Struggling to get your products on the first page of Amazon search results? Amazon PPC bid optimization can be your secret weapon! It could help you organically rank your product on page #1 on Amazon. Amazon PPC bid optimization is the result of using better bidding in combination with a strategic choice of where advertising dollars are spent. Proper Amazon bid optimization lets organizations get in depth with how much they spend for each click. In this guide, we’ll take a look into everything you need to know about Amazon PPC bid optimization in 2024.

1. Understanding Amazon PPC 

Amazon PPC is an advertising model used on Amazon’s platform where advertisers pay a fee each time their ad is clicked. It’s a critical tool for sellers and vendors to increase the visibility and sales of their products. 

Imagine this Like  Millions of people search for products on Amazon every day. With PPC, you can make your products appear at the top of search results or on product pages of similar items.

If you want more details on how it works and its benefits, please watch this video to better understand: Video link:

2. What Is Amazon PPC Bid Management? 

Amazon PPC bid management allows advertisers to set the maximum amount they’re willing to spend on ads according to their unique goals. But there’s so much more to Amazon PPC bid management than budget. Amazon PPC bid management is a strategic method for managing ad spending and improving ad placement in PPC campaigns. It involves adjusting keyword bids to get the best results.

Amazon PPC Bidding For Auto and Manual Campaigns

Amazon PPC bidding works differently for Automatic Campaigns and Manual Campaigns, so we are sharing some potential work based on campaigns structure: 

a) Automatic Campaigns:

• Limited Bidding Options:
  
  • We can’t set individual bids for each keyword.
    
  • Instead, we choose a bidding Amazon strategy from pre-defined options like “Downstream” (lowers bids for placements with lower conversion probability) or “Up and Down” (adjusts bids based on historical performance).
    
    
• Focus On Discovery:
  
  • Automatic campaigns are ideal for initial discovery of new keywords and understanding search terms customers use to find similar products.

b) Manual Campaigns:

• Budget Control:
  
  • We set individual bids for each keyword, giving we complete control over how much we’re willing to pay for each search term.
    
    
• Focus On Optimization:
  
  • Manual campaigns allow us to optimize bids based on performance data (clicks, conversions, ACoS, sales spend and other matrices).
    
    
  • So, we can identify high-performing keywords and increase bids to gain more visibility for them, while potentially lowering bids for underperforming keywords.

Here’s a table summarizing the key differences: 

So, with the summary above, you can better understand setting your goals for each campaign.

Pro Tips:  Start with automatic campaigns to get a basic understanding of PPC and identify relevant keywords. Once you have some data, switch to manual campaigns for more control over bids and budget allocation to optimize your campaigns for conversions and profitability.

3. Amazon PPC Bidding Effects On A10 Algorithm

Amazon’s A10 algorithm, which governs product ranking and search results, places less importance on PPC advertising directly compared to the previous A9 algorithm. However, PPC bidding can still indirectly influence that product’s ranking through its impact on several factors that the Amazon A10 algorithm considers important. 

Here’s a breakdown of key strategies based on our Ecomclips Certified PPC Team:

a) Identifying Relevance:

• Keyword Research: Conduct thorough keyword research to identify relevant keywords with high conversion potential. Targeting the right audience with relevant terms is crucial.
  
• Match Types: Utilize a mix of broad, phrase, and exact match types to capture a wider range of relevant searches while maintaining control over who sees one’s ad.
  
• Negative Keywords: Exclude irrelevant keywords that won’t convert to avoid wasted ad spend and sending misleading signals to the Amazon A10 algorithm.

b) Optimizing for Conversions:

• Landing Page Relevance: Ensure that every product listing is optimized with relevant keywords, high-quality images, and clear descriptions. 
  
• A/B Testing: Run A/B tests on different ad copy, headlines, and images to see what resonates best with their target audience and drives conversions.

c) Amazon Bidding Strategies for A10 Impact:

• Target ACoS: Set a target ACoS that allows for profitability while still achieving good visibility. Overspending on clicks without conversions hurts both the campaign and doesn’t send positive signals to Amazon A10 Algorithm.
  
