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Campaign Bidding and Budgets



Bidding

We run auctions to determine which ads to show to shoppers based on their search.

When shoppers search Amazon for products, we run a real-time auction to decide which ads, if any, will appear for relevant searches and in which order those ads will show on the page.

Ads selected to compete in the auction must meet a minimum relevance criteria. Ads that compete in the auction are ranked and displayed to shoppers based on a combination of the seller’s bid and the ad’s relevance to the shopper's search.

Video: Bids and budgets



Cost-per-click bids

The cost-per-click bid is the cost per click you are willing to pay when shoppers click your ad.

Your cost per click may actually be lower than your cost-per-click bid. Remember, never bid more than you are willing to pay for a click. For Sponsored Products, selecting the Dynamic bids - up and down bidding strategy may cause some bids to exceed your cost-per-click bid. Learn more about bidding strategies

Manual targeting

Your bid is the cost per click you are willing to pay when a shopper clicks an ad from the ad group or campaign. When you're creating a campaign, select a bid type that helps you meet your goals.

  • Custom bid – allows you to apply custom bids to keywords or apply a custom bid to a set of keywords or product targets at scale.
  • Suggested bid – use Amazon's bid recommendations that are calculated from a group of recent winning bids similar to yours. This bid type is recommended for advertisers who are new to advertising on Amazon.
  • Default bid – allows you to link multiple keywords to a single bid value. As you change the bid value it affects all linked keywords. Default bids is not available when adding keywords for Sponsored Brands campaigns.

Cost-per-click bids that are set at the keyword level take precedence over the default cost-per-click bid set at the ad group or campaign level. To set a suggested bid for a specific keyword, category, or product in an existing campaign, select the ad group or campaign that contains the keyword and select the Targeting tab. In the column labeled Bid enter the maximum cost-per-click you are willing to pay for that keyword.

Automatic targeting

The bid is the cost-per-click that you are willing to pay when a shopper clicks an ad from this ad group or campaign. You can change the maximum bid at any time by selecting the Targeting tab. This bid will apply to all clicks unless you set a customized bid for an individual keyword, category, or product in this ad group or campaign.



Suggested bid and bid range

Suggested bid and bid range are calculated from a group of recent winning bids for ads that are similar to yours. The bid range is a range of winning bids for most ads in your product category.

The suggested bid provides you with an estimate of bids that have been used by other advertisers for products such as yours. The purpose of this range is to help you get started with advertising. However, if you have a specific objective in mind, we recommend that you enter a bid that will enable you to meet your strategies and then adjust your bid based on your campaign performance.

For example, if the suggested bid for your campaign is $0.70 ($0.40 - $1.40), the suggested bid is $0.70 and the bid range is $0.40 to $1.40.

Suggested bid and bid range update daily, based on the increase or decrease in competing bids and ads in each auction.

Use the suggested bid and bid range together to decide on a bid for your campaign or keyword.

If you decide that each click is worth more than the suggested bid, for example $1.60, you can set your bid at $1.60. Now, since your bid is higher than the suggested bid and above the high end of the bid range, your ads will be more competitive in auctions. This may increase your chances of winning more impressions, clicks, and sales.

To take another example, if the suggested bid for an ad group or keyword is $0.70 and the bid range is $0.40 - $1.40, you might decide that each click on your ad is worth $0.60. Even though $0.60 is lower than the suggested bid, you can still win impressions. However, you may win more impressions with a higher bid.

Find your suggested bid

To find the suggested bid for a Sponsored Products manual campaign, click your campaign in the campaign manager, then click the Targets tab. Suggested bid will be displayed in the data table. When you create a campaign, the suggested bid will be displayed in the table in the Keyword targeting and bids section. To find the suggested bid for an automatic campaign, click your campaign in the campaign manager and the suggested bid for each campaign is listed in the Suggested bid column.



Adjust bids by placement

Placements are places across Amazon where your ads may appear. You can differentiate your bids and view performance of your sponsored products ads by three placement groups: top of search (first page), rest of search, and product pages.

  • Top of search (first page) refers to the Sponsored Products ads at the top row on the first page of search results.
  • Rest of search refers to Sponsored Products ads shown in the middle or at the bottom of search results, and all Sponsored Products ads in the second page of search results and beyond.
  • Product pages refers to Sponsored Products placements on the product details page, and all non-search placements such as the add-to-cart page.

