sales divided by total sales is a different share metric.

Question 4Amazon advertising fundamentals and the retail ecosystem

Which metric tells an advertiser how often shoppers who saw an ad clicked on it?

  1. ACoS
  2. Conversion rate
  3. Impressions
  4. Click-through rate Correct answer.

Explanation

Click-through rate (CTR) is clicks divided by impressions and reflects how compelling the ad is to shoppers who see it. Conversion rate measures purchases relative to clicks, not to impressions. ACoS measures cost efficiency, and impressions count how many times the ad was displayed.

Question 5Amazon advertising fundamentals and the retail ecosystem

What is the primary purpose of the Amazon Brand Registry?

  1. To handle customer returns on behalf of the seller
  2. To provide brand protection tools and unlock brand-building advertising features Correct answer.
  3. To set the minimum advertised price for a product
  4. To enroll sellers in Amazon's fulfillment network

Explanation

Brand Registry gives enrolled brand owners access to protection tools and to brand-focused advertising and storefront features such as Sponsored Brands. Fulfillment enrollment is handled through FBA, and pricing and returns are managed through separate seller tools and policies. Enrollment generally requires a registered trademark.

Question 6Amazon advertising fundamentals and the retail ecosystem

A brand-new Sponsored Products campaign has very few impressions. Which factor most directly limits whether the ad can be shown?

  1. The number of product reviews
  2. The bid and keyword relevance relative to competitors Correct answer.
  3. The seller's account balance
  4. The seller's shipping speed

Explanation

Ad eligibility and impression volume are driven largely by bid competitiveness and relevance to the targeted keywords or products. When bids are too low or keywords are poorly matched, the ad loses auctions and receives few impressions. Account balance, reviews, and shipping speed can influence outcomes indirectly but do not directly gate ad delivery in the auction.

Question 7Amazon advertising fundamentals and the retail ecosystem

What is the role of the Amazon DSP within Amazon's advertising ecosystem?

  1. It provides product photography services
  2. It is a programmatic platform for buying display and video ads using Amazon audiences Correct answer.
  3. It manages sponsored ad bids automatically
  4. It replaces the seller central order management system

Explanation

Amazon DSP is a demand-side platform that lets advertisers programmatically buy display and video inventory, including on Amazon and third-party sites, using Amazon's audience data. It is distinct from sponsored ad types, which are self-service and keyword- or product-targeted. It does not manage orders or provide creative production.

Question 8Amazon advertising fundamentals and the retail ecosystem

An advertiser spends $200 on a campaign that generates $1,000 in attributed sales. What is the ACoS?

  1. 50%
  2. 10%
  3. 20% Correct answer.
  4. 5%

Explanation

ACoS is ad spend divided by attributed sales: $200 divided by $1,000 equals 0.20, or 20%. This means twenty cents of ad spend produced each dollar of attributed sales. The other values result from misplacing the decimal or inverting the ratio.

Question 9Amazon advertising fundamentals and the retail ecosystem

Which targeting approach lets a Sponsored Products campaign show ads on the detail pages of specific competitor products?

  1. Audience targeting
  2. Category-only bidding
  3. Keyword targeting
  4. Product targeting Correct answer.

Explanation

Product targeting lets advertisers choose specific ASINs, brands, or categories so ads can appear on those product detail pages. Keyword targeting matches shopper search terms instead. Audience targeting is used in display-oriented formats, and there is no standalone category-only bidding mode in Sponsored Products.

Question 10Amazon advertising fundamentals and the retail ecosystem

A seller runs a Sponsored Products campaign with a very high ACoS. Which action most directly reduces ACoS while keeping the campaign running?

  1. Lowering bids on poorly converting keywords Correct answer.
  2. Raising the daily budget
  3. Adding more broad-match keywords
  4. Increasing bids on all keywords

Explanation

ACoS falls when spend decreases relative to attributed sales, so reducing bids on keywords that spend without converting improves efficiency. Increasing bids or adding broad keywords can raise spend and lower efficiency if conversions do not follow. Raising the budget allows more spend but does not by itself improve the spend-to-sales ratio.

Question 11Amazon advertising fundamentals and the retail ecosystem

What distinguishes a Sponsored Brands video ad from a standard Sponsored Brands ad?

