Amazon Ads Bidding Strategies – All you need to know

Some basic bidding tips for Amazon ads, is to bid higher by more restrictive match type – as well keyword type (category vs brand keyword)

Sponsored Brands Ad Type - Bidding Strategy

Sponsored Brands provides an option for automated bidding which optimize your advertising cost of sales (ACOS) across placements automatically. Automated bidding will never increase your bid but can lower bids for other placements below top of search. 

Instead of automated bidding, it is possible to set a custom bid adjustment to decrease or increase your bid across placements. This adjustment will be set for placements below top of search. For example, a 40% decrease on a $5.00 bid will become $3.00 for placements below top of search.

A bidding strategy is to set your bids for automatic campaigns at £0.50. Then, for broad match and brand keywords, increase bids by 40 to 50 percent higher than the automatic campaign bid— £1.00.

For phrase match and category keywords, which are even more specific, you could set the bids approximately 20 to 25 percent higher than for your broad/brand keywords, or  £1.25..

Then for exact match— set bids approximately 25 to 35 percent higher than for your phrase/category keywords, or £1.50.

Sponsored Products Strategies

Many bidding strategies and targeting options are unique to Sponsored Products, for example dynamic bids, automatic targeting and product targeting. Sponsored Products provide both automatic and manual targeting methods – run both to maximize reach. Maximize reach by running both types of campaigns. 

Automatic matches relevant search terms to your products. We recommend bidding higher on the manual campaign, and using automatic campaigns to discover new keywords. You can use Search Terms report to identify keywords from the automatic campaign to enter into the manual campaign.

Keyword or Product Targeting?

Sponsored Products can target by keyword, ASIN, or category. Product targeting and keyword targeting can be used at the same time for maximum search and detail page coverage. 

Keyword and product targeting can be used in the same campaign, but not within a single ad group. Vendors can only use one targeting type per campaign.

Unlike other PPC systems such as Google Ads, you don’t bid against yourself and drive up cost per click when using product and keyword targeting at the same time, within the same campaign.

Sponsored Products bidding features

When using product targeting, its best to start with the suggested bid amount provided in the campaign builder. After campaigns have gathered enough performance data, review then adjust your bids and budget accordingly.

Sponsored Products campaigns has three bidding strategies to provide flexibility based on your campaign’s objective. This setting that is selected that applies to all bids within your campaign. 

Dynamic Bids: Down Only

Dynamic Bids may decrease bids up to 100% in real time when it is deemed less likely to convert into sales.

Dynamic Bids: Up & Down

Adjusts  bids in real time (by a maximum of 100%) when your ad may be more likely to convert to a sale, and lower your bids when less likely to convert to a sale.

Fixed Bids

Unlike dynamic bids, your exact bid is used. This will result in more impressions, but may be less fewer conversions for your budget.

Adjust Bids by Placement

In addition to selecting a bidding strategy (dynamic or fixed bids), you can also set different bids by placement. You can manually adjust bids by placement to increase visibility/ impressions for a specific placement.

A 900% bid increase of your base bid can be made for two placements: top of search (first page) and product pages. Your base bid will apply to “rest of search”. 

Understanding placements

Placements are where your ads appear on Amazon. Bids can be adjusted by three placement groups: top of search (first page), rest of search, and product pages View performance of your Sponsored Products before making the appropriate adjustments. 

  • The top of search (first page) is  top row on the first page of search results. ( using Sponsored Products). 
  • Rest of search is the middle or at the bottom of search results, and all  second page of search results and beyond. (For Sponsored Products).
  • Product pages are placements on the product details page, and certain other placements off search results like the add-to-cart page. (For Sponsored Products). 

Summary

Amazon Ads offer a range of bidding strategies that can be used achieve your advertising objectives. You can bid by keyword, as well as product ASIN or category. You can also bid by placement. You can use a range of manual or automatic bidding. When new to advertising, or promoting a new range of products using automatic bidding is the best option. You can also test manual bidding versus automatic bidding to ensure you are getting the best possible results.

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