How to set the reasonable advertising budget of Amazon, and what are the bidding methods


Author:Blue Ocean Yiguan
Source: egainnews

How to set a reasonable advertising budget for the cross-border e-commerce platform Amazon, and what are the bidding methods

In short,Amazon Advertising BudgetIt is the maximum amount that the seller wants to spend on advertising activities. At the same time, this requires a clearAmazon MarketingGoals and policies as support. SomeAmazon SellerSpending hundreds of dollars a month works well.

However, some brands cannot achieve the desired marketing effect even if they invest thousands of dollars every month. According to Canopymanagement, on average, compared with enterprises with a budget of less than $5, brands with a budget of at least $5 are launchedSponsored Stories Campaign sales can increase by up to 140%.

Blue Ocean Yiguan has learned that,stayAmazonBefore the seller sets the budget, think about the results to be achieved, how much can be invested, and the duration of the activity. If the seller wants to achieve positive results, he should develop a budget that is suitable for specific needs and expected activity results.

ILearn about Amazon's advertising bidding

Amazon seller's bid is how much the seller is willing to pay to let the buyer click on the advertisement.Amazon AdvertisingMarketing personnel are allowed to use dynamic bidding, fixed bidding or advertising location based bidding.

1. Dynamic bidding

When Amazon sellers choose automatic or dynamic bidding, Amazon will automatically adjust the bidding based on the possibility of the seller's advertising conversion. These dynamic bidding can be divided into two categories:

(1)Dynamic Bids – down only

Amazon will automatically reduce the seller's bid. If the algorithm thinks that the seller's advertisement is unlikely to be converted, it will be reduced to 100% at most.  

(2)Dynamic Bids – up and down

If the algorithm determines that the seller's advertisement is likely to be converted, Amazon will increase the seller's bidding. If up to 100% of the advertisements are placed on the first page of real-time search results, the top search location, and up to 50%, they will be placed in other locations.

Similarly, if the seller's bid is unlikely to convert the advertisement, Amazon will also reduce the seller's bid.

2. Fixed bidding

If Amazon sellers choose manual or fixed bidding, the bidding will remain consistent with the seller's selection, and Amazon will not dynamically adjust the bidding according to the conversion possibility.

3. Bid By Placement

Amazon allows sellers to bid for specific ad locations, including the top of the search results page, the product page, and the rest of the search results page.

(1) Top of Search (top of search page) is the most competitive position, and ads will appear on the first page and Top of Search results.

(2)The product page location refers to that the product will appear on the product details page, be added to the shopping cart page, "Sponsored Products Related to this Item" and other locations.

(3)The rest of the search refers to other positions after the top of the page, including the following pages.

Amazon sellers can bid up to 900% for these location adjustments. For example, if the seller chooses Top of Search with a $1 bid and applies for 50% bidding adjustment, Amazon will raise the seller's bid to the top of the $1.5 competitive search.

IIHow to reasonably set bidding budget

Dynamic Bills – down only can help sellers save money when advertising is unlikely to be converted. If the seller is testing a new activity or wants to reduce the advertising cost, this bidding budget strategy will be one of the best choices.

When it comes to Amazon's other Dynamic Bids – up and down options, sellers should be careful. Although the seller may want to try it in a competitive market, it should be noted that this bidding strategy is usually easy to overspend. If sellers choose this strategy, they must pay close attention to advertising bids.

For manual bidding,AmazonThe seller's bidding will be applied regardless of whether they are converted or not.According to Blue Ocean Yiguan,The disadvantage of this strategy is that the seller may pay too much for several clicks.

(Polly ZhangNew media of cross-border e-commerce - Blue Ocean Yiguan website domain news) connects with high-quality resources of cross-border e-commerce.Wal Mart, CoupangWayfair 、Mercado Libre and other platforms settledBrand copywriting planning, network wide promotion, e-commerce training, incubation and other services, please contact us. No unauthorizedRewriting, reprinting, copying, clipping and editingIn whole or in part.

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