How to choose the right bidding strategy
How to choose the right bidding strategy
Firstly, it's crucial to understand Amazon's definition of 'Dynamic Bidding - Up and Down': when your ad is likely to result in sales, Amazon will increase your bid in real-time (up to 100%) and decrease your bid when your ad is less likely to drive sales. For ad campaigns with lower conversion orders and a poor sales history, Amazon might assess lower likelihood of your product being sold, hence reducing your bid, resulting in decreased exposure.
Therefore, we recommend clarifying your business goals first