Amazon Advertising High-Level Bidding Techniques! (33 Articles)

33 articles on High-Level Bidding Techniques for Amazon Advertising

BID Advanced Techniques

Some of you may not be very familiar with the application of BID. In this article, I will explain BID in detail. Those of you who often read my articles on WeChat should know that I use BID in two sets of modes.

First set of product promotion strategies:

Phase One: Precision + BID (Top of the homepage)

Phase Two: No BID for phrases (Other search positions)

Phase Three: Manual positioning of ASIN

Phase Four: Broad + BID (Product page)

Phase Five: Other ads

Let me use the average order value of a product as an example. If a product is priced at $30, then we need to calculate the gross profit. This is the gross profit before deducting advertising costs and does not include coupons. The cost of orders with coupons is considered as advertising costs and as a means of increasing order volume.

Let’s assume that a $30 product has a gross profit of approximately 40% after deducting product costs, Amazon costs, and other costs. That is:

$30 * 40% = $12

If we follow the first set of strategies, how much range can we give to a single bid? The range should be between 1/15 and 1/20 of the gross profit.

$12 * (1/15) = $0.8

$12 * (1/20) = $0.6

That is about $0.6-$0.8.

Then, using the Precision + BID to promote the top of the homepage mode, the minimum BID should be set at 200.

For a $30 product, when using the Precision-related keywords with a single bid of $0.8 and BID of 200, there will be exposure and clicks for the advertised keywords. If the exposure for all 10 keywords is relatively low, what should we do? We should not increase the BID too quickly, but instead increase the single bid, for example:

1 USD CPC+200% BID

This type of single bid+BID, combined with price advantages (such as large coupons), and with the support of seeded reviews, makes it easy to get exposure and clicks for your ads. Of course, there may be some keywords that do not get much exposure or clicks. Only when some keywords have exposure and clicks at a CPC+200% BID of 1 USD, should the budget be allocated to these keywords that are running, in order to achieve the desired number of ad clicks per day.

This precise matching+BID model is actually designed to increase the exposure and clicks of precise matching ads.

What should you do if the conversion rate of the ad on the homepage is not good? Do you need to pause or reduce the budget?

Remember this sentence:

Precise and relevant ad clicks will also improve the natural ranking of this keyword. Therefore, if the ad does not result in a sale, as long as it is a precise ad click, there is no need to pause it. And it is important to control the number of ad clicks for this keyword, for example, limiting it to around 10 times a day.

In the long run, this model will definitely have a high CTR, but the ACOS will not be low. It is only necessary to ensure a good ad CTR and control the budget. This model is used to achieve precise inclusion and assist in improving the natural ranking of keywords.

In order to make money with this model, it is necessary to follow this development pattern, for example:

1 USD+200% BID (1 month)

0.9 USD+250% BID (half a month)

0.8 USD+300% BID (half a month)

0.6 USD+300% BID (half a month)

0.5 USD+300% BID (half a month)

0.4 USD+300% BID (half a month)

It takes at least three months to go from 1 USD+200% BID to 0.4 USD+300% BID.

For precise matching + BID to place ads at the top of the homepage, the following steps need to be taken:

First, the ad campaign must have exposure and clicks (starting from a single bid).

Second, start increasing the BID while slightly lowering the CPC.

Third, increase the BID again, with ad clicks concentrated at the top of the homepage.

Fourth, start reducing the CPC.

Finally, as the CPC decreases, the number of ad clicks at the top of the homepage will increase. This achieves the goal of the advertising campaign, which is essentially to return to this formula:

Ad ranking = Listing quality score x single bid

As the link quality score improves, the CPC can be lowered, thereby reducing the ad ACOS. Additionally, more ad clicks can be concentrated at the top of the homepage.

For wide matching + BID mode, why would I use wide matching to place ads on product pages? Because wide matching originally has a lot of traffic, and it is easier to lead to product pages. Additionally, wide matching does not require a high single bid to achieve exposure and clicks. So for pushing products in the wide matching + BID stage, it is roughly:

0.4 USD + 100% BID

0.3 USD + 100% BID

0.2 USD + 100% BID

Basically, it starts from a CPC of 0.4 USD and gradually decreases to 0.2 USD + 100 BID. This mode requires a lower conversion rate with more ad clicks to maintain advertising orders.

Precise + BID, maintain high CTR and CR for ad ranking.

No BID for keyword phrases, generate more orders, maintain natural keyword rankings.

Wide + BID, generate orders, assist BSR rankings.

The entire process uses precise + BID mode and keyword phrases to serve as strong keywords for natural rankings. Manual positioning of AISN and extensive + BID serves as a means to maintain associated traffic and assist BSR rankings.

The second approach:

Use one advertising campaign and one advertising group to place root words as keywords and open three matching modes (precise, phrase, and extensive), or two matching modes (precise and phrase).

Early stage: Cooperate with external promotion to improve natural keyword rankings.

First stage: Use precise keyword phrases + BID (BID is not high, serving as a guide).

Second stage: Manually position ASIN.

Third stage: Use extensive matching + BID.

Fourth stage: Other advertising campaigns.

Currently, I suggest using only two matching modes. Using an extensive matching mode will bring more disordered traffic.

Therefore, using this method, if external promotion can be used to improve natural keyword rankings for new products, it is best. If not, the basic single bidding price needs to be higher.

Let’s take a product with a $30 USD unit price as an example.

Assuming that after deducting the product cost, Amazon’s cost, and a gross margin of about 40%, we have:

30 * 40% = $12 USD

If we use the second method, what is the range of the single bidding price? The range is from one-fifteenth to one-tenth of the gross profit.

12 * (1/15) = $0.8 USD

12 * (1/10) = $1.2 USD

This means a CPC of around $0.8 to $1.2 USD.

The maximum basic CPC can only be up to $1.2 USD. If a certain part of the advertising campaign does not have exposure or clicks, it will not continue to be added because $1.2 USD will definitely provide exposure and clicks for some advertising campaign keywords using phrase matching.

Then we will use:

1.2 USD CPC + 100% BID

This means that all keywords in the advertising campaign will use a 1.2 USD CPC model + 100% BID. The purpose of 100% BID is to be added to the top of the homepage, not only to further improve the comprehensive CPC, but also to guide this advertising campaign to click on the top of the homepage and other search positions, thereby reducing the advertising clicks on the product page.

When the advertising campaign has a higher proportion of search traffic, the advertising campaign will also move towards search traffic. When the advertising clicks of this advertising campaign reach about 100 clicks, the following actions will be taken:

1.2 USD + 100% BID (one month)

1.2 USD + 80% BID (half a month)

1.2 USD + 50% BID (half a month)

1.1 USD + 0% BID (half a month)

1.0 USD + 0% BID (half a month)

This model is to first reduce the BID mode, then reduce the CPC, and finally reach a reasonable CPC. Then open the advertising campaign type.

The two matching modes of root keywords actually require fewer advertising clicks from the top of the homepage to other search positions. BID is only an auxiliary guidance, and this process requires a transition period.

The first set of models is faster-paced, and the second set of models is a more moderate approach that does not require a lot of advertising costs.

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