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Campaign Bidding and Budget



Set your bid and budget

You decide how much you want to spend promoting your book. As with other methods of advertising, we can't guarantee that placing ads will turn into sales for your books. To help you budget your campaigns, we provide suggested keyword budgets based on search demand. This is only available for Sponsored Products broad match keyword auto-targeting.



Cost-per-click (CPC) bid

Amazon Advertising uses a cost-per-click (CPC), auction-based pricing model. The CPC bid is the amount you are willing to pay when a user clicks your ad. The price you set is paid in an auction for ad space; other advertiser's books might be good matches for the same placements as your books. The winning bidder pays only if their ad is clicked.

We recommend you set the maximum CPC you are willing to pay. The more competitive your bid is, the more likely your ad will be displayed. The minimum CPC is $0.02 and you will never be charged more per click than what you bid. It's important to remember that you're competing with other advertisers for delivery. This means that if you set a cost-per-click bid that's lower than other live ads, your ad may not be shown.



Campaign bidding strategies (Sponsored Products only)

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

Bidding strategyHow it works
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. Any campaigns created before April 2019 used this strategy.

Suppose you're advertising a book, and you bid $1.00 for the keyword "thriller." If Amazon sees an opportunity where we predict your ad may be less likely to convert to a sale (e.g., a less relevant search query, on a placement that does not perform well, etc.), we might lower your bid to $0.20 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 may be less likely to convert to a sale. We won't increase your bids by more than 100% for placements at the top of the first page of search results, or by more than 50% for all other placements. Because 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.

Suppose you're advertising a book, and you bid $1.00 for the keyword "thriller." If Amazon finds an opportunity where your ad may be more likely to convert to a sale (e.g. your ad appearing for a highly relevant search query, on a placement that performs well, etc.), it might set your bid to $1.40 for that auction. If Amazon finds another opportunity that looks less likely to convert to a sale, we might lower your bid to $0.20 for that auction.

Amazon can currently adjust your bid of $1.00 up to a maximum of $2.00 for opportunities on top of the first page of search results, and up to $1.50 for opportunities on all other placements.
Fixed bidsWhen 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're likely to get more impressions, but fewer conversions for your ad spend with this strategy.

See frequently asked questions about bidding strategies.


Adjust bids by placement

Adjust bids by placement works together with the chosen bidding strategy to determine the final bid applied. Suppose you're advertising a book, and you bid $1.00 for the keyword "thriller." Also, suppose your campaign has the following bid adjustment by placement settings:

  • Top of search (first page): 50%
  • Product pages: 25%

This is how your final bid will be applied, depending on the campaign's bidding strategy:

Bidding strategyTop of searchProduct pagesRest of searchExplanation
Dynamic bids - down only$0-$1.50$0-$1.25$0-$1.00"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$0-$3.00$0-$1.88$0-$1.50 "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 bid - 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 increased by 50% = $1.50; which may be further increased to a maximum $3.00 with dynamic bidding (100% increase from $1.50)
  • Product pages: $1 increased by 25% = $1.25; which may be further increased to a maximum $1.88 with dynamic bidding (50% increase from $1.25)
  • Rest of search: $1 may be increased to a maximum $1.50 with dynamic bidding (50% increase from $1.00)

Fixed bids$1.50$1.25$1Different fixed bids applied by placement


Frequently asked questions

Can I change my campaign's bidding strategy?
Yes, you can change the bidding strategy of an existing campaign from the Campaign settings tab. We recommend that you review the bids within your campaign while changing the bidding strategy, as the bids may not be optimal for your updated strategy.


What happens to my existing campaigns?
Your existing campaigns will continue to perform as they were. They will be represented under the new settings as:

Existing campaignBidding strategyPlacement bid
Campaign with Bid+ OFFDynamic bids - down only
  • Top of search (first page) = 0%
  • Product pages = 0%
Campaign with Bid+ ONDynamic bids - down only
  • Top of search (first page) = 50%
  • Product pages = 0%

Why are all my older campaigns showing "dynamic bids - down only" as their bidding strategy?
For any campaigns you created before April 2019, Amazon was reducing your bids in real-time for opportunities where a click was less likely to convert to a sale. We did this to deliver better campaign performance to you (more conversions for your ad spend). We have rapidly expanded the number of placements on our website and mobile app available for Sponsored Products. Since some of these placements perform better than others, to ensure consistent performance we have applied a conversion rate based discount to bids for ad opportunities less likely to convert to a sale. Now we are launching this as a feature, and giving you the control on how you would like to bid based on your objectives.


Should I change the bidding strategy of my old campaigns from "dynamic bids – down" only?
Depends on your campaign's objective. If your campaign's goal is to generate maximum conversions for a given ad spend, consider changing the strategy to dynamic bids - up and down. You are likely to get more conversions for the same ad spend using dynamic bids - up and down as compared to dynamic bids - down only.