  1. It targets only competitor ASINs
  2. It appears only on product detail pages
  3. It requires no brand registration
  4. It uses an auto-playing video creative in search results Correct answer.

Explanation

Sponsored Brands video ads use a short video creative that plays in search results, giving brands a more engaging format than the standard headline and product collection. Both formats generally require Brand Registry enrollment. Video ads are not limited to detail pages and are not restricted to competitor targeting.

Question 12Amazon advertising fundamentals and the retail ecosystem

A seller wants to promote a new product that has no sales history and few reviews. Which strategy best supports initial discovery?

  1. Target only high-price competitor ASINs
  2. Pause all campaigns until reviews accumulate
  3. Use broad and phrase match keywords with competitive bids Correct answer.
  4. Bid only on the brand's own name

Explanation

New products benefit from broader keyword coverage with competitive bids to generate impressions and gather conversion data. Bidding only on the brand name limits reach to shoppers already aware of the brand. Pausing campaigns stalls the data needed to optimize, and narrow competitor targeting restricts discovery.

Question 13Amazon advertising fundamentals and the retail ecosystem

What does the attribution window in Amazon advertising reporting represent?

  1. The delay before an ad goes live after creation
  2. The period a bid remains fixed before auto-adjustment
  3. The length of time a campaign is allowed to run
  4. The time between ad click and the shopper's purchase that is credited to the ad Correct answer.

Explanation

The attribution window defines how long after an ad interaction a purchase can occur and still be credited to that ad. Purchases outside the window are not attributed to the campaign. Campaign duration, ad approval timing, and bid adjustment schedules are separate concepts.

Question 14Amazon advertising fundamentals and the retail ecosystem

Which Amazon retail concept describes selling products directly to Amazon, which then resells them?

  1. Vendor Central first-party selling Correct answer.
  2. Amazon Handmade
  3. Seller Central marketplace selling
  4. Fulfillment by Amazon

Explanation

Vendor Central supports first-party relationships where a brand sells wholesale to Amazon and Amazon resells to customers. Seller Central is the third-party marketplace model where the seller owns the listing and the customer relationship. FBA is a fulfillment service, and Handmade is a specialized marketplace category.

Question 15Amazon advertising fundamentals and the retail ecosystem

A campaign has a high click-through rate but a low conversion rate. What does this pattern most likely indicate?

  1. The bids are set too low to win impressions
  2. The ad creative attracts clicks but the product page fails to persuade shoppers to buy Correct answer.
  3. The attribution window is too long
  4. The daily budget is being exhausted too early

Explanation

A strong CTR shows the ad is compelling enough to earn clicks, while a weak conversion rate suggests the landing experience, such as the detail page, price, or reviews, is not closing the sale. Low bids would suppress impressions rather than produce high CTR with low conversion. Attribution window and budget pacing do not explain the click-to-purchase drop-off.

Question 16Amazon advertising fundamentals and the retail ecosystem

What is the main benefit of using negative keywords in a Sponsored Products campaign?

  1. They expand reach to related categories
  2. They automatically add new converting keywords
  3. They prevent ads from showing on irrelevant search terms Correct answer.
  4. They increase the maximum bid for high-value terms

Explanation

Negative keywords exclude search terms so ads do not serve on queries unlikely to convert, which reduces wasted spend and improves efficiency. They do not raise bids or add keywords automatically. Expanding reach is the opposite of what negatives do.

Question 17Amazon advertising fundamentals and the retail ecosystem

Which statement best describes the relationship between organic ranking and advertising on Amazon?

  1. Advertising only affects ranking for competitor products
  2. Advertising has no effect on organic ranking
  3. Advertising permanently replaces the need for organic ranking
  4. Advertising can help generate sales and reviews that may support organic ranking over time Correct answer.

Explanation

Ad-driven sales and reviews can contribute positively to the signals that influence organic ranking, though advertising is not a guaranteed or direct ranking lever. Organic ranking still depends on relevance, sales, and other factors. Advertising does not replace organic ranking and is not limited to competitor products.

Question 18Amazon advertising fundamentals and the retail ecosystem

A seller wants ads to appear when shoppers search for specific phrases but not for close variations. Which match type is most appropriate?

