What are the three Amazon ad bidding strategies? How to calculate?

Many friends on Amazon will also try to promote. Amazon's ads are actually very easy to place, and the results should be very good, but you need to pay. What are Amazon's three advertising bidding strategies?

What are the three Amazon advertising bidding strategies?

1. Many sellers know that there are three different bidding strategies in product promotion and display promotion: dynamic bidding - only lowering, dynamic bidding - raising and lowering, and dynamic bidding - fixed bid.

2. Dynamic bidding - fixed bid: Amazon's artificial intelligence system does not interfere with the bidding. Dynamic bidding - both lowering and raising the bid will automatically lower or raise the bid after Amazon makes a judgment based on the potential conversion rate of the ad in the future. The advantage of Amazon's bidding strategy is that Amazon's artificial intelligence can adjust the bidding of the ad automatically, saving time and energy; the disadvantage is that it is impossible to control the bidding details, just like a huge "black box".

Therefore, we recommend that Amazon sellers use fixed bidding and timed price adjustment to flexibly manage bidding and optimize bidding strategies. Also, remember to set the bid ratio to increase exposure opportunities on the homepage and product ad positions. The maximum ratio adjustment can reach 900%.

3. Amazon advertising bidding strategy - how to calculate the best bid?

In short, Amazon advertising bidding strategy can be calculated using the following simplified formula (adjustments can be made accordingly in practice):

Best bid = Highest CPC = Average ad order value x conversion rate x target ACOS

The conversion rate here can be used as a reference based on the average of historical data. After setting the target ACOS in stages, you can use this formula to compare the approximate bidding.

Amazon advertising bidding strategy - advertising promotion should have its own rhythm

For Amazon advertising, it is not the case that simply grabbing high-ranking ads will achieve the best results. On-site promotion does not necessarily need to appear on the homepage. Sellers should arrange it according to their own sales and promotion strategies and rhythm. It is recommended that sellers first pay attention to the overall effect of the advertisement, such as click-through rate, conversion rate and ACOS. If the overall effect is good, there is no need for additional operations to display the advertisement on the homepage.

Everyone should know about Amazon's three advertising pricing strategies. After learning them, you will know how to calculate the cost of your own advertising promotion. Therefore, bidding is actually very important for everyone!

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