Dynamic Changes In Sponsored Ads
We’re talking PPC and the latest dynamic changes in strategies for sponsored ads. We’re going to get into the latest changes to Campaign Manager of Seller Central and areas that you need to be looking at in your account. This is all coming up in this episode of the Amazon Seller.
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Dynamic Bidding and Amazon’s Previous Bid Plus Feature
Liran: Up until very recently, Amazon had this feature called Bid Plus. And what Bid Pluss allowed you to do was choose your campaign. And in the campaign, you could have Amazon increase your bid by up to 50 percent. This is done in order to get a placement at the top of the results. But that was really all the information that you had.
Recently Amazon did away with Bid Plus and changed the options for dynamic bidding. As well as showing you more data within seller central. So one of the kinds of important components of what Amazon is showing you now is placements in your campaigns. And those placements could be either top of the search, product pages, and rest of search.
Changes in Search Results
Let’s say I’m selling, you know, barbecue glove and I’ve been targeting an exact match keyword of barbecue glove. My thought would be that I’m showing up on the search results pages when somebody’s searching for barbecue gloves. Well, it turns out that hasn’t actually been the case.
Actually, Amazon has been showing me possibly for that keyword in the search results. But they’re also showing me on other people’s product pages. We have that area called sponsored products related to this product. And if I targeted a keyword, Amazon is also putting my ad on other people’s barbecue glove pages and other pages that they think are relevant. So in reality that we have now is where we thought we’ve been targeting and getting placements is not actually where we’ve been getting placements.
In fact, you know, Casey from Viral Launch came out and put out this data based on a lot of campaigns they’ve been running and testing and they’ve seen like 84 percent of all, you know, impressions are actually coming from product pages and not coming from just regular sort of search result pages. So what that means is what you thought, were your conversions and data for keywords you need to relook.
New Dynamic Bidding Fixed Feature
So what does this actually mean? What this means now with the dynamic bidding is now Amazon is showing you those placements and it’s also giving you more control. So for example, the new dynamic options are Dynamic Bidding Fixed, which means tells Amazon, don’t touch my bid, leave it alone. So if I’m bidding a dollar, keep my bid at a dollar fixed or dynamic bid down. Which tells Amazon I’m bidding a dollar. But if you think, you know, I need to bid lower, in order to kind of move my placement lower, sort of lowered down and to convert better elsewhere, go ahead and do that. And then dynamic bid up and down allows Amazon to increase my bid.
Nathan: And those up and down bids as far as I don’t think we know for sure rates part of Amazon’s algorithm? But is the assumption that that’s based on click-through rate? And then you know, the percentage of those conversions as far as the sale goes, that Amazon’s going to make that decision on the bid up or down?
Liran: Yeah, I believe that it’s probably based on, on Amazon, you know, testing different placements. You’ve obviously had different placements if you’ve had a campaign running. And based on where they think you’re going to convert more for a particular search term. And yeah, probably based on a combination of history and maybe a combination of is this a keyword in your title. Versus is this not a keyword in your title, right? There are things in there that we, that we don’t know, but yeah, it’s based on the Algorithm, I’m sure history and past history is a major contributor to that.
More Dynamic Bidding Flexibility
So you know if you’re in the campaign manager, you’ll see that if you click on the dynamic bidding, you have the option to increase the bid. Increase for either for the top of a search, which would be the top sponsored ads on the first page of the search results. Or increase for product pages or for both.
So you can tell Amazon my bid is a dollar at dynamic bidding on top of that, which would increase that bid to $2. And by the way, if it can get me to the top of search and you think I’ll convert at anywhere from between zero to up to 900 percent increase on the bid if you think I’m going to convert better. And same for product pages. If you can make me number one in the sponsored products related to this product or maybe the positioning would be right under the bullet points for those products targeting ads, then put me there because you think I’m going to convert better.
To learn more about the new Dynamic Bidding components, listen in to the rest of our podcast here!
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