  1. Exact match Correct answer.
  2. Negative phrase match
  3. Phrase match
  4. Broad match

Explanation

Exact match limits ads to searches that closely match the specified term or its close variants, giving the tightest control. Phrase match allows the term within broader queries, and broad match reaches the widest set of related queries. Negative phrase match excludes terms rather than targeting them.

Question 19Amazon advertising fundamentals and the retail ecosystem

What does a Sponsored Display campaign's audience targeting allow advertisers to do?

  1. Reach shoppers based on browsing behavior and interests Correct answer.
  2. Set the retail price of advertised products
  3. Guarantee top placement in search results
  4. Bid on specific search keywords

Explanation

Sponsored Display audience targeting reaches shoppers based on behaviors such as views and purchases, and on interests, rather than on search keywords. Keyword bidding is a sponsored search tactic. Display ads do not guarantee top search placement and cannot set retail prices.

Question 20Amazon advertising fundamentals and the retail ecosystem

A brand sells through both Vendor Central and Seller Central. How does advertising access typically differ between the two?

  1. Vendor Central sellers cannot advertise on Amazon
  2. Both can access sponsored ads, but the account and reporting structures differ Correct answer.
  3. Vendor Central accounts must use Amazon DSP exclusively
  4. Only Seller Central accounts can run Sponsored Brands

Explanation

Both first-party vendors and third-party sellers can access Amazon advertising, but they operate through different account structures and reporting views. Vendor Central does not bar advertising, and Sponsored Brands is not exclusive to Seller Central. DSP is an optional programmatic channel, not a requirement for vendors.

Question 21Amazon advertising fundamentals and the retail ecosystem

A campaign's reported attributed sales exceed the advertiser's total product sales for the same period. Which explanation is most plausible?

  1. Multiple campaigns or ad types attributed the same or overlapping purchases Correct answer.
  2. Impressions were counted as sales
  3. Amazon is double-charging for clicks
  4. The ACoS calculation is inverted

Explanation

Attribution can overlap when a shopper interacts with more than one campaign or ad type before purchasing, so summed attributed sales across campaigns can exceed actual sales. This is a reporting overlap effect, not double billing. ACoS inversion and impression counting are unrelated to inflated attributed sales.

Question 22Amazon advertising fundamentals and the retail ecosystem

An advertiser wants to compare the incremental effect of advertising beyond clicks that lead directly to purchases. Which approach best addresses this?

  1. Relying solely on last-click attributed sales
  2. Using controlled experiments or incrementality testing Correct answer.
  3. Counting impressions as conversions
  4. Increasing the daily budget without measurement

Explanation

Incrementality testing, such as controlled experiments comparing exposed and unexposed groups, estimates the sales that would not have occurred without advertising. Last-click attribution captures only directly attributed purchases and can miss halo effects. Raising budget without measurement or counting impressions as conversions does not isolate incremental impact.

Question 23Amazon advertising fundamentals and the retail ecosystem

A seller's Sponsored Products campaign performs well but total sales are flat, suggesting ad sales are displacing organic sales. What is this effect called?

  1. Cannibalization Correct answer.
  2. Bid shading
  3. Attribution lag
  4. Impression share

Explanation

Cannibalization occurs when ad-driven purchases would have happened organically anyway, so total sales do not rise even though ad-attributed sales appear. Attribution lag refers to delayed conversion timing, bid shading is a bidding behavior, and impression share describes the portion of available impressions won.

Question 24Amazon advertising fundamentals and the retail ecosystem

An advertiser is choosing between broad match with a low bid and exact match with a higher bid for a proven converting term. Which consideration most affects the decision?

  1. Broad match always produces lower ACoS than exact match
  2. Broad match guarantees placement on competitor detail pages
  3. Exact match offers tighter control but may limit reach, while broad match expands reach at the cost of relevance Correct answer.
  4. Exact match cannot be used with Sponsored Products

Explanation

Exact match concentrates spend on closely matching queries for tighter control, while broad match expands reach but risks lower relevance and wasted spend. Neither match type guarantees a lower ACoS in all cases. Both are available in Sponsored Products, and broad match does not guarantee detail-page placement.

Question 25Sponsored Products strategy and optimization

An advertiser runs a Sponsored Products campaign with a daily budget of $50 and a bid of $1.00. The campaign consistently spends its full budget before noon. Which adjustment most directly addresses the early budget exhaustion while preserving the ability to serve later in the day?