In addition to selecting a bidding strategy, you can also set different bids by placement. You can enter a percent increase to your base bid for two placements: top of search (first page) and product pages. If you choose to set bids by placement, bids will be increased by the specified amounts when your ads compete for opportunities on those placements. You can see metrics by placement group in the Placements tab as well as the downloadable placements report.

Your base bid will apply to the “rest of search” placement group. You can enter up to a 900% increase (10x) to your base bid. Adjust bids by placement works together with the selected bidding strategy to determine the final bid applied.

For example, if you bid $1.00 for a keyword and set a 50% and 25% adjustment for ‘top of search (first page)’ and ‘product pages’ placements respectively, then this is how your bids will be applied, depending on the campaigns bidding strategy.

Campaign bidding strategy Final bid applied on placement Explanation

Top of search results (page 1) Product pages Rest of search

Fixed bids

$1.25 $1.00 Different fixed bids applied by placement
Dynamic bids - down only $0-$1.50

'Adjust bids by placement' sets different bids by placement, and 'dynamic bids – down only' adjusts bids down from there for opportunities where a click is less likely to convert to a sale
Dynamic bids - up and down

'Adjust bids by placement' sets different bids by placement, and dynamic bidding adjusts these bids further based on likelihood of a click converting to a sale. Under 'dynamic bids - up and down', Amazon may increase a bid by up to 100% for top of search (first page) and up to 50% for other placements. This leads to
  • Top of search (first page): $1.00 increased by 50% = $1.50; which may be further increased to a maximum of $3.00 with dynamic bidding (100% increase from $1.50)
  • Product pages: $1.00 increased by 25% = $1.25; which may be further increased to a maximum of $1.88 with dynamic bidding (50% increase from $1.25)
  • Rest of search: $1.00 may be increased to a maximum of $1.50 with dynamic bidding (50% increase from $1.00)

Note: Different placement groups may have different performance (click through and conversion rates) due to their locations on Amazon. If your objective is sales, consider using the strategy dynamic bids - up and down – this strategy will try to maximize conversions from all placements at a similar ACOS across them. If your objective is not purely short-term sales, you can use the "adjust bids by placement" settings to shift your ad impressions to a particular placement.


Bidding strategies

When you create a Sponsored Products campaign you can choose from three bidding strategies. Pick the strategy that works best for your campaign's objective. This setting applies to all bids within your campaign.

Dynamic bids - down only

When you choose the dynamic bids - down only strategy, Amazon will reduce your bids in real time for clicks that may be less likely to convert to a sale. If Amazon sees an opportunity where we predict your ad may be less likely to convert to a sale (for example, a less relevant search query, on a placement that does not perform well, etc.), we might lower your bid for that auction.

Dynamic bids - up and down

When you choose the dynamic bids - up and down' strategy, Amazon will increase your bids in real time for clicks that may be more likely to convert to a sale, and reduce them for clicks that are less likely to convert to a sale. We will not increase your bids by more than 100% for placements at the top of the first page of search results, and by more than 50% for all other placements. Take this into account when selecting your bid while using this strategy. Since this strategy adjusts your bid up and down in proportion to likelihood of a conversion, it may deliver more conversions for your ad spend compared to the other two strategies.

If we find an opportunity where your ad is more likely to convert to a sale (for example, your ad appearing for a highly relevant search query, on a placement that performs well, etc.), we might increase your bid for that auction. If we find another opportunity that looks less likely to convert to a sale, we might lower your bid for that auction.

Fixed bids

When you choose the fixed bids strategy, Amazon will use your exact bid for all opportunities and will not adjust your bids based on likelihood of a conversion. Compared to dynamic bidding strategies, you may get more impressions, but fewer conversions for your ad spend with this strategy.



Test bidding strategies

To compare the performance of different bidding strategies, we recommend that you take an existing campaign that has been running using dynamic bids - down only, and change its strategy to dynamic bids - up and down.

To change your bidding strategy for Sponsored Products, navigate to the Campaign settings tab and update the Campaign bidding strategy selection.

When testing your bidding strategy, it is best to choose a campaign that is stable (ACOS and conversions are relatively steady across weeks), has been running for a while, and generates sufficient conversions.