• Manual Bidding: Consider using manual bidding for more control over what you bid bids, especially for high-converting keywords. This allows you to fine-tune bids based on performance and conversion rates.
  
• Bid Adjustments: Apply bid adjustments to increase bids for placements (top of search, product pages) that convert well and decrease bids for less effective placements. This optimizes your ad spend and potentially improves the Amazon A10 algorithm’s perception of that product’s relevance.

We hope, by implementing these strategic bidding tactics alongside organic optimization efforts, can take advantage of PPC advertising to indirectly influence the Amazon A10 algorithm and improve the product’s overall visibility and ranking on Amazon.

4. Amazon PPC Bidding Works For Auto and Manual Campaigns

Amazon PPC bidding depends on setting a maximum amount are willing to pay for a click on a particular ad. The bidding process can differ slightly depending on whether the participants are running an automatic or manual campaign. 

So, in our Experience Ecomclips PPC Team, shared some potential tips how to work Amazon PPC Bidding on both campaigns: 

a) Auto Campaigns: In auto campaigns, Amazon’s algorithm automatically selects keywords and targets based on your product information and listing content. You set a daily budget for the campaign, and Amazon’s system adjusts bids based on the likelihood of your ad converting into a sale. You have less control over which keywords trigger your ads, but this can be a good way to discover new keywords that are relevant to your product.

b) Manual Campaigns: In manual campaigns, you select the keywords you want to target yourself. You have more control over which keywords trigger your ads and how much you bid for each keyword. You can set individual keyword bids or use Amazon’s suggested bid for each keyword.

In both types of campaigns, bidding is done on a cost-per-click (CPC) basis, meaning you only pay when a shopper clicks on your ad. 

Choosing Between Automatic and Manual Campaigns:

Pro Tips: A/B testing with different bids and keywords to identify the most effective strategies.

If you want more details on how it works, Amazon PPC & The Ultimate Guide for 2024, please see this blog to better understand. 

So, we hope  that understanding and effectively managing Amazon PPC bids in both automatic and manual campaigns, you can increase ad performance, control advertising costs, and improve overall return on investment on Amazon.

5. Amazon PPC Bid Optimization Goal

One of the biggest issues sellers face on Amazon is knowing when and how to optimize campaign bids.

The ultimate goal of Amazon PPC Bid Optimization is to achieve a sweet balance between 3 key metrics:

a) Conversions (Sales): This is the top priority, driving sales of product through targeted advertising

b) ACoS: This metric represents the efficiency of our ad spend. Ideally, want a low ACoS, meaning you’re generating sales without spending an excessive amount on advertising.

c) Visibility: You want to product ads to be displayed widely in search results and product detail pages to reach a wider audience.

Overall Goal :

The goal of Amazon Bid Optimization is to maximize your advertising ROI, increase sales, maintaining a profitable ACoS and achieving greater product visibility and potentially improving organic ranking.

6. Amazon’s Campaign Bidding Strategies

Campaign bidding strategy dictates the desired level of strategic strength for campaign bidding. Amazon has 3 options, each of which dictates a specific level of bidding aggressiveness.

• Dynamic bids – down only
• Dynamic bids – up and down
• Fixed bids

So now we will see a details overview of all types of bidding strategies, including bidding strategies And all mistakes to avoid.

a) Dynamic Bids – Down Only: This strategy prioritizes efficiency. Amazon automatically reduces their bids for clicks that are less likely to convert into sales. Imagine your ad appearing for a highly relevant search term or on a placement that historically performs poorly. With “Down Only,” your bid might get lowered in such scenarios, saving you budget on potentially unproductive clicks.

b) Dynamic Bids – Up and Down: This Amazon Bidding strategy is all about maximizing conversions within budget. Amazon dynamically adjusts your bids based on the likelihood of a conversion. They might increase your bids for highly relevant search queries or placements with a strong conversion history. Conversely, bids might decrease for less promising opportunities. 

