This article is step 2 of our step-by-step guide to Amazon PPC Advertising
First and foremost: Amazon will now try to optimise conversions as much as possible by using all the data it has at its disposal:
This is really important for you to know this. Why?
Ok, with this in mind let’s look at creating a new sponsored products campaign.
You have to consider 3 elements:
Bid + Placement + Bidding Strategy = Final Bid
Let’s break this down step-by-step:
We recommend you use “Dynamic – down only” if you are just started out. Everything else is to be used on a more tactical basis and with closer monitoring, especially “Dynamic – up and down” as this can lead to your daily budget being consumed in a very short space of time.
Amazon has classified the various places where your ad could appear into 3 ‘Placements’:Top of Search (first page): The first few results at the top of Page 1
Rest of Search: Any sponsored ads anywhere else on the search page results
Product Pages: On a product detail page, under “Sponsored products related to this item”
With the new bidding strategies you can now set an increased bid for specifically appearing on the top of the first page of results and on product pages that Amazon deems appropriate:
The formula goes like this: [Your set Bid] + [Placement] + [Bidding Strategies]
Here are some examples:
You’ve set a bid of $1.00.Your bidding strategy is “up and down”Your Placement is 100% for top of page and 50% for product pages
You get to a maximum bid of: 1 * 100% * 100% = $4.00 for Top of pageand 1 * 100% * 50% = $3 for product pages
We’ve created a useful Google Sheet to help you quickly determine the bid ranges depending on each of those variables. You will need to create a copy of the Google Sheet before you can edit it: https://docs.google.com/spreadsheets/d/1UQ_fzBEVwAGh52_XyR8tR3yjDz5g1v3t4PFPXA9yR1k/edit?usp=sharing
If you are new to Amazon PPC advertising we recommend you do not use the Bidding Strategy options until you have a good grasp of your budgets and of which keywords you should be pushing.
Dynamic Bidding Best Practice:
Amazon has created some good resources on Seller Central. We recommend you read through them for more details: https://sellercentral.amazon.co.uk/gp/help/G4X4KYVCW7BK5Q4U
You’re now ready to continue to Step 3 “Our best practice guide to Amazon Sponsored Products”!
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