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Amazon Ads

FAQs – Guide to dynamic bidding – up and down, with Sponsored Products

What are active bids – up and down? 

Dynamic bids – up and down is a bidding strategy for Sponsored Products campaigns on Amazon.

This strategy adjusts bids in real-time based on the high chance of a click converting to a sale. 

If we bid $1.00, how much could I spend? 

To secure prime placements at the top of the first page of shopping results, bids are increased up to 100%. This allows your bid to potentially reach a maximum of $2.00, maximising your visibility and chances of capturing customer attention.

What are the main benefits of using dynamic bids – up and down? 

Using dynamic bids – up and down offers several benefits, including:

  • More control over ad placement customisation
  • Increased impressions, clicks, and sales opportunities by focusing bids on conversions
  • Flexibility to determine effective bids for your brand and inform optimisation of other campaigns

When should we use dynamic bids – up and down? 

Dynamic bids – up and down are best suited for:

  • Campaigns focused on driving sales
  • Winning ad placements at the top of the page for relevant keywords
  • Maximising results in high-performing campaigns
  • Campaigns with excess inventory or featuring deal ASINs

How can we use dynamic bids – up and down in my automatic and manual campaigns? 

You can use dynamic bids – up and down by following these steps:

  • When creating a new campaign, select dynamic bids – up and down under the Campaign Bidding Strategy section for automatic or manual targeting.
  • To update the bidding strategy for existing campaigns, go to the Campaign Settings page, select dynamic bids – up and down, and save the update.

How should we monitor/optimise campaigns after launching a dynamic bid–up and down strategy? 

To monitor and optimise campaigns using dynamic bids – up and down, consider the following:

  • Review bids regularly, approximately once every week.
  • For automatic targeting campaigns, analyse the performance of default targeting options and adjust bids accordingly.
  • Monitor high-performing keywords, categories, or products for manual targeting campaigns and raise bids for increased impressions.
  • Use the search term report to identify user keywords that are not working and add them as negatives. 

What sort of result can you get with an up/down bidding strategy?

By effectively managing this strategy, we can achieve sales with a lower ACoS (Advertising Cost of Sale), as seen in this example.

 

 

Book a call to discuss your Amazon Advertising strategies and discover how dynamic bidding – up and down can help boost your sales and maximise your campaign performance. Our team of experts is ready to guide you through the process and provide personalised insights tailored to your business. Don’t miss out on the opportunity to optimize your Amazon ads. Schedule your call today!

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