How to use Amazon dynamic bidding to increase sales by 119%?

2022-11-21
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Author:Blue Ocean Yiguan
Source: egainnews

How can e-commerce platforms use Amazon's dynamic bidding to increase sales by 119%?

stayAmazon America StationIf the advertising uses the "dynamic up and down bidding" strategy, it can increase the sales of the product by 119% on average, and reduce the return on advertising expenditure (ROAS) by about 5%.

What is "dynamic up and down bidding"?

The original English is "Dynamic bids up and down".

When the seller opensSponsorship product advertisingYou need to select one from a variety of bidding strategies, one of which is "dynamic up and down bidding".

If the seller chooses this, Amazon willAccording to the probability and opportunity of "click to browse and convert to order", the seller's advertising bidding will be automatically raised or lowered

In other words, Amazon may raise the advertising bidding of sellers in real time to help them get more display times for their advertisements, such as when the seller's advertisement is highly related to a consumer's search.

On the contrary, if the possibility of converting clicks into sales is small, Amazon will reduce the bidding price for sellers, reduce the number of ads displayed, spend advertising on more valuable clicks, and reduce the expense on inefficient advertising spaces.

If the seller sets a bidding price of $1, how much will it cost to advertise?

For sponsored product advertising, if it is the advertising space at the top of the homepage of search results, Amazon will increase the seller's bidding by a maximum of one time, because the advertising space at the top is more likely to get exposure, display times and clicks (compared with the position at the bottom of the page).

If it is an advertising space in other locations (not at the top of the search home page), Amazon will not increase the bidding range by more than 50%, because the conversion probability of these advertising spaces will be smaller, and the bidding is not appropriate to be adjusted too high.

For example, the auction price set by the seller is $1, and Amazon will double the maximum, that is, $2 at most. It is also for the advertising booth at the top of the search home page. For other advertising booths, the maximum increase is 50%, that is, $1.5 at most.

When to use "dynamic up and down bidding"?

The most suitable occasions for "dynamic up and down bidding" include:

1. The main goal is to increase sales

2. You want to win the advertising space at the top of the search page for the keywords of an advertising campaign

3. Running an advertising campaign with good performance, and want to continue to optimize and maximize the benefits

4. Advertising for overstocked products

5. Advertising for Deals products

When setting up bidding, the seller should consider the impact of the "dynamic up and down bidding" strategy and be prepared to invest double the advertising fees for bidding.

How to use "dynamic up and down bidding" in automatic and manual advertising?

It is easy to create new ads or adjust existing ads to use "dynamic up and down bidding".

1. Use automatic or manual launch to set up new advertising activities, and select "bids - up and down" under "Campaign Bidding Strategy".

2. Update the bidding strategy of the existing advertisement, go to the "Campaign Settings" page of the corresponding advertisement, select "bids - up and down" under "Campaign Bidding Strategy", and click the "Save" button to save and update the settings.

How to monitor or optimize after setting "dynamic up and down bidding"?

After setting the "dynamic up and down bidding" strategy, everything is not all right. You need to monitor the bidding regularly, about once every two weeks.

For advertisements using automatic delivery, the performance of the default options of automatic delivery should be monitored, namely, accurate matching, loose matching, complementation and replacement, and the bidding should be adjusted in time to achieve the advertising goals.

For advertisements launched manually, key words, categories or products with outstanding performance shall be monitored, and the bidding shall be improved at the right time to increase the exposure.

Blueocean Yiguan has learned that sellers can use the "Targeting Report" and the "Sales from High to Low" filter item to determine which keywords, categories or products to launch meet the business objectives. If they meet the business objectives, they can consider increasing the bidding price. If they do not meet the requirements, they can consider lowering the bidding price.

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