We recommend that you limit your changes while testing strategies, so that you can attribute the difference in performance to a specific change. Note that this method is not perfect as conditions may change week over week, but may be helpful. If at any point you'd like to return to your previous bidding strategy, you can do so in the Campaign settings tab.

We do not recommend:

  • Creating a new campaign with 'dynamic bids - up and down' strategy and comparing it to existing 'dynamic bids - down only' campaigns. A new campaign with sparse performance data will not compare accurately against existing campaigns, as Amazon’s predictive algorithms that optimize bids under dynamic bidding work better when they have more data. If the new campaign is very different from the existing ones (for example, different ASINs advertised, different keywords etc.), you may not be able to clearly attribute the performance difference to just the bidding strategies being different.
  • Creating two identical campaigns, with different bidding strategies. These campaigns will compete for the same opportunities, and this interaction may skew the result. The cost-per-click for your ad is not impacted by your other campaigns, but as a testing strategy this is unlikely to give you clear results.


Budgets

When you create a new ad campaign, you’ll decide how to budget your advertising money.

For Sponsored Products you set a daily budget. For Lockscreen Ads you have the option to set a daily budget and lifetime budget. Learn more about daily budget and lifetime budget

Additional budgeting options are available at the portfolio level. Learn more about portfolio budgets



Daily budget

The daily budget is the amount you are willing to spend on a campaign each day.

The daily budget amount is averaged over the course of a calendar month. On any given day you could spend less than your daily budget, or up to 10% more than your average daily budget. This system allows you to benefit from high traffic days.

At the end of the month you will not spend more than the daily budget you’ve set, multiplied by the number of days in that month. Your invoice will be adjusted for any over-delivery, so that you will not be charged for any amount in excess of your monthly charging limit.

For example, if your budget is $100 and you receive $90 worth of clicks on the first day, you could receive up to $110 worth of clicks on the second day. This would bring your total spend over two days to $200, which averages to $100 per day.

You can change your daily budget at any time. From the Manage Advertising view, click the budget amount in the Budget column and enter a new amount. You can also change the daily budget by clicking the campaign name and selecting Campaign Settings.

We'll notify you when your campaign reaches its daily budget.

The Sponsored Products daily budget cap is an optional setting that controls how much all of your active Sponsored Products campaigns can spend per day in aggregate. You can access this setting under the Advertising Settings tab in Campaign Manager. If you are not sure what to set for a daily budget across Sponsored Products campaigns, then you can leave this blank and set a separate budget for each campaign.



Lifetime budet

The lifetime budget is the total amount that you are willing to spend on one campaign for as long as it runs. Once your campaign has reached the lifetime budget limit you have set, it will stop running ads.

Lockscreen Ads

Lockscreen Ads budgets can be spent as quickly as possible or spread evenly throughout the duration of the campaign. If you select to spend the budget quickly, your ads will stop running once your campaign has reached the lifetime budget limit you have set. If you select to spread campaign evenly or if the system predicts that the budget will run out by the end of the campaign (based on the predicted amount of clicks and cost-per-click), the budget will be spread evenly, but performance will be sporadic. This means the ad may not show to everyone who's viewing relevant pages, because the campaign must continue serving ads until the last day.

The minimum amount you can set for a lifetime budget is $100. Once a lifetime budget is set, you will only be able to increase your budget for the campaign.

Note: Lifetime budgets are not available for Sponsored Products campaigns.


Out of budget notifications

Notifications are provided as your campaigns reach their budget.

When you reach your budget, we'll send you an email notification that a campaign is out of budget. For daily budgets, we'll also provide this notification in the campaign manager. If you choose to, you can increase the budget and the campaign will continue to be shown to customers. For daily budgets your budget will reset at the start of the next day, at which point your ad will continue running.

Daily budgets are spent as quickly as possible and your budget will not be paced throughout the day. This means that a smaller budget could be spent in a few minutes if there are a large number of shoppers interested in your advertised products.

The information in your budget notification may not match what you see in the campaign manager. Budget notifications are an account alert, while the information displayed in the campaign manager reflects campaign reporting that may take additional time to process.

Note: When you receive a notification, check to make sure which budget has been reached. If a portfolio budget or Sponsored Products overall budget has been reached, you will need to adjust those caps to allow your campaigns to continue running.



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