As a global e-commerce giant, Amazon’s advertising platform is also constantly evolving, providing sellers with more types of bidding strategies to optimize advertising effects. Among them, the automatic advertising bidding strategy has become the focus of sellers. In the advertising of Amazon in the United States, the automatic advertising bidding strategy is mainly divided into two types: dynamic bidding and fixed bidding, which have their own advantages in different situations.
1. Dynamic bidding-only lowering.
Dynamic bidding is Amazon’s default bidding method. Its core idea is to reduce advertising bids in real time based on big data analysis and product conversion rate. This strategy is suitable for situations where new products have just been released or there are few orders. For example, if the bid defaults to $1, Amazon may adjust the bid to $0.8, $0.5 or even $0.2 based on past performance to improve advertising effectiveness.
However, the actual effect is not always as expected. Although this method seems to save budget on the surface, experienced sellers find that its effect is not satisfactory. Since Amazon does not disclose the details of its A9 algorithm, many operations are obtained through actual testing. Therefore, this strategy may not be the best choice in some cases.
Suitable for delivery:
Suitable for new product launches or when there are fewer orders, to establish initial exposure and visibility.
Second, dynamic bidding – increase or decrease.
Unlike “dynamic bidding – only decrease”, the “dynamic bidding – increase or decrease” strategy increases bids on clicks that are more likely to be converted into sales, and decreases bids on clicks that are less likely to be converted into sales. This strategy is more detailed and can achieve different degrees of bid adjustments in different ad placements.
For example, if the bid defaults to $1, Amazon believes that a certain ad is more likely to be converted into sales, and the system may increase the bid to $1.4. On the contrary, for ads with lower likelihood, the bid can be reduced to as low as $0.2. In addition, for the top ads on the first page of search results, the system allows bids to be increased by no more than 100%, while the increase in other positions is limited.
According to actual test results, compared with “dynamic bidding – only decrease”, the “dynamic bidding – increase or decrease” strategy is more effective in improving ad conversion rates. Because the advertising position on the first three pages can greatly improve the order conversion rate, the return on investment brought by the increase in bidding is more obvious.
Suitable for delivery:
Suitable for situations where the advertising delivery time is long and the order volume is large, especially the scenario with a large number of orders per week.
3. Fixed bidding.
The fixed bidding strategy is different from the previous two. It does not adjust based on the conversion rate, but directly uses the set fixed bidding. This strategy can get more exposure in advertising, but the uncertainty of the conversion rate is also large.
Actual results show that when the bid is set high and the ad ranking is high, the fixed bidding strategy can usually maintain a good conversion rate. Therefore, when the conversion rate performs well, the use of fixed bidding can increase the exposure to a certain extent and better control the cost.
Suitable for delivery:
Suitable for situations with good conversion rates. The goal at this time is to increase the exposure of the advertisement to further enhance the product awareness.
Summary:
The choice of Amazon’s automatic advertising bidding strategy in the United States should be based on specific circumstances. In the dynamic bidding strategy, the choice of “only lower” or “increase or lower” depends on the actual effect, which depends on the advertising time and the number of orders. The fixed bidding strategy is suitable for situations with good conversion rates and aims to increase the exposure of advertisements. When formulating a bidding strategy, sellers should consider various factors based on product characteristics and delivery goals to achieve the best advertising effect.