Many sellers are confused by the high ad bids and low average order value, but we can solve this challenge through some practical strategies. Let’s take a deeper look at a case.
Case Analysis
Suppose a product has an average order value of $13, but the ad bid is high, with a recommended range of $1.28 to $2.53, and the product’s conversion rate is 10%.
Solution
1. Progressive bidding test
First, we can start with a lower bid, such as $0.45, and then gradually push the bid up until we get exposure. This ensures that we don’t over-invest.
2. Multiple matching method testing
Without relying on high-traffic keywords to increase traffic, we can take the following measures:
Test broad matching, precise matching, and product placement (ASIN): Multiple matching methods can expand the exposure of ads and attract more potential customers.
3. Test multiple campaigns per week
Test 3-5 campaigns per week, each campaign contains 15-25 long-tail keywords, and the budget for each campaign is controlled between 5-10 US dollars. This can effectively disperse the delivery, reduce costs and improve advertising effectiveness.
4. Control the proportion of big word spending
It is recommended to control the proportion of big word spending within 20% of the overall budget to ensure the effective use of funds. This can prevent over-investment in high-bid keywords and ignore other more cost-effective keywords.
Through the above strategies, we can better deal with the situation of high advertising bids and low customer unit prices, improve advertising delivery effects, and thus achieve better sales performance.