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- Careful with Dynamic Bids - Up and down
Dynamic bids are a great way to adjust bids for placements in real-time.
Recently, we also shared a case study on how, using dynamic bid settings, particularly up and down, we achieved $1.3k in additional PPC revenue within 2 weeks, with a 10% lower ACOS.
By leveraging dynamic bidding, we were able to allocate higher Ad spend to the top-of-search placement, which offers a higher return on investment.
Find out what’s wrong with your Amazon Ads. Book a PPC Audit.
However, it’s important to note that the "up and down" setting operates differently from other bid types - "fixed" and "down only." With "up and down," Amazon can increase your bid by up to 100%, in addition to the premium percentage you define.
So, one needs to be careful while setting up the percentage increase, as Amazon would simply double it by adding 100% on top.
For instance, if your bid is initially set at $1 with a 5% up and down adjustment, your bid would increase to $1.05. It can then become $2.10 for top-of-search placement, with the 100% increase.
Consequently, if you have a high base bid and apply dynamic bids with the "up and down" option, it has the potential to multiply to a higher level.
Considering that we can increase the percentage adjustment up to 900%, the same $1 bid could reach $20 for TOS and $15 for other placements.
Also, note that it's based on machine learning algorithms. Therefore, in case of a high increase on a new campaign with not enough data, Amazon would be making early decisions, causing high Ad spend as well as wasted Ad spend.
To avoid this negative impact, it’s crucial to:
1. calculate and be aware of the maximum increase in the bids before making adjustments,
2. adjust your Keyword bids accordingly
3. monitor performance regularly, and
4. use it on campaigns with relevant targeting, and more controlled match types such as exact and phrase. Performance tends to fluctuate with broad match campaigns (worsens with no active negative targeting)
It’s better to make small changes, monitor performance changes and keep adding as long as the performance goes well.
Being more informed about dynamic bidding will help you utilize them more effectively to increase your Ad revenue, and returns on Ad spend.
You can read more about the case study here.
Other learnings:
Upgrade your product detail page with A+ Content and MYE. Amazon claims that optimized A+ premium may boost your sales by 20%, and Manage your Experiments (MYE) by 25%.[Read more].
Amazon is utilizing AI technology for similar and substitute products. We recently observed parts of the Product's main image tagging other similar & substitute products with a White Circle Icon. [Read more].
An easy way to increase your Amazon Ad sales. It’s by ensuring that your performing campaigns are not going Out of Budget. There are 3 simple steps to identify these campaigns.[Read more].
Vendor Central now includes the Top Search Terms dashboard. You can now see click share and conversion share on organic search terms. [Read more].
Thanks,
George
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