  1. Add negative keywords to filter low-intent traffic
  2. Lower the daily budget to $25
  3. Reduce the bid and add a budget cap schedule Correct answer.
  4. Raise bids to win more auctions

Explanation

Budget pacing problems are addressed by controlling spend rate, which can be done by lowering bids to reduce cost per click and by scheduling budget caps across the day. Raising bids would accelerate spend, and lowering the total budget would not help serve later.

Question 26Sponsored Products strategy and optimization

Which Sponsored Products targeting approach relies on Amazon interpreting the meaning of a product listing to match ads to relevant customer searches?

  1. Product targeting
  2. Negative phrase targeting
  3. Manual keyword targeting
  4. Automatic targeting Correct answer.

Explanation

Automatic targeting lets Amazon match ads to customer searches and products based on the content of the advertised product, without the advertiser supplying keywords. Manual keyword and product targeting require the advertiser to specify targets directly.

Question 27Sponsored Products strategy and optimization

A seller wants ads for a phone case to appear on the detail pages of a specific competitor's phone model. Which targeting configuration achieves this?

  1. Automatic targeting with a high bid
  2. Product targeting on the competitor's ASIN Correct answer.
  3. Category targeting with refined price range
  4. Broad match keyword on the competitor brand name

Explanation

Product targeting allows an advertiser to place ads on specific product detail pages by selecting the ASIN. Keyword targeting matches search queries rather than guaranteed placement on a chosen detail page.

Question 28Sponsored Products strategy and optimization

An advertiser notices a campaign has a high click-through rate but very few conversions. Which diagnostic step is most appropriate first?

  1. Pause the campaign and start a new one
  2. Review the product detail page and search term report for relevance Correct answer.
  3. Increase the daily budget to capture more impressions
  4. Lower all bids to reduce cost

Explanation

High clicks with low conversion suggests a relevance or listing problem, so reviewing search terms and the detail page identifies whether traffic is mismatched or the listing fails to convert. Budget and bid changes do not fix a conversion problem.

Question 29Sponsored Products strategy and optimization

In Sponsored Products, what does the ACOS metric represent?

  1. Attributed sales divided by impressions
  2. Ad spend divided by attributed sales Correct answer.
  3. Ad spend divided by total orders
  4. Clicks divided by impressions

Explanation

ACOS (advertising cost of sales) is ad spend divided by sales attributed to the ads, expressed as a percentage. It measures the efficiency of ad spend relative to revenue generated.

Question 30Sponsored Products strategy and optimization

A campaign's break-even ACOS is 25%. The campaign is currently running at 40% ACOS with strong sales volume. What does this indicate?

  1. The campaign has reached its budget ceiling
  2. The campaign is profitable and should scale
  3. The campaign needs more impressions to improve
  4. The campaign is losing money on ad-attributed sales Correct answer.

Explanation

When actual ACOS exceeds the break-even ACOS, ad spend is higher than the margin available to cover it, so the campaign is unprofitable on attributed sales. Scaling would increase losses.

Question 31Sponsored Products strategy and optimization

Which match type allows an ad to show for search terms that are close variations, such as plurals, misspellings, and related phrases?

  1. Broad match Correct answer.
  2. Phrase match
  3. Exact match
  4. Negative exact

Explanation

Broad match can serve for close variants and related terms, giving the widest reach among positive match types. Exact and phrase are more restrictive.

Question 32Sponsored Products strategy and optimization

An advertiser wants to prevent ads from showing for searches containing the word "cheap." Which control accomplishes this?

  1. A negative keyword with the term cheap Correct answer.
  2. An exact match positive keyword for cheap
  3. A lower bid on the affected keywords
  4. A budget cap on the campaign

Explanation

Negative keywords exclude a campaign or ad group from matching searches that contain the specified term. Bids and budgets change spend but do not block unwanted queries.

Question 33Sponsored Products strategy and optimization

A seller launches a new product with no sales history and wants to gather search term data quickly. Which strategy best supports this goal?

  1. Set very low bids to minimize cost
  2. Start with manual exact match only
  3. Pause the campaign until reviews accumulate
  4. Use automatic targeting and harvest search terms Correct answer.