Here’s the catch: increases are capped at 100% for top-of-search placements and 50% for others. But, the potential for more conversions with the same budget makes this a popular choice.

c) Fixed Bids: This Amazon Bidding strategy offers complete control over your bids for each keyword. You set a fixed amount you’re willing to pay per click, and Amazon uses that exact amount for every opportunity. While this allows for strict budget management, it requires constant monitoring and manual adjustments based on performance. It might be suitable for maintaining a specific cost-per-click or for testing new keywords, but for dynamic optimization, it falls short.

Tips 1: Mistakes to be Avoided

• Avoid running concurrent “Down Only” and “Up and Down” campaigns to compare results, as they’ll compete in the same auction.
• Don’t compare a new “Up and Down” campaign to an established “Down Only” one, as the latter has more data and will likely perform better.
• Avoid using the “up and down” dynamic bidding strategy for new campaigns, as the Amazon algorithm can sometimes make inaccurate predictions due to insufficient data, resulting in wasted ad spend.

Tips 2: Perfect Bidding Strategy: 

The best Amazon PPC Bid strategy depends on specific goals and campaign growth:

• For Beginners: Start with “Down Only” or “Up and Down” to get a feel for campaign performance and how Amazon’s automation works.
• For specific goals like maintaining profitability: Explore “Rule-Based Bidding” with a target ROAS.

Bonus Tip: Don’t be afraid to experiment! As you gain experience and gather data, try different Amazon bidding strategies to see what works best for your specific products and target audience.

7. What Are Amazon PPC Myths And Why Should you Care?

The world of Amazon PPC advertising can be filled with misconceptions. These myths can lead to wasted resources and hinder its ability to achieve sales goals. 

Here, we’ll explore some of the most common myths and explain why understanding the truth is crucial for success:

• Myth 1: PPC Directly Boosts Organic Ranking: While the old A9 algorithm considered PPC activity to a small degree, the current A10 focuses on factors like product relevance, conversion rate, and sales velocity. However, a well-optimized PPC campaign can indirectly influence organic ranking through:

• Myth 2: The No. 1 Position Equals Top Performance: The top spot on a search result page can be tempting, but it’s not always the most profitable. Clicks from that position can be more expensive, and conversion rates might not be the highest. Lower positions can sometimes offer better value.

• Myth 3: Amazon PPC involves only in-depth keyword research: Keyword research is crucial, but it’s just the first step.  Effective PPC preparation also includes:
  • Understanding target audience
  • Competitor analysis
  • Landing page optimization

• Myth 4: Amazon PPC is a One-Time Process: PPC is an ongoing process that requires continuous monitoring and optimization. Market conditions, competitor strategies, and even customer behavior can change.

By understanding and addressing these myths, it can develop a more effective and efficient Amazon PPC strategy, leading to better ad performance, higher sales, and improved overall business outcomes.

And don’t forget, if you need help getting started, Ecomclips offer a free PPC audit to help you get on the right track. Please feel free to contact us with your questions and to get assistance with your free PPC audit.

8. Overcome Amazon PPC Myths And Achieve Goals With PPC?

Overcoming Amazon PPC myths and achieving your business goals with PPC involves a strategic approach that is grounded in facts and best practices. 

Here’s how you can debunk common PPC myths and leverage PPC to reach your business objectives:

• Myth #1: PPC = Sales Avalanche: PPC is a powerful tool, but it needs a solid foundation. Relevant keywords, clear ad copy, and optimized listings are key to converting clicks to sales.
  
• Myth #2: Top Bid = Top Performance: The top spot can be pricey! Focus on the “sweet spot” – bids that deliver good visibility and cost-effective conversions.
  
• Myth #3: Set & Forget It: PPC is dynamic. Regularly monitor and optimize your campaigns based on market trends, competitor moves, and customer behavior.
  
• Myth #4: Keywords Are Everything: Keywords are important, but PPC is more. Understand your target audience, craft compelling ad copy, and optimize landing pages for success.

