Amazon Bidding Strategies For Success And Optimization

This week’s newsletter is about a great post I’ve written with Keren Dinkin, an expert in digital marketing and content creation.

It’s about Amazon bidding strategies.

Things we discuss in the article:

4 Smart Bidding Strategies:

Target CPA (Cost Per Acquisition):

• Aims to get as many conversions as possible at or below a set target CPA.

• Leverages conversion history to forecast future conversions and adjust bids in real-time.

Target ROAS (Return on Ad Spend):

• Focuses on achieving a desired return on ad spend.

• Automatically adjusts bids to maximize conversion value while trying to achieve the target ROAS.

Maximize Conversions:

• Uses the budget to gain the most conversions.

• Doesn’t set an individual CPA goal, but rather optimizes for maximum conversions within budget constraints.

Maximize Conversion Value:

• Similar to maximizing conversions but focuses on the monetary value.

• Aims to get the most conversion value out of the given budget.

Amazon Bidding Strategy:

Amazon utilizes a PPC (Pay-Per-Click) auction system:

• Advertisers bid on keywords and the auction winner gains product visibility in Amazon’s ad spaces.

Key Components:

• Exact Match Keywords: Higher precision, may result in higher conversions.

• Phrase Match Keywords: Less strict than exact match, includes the search phrase.

• Broad Match Keywords: Wider reach, includes related searches.

Optimization Strategies:

• Optimize for Conversion: Adjust bids for keywords that lead to sales.

• Optimize for Visibility: Increase bids for new products or branding campaigns.

• Use Historical Data: Modify bids based on the past performance of keywords and campaigns.

Tools and Automation:

• Amazon provides tools such as “Bid+” to automatically raise bids in highly competitive auctions.

• Automatic campaigns allow Amazon to adjust bids based on the likelihood of conversion.

See you in 7 days!

Best,Jordi Ordóñez at jordiob.com