How Do I Adjust Bids in Amazon PPC Campaigns?
Photo by Petra [Pezibear]
The Full Question...
When referring to the sensitivity with which we change our bids, do we care about the difference between new bid vs old bid OR new bid vs CPC for a given time period at which we are looking at?
You're best considering a keyword's overall contribution rather than viewing it in isolation for a particular point in time.
If it gets 10 sales that month at 86% ACoS, out of 100 sales overall, then it's an important keyword and you might want to incrementally lower the bid - say no more than 12% every 2-3 weeks, and you could look at other areas of cost-saving so it matters less.
If, however, it gets 10 sales out of 1000 that month you can afford to be more ruthless with it as it only contributes to 1% of monthly sales. Obviously, you would need to factor in its normal monthly sales as it might have suddenly dropped, or gone out of trend for whatever reason. And if you did this for every 1% keyword you might be causing yourself problems - 20 keywords like this is a 20% contribution!
What's the Story of this Keyword?
You also need to be assessing its contribution over different data sets. You want to try to understand its story, and the more it has contributed the deeper the dive... - How long has it been a problem? - How much has it contributed overall?
- What's the changing story? What has caused it to change it if has? - How has it reacted to previous bid changes? - How has it performed over the last 60, 30, and 7 days? - Over this period has it suffered from any irrelevant search terms channeled through it? - Over this period has it suffered from other keywords in the ad group eating more of the money, or has the campaign budget been reduced? - And before you make any bid changes you want to assess how it is supporting your organic rank. All of the above takes time. You don't want to be investigating so deeply if the keyword isn't contributing much. I'd recommend having a quick look at it over the above timeframes to see if it is improving. If it isn't getting better then you can afford to be ruthless with it.
Need help running your campaigns?
If you can't stand the stress of managing them anymore, or you simply wish you could get on and focus on what you love about your Amazon work, feel free to get in touch at heath AT amazonalchemist.com. I might be able to help.
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