How does a $1 bid become $200?

AMC for Sponsored Ads provides a lot of opportunities, but there’s a lot of room for mistakes, too.

One of the biggest? Not considering compounding bid multipliers.

Sponsored Products now offers three levers for bid modifications:

1. Bidding Strategy
o Dynamic up & down: Up to 100% increase
o Fixed: No impact
o Dynamic down only: Reduces bids

2. Placement
o Top of Search: Up to 900%
o Product Page: Up to 900%
o Rest of Search: Up to 900%

3. AMC Audience Bid Boosting: Up to 900%

These modifications compound and if you aren’t taking them all into account when making changes, things could go awry quickly.

Here’s an example of an extreme bid increase. Say you have a $1 bid…

With Dynamic Up and Down as your bidding strategy, that bid could become $2.

Plus, a 900% TOS setting will 10x that $2 bid to $20.

Add a max 900% bid boost to the AMC audience and that original $1 bid becomes… $200.

So a word to the wise: Check your bid modifiers and check them again!