{"id":11763,"date":"2021-07-13T11:21:00","date_gmt":"2021-07-13T11:21:00","guid":{"rendered":"https:\/\/www.sellerlogic.com\/?p=11763"},"modified":"2025-03-18T10:44:53","modified_gmt":"2025-03-18T10:44:53","slug":"amazon-ppc-bid","status":"publish","type":"post","link":"https:\/\/www.sellerlogic.com\/en\/blog\/amazon-ppc-bid\/","title":{"rendered":"Structure your Amazon PPC Campaign Strategy for Maximum Sales"},"content":{"rendered":"\n

Amazon PPC Bidding Strategies Overview<\/h2>\n\n\n\n

Managing your Amazon PPC campaigns can be hard work. With all the different ad types available and settings to navigate it can be overwhelming. On top of everything else that goes with Amazon FBA, sellers have their hands full.<\/p>\n\n\n\n

One of the critical concerns for beginners that start their Amazon PPC campaigns is out-of-control spending. To combat this and spend your budget wisely, you will need a good campaign bid strategy.<\/p>\n\n\n\n

This article talks about your bid strategy before creating your campaign and when your campaign is active. <\/p>\n\n\n\n

Automatic vs. Manual Campaigns<\/h2>\n\n\n\n

Before we get into bid strategies, it would help to know the critical difference between automatic vs. manual amazon PPC campaigns. In the auto campaign setting, Amazon will target keywords and products similar to the product in your ads, while manual campaigns mean you are in charge of:<\/p>\n\n\n

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  1. Selecting the keywords\/product target to bid on<\/li>\n\n\n\n
  2. Match type on the corresponding keyword<\/li>\n\n\n\n
  3. Bid on the related keyword.<\/li>\n<\/ol>\n<\/div>\n\n\n

    The rule of thumb for selecting either auto or manual campaigns is based on your current product launch cycle. <\/p>\n\n\n\n

    The earlier the product launch cycle, the more you want to use automatic campaigns for discovery. In the later stage of your product launch cycle, you want to be running more manual campaigns as you know exactly what keywords and ASIN perform well with your product.<\/p>\n\n\n\n

    You do not need to pause your automatic campaign, but you want to allocate more spending into your manual campaigns graduate as your ASIN becomes more mature.<\/p>\n\n\n\n

    Campaign Bidding Strategy <\/h2>\n\n\n\n

    The campaign bidding strategy dictates how strategically aggressive you want your campaign bidding to be. There are three options. Each option dictates the level of bidding aggressiveness.<\/p>\n\n\n

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    \"Perfect<\/figure><\/div>\n\n\n

    The campaign bidding strategy options are (sort by bid aggressiveness, first the most):<\/p>\n\n\n

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    1. Dynamic Bid \u2013 Up and Down<\/li>\n\n\n\n
    2. Fix Bid<\/li>\n\n\n\n
    3. Dynamic Bid \u2013 Down Only<\/li>\n<\/ol>\n<\/div>\n\n\n

      Dynamic Bid \u2013 Up and Down<\/h3>\n\n\n\n

      This campaign bidding strategy option is probably the most aggressive of the three. It gives Amazon freedom to adjust your effective bids up +100% or down -100%. <\/p>\n\n\n\n

      For example, your bid for a keyword is $2.00. In this case, Amazon can automatically upbid your auction bid to up to $4.00 if they deem the likelihood of a sales conversion is likely. On the other hand, they can downbid your auction to $0.00 if they think the possibility of a sales conversion is low. <\/p>\n\n\n\n

      Keep in mind that the 100% increase and decrease are the maximum. In most cases, the bid will not be increased to the max of $4 or decreased to the min of $0. The auction bid will likely fall somewhere in between.<\/p>\n\n\n\n

      Using Dynamic Bid \u2013 Up and Down<\/em> strategy is also why sometimes there is a variance between your bid and your CPC (cost per click), because it allows Amazon to change up the bid you set. <\/p>\n\n\n\n

      Use this strategy if you are comfortable using the entire budget you set for this campaign, and also, you are bidding on keywords in which you have confidence in<\/em>.<\/p>\n\n\n\n

      Another fact to note for this strategy is that you only use Dynamic Bid \u2013 Up and Down<\/em> strategy on Sponsored Products campaigns.<\/p>\n\n\n\n

      Fixed Bid<\/h3>\n\n\n\n

      As the name suggests, Amazon will use your exact bid and any manual adjustments you set in the fix bid strategy. It won\u2019t change your bids based on the probability of the likelihood of a sale.<\/p>\n\n\n\n

      Use this strategy if you are optimizing your campaign via updating your bids consistently. You know exactly what you are doing and don\u2019t want Amazon to touch your bids.<\/p>\n\n\n\n

      Dynamic Bid \u2013 Down Only <\/h3>\n\n\n\n

      This campaign bidding strategy option is probably the least aggressive of the three. It gives Amazon the freedom to adjust your effective bids down. Amazon can adjust your bid downward up to -100% .<\/p>\n\n\n\n

      For example, your bid for a keyword is $2.00. In this case, Amazon can automatically downbid your auction bid to $0  if they think the possibility of a sales conversion is low. <\/p>\n\n\n\n

      Use this strategy if you want to be conservative<\/em>, and limit your exposure to bid auctions with a low possibility of a sale.<\/p>\n\n\n\n

      In Sponsored Brands and Sponsored Display ads, this is the default campaign bidding strategy. <\/p>\n\n\n\n

      For existing campaigns before implementation of the Campaign Bidding Strategy, the \u201cDynamic bid \u2013 Down Only\u201d option is the default option.<\/p>\n\n\n\n

      Select the Right Campaign Bidding Strategy for Your Objective<\/h2>\n\n\n\n

      The different campaign bidding strategies would match with different strategic objectives. So before creating a campaign, think strategically about what your objectives are. <\/p>\n\n\n\n

      For example, any growth-related strategies, as in you want to grow sales or rank for a keyword, the Dynamic Bid – Up and Down<\/em><\/strong> strategy would be the bid settings to use. <\/p>\n\n\n\n

      On the other hand, if your objective is to optimize a campaign, either Fix Bid<\/em><\/strong> or Dynamic Bid – Down only<\/em><\/strong> would be the bid settings to use. <\/p>\n\n\n\n

      Below are some of the potential strategic objectives for your Amazon PPC campaign:<\/p>\n\n\n

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