Making products seen and selling at a profit on Amazon is made easier with PPC (pay-per-click) advertising. Amazon sellers end up losing money on ads a lot of the time because they do not adjust their bids correctly. The higher the bid, the more money spent on ads. Though, bids that are too low will result in low sales and poor visibility. A bidding strategy that is smart will help you with cost and performance optimization. This strategy will also enable you to adjust bids according to data. This approach will improve your CTR, improve your ACoS, and increase your margins and overall profitability.
This article describes the best bid adjustment strategies of Amazon PPC and gives you some tactics on bid adjustment to improve the results of your campaigns.
Why Smart Bid Adjustments Matter?
Only increasing every bid is not the focus for smart bid adjustments. The focus is to channel the budget to the bids that will provide results and reduce the budget for bids that will not.
Smart bid adjustments will :
- Decrease ACoS
- Increase ROAS
- Increase the number of conversions
- Decrease ad spend
- Increase the use of budget
Amazon Dynamic Bidding: Choosing the Right Strategy
The selection of the appropriate bidding strategy is one of the most essential parts in the optimization of Amazon PPC. There are a number of dynamic bidding strategies that Amazon provides sellers and that will automatically adjust bids based on the likelihood of conversion. Amazon provides sellers these three bidding strategies in the Sponsored Products section.
Proven Ways to Maximize Visibility, Lower ACoS, Increase Sales, and Improve Profit Margins
The most important thing to know about bid adjustments in Amazon PPC Campaigns is that instead of fixed bids, sellers will consider the data from their campaigns as well as the customer, competitive, and profitability factors and dynamically adjust their keyword bids. This results in ad spend efficiency, visibility and traffic for the product, and, ultimately, significantly more profit from ad spend.
1: Bid Adjustments: Increase Bids on Keywords with Sales
There is a strong relationship between ad spend and sales position. In order for sales ads to appear in a specific position, bids must be increased. Therefore, in order for sales ads to appear in a specific position, bids must be increased for that sales keyword.
These factors must be considered:
– Keywords that Convert to Sales
– Products that are High in Sales Volume
– Exact Match Keywords
– Keyword’s ROAS
– Sales Keywords
2: Smart Bid Adjustments: Decrease Bids for Keywords with No Sales
Some keywords that are bid upon will not generate sales. Bid for these keywords must be restricted. The restricted spend for these keywords must be shifted to profitable campaigns.
Look for these indicators for overall poor performance:
– High CPC and low sales
– Low conversion rate
– High ACoS
– Low engagement
3. Use Smart Bid Adjustments to Raise Bids
There is no better way to achieve top placement in Amazon advertising than to have customers click on your ads. There are many placement options for your ads, but not all placements will result in ads achieving their sales potential.
Give priority to placements such as:
– Top of Search
– Product Detail Pages
– Sponsored Products
– Other effective placements
4. Increase Bids during Peak Customer Demand
Throughout the year, customers engage in various buying behaviors. To maximize your product visibility during these peak buying times, raise your bids during peak buying times.
Consider increasing bids for:
– Prime Day
– Black Friday
– Cyber Monday
– Christmas
– New Product Launches
– Seasonal Sales
5. Adjust Bids Based on Search Term Reports
Bids can be adjusted based on the information in the Search Term Reports. Search Term Reports show what searches customers perform that lead to purchases. Increase bids for searches that convert, and eliminate the spend on searches that are traffic with no conversions.
Look for:
– Searches with conversions
– New keywords
– Negative keywords
– High CTR searches
– Low ACoS searches
6. Invest More in High Performing Campaigns
It is understood that not all ads will perform equally. Spend more budget in campaigns that are bringing in sales. Spend less budget in campaigns that are not bringing in sales.
Identify the campaigns that show the following characteristics:
– Lower Advertising Cost of Sale
– Higher Return on Advertising Spend
– High Conversion Rates
– Regular Sales
– High Profits
7. Continue to Watch the Results and Make Adjustments
Amazon Pay Per Click campaigns will always require additional work. Review campaigns regularly, and if the campaign is performing well, adjust the bids. Always look to Pay Per Click campaigns for optimum margin performance.
Review the following analytics:
– Impressions
– Click Through Rate
– Cost Per Click
– Conversion Rate
– Advertising Cost of Sale
– Return on Advertising Spend
Best ways to Choose the Right Bid Strategy for Every Keyword
Bidding per keyword strategy is essential. Each keyword possesses unique competition levels, search volumes, and buyer intent. Having the same bid across the board for each keyword is much more likely to hurt the performance of the campaign and is in general a waste of an advertising budget. Strategic bidding improves visibility and conversion, reduces Advertising Cost of Sale, and enhances Return on Advertising Spend.
How to Set Bids for Different Keyword Match Types?
Different Match Types reach shoppers in different ways. Setting the right bid for each Match Type will control your ad spend and optimize your overall campaign for better outcomes in your Amazon PPC.
I. Higher Bids for Exact Match
Exact Match will only target shoppers who search for that exact keyword, making this match type the safest and best choice for keywords that are already working.
Ideal for:
- products that sell the most
- keywords that convert the most
- adding the best sales
II. Medium Bids for Phrase Match
Phrase Match will get you in front of shoppers using similar search phrases. Phrase Match will allow you to keep your ad relevant.
Best for:
- keyword reach
- search term discovery
- traffic that converts
III. Lower Bids for Broad Match
Broad Match will, well, match a lot of phrases which will target a lot of shoppers. Because of this, Broad Match likely won’t convert a lot, so the lower bid will cover the keyword spend.
Useful for:
- new keyword discovery
- broad reach
- search behavior tests
Conclusion
Intelligent decisions based around bids not the advertising budget are a better way to guarantee success in Amazon PPC campaigns. After evaluating the performance of your campaigns, bids around data, and a focus on keywords that generate the most revenue, profitability, and sales will most appreciate. Sellers are also able to improve mid to long-term sales and profitability around the Amazon platform using the most appropriate bidding tactics. An established brand or a new product on the platform, bid adjustments that are well thought out will most guarantee appropriate returns on PPC campaigns.
