Amazon Ppc Bidding Strategies In 2020

By Author: Tim Hughes
Total Articles: 8
Comment this article

The Importance of strategizing your PPC bidding

Making a winning bid is essential to create a successful PPC campaigns. Once you have found the perfect placement for your sponsored ad, you will find yourself in the middle of competitors who are also trying to take the top spot. That is why winning the bid is key here.

If you are able to put your sponsored ad in Amazon’s organic search results, for example, then your product will have great visibility, and in turn great conversion rates. If you are able to deploy a good bidding strategy, it not only puts your ad on the top, but also helps in reducing your overall ACoS.

Product profitability, break-even ACoS and the Target ACoS calculation is necessary for a profitable product launch.

A good bidding strategy leads to a successful PPC campaign, which leads to increase in sales, more brand visibility, and of course, the dream of every seller, great amazon organic ranking!

Amazon PPC Bidding Strategies:
1. The Fast and Sloppy Method
This strategy involves bidding aggressively. In this ...
... method you start with a high bid, maybe even overshoot from where we actually need to be, then cut down on the bids according to your ad spends.

This is the biggest disadvantage of this strategy, it results in high ACoS. When you repeat this process over and over again, for a hundred times, then your overall ad spend will be quite high.
2. The inch-up method
In this method, we are trying to find the smallest bid that gives the most information. Here, we are starting with the smallest bid possible, then gradually increase the bid amount later on on until you reach your target. Basically, we are undershooting the bids, as opposed to overshooting in the case of fast and sloppy method.

Note: This method allows for more precise bidding
3. Targeting brand keywords
Branded keywords include search queries that reference your brand name or other branded elements. Bidding in your branded terms is an important practice that you need to follow. It will help you in dominating the search engine results page (SERP), as you will be able to show your sponsored ad as well as organic search results.

Your branded keyword may have good conversion rates without high competition, so in that sense your own branded terms may be a gold mine right in front of you.

You will be able to secure good quality leads at the verge of conversions, since they are already searching with your brand keyword. You will have better control over your messaging, and attract potential customers. And finally, one of the biggest reason for targeting your own branded keywords is that your competitors may be already bidding for your brand keyword, resulting in losing sales.

4. Structuring your campaign

Structuring your PPC campaign properly is crucial for its success. A fantastic campaign structure will help in better optimization of your PPC campaign.

Divide your campaign into different ad groups and keyword groups for maximum effectiveness.

By segmenting your keywords into tightly themed groups, you will be able to control your PPC ad budgets better.

Conclusion
Amazon campaigns need technical knowledge and expertise to run at their best. Here you will find PPC Tips to help you optimize your campaigns and save money.