Explanation

Automatic targeting exposes the ad to a broad range of queries, generating search term data that can later be harvested into manual campaigns. Exact-only or paused campaigns generate little discovery data.

Question 34Sponsored Products strategy and optimization

What is the primary purpose of the search term report in Sponsored Products?

  1. To display competitor bid levels
  2. To estimate the product's inventory turnover
  3. To list the advertiser's organic ranking
  4. To show which customer queries triggered ads Correct answer.

Explanation

The search term report shows the actual customer queries that matched the advertiser's targets, enabling refinement through negatives and new exact-match keywords. It does not reveal competitor bids or organic rank.

Question 35Sponsored Products strategy and optimization

An advertiser discovers a high-spend search term in the search term report that has many clicks but no orders and is irrelevant to the product. What is the best action?

  1. Move it to a new ad group as broad match
  2. Increase the campaign budget
  3. Add it as a negative exact keyword Correct answer.
  4. Add it as an exact match keyword with a higher bid

Explanation

Irrelevant high-spend terms should be excluded with a negative exact match to stop wasted spend while preserving other relevant traffic. Promoting the term would increase waste.

Question 36Sponsored Products strategy and optimization

Which placement modifier setting in Sponsored Products adjusts bids for ads shown on product detail pages?

  1. Top of search modifier
  2. Rest of search modifier
  3. Product page modifier Correct answer.
  4. Homepage modifier

Explanation

Placement modifiers let advertisers adjust bids by placement, and the product page modifier applies to detail page placements. Top of search and rest of search are separate placement controls.

Question 37Sponsored Products strategy and optimization

A campaign has a low impression share and a strong conversion rate at an efficient ACOS. Which action is most likely to grow sales?

  1. Pause underperforming ad groups only
  2. Decrease bids to lower cost
  3. Increase bids and budget to win more impressions Correct answer.
  4. Add broad negative keywords

Explanation

When conversion efficiency is strong but impressions are limited, raising bids and budget allows the campaign to capture more of the available demand. Reducing bids would further limit reach.

Question 38Sponsored Products strategy and optimization

What does a low click-through rate on a Sponsored Products ad most commonly suggest?

  1. The product price is too low
  2. The conversion rate is too high
  3. The ad is not relevant or competitive for the queries shown Correct answer.
  4. The daily budget is too high

Explanation

Click-through rate reflects how compelling and relevant the ad appears for the queries it matches; low CTR often signals a mismatch between targets and the product or weak main image and price competitiveness. Budget and conversion metrics do not directly drive CTR.

Question 39Sponsored Products strategy and optimization

An advertiser wants to bid more aggressively only when the ad appears at the top of search results. Which feature enables this?

  1. Top of search placement modifier Correct answer.
  2. Dynamic bidding down only
  3. Negative phrase match
  4. Budget rule scheduling

Explanation

The top of search placement modifier increases bids by a chosen percentage specifically when the ad is eligible for the top search placement. Dynamic bidding and negatives do not target that placement.

Question 40Sponsored Products strategy and optimization

Which bid strategy adjusts bids in real time to target a particular likelihood of conversion?

  1. Fixed bids
  2. Dynamic bids - down only
  3. Manual placement-only bidding
  4. Dynamic bids - up and down Correct answer.

Explanation

Dynamic bidding up and down raises bids when a click is more likely to convert and lowers them when less likely. Down only reduces bids for unlikely conversions but never raises them.

Question 41Sponsored Products strategy and optimization

A seller sells a product with a 40% gross margin. What break-even ACOS corresponds to this margin, ignoring other costs?

  1. 40% Correct answer.
  2. 60%
  3. 80%
  4. 20%

Explanation

Break-even ACOS equals the gross margin percentage, because ad spend equal to the margin leaves no profit or loss. A 40% margin therefore corresponds to a 40% break-even ACOS.

Question 42Sponsored Products strategy and optimization

Which structure best supports granular bid control across different product categories within one account?

  1. Separate campaigns per product category with distinct budgets and bids Correct answer.
  2. One campaign containing all products with a single bid
  3. A single automatic campaign with no negatives
  4. One ad group with all keywords at broad match

Explanation

Separating products into distinct campaigns by category allows independent budgets, bids, and reporting so performance can be optimized per segment. Combining everything limits control.

