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A Guide to Amazon’s New Bidding Strategies
时间:2019-05-23 阅读量:667

PPC campaign optimization can be pretty frustrating for a large number of Amazon sellers. Many of them have been struggling for months to set bids and make adjustments manually, only to find out problems remain unsolved including "no time to tweak campaigns", "no idea when and how to crunch the bids", "always out of budget" or "high clicks but no conversions".

 

Until earlier this year, 'Bid+' was the only existing tool to set bids automatically for Amazon Ad campaigns. With Bid+, you could bid up to +50% for the top of search (first page) placement. That means you could end up spending tons of money if you want to place your ads at the top of search results, which can be very costly, especially for new sellers.

 

In January 2019, Amazon launched 2 new bidding features for Sponsored Products, "Dynamic Bids" and "Adjust Bids by Placement", to provide sellers with more options for automated bidding to get their ads placed at desirable position.

 

Do they really work as claimed? In this article, we will shed some light on these 2 new bidding strategies.

 

Performance-based Dynamic Bids

Performance-based strategy means that Amazon will automatically raise the bid if it finds an opportunity for higher conversion and lower the bid when a conversion is unlikely.

It does sound like a great news for sellers that PPC bidding finally becomes dynamic, though Amazon didn't specify how to evaluate performance.

 

Here is a quick rundown of above-mentioned three (two really) new bidding strategies.

 

1. Dynamic bidding – Down only

When "down only" is selected, Amazon will lower your bid in any auction where your ad is less likely to convert, until the ad performs better or reaches minimum bid, $0.02.

 

2. Dynamic bidding – Up and down

When "up and down" is selected, Amazon will decide in real-time whether or not a click is likely to convert into a sale. If so, Amazon will automatically raise the bid by up to 100% of the initial bid; otherwise Amazon will automatically decrease your bid resulting in fewer clicks on ads during poor conversion times.

 

3. Fixed bids

When using a fixed bids strategy, you set the bid price per keyword and Amazon doesn't change it. It's fixed.




Adjust Bids by Placement

"Adjust bids by placement" is an updated version of Bid+. With Bid+, you could only set a 50% boost for top of search (first page) placement. With "adjust bids by placement", you can set the maximum increase(up to 900%) for top of search (first page) as well as for product pages placements.





Let's say your bid is set at $2.00, "Adjust Bids by Placement" allows you to enter up to a 900% increase, which is $20, to your base bid for two placements: top of search (first page) and product pages. 





When Adjust Bids by Placement Meets Dynamic Bidding

Additionally, "adjust bids by placement" works in conjunction with "dynamic bidding" as well.

Let's assume you are bidding $2.00 for the keyword "mug" and you have a 80% bid adjustment for top of search (first page) with a 50% bid adjustment for product pages. Your spend may look something like this:


Top of Search

Product Pages

Rest of Search

Down only

$0-$3.60

$0-$3.00

$0-$2.00

Up and down

$0-$7.20

$0-$4.50

$0-$3.00

Fixed bids

$3.60

$3.00

$2.00

 

Tips & Tricks

>> The new Sponsored Products bid features are all based on the data that Amazon has collected. A new campaign without historical data is less accurate for Amazon to decide whether an ad is more or less likely to convert. That's why you need to test them on existing campaigns first!

 

>> Although Amazon's new bidding strategy can help us auto-adjust the bids based on real-time PPC performance, there is no way for us to see the specific bidding changes. Amazon won't tell you the exact bidding price and the percentage change of price adjustment, and you can only evaluate the PPC performance based on its outcome. You still need to be patient enough to test, tweak and iterate to find out for sure what parameters work for your products.

 

SellerMotor's R&D team has been analyzing tens of thousands of successful Amazon Advertising campaigns. In future post, we will share with you more tactics and insights on bidding as we gather more data. 



1. Dynamic bidding – Down only

When "down only" is selected, Amazon will lower your bid in any auction where your ad is less likely to convert, until the ad performs better or reaches minimum bid, $0.02.

 

2. Dynamic bidding – Up and down

When "up and down" is selected, Amazon will decide in real-time whether or not a click is likely to convert into a sale. If so, Amazon will automatically raise the bid by up to 100% of the initial bid; otherwise Amazon will automatically decrease your bid resulting in fewer clicks on ads during poor conversion times.

 

3. Fixed bids

When using a fixed bids strategy, you set the bid price per keyword and Amazon doesn't change it. It's fixed.




Adjust Bids by Placement

"Adjust bids by placement" is an updated version of Bid+. With Bid+, you could only set a 50% boost for top of search (first page) placement. With "adjust bids by placement", you can set the maximum increase(up to 900%) for top of search (first page) as well as for product pages placements.





Let's say your bid is set at $2.00, "Adjust Bids by Placement" allows you to enter up to a 900% increase, which is $20, to your base bid for two placements: top of search (first page) and product pages. 





When Adjust Bids by Placement Meets Dynamic Bidding

Additionally, "adjust bids by placement" works in conjunction with "dynamic bidding" as well.

Let's assume you are bidding $2.00 for the keyword "mug" and you have a 80% bid adjustment for top of search (first page) with a 50% bid adjustment for product pages. Your spend may look something like this:


Top of Search

Product Pages

Rest of Search

Down only

$0-$3.60

$0-$3.00

$0-$2.00

Up and down

$0-$7.20

$0-$4.50

$0-$3.00

Fixed bids

$3.60

$3.00

$2.00

 

Tips & Tricks

>> The new Sponsored Products bid features are all based on the data that Amazon has collected. A new campaign without historical data is less accurate for Amazon to decide whether an ad is more or less likely to convert. That's why you need to test them on existing campaigns first!

 

>> Although Amazon's new bidding strategy can help us auto-adjust the bids based on real-time PPC performance, there is no way for us to see the specific bidding changes. Amazon won't tell you the exact bidding price and the percentage change of price adjustment, and you can only evaluate the PPC performance based on its outcome. You still need to be patient enough to test, tweak and iterate to find out for sure what parameters work for your products.

 

SellerMotor's R&D team has been analyzing tens of thousands of successful Amazon Advertising campaigns. In future post, we will share with you more tactics and insights on bidding as we gather more data. 



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