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  • Writer's pictureHeath Thompson

When After Launch, Should I Begin Reducing Keyword Bids?




The Full Question:


Hello Heath, in my initial Exact launch campaigns I have started the bids at double the suggested CPC bid. I am at the start of week two. At what point in time do I reduce my bids? And how do I go about reducing them? Do I go to just above the CPC? Or go with suggested?


The Answer:


Your guide is your organic rank from the reverse ASIN.  If a keyword is getting clicks but not making any meaningful improvements to the organic rank then you can afford to lower the bid to around the CPC, or below, if there have been lots of clicks and no sales. 

 

 

If you have a sale with too high an ACoS you need to monitor its effect on the organic ranking (that's what these campaigns are about during the launch phase, so we treat them differently than regular keywords after launch).  If it is making a significant impact, you need to live with the costs for a few weeks until you can determine whether you are getting a good conversion rate with multiple orders.  Then you base your bid on the CPC and ACoS, while watching the impact on organic rank.

 

 

If the data is unclear and the ad spend/ACoS is unbearable then I would recommend either a) an incremental bid reduction of 10-12% every two/three weeks until you have better data, or b) look at the % difference between your bid and CPC (e.g. $1 bid, $0.80 CPC, 60% ACoS) if you need a 30% ACoS you would set the bid at 50% of its current bid, and not 50% of the CPC as that might be too low. You would need to monitor the impact on organic rank and PPC performance over the next 14-days to determine if that was a good strategy.


Any bid reduction of more than 15% in one go runs the risk of deactivating the keyword for several weeks/months.



Need help running your campaigns?


If you can't stand the stress of managing them anymore, or you 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.



Tags - Amazon PPC Keywords - Amazon PPC Management - Amazon PPC Strategy - Amazon Using Artificial Intelligence - AI and Search Results - Amazon PPC Keywords - Amazon PPC Keyword Targeting - AI and Search Retrieval

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