Amazon PPC has various facets. It is a matter of what type of advertisement you select for the targeted option, you have a range of many options to choose from. It is important to understand that the Amazon PPC process is like an auction system in which advertisers can bid on keywords.
This is the significance of Amazon bidding because it requires to be focused on winning and being able to control its advertising spending. In the article below, we’ll try to look at the different kinds of Amazon bidding strategies sellers utilize.
Amazon ad campaign targeting types
In Amazon PPC You can choose from three types of ads available – Sponsored Products, Sponsored Brands, and Sponsored Display advertisements. In each one of the types of ads, you can choose various targeting options, including either manually or automatically.
Manual targeting involves manually making the list of keywords you wish your ads to focus on. You can place bids on two levels namely keywords and ads groups.
There are three Amazon types of keyword matches to choose from – phrases match as well as an exact match. Manual targeting allows the advertiser greater control over his campaigns, allowing for bid reductions and the ability to analyze the effectiveness of keywords and remove those that are not performing.
Automatic targeting is a choice that doesn’t need any personal involvement as Amazon assumes control of the campaigns. Once you’ve created your keywords in the list and keywords, you’ll need to set your CPC bid. From there, Amazon decides which customers will show your ads to.
The types of matches under automated targeting differ from the ones used in manual targeting. These include tight matches, loose match substitutions, and compliments.
Automated campaigns are very beneficial in identifying new words to target your advertisements, but they’re not the most effective way of growing sales and revenues.
What is what are Amazon’s Bidding Strategies?
Here are four different kinds of Amazon PPC bidding strategies:
The dynamic bids (up or down):
In this kind of Amazon dynamic bidding, Amazon raises your bid by as much as 100% or reduces it to a maximum of 100% based on the probability of a successful conversion. In essence, based on the likelihood that your bid will result in clicks or no clicks Amazon decreases or boosts the value of your bid.
The dynamic bid (down just):
When you bid this way, Amazon will only lower the bid amount by 100 percent when the chance for conversions (clicks) is very low. This kind of bidding is better in order to make sure that your advertising budget doesn’t become depleted, and also for sellers who are new.
Fixed bids:
In this way, Amazon will not change your price based on the probability of an eventual conversion. No matter what default price you decide to set is set and you’re aware of the exact amount of your bid.
This kind of bidding can be a safer choice when it comes to making sure your advertising budget isn’t drained. It also provides you with complete control over the amount you spend on ads.
Rule-based bidding:
This method permits sellers to bid in accordance with pre-defined rules and terms. The advertiser is required to create and specify the conditions that, if met, will trigger bids and changes in keywords.
This kind of bidding allows sellers to have more ability to control their advertising campaigns because they can choose the conditions they would like to define.
Amazon bidding through placement techniques
As well as the bid strategies mentioned previously, another method to bid on Amazon advertising is to place ads. Amazon has three kinds of ads that can be placed in three options namely Top of Search, Product Pages, and the Rest of Search.
- The Top of Search placement is the term used to describe the placement of sponsored Product ads at the top Amazon SERPs.
- Product Pages refer to the place of advertisements on the product detail pages.
- The remainder of the Search refers to the remainder of the listings on pages of Amazon Search results that are below the Top of the Search.
Bids by Placing refers to the process whereby you can alter your bids based on the location your ad is shown. By using this feature, Amazon can raise your bid up to 900% on a specific placement.
The bidding feature allows you to create bid multipliers for Sponsored products, which means that you can increase your bid by certain amounts in order to take on positions.
Sellers looking to improve the efficiency the effectiveness of their Amazon advertising strategy can modify the number of bids to an advertising target location without impacting other advertisements. The placements can be different in the sense that they come with their advantages and disadvantages.
To see the performance of your advertisement by location, all you have to do is launch an account, then select the Placements tab to gain insight into which locations you should be looking at for your ads.
Bidding through placement is a great option in the case of increasing the ROI of your ads by ensuring your ads show in better, higher profitable positions and by removing them from less-than-potential spots.
Conclusion:
Understanding the Amazon bidding strategy is vital to be able to control your ad budget. If you’re a brand new seller, the bidding might seem daunting and you should dedicate your time to learning the concepts and becoming familiar with the best way to approach them. Bidding mistakes can turn out to be expensive. Explore different strategies prior to selecting the one that is most effective for you.
