Detailed explanation and optimization of US Amazon PPC advertising bidding strategy
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. This article will combine PPC advertising budget settings and bidding strategies to deeply explore how to set reasonable keyword bidding to help sellers make better use of the Amazon advertising platform.
Budget settings for PPC advertising
When you create a campaign, in addition to naming the campaign, you also need to set a daily budget. The daily budget is the average daily amount a seller is willing to spend on each ad campaign. On the campaign management platform, sellers can change their daily budget at any time. Although a daily budget is set, Amazon calculates the total budget on a monthly basis. When setting a budget, you need to determine the budget based on the number of products to be promoted to ensure that the daily budget can meet the promotion of all products in the advertising campaign. The specific calculation depends on the quantity of the ad product served and the default bid of the check ad.
In order to maximize advertising profits and minimize losses, you should also develop a set of effective budget rules through the “Add Budget Rules” function in the background. Rules include increasing budgets during high-traffic times or specific date ranges, and automatically adjusting budgets based on actual sales.
Dynamic bidding strategy
Dynamic bidding—lower only
Dynamic bidding is Amazon’s default bidding method, which reduces advertising bids in real time based on big data analysis and product conversion rates. Suitable for new product launches or when there are few orders to build initial exposure and awareness. Use this mode to avoid unnecessary advertising spending when there is no historical sales data to support it.
Dynamic bidding—increase or decrease
Unlike the “lower only” model, the “raise or lower” strategy bids higher on clicks that are more likely to convert to sales and bids lower on clicks that are less likely to convert to sales. It is suitable for situations where the advertising time is long and the order volume is large. In this mode, the system allows the bid to be increased by no more than 100% to obtain a position at the top of the first page of search results. According to actual tests, this strategy is more effective in improving advertising conversion rates.
Fixed bidding strategy
Fixed bidding does not rely on conversion rate adjustments, but uses a set fixed bid. Suitable for situations with good conversion rates and aimed at increasing ad exposure. When the bid is set high and the ad is ranked high, a fixed bid strategy can usually maintain a good conversion rate.
Adjust bids based on ad slots
This feature allows sellers to focus all of their advertising budget and exposure on specific locations based on their needs. For example, if a product performs better on the first page of search results, you should focus your budget there. This function can be combined with the aforementioned bidding strategies to form an effective combination.
In short, the choice of Amazon’s automatic advertising bidding strategy in the United States should be based on specific circumstances. In the dynamic bidding strategy, “lower only” or “raise or lower” depends on the ad delivery time and order quantity; while fixed bidding is suitable for situations where the conversion rate is good. When formulating bidding strategies, sellers should comprehensively consider product features and delivery goals to achieve the best advertising effect.
By setting budgets appropriately, choosing appropriate bidding strategies, and adjusting ad placements, sellers can achieve better marketing results on the Amazon advertising platform.