What are the tips for bidding on Amazon ads?
1. Ignore optimization bidding
If sellers want to gain benefits from bidding, they must optimize their bidding. Many sellers ignore optimizing bids, leaving all ad bids the same without changing the bids.
2. Setting bids by guesswork
When setting ad bids, some sellers make bids based on their feelings, believing that their sixth sense is accurate. But advertising bidding is not metaphysics, it needs to be supported by data.
3. Bidding recklessly
Bidding recklessly may cause your advertising costs to be too high. Just like guessing when bidding, making random bids will hurt your ad performance. Don't make drastic changes to your bids without evidence, unless you have strong data.
4. Excessive pursuit of low ACOS
When new sellers discuss the advertising goals they hope to achieve, low ACOS is one of them. Although an ACOS of 1% looks good, you must still have a lot of advertising budget left, so sellers should not skimp on their bids.
What are the practical strategies for Amazon advertising bidding?
1. Bid based on historical records
Data can help sellers succeed. All you have to do is find the perfect CPC (cost per click) by calculating revenue per click. You can calculate your revenue per click by taking the total sales you received for a keyword and dividing that by the total number of clicks for that keyword.
Calculate the revenue per click for the past 30 days, 60 days, and 90 days, understand the seasonal factors that affect the revenue per click, and the long-term effects of keywords.
Once you’ve calculated your revenue per click, divide it by your target ACOS. The result is your CPC, which is your bid.
Another simple trick is to divide your target ACOS by your current ACOS, then multiply that ratio by your current CPC to get a CPC that meets your metrics.
2. Set expected conversion rates
Without relevant advertising data for a product, sellers cannot calculate bids based on historical records. But sellers can set an expected conversion rate.
1) Expected conversion rate
2) Sales price
3) Target ACOS
The expected conversion rate is how many clicks it takes to convert a sale. Amazon’s average conversion rate is around 10%, so you can use 10% as your expected conversion rate.
The selling price is the product price, and the target ACOS is the seller’s ideal advertising cost.
This is the end of the knowledge about Amazon advertising bidding in this issue. If you want to get more information about Amazon advertising bidding, please pay attention and we will continue to answer you~