How to Achieve Amazon’s Target Goals

Here are some overview to achieved Amazon goal and some suggested strategies that will help you to achieved you KPI

• Research relevant keywords & use negative keywords to exclude irrelevant searches.
• Highlight product’s unique selling points with clear and concise ad copy.
• Ensure high-quality images, detailed descriptions, and positive reviews on your listings. Optimize for mobile!
• Monitor key metrics (clicks, conversions, ACoS) and adjust bids based on data insights. A/B test ad copy variations.
• Stay updated on best practices and algorithm changes. Continuously refine your Amazon PPC strategy based on data and performance.

By overcoming these myths and implementing these strategies, it can turn PPC into a powerful tool to achieve your Amazon business goals!

9. What Are Amazon Bulk Operations?

Amazon Bulk Operations, or bulk sheets, are spreadsheets that include details and performance data for all advertising campaigns in an Amazon account. Sellers can download these sheets, make large-scale changes to their campaigns, and then upload the sheets back to Amazon to apply the updates all at once. 

These bulk sheets support all types of ads, including sponsored products, sponsored brands, and sponsored displays.

For sellers on Amazon, bulk sheets are commonly used to:

• Optimize bids and bid by placement
• Adjust campaign budgets
• Create new campaigns, ad groups, or keywords
• Pause active or enable inactive campaigns, ad groups, or keywords
• Negate product and keyword targeting
• Measure campaign performance at scale

Amazon Bulk Operations (bulk sheets) are a powerful tool for managing Sponsored Products campaigns on Amazon. Amazon’s allow sellers and vendors to make bulk edits and optimize their campaigns efficiently.

10. Difference Between Amazon CPC and Bid

Amazon advertising, CPC and bid are closely related but represent different aspects of the advertising process:

a) Cost-Per-Click (CPC): CPC refers to the amount you pay each time a shopper clicks on your ad.

• How it Works: When you set up an Amazon PPC campaign,  specify a maximum CPC bid, which is the highest amount we’re willing to pay for a click on our ad. 

However, you typically won’t pay the full bid amount for each click; instead, you’ll pay slightly more than the minimum needed to maintain your ad’s position in the search results.

• Importance: CPC directly affects your advertising costs and ROI. It’s crucial to set CPC bids strategically to ensure that you’re getting the most value for your advertising spend.

b) Amazon PPC Bid: A bid is the maximum amount you’re willing to pay for a specific action, such as a click, conversion, or impression.

• How it Works: In the context of Amazon PPC bid, your bid determines how much you’re willing to pay for each click on your ad. It’s the maximum CPC bid you’re willing to set for a particular keyword or ad group.

• Importance: Amazon PPC Bidding plays a critical role in determining the visibility and placement of your ads on Amazon. Higher bids generally result in better ad placements, which can lead to increased visibility and clicks. However, setting the right bid requires balancing competitiveness with profitability to achieve the best results for your advertising campaigns.

So, CPC represents the actual cost you incur for each click on your ad, while Amazon PPC bid refers to the maximum amount you’re willing to pay for those clicks. 

Insights!

PPC bid Optimizing Amazon PPC strategy is essential for boosting sales and visibility on the platform? It starts with understanding the platform’s algorithm, focusing on relevance, performance, and engagement. 

Here, at Ecomclips, we have been helping many Amazon sellers boost their sales and capture the market share with both PPC and organic SEO. If you need any help boosting your Amazon sales or making growth on your brand, please don’t hesitate to mail us at our email address info@ecomclips.com. Also, if you need an Amazon store or account audit for both PPC Ads and listings SEO, you can let us know via our email address, and we will provide you with a free account audit.

As an Amazon advertising agency, we have a dedicated Amazon Ads Certified expert team who can build an Amazon advertising strategy for your account whether it’s a newly launched or a running Amazon brand to build traffic and conversion.

Additionally, if you need any assistance, please reach out to us through the comment box. We are here to assist you in managing PPC advertisements to improve your profit, so we offer a personalized approach to our service.