Amazon Advertising: New Amazon Rule-Based Bidding Strategy and How it Works

Last Updated on June 18, 2022 by

The Amazon pond has gotten bigger, plenty bigger. You favor your products to sell, but how people will find them? To assist you, Amazon developed a powerful strategy called “Campaign Bidding Strategy” to get your products in front of the customer searching for them.

Previously Amazon offered 3 types of bidding strategies. We have discussed these in our previous content. We have a YouTube video on that also. If you missed that please take a quick look below.

https://youtu.be/dJVdb5hX1y4

Recently Amazon advertising has brought “Rules-Based Bidding for Sponsored Products.” This computerized bidding for Sponsored Products helps you center of attention your advertising and marketing dollars on actual conversions.

What is Rule-Based Bidding?

According to Amazon PPC, a rule-based bidding system helps the user to make manual decisions for adjustments made to campaigns by defining “if/then” rules that would trigger bid and keyword modifications based on your pre-set bid and keyword parameters.

How it Works

Rule-based bidding was created to allow you to have a targeted ROAS. This PPC strategy takes the guesswork out of adjusting bids to achieve your marketing strategy. With this bidding strategy, you can apply a rule and provide an average bid for your campaign. Amazon will then adjust the base bids up and down with each impression trying to achieve your performance guardrail.

Please note that Amazon doesn’t guarantee that they will hit the guardrail that you set, but if your campaign doesn’t meet the guardrail and your campaign’s ROAS drops over a 21-day period, they will disable the rule on your behalf and will enable your previous bidding strategy and targeting level bids.

Campaign Eligibility

Previously we could use other bidding strategies after creating a sponsored campaign. But there are some more criteria that need to be matched for using Rule-Based bidding.

  • Rule-based bidding is available for Sponsored Products.
  • Campaigns can use any type of targeting: automatic, keyword, or product targeting.
  • Your campaign must be running for at least 30 days prior to setting a rule and have a minimum of 30 conversions in the last 30 days.
  • Additionally, your campaign must meet the minimum daily budget requirement of 10 USD.

Rule-Based Bidding for Special Days

For giving more flexibility to sellers, special days like Prime Day and Black Friday are not included during the 21-day period. So you can increase your average bid for your ads to be in line with what is necessary for that special day.

Getting Started with Rule-Based Bidding

To get started with rule-based bidding select a specific campaign and go to the campaign setting option.

After clicking on the Rule-based bidding option Amazon will auto-populate their endorsed ROAS in the rule line.

We suggest setting the ROAS to something that is higher than the current campaign ROAS. For example, if your current ROAS is 3, try 3.5 or 4.

Importance of Rule-Based Bidding

There are some key benefits of using this bidding strategy. They are-

  1. This feature is compatible with AI-Driven Bidding.
  2. It consumes time rather than manual bidding.
  3. It has more chances to compete with other sellers and increase visibility.
  4. It increases the chances to get a higher ROI.

In a nutshell, Rules-based bidding can be beneficial for sellers who want more control over their PPC strategy. These solutions are often easy to set up and integrate and can save your time compared to manual campaign management.

If you have further confusion regarding the Rule-Based bidding strategy feel free to let us know in the comment section. We are always here to assist you. 

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