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Give More Power to Your Campaigns with these Amazon PPC Bidding Strategies



Did you know that the right bidding strategy can save you money and improve the performance of your Amazon PPC campaigns? Combining a winning bid strategy with proper keyword targeting, worthwhile sales history, and the knowledge of the best placement of PPC are together responsible for the success of an ad campaign. But this is not the end. Continuous monitoring (for Sponsored Products campaigns) is key to grabbing every opportunity to convert and not overspending the budget.

You have work cut out to understand the bidding options Amazon provides you and how to take advantage of them. Or you can <book a free consulting call> with BIE today and let the experts take charge.

What are the Different Types of Amazon PPC Bidding Strategies?

At the end of 2020, Amazon introduced two new bidding features:

  1. Campaign Bidding Strategies: Allow sellers and advertisers to adjust and set bidding based on relevancy via the Amazon algorithm.
  2. Adjust Bids by Placement: Allow sellers and advertisers to fine-tune and set bidding based on your ads’ placement.

Dynamic Bidding Strategy

Also known as the Amazon PPC Campaign Bidding Strategy, this allows you to optimize bids based on relevancy. Out of the 3 bid options available, two of them are dynamic.

Dynamic bids – down only: Your bids will be decreased by a maximum of 100% when it is likely to lose the auction. You take historical campaign data into account for this.

Dynamic bids – up and down: Amazon will raise or lower your bid(max by 100% in each case), depending on the competitors’ bids and your higher possibility of winning.

Then there’s the third one:

Fixed Bids: With these, Amazon will not alter bids on the likelihood of them converting. It will utilize the exact bid you have set and any other manual adjustments you make.


Amazon Bids by Placement:


To understand this Amazon PPC Bidding Strategy, one needs to know what placements are. Placements are the different areas where ads get displayed across Amazon search pages. Adjust Bids by Placement allows you to increase your bids further depending on the placement. It offers three settings: Product pages, Rest of Search, and Top of search(page one).

  • Product Pages: This means the sponsored products are seen on the Amazon product details page and any other placements outside the SERPs, for example, on the add-to-cart page.
  • Rest of Search: This includes all the other placements in the Amazon SERPs that come after ‘Top of Search.’
  • Top of Search( page one): Sponsored product ads are viewed on the top row on the first page of SERPs.

For the Top of Search and Product Page placement auctions, you can increase the bid by up to 900%.

Can Dynamic Bid and Placement Bid Work in Tandem?

Amazon is very transparent about how it will calculate the bid if both strategies are in play. The adjusted bids by placement get calculated before the dynamic bid strategy.






What Should be the Amazon PPC Bidding Strategy for New Campaigns?

It is ideal to choose the “Dynamic Bid – down only” campaign bidding strategy while keeping all your placement adjustments at 0% on both the Top of Search and Product Page options. 

Why do this? You have set up a new campaign or probably have a new product launch. So, you lack any background data. To test your campaign against your ads/keywords combinations economically, Amazon’s data is the next best thing. It will decide the relevance of keywords/targets you will bid for.

How does this help? You now understand which keywords are converting and which placement is performing well. Then, you can set the Amazon PPC bidding strategy to the “Dynamic Bid – up and down” option. 

Final Thoughts

Amazon’s PPC advertising ecosystem can be like entering a maze. Running successful PPC campaigns can be challenging for any Amazon seller, whatever the size of their business. But it is only natural to adapt to the ever-evolving nature of the e-commerce platform and adopt the new Amazon advertising features rolling out as soon as possible. To energize your PPC furthermore, take expert assistance from BIE PPC specialists who can manage A-Z aspects of your campaigns and connect with your ideal consumers.

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