7 bid management mistakes on Amazon
By George Barnett Reid 👀 · September 28, 2022 · Curated by George's Blog
7 bid management mistakes on Amazon
➡️ Relying only on suggested bids
- Only helpful for ballpark figures
- Highest suggested bid is not the limit. You can bid higher and win more placements for your top KWs.
➡️ Not knowing placement-level performance data
- It helps estimate the impact of your bid change on ad placement and performance
- e.g. top of search placements often get higher CTR and CVR that can go over 2x.
CPCs are higher but offset by lower ACOS. Thus, optimizing for TOS helps achieve higher sales volume with a better ACOS.
- Dropping the bid could start showing ads on a placement with poor conversion, causing lesser sales with only slight relief in ACOS.
➡️ Poor campaign structure
- All audited accounts have a structure problem. Making it hard to get granular placement data and bid accordingly/dynamically.
➡️ High bid & low budget scenario
- Your campaign may not run all-day
- CPCs are usually less competitive later in the day. Your ad could get better placements at lower CPCs, and higher returns.
➡️ Too often or too less
- Clicks don’t immediately convert to sales. Attribution is up to 14-days. Early adjustments could be based on inaccurate data.
- Regular adjustments are still key as competition changes continuously.
- Recommend 1-2X/week
➡️ Not factoring in dynamic bid multipliers
- Dynamic bidding on campaigns obviously modify your bids
- When adjusting bids, it’s crucial to also factor in the DB multipliers, for better control and forecast
➡️ Not reading the trends
- external trends in the marketplace can also affect performance, and you may need to adjust bids accordingly.
- e.g. weekdays vs weekends conversion and demand, times when competitor products are running deals/offers, etc.
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