What are the Amazon precision advertising bidding techniques? What are the practical strategies?

According to what we know, there are two types of bidding strategies for Amazon advertising campaigns: dynamic bidding and fixed bidding. Regardless of which method is used, merchants need to understand it. The following content will share some bidding tips with you.

What are the Amazon precision advertising bidding techniques?

1. Ignoring Optimized Bidding

If sellers want to gain benefits from bidding, they must optimize their bids. Many sellers ignore optimizing their bids and keep all ad bids the same without changing the bids.

2. Setting bids by guesswork

When setting advertising bids, some sellers make bids based on their feelings, thinking that their sixth sense is very accurate. However, advertising bidding is not metaphysics and needs to be supported by data.

3. Bidding recklessly

Bidding recklessly can cause your ads to cost too much. Just like guessing, bidding recklessly can hurt your ads’ performance. Don’t make drastic changes to your bids without evidence, unless you have sufficient data.

4. Excessive pursuit of low ACOS When new sellers discuss the advertising goals they want to achieve, low ACOS is one of the goals. Although ACOS of 1% looks good, you must have a lot of advertising budget left, so sellers should not be stingy with their bids.

What are the practical strategies for Amazon advertising bidding?

1. Bid based on historical records

Data can help sellers succeed. All sellers have to do is find the perfect CPC (cost per click) by calculating the revenue per click. Calculate the total x amount earned by the keyword and then divide it by the total number of clicks on the keyword to calculate the revenue per click.

Calculate the revenue per click for the past 30 days, 60 days, and 90 days, understand the seasonal factors that affect the revenue per click, and the long-term effectiveness of keywords. After calculating the revenue per click, divide it by the target ACOS. The result is CPC, which is your bid.

Here’s a simple trick: divide your target ACOS by your current ACOS, then multiply that ratio by your current CPC to get a CPC that meets your metrics.

2. Set expected conversion rates

If there is no relevant advertising data for a product, the seller cannot calculate the bid based on historical records. However, the seller can set an expected conversion rate.

1) Expected conversion rate

2) Price of X

3) Target AcOS The expected conversion rate is how many clicks are needed to convert X. Amazon's average conversion rate is around 10%, so sellers can use 10% as your expected conversion rate.

Price X is the product price, and Target ACOS is the seller’s ideal advertising cost.

Amazon advertising is very important for sellers, and it is one of the important ways to increase exposure and sales. Therefore, Amazon merchants must pay attention to bidding skills in this regard. After mastering these skills, how can they help increase sales?

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