How and When to Use the Different Amazon Ads Bidding Strategies

When it comes to the various kinds of campaigns at the moment accessible in Amazon Ads, Sponsored Product ads are nearly at all times the place the bulk of ad-generated gross sales come from. Sponsored Product adverts even have extra methods to customise and optimize a marketing campaign and the way it spends. A Sponsored Product advert marketing campaign can goal key phrases, classes, different manufacturers, and ASINs, relying in your present enterprise targets.

The varieties of bidding methods at the moment accessible for Sponsored Products are dynamic bids – down solely, dynamic bids – up and down, fastened bids, and rule-based bidding. We’ll take you thru what every one means, when, and why to use them. For a proof of bids and different pay-per-click/PPC phrases, take a look at this handy guide from JumpFly’s Erin Taylor.

For Sponsored Product adverts, you’re bidding in your merchandise to seem at the high of buyer search outcomes, the remainder of search, and on product detail pages.

Dynamic Bids Versus Fixed Bids

Fixed bids are precisely what they sound like – you’ll set the bid quantity you’re keen to ppc, and Amazon Ads won’t change your bid in any route. Dynamic bids, on the different hand, permit Amazon’s system to change your bid quantity, up or down, so as to win a bid public sale the place the system has decided you’ve a greater likelihood of changing.

Importantly, it’s doable to change your bidding technique in every advert marketing campaign as what you are promoting and advertising and marketing targets change, and your adverts mature.

Fixed Bids

The fastened bidding technique is nice if one in all what you are promoting targets is to acquire impressions and not essentially conversions or gross sales. Some advertisers see this as a method to management spend. After all, Amazon can not modify your bid to win an public sale. However, because of this in case your key phrases or advert targets are spending inefficiently or by no means, you’ll need to go in and change your bids manually each time it’s mandatory. 

In this regard, the fastened bidding technique is actually a technique to management spend, however it’s a method that should be consistently managed and will not be meant for gaining conversions and gross sales. Fixed bids are extra applicable when your model or product is new on Amazon and you need to acquire impressions and collect search knowledge. It will not be the solely bidding technique used for brand new model or product launches. We advocate utilizing the dynamic bids – down solely technique as an alternative. A set bid is extra seemingly to overpay for a click on because it can not change in response to reside auctions.

If you select to use a set bidding technique for brand new campaigns, we advocate revisiting the campaigns after two weeks. At this level, the marketing campaign can have generated sufficient latest knowledge to analyze and acquire insights. You can then change to a dynamic bidding technique, which is extra applicable for a newly matured marketing campaign.

Dynamic Bids – Down Only

The dynamic bids – down solely technique is useful for brand new and mature campaigns. With this technique enabled, Amazon will lower your bid quantity in the event that they decide that your advert is serving on a buyer search question that’s much less seemingly to convert to a web page view or a sale. Amazon won’t enhance your bid.

This is the bidding technique we advocate when what you are promoting and advertising and marketing targets are to management or protect your advert spend, enhance effectivity on advert spend, and give attention to advert profitability. Before Amazon introduced different bidding strategies, adverts, by default, used the down solely methodology. If you’ve Sponsored Product campaigns in your Amazon Advertising account that had been created earlier than 2019, the bidding technique in your marketing campaign settings will present as “down solely” except you alter it.

Dynamic bids – down solely is an effective way to management your spend and give attention to profitability with out having to monitor and micro-manage your adverts consistently, as you’d have to with fastened bids. Amazon will modify your bids in real-time. The down solely technique will allow you to collect knowledge on new campaigns with much less threat of overspending on a bid.

Dynamic Bids – Up and Down

Using the dynamic bids – up and down technique permits Amazon to enhance or lower your bids when its system determines your advert is kind of seemingly to convert to a sale. If you’re involved that this bidding technique will trigger you to overspend, remember that Amazon won’t enhance your bids to greater than 100% of your set most bid for a top-of-search placement and not more than 50% for different placements. 

For instance, should you set your bid to $0.50 per click on, Amazon won’t enhance the bid by greater than $1.00 for a top-of-search placement. You can at all times change your bidding technique to down provided that, after not less than two weeks, you’ve determined that the advert will not be hitting the gross sales or effectivity targets you needed.

We don’t advocate utilizing this bid technique for brand new adverts. The up and down technique is greatest used on extra mature adverts which might be well-optimized and on merchandise the place you’re prepared to enhance your whole gross sales to kick Amazon’s flywheel into motion. 

The up and down dynamic bidding technique is efficient when your objective is to develop gross sales. The extra gross sales you get on Amazon, the larger your product itemizing will seem in search organically. 

It’s additionally essential to analyze how risky your bids have been, traditionally, in your class when selecting if this methodology is best for you.

Rule-Based Bidding

At this time of writing, rule-based bidding is the latest technique accessible in Amazon Ads. Since there are particular necessities for utilizing rule-based bidding on a marketing campaign, this isn’t a characteristic you should utilize on new adverts. Rule-based bidding can solely be used on campaigns which have run for not less than 30 days, with a minimal of 30 conversions throughout that point and not less than a $10 each day funds.

If you strive to choose rule-based bidding on a marketing campaign that doesn’t meet the above standards, Amazon will grey out this feature and not permit it to be chosen in your marketing campaign settings:

This technique is helpful for when you’ve a particular return on promoting (RoAS) objective in your model and sure merchandise. When your marketing campaign is eligible, you may both observe Amazon’s really useful RoAS guardrail, which can populate in the enter discipline, or you may set your individual:

The guardrail that Amazon recommends relies on campaigns which might be structured and carry out related to yours. If you set your individual goal or guardrail, we advocate selecting a guardrail above your common 30-day RoAS however no more than 20-25% at a time. This permits you to monitor spend and check gradual efficiency. You can change this guardrail at any time. Adding a RoAS objective larger than 20-25% of your 30-day common might lead to erratic spending.

The excellent news is that in case your advert doesn’t hit the set guardrail over a 21-day interval (not together with particular days like Black Friday/Cyber Monday or Prime Day), Amazon will disable the rule and will revert the advert to your earlier bidding technique. It is due to this fact essential to be aware whenever you enabled rule-based bidding so you may verify again in 21 days to see whether it is nonetheless energetic and in order for you to make modifications to the marketing campaign. You can at all times verify the History tab inside your marketing campaign to affirm when the change was applied and, in some instances, reverted.

All of those bidding methods, fastened bidding, dynamic bidding, and rule-based bidding, are at your disposal to attain your model and product targets. As the Amazon ecosystem expands and markets fluctuate, it will be important to commonly consider which methods make the most sense to implement to put and maintain your Amazon enterprise on the street to success.