Amazon PPC Bidding Strategies: Everything You Need to Know

Amazon PPC Bidding Strategies: Everything You Need to Know

The management of your Amazon PPC campaigns can be difficult work. With the many ads available and the various settings available, it can become difficult to keep track of.

To top it all off, there are the other things that go along with Amazon FBA, sellers have plenty of work to do.

One of the biggest problems for newbies who begin the Amazon PPC campaigns is out-of-control spending.

To prevent this and allocate your money in a wise way to avoid this, you'll need an effective campaign bid strategy.

Automatic vs. Manual Campaigns Before we move on to bid strategies, it will be helpful to understand the crucial distinction between automatic vs manual Amazon PPC campaigns. With the auto campaign setting, Amazon will target keywords and similar products to your ads. Manual campaigns require you to be responsible for: 1. Picking the right keywords/products to place a bid on

2. Match Type on the related keyword 3. Bid on the keyword.

The standard for making the decision to go with manual or auto campaigns is to consider your current cycle of product launches.

The earlier you start the launch period, the more you should make use of automated campaigns to help you discover your product.

At the end of the launch of your product It is recommended that you start conducting more manual campaigns since you know precisely what keywords and ASIN will work for your product.

It is not necessary to stop your auto-program. However, you'll want to spend more on your manual campaigns as your ASIN gets more mature.

Campaign Bidding Strategy The strategy of bidding for campaigns dictates the level of strategic vigor you would like your bidding on your campaign to be.

There are three choices. Each one determines the level in bid aggressiveness.

1. Dynamic Bid - Up and Down 2. Fix Bid 3. Dynamic Bid - Down Only

Dynamic Bid – Up and Down This option for campaign bidding is most likely to be one of the most aggressive of three. It allows Amazon the ability to alter the effective bids by 100 percent or down 10 percent.

In this case, for example the bid you place on keywords is $2.00. In this scenario, Amazon can automatically up the bid you make the maximum of $4.00 when they believe that a sale conversion is likely.

However they may also lower the auction price to $0.00 If they believe that the chance of a sales conversion is not high.

Be aware that 100% increases and decreases is the maximum. In the majority of cases the bid won't be raised to the maximum of $4 or reduced to the minimum amount of $0. The bid for auctions will probably be somewhere in between.

Make use of this strategy only If you're satisfied with the whole budget that you have made for this campaign and you're bidding on keywords that you feel confident about.

Fixed Bid The name implies that Amazon will apply the exact bid you have made and any manual adjustments you make as part of the fix bid technique. It will not alter your bids according to the likelihood of the sale.

Make use of this method to optimize your campaign by updating your bids regularly. You know precisely what you're doing and you don't wish for Amazon to alter your bids.

Dynamic Bid – Down Only This strategy for bidding on campaign is most likely the most ineffective among the options.

It grants Amazon the flexibility to adjust the effectiveness of your bids. Amazon can modify your bid downwards up to 100percent .

As an example, the bid for a keyword would be $2.00. In this scenario, Amazon can automatically lower the bid to $0 if they believe that the likelihood of a sale conversion is very low.

This strategy is recommended if you are looking to be cautious and restrict your exposure to auctions with a slim chance of selling.

Select the Right Campaign Bidding Strategy for Your Objective The various strategies used in bidding campaigns will be able to meet different strategic goals.

Therefore, before you create your campaign, you should think strategically about your goals.

For instance the growth-related strategies you employ, such as you want to increase the sales of your business or get a higher rank on a particular keyword by using the Dynamic Bid Strategies of Up and Down would be the bid setting to apply.

However when your aim is to maximize your campaign, you can either fix the bid, or use Dynamic Bid down is the only bid settings you should use.