A bidding strategy is a method you can use to bid on Amazon advertising campaigns, allowing Amazon to automatically decide on your lowest bid. If you’re not familiar with how Amazon ads work, we’ll break it down for you. When you create an ad campaign, you set a daily budget and then choose keywords that describe the product or service you’re promoting. Then, Amazon will show your ads whenever someone searches for one of those keywords on the site.
Amazon advertisers can choose from two options: cost per click (CPC) and cost per thousand impressions (CPM).
When you choose CPC, you are paying for every click on your ad. This option is perfect if your goal is to drive traffic to your product page, and you don’t mind spending money to do so.
On the other hand, if you want more people to see your ad but you don’t care about how many clicks it gets, CPM might be better for you. With this strategy, you only pay when someone sees your ad. They don’t need to click on it to charge you.
You can also take help from a full-service Amazon agency that can guide you on how to bid properly. The agency will also provide you with complete services. Amazon Account Management Services too!
Types of bidding
You can choose from three options: Automatic, Manual, and Enhanced.
Automatic bidding is the default option and is designed to optimize your campaign for conversions. This means it will automatically adjust your bids based on your ad performance and the cost per conversion of your competitors’ ads. This means that Amazon will automatically adjust your bid on your behalf based on its algorithm and other factors. For example, if you’re selling a product that’s popular during certain times of the year (for example, summer or winter), Amazon can adjust your price to help increase sales during those periods. will increase automatically.
Manual bidding allows you to set your own bids for each individual ad group. You can use this option if you want to bid more than the automatic bid allows you to. This option is good for getting an idea of how much it costs to run ads at different prices and to choose how much you’re willing to pay to get more sales or clicks on your ads. If you’re not sure what the right budget would be, we recommend observation. Full Service Amazon Agency Budget planning for small business.
Enhanced Bidding is an additional feature that allows you to further customize your campaign by integrating other factors into the automated bidding process, such as historical sales data and product reviews.
Why Do We Need a Bidding Strategy in Amazon Ads?
A bidding strategy is essential to properly budgeting for Amazon ads. It’s important to know that you’re spending your money the right way, so you can make sure you’re getting the most…