Note: We recommend that you review your bids while changing the bidding strategy of your campaigns, as the old bids may not be optimal for your updated strategy.


What happens when I change a campaign from "dynamic bids – down" only to "dynamic bids - up and down"?
Expect to see more conversions. If you change only the bidding strategy without changing your bids, you may see a higher ACOS as well. If you are not satisfied with the resulting ACOS, consider reducing your bids to a point where you reach the same ACOS as before (instead of reverting the bidding strategy to dynamic bidding down only). You are likely to get more conversions with dynamic bids - up and down at the same ACOS as dynamic bids - down only.


How can I compare the performance of "dynamic bids - up and down" vs. "dynamic bids - down only" strategy?
We recommend that you take an existing campaign that has been running under dynamic bids - down only for a while, change its strategy to dynamic bids - up and down for some time (say 1-2 weeks), and then compare performance over the same period for the two strategies. It is best to choose a campaign that is stable (i.e. ACOS and conversions are relatively steady across weeks), has been running for a while, and generates sufficient conversions. While running the test we recommend you limit changes, so that you can attribute the difference in performance more clearly to the bidding strategy change. This method is not perfect as conditions may change week over week, but this is the best method available to you for now.

Testing methods we don't recommend:

  • Creating a new campaign with strategy dynamic bids - up and down and comparing it to existing dynamic bids - down only campaigns. It's unfair to compare a new campaign with sparse performance data with existing campaigns, as Amazon's predictive algorithms that optimize bids under dynamic bidding work better when they have more data. Additionally, if the new campaign is very different from the existing ones (e.g. 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 against each other in the same auctions, and this interaction may lead to one of the campaigns always beating out the other to win impressions, thereby skewing results.
  • Copying an existing dynamic bids - down only campaign, updating the copied campaign's strategy to dynamic bids - up and down, and running them concurrently. When you copy a campaign, you essentially create a new one, and it behaves as if it has no previous performance history (which is a key input used by Amazon's algorithms to identify the optimal bid under dynamic bidding) – so the original campaign will have an unfair advantage over the copied one. Additionally, these campaigns running concurrently will compete against each other for the same auctions, and this interaction may further skew results.

When should I use the "adjust bids by placement" settings?
  • Use them to increase visibility of your ads (i.e. generate more impressions) for a specific placement.
  • Use adjust bids by placement settings along with dynamic bidding strategies to execute a hybrid goal of sales and non-sales objectives (i.e. your primary goal is sales, but you also would like to get more impressions on a particular placement). For purely short-term sales-oriented goals, you should leave the placement adjustments at 0%.
  • You can use "adjust bids by placement" with the "fixed bids" bidding strategy to focus your impressions on a particular placement. For example, suppose your goal is to increase visibility of your book by winning impressions on the top of search results (first page) placement. To execute this, set a low bid for your keywords, and a high top of search (first page) adjustment. This will make your ad more competitive for top of search opportunities, while limiting impressions on other placements (as your base bid is low).

How do I see the effect of placement adjustments?
You can now see metrics by placement group (top of search – first page, product pages, rest of search) in the Placements tab.


I'm not satisfied with the performance on a particular placement. What should I do?
Different placement groups inherently have different performance (click through and conversion rates) due to their different locations on the website/app. 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.


How does Amazon predict the likelihood of an ad converting to a sale?
Amazon uses a variety of techniques to predict the likelihood that an ad will convert to a sale if clicked, including historical performance of the ad (or ads similar to it) and the context in which it is displayed (e.g. the customer search term, placement, time of day, etc.). We are constantly updating these models, looking for additional signals that improve the accuracy of prediction.



What happened to Bid+?

Bid+ has been replaced with "adjust bids by placement." With Bid+, you could only set a 50% boost for the top of search (first page) placement. With "adjust bids by placement," you can set up to a 900% increase for top of search (first page) as well as for product pages placements.

Existing campaigns that used Bid+ are now automatically translated to new settings of bidding strategy = dynamic bids - down only, and bid increase top of search (first page) = 50%. These campaigns will continue to perform in the same manner as before. They are simply represented with the new settings now.



Campaign budget

Your campaign budget is the maximum amount you want to spend during your campaign's duration. You will be able to set your maximum budget for both ad types and track the amount you spend for the duration of the campaign.

Sponsored Products (eBook and paperback)

Set a minimum average daily budget of $1. This is the average daily budget amount you are willing to spend per day. For example, if you set your average daily budget to $100, you may receive up to $3,100 worth of clicks in that calendar month (assuming a full 31-day month). The ad spend on any given day may exceed your average daily budget, however, at the end of the month, the average daily spend will not exceed your average daily budget.

Lockscreen Ads (eBook only)

Set a minimum total campaign budget of $100. Your campaign budget is the total amount you're willing to spend for that campaign.


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