Question 43Sponsored Products strategy and optimization

An advertiser wants to ensure a specific keyword never triggers ads in a particular ad group while still running in another ad group. What is the correct approach?

  1. Add the term as a negative exact keyword in the ad group Correct answer.
  2. Lower the bid on that keyword account-wide
  3. Pause the entire campaign
  4. Add the term as a negative in the account's brand registry

Explanation

Negatives can be applied at the ad group level, so a term can be excluded in one ad group while remaining active in another. Pausing the campaign or changing bids affects broader traffic.

Question 44Sponsored Products strategy and optimization

A campaign running automatic targeting is generating many irrelevant search terms. Which sequence best improves efficiency while retaining discovery?

  1. Pause automatic targeting entirely and rely on manual exact
  2. Raise bids on all automatic targets
  3. Add high-spend irrelevant terms as negatives and harvest converting terms into manual campaigns Correct answer.
  4. Remove the campaign budget

Explanation

The standard optimization cycle uses negatives to block wasteful terms while moving proven converters into dedicated manual campaigns for tighter control, preserving discovery. Pausing or removing budget eliminates the discovery benefit.

Question 45Sponsored Products strategy and optimization

What is the effect of setting a bid too low relative to the competitive range for a keyword?

  1. The ad becomes ineligible to show for many auctions Correct answer.
  2. The ad's conversion rate increases
  3. The keyword automatically switches to exact match
  4. The ad wins more impressions at lower cost

Explanation

Bids below the competitive range cause the ad to lose auctions and therefore impressions. Low bids do not improve conversion rate or change match type.

Question 46Sponsored Products strategy and optimization

A seller wants to defend its own brand terms from competitors while keeping costs controlled. Which configuration is most appropriate?

  1. Product targeting on unrelated categories
  2. Broad match on brand terms with high bids
  3. Automatic targeting only
  4. Exact match on brand terms with competitive but controlled bids Correct answer.

Explanation

Exact match on brand terms captures high-intent shoppers searching the brand while limiting spend to precise queries, and controlled bids keep costs efficient. Broad match or unrelated targeting expands cost without added precision.

Question 47Sponsored Products strategy and optimization

Which report or metric best helps an advertiser decide whether to move a search term from automatic to manual targeting?

  1. Impression share by placement
  2. Search term report with clicks, spend, and orders Correct answer.
  3. Budget utilization percentage
  4. Bid history log

Explanation

The search term report pairs each query with performance metrics such as clicks, spend, and orders, showing which terms merit dedicated manual targeting. Other metrics do not tie queries to outcomes.

Question 48Sponsored Products strategy and optimization

An advertiser's campaign has an efficient ACOS but very low total sales volume. Which constraint most likely limits growth?

  1. Conversion rate is too high
  2. Product price is too low
  3. Negative keywords are too few
  4. Impressions and reach are too limited Correct answer.

Explanation

Efficient ACOS with low sales volume indicates the campaign is converting well but reaching too few shoppers, so expanding reach through bids, budget, or targeting is the lever for growth. High conversion rate and low price are not constraints.

Question 49Sponsored Products strategy and optimization

What is the recommended first step when a Sponsored Products campaign suddenly shows a sharp drop in impressions?

  1. Add many broad negative keywords
  2. Immediately raise all bids to the maximum
  3. Check budget status, bid competitiveness, and listing eligibility Correct answer.
  4. Delete the campaign and rebuild it

Explanation

A sudden impression drop can stem from budget exhaustion, losing auctions on bids, or listing becoming ineligible, so checking these causes first is the sound diagnostic step. Blind bid increases or deletions may not address the cause.

Question 50Sponsored Products strategy and optimization

In Sponsored Products, what does the daily budget for a campaign represent?

  1. The total amount the campaign can spend over its entire lifetime
  2. The maximum number of clicks the campaign can receive in a day
  3. The maximum amount the campaign can spend on clicks in a calendar day, though spend can exceed this on high-traffic days and average out over the month Correct answer.
  4. The maximum cost-per-click the advertiser is willing to pay

Explanation

The daily budget caps a campaign's average daily spend on clicks. Amazon may allow spend above the daily budget on individual days but averages spending across the month so it does not exceed the monthly budget equivalent. It is a spend cap, not a click cap or bid cap.