A prediction value generated by the Best Buy Ads engine which forecasts the likelihood of a user to click on a particular products ad (pCTR). This also includes:

1. Contextual Relevance: The engine measures if the products shown on the page will be contextually relevant based on the browsing behavior.
2. Intent Signals The engine optimizes bids based on intent signals to ensure shoppers are shown the product that is most likely to lead to engagement.

An Auction is then held for all relevant products based on a unique rank value (Quality Score x CPC).

Products with the highest rank win the auction, depending on how many slots are available for placement.

When multiple products are vying for the same product placement, we use one of the three algorithms depending on the goal of the product listing. The one with the highest score wins the placement.

Goal is Awareness = achieve as many clicks as possible.

1. A shopper visits BestBuy.com to buy a camera.
2. They type “camera” in the search bar.
3. Two products with the same relevancy score enter the auction.
4. Camera A is bidding at 80¢ and Camera B is bidding at 75¢.
5. Camera A wins the placement because it bid higher.

Goal is Conversions = sell as many units as possible.

The algorithm considers product bids and conversion rate to determine which product will win the placement.

1. A shopper visits BestBuy.com to buy a camera.
2. They type “camera” in the search bar.
3. Two products with the same relevancy score enter the auction.
4. Camera A is bidding at 80¢ and Camera B is bidding at 75¢.
5. Based on historical shopper data, the algorithm knows Camera A has a 5% predicted conversion rate and Camera B has a 6% conversion rate.
6. Camera A: $.80 x 2% CTR X 5% = .0008 Camera B: $.75 x 2% CTR X 6% = .0009
7. Camera B has a higher effective CPC than Camera A, so it wins the placement.

Goal is ROAS = highest attributes sales possible.

The algorithm considers product bids, conversion rate and price point to determine which product will win the placement.

1. A shopper visits BestBuy.com to buy a camera.
2. They type “camera” in the search bar.
3. Two products with the same relevancy score enter the auction.
4. Camera A is bidding at 80¢ and Camera B is bidding at 75¢.
5. Based on historical shopper data, the algorithm knows Camera A has a 5% predicted conversion rate and Camera B has a 6% conversion rate. Camera A costs $60 and Camera B cost $40
6. Camera A: $.80 x 2% CTR X 5% x $60 = .048 Camera B: $.75 x 2% CTR X 6% x $40 = .038
7. Camera A has a higher effective CPC than Camera B, so it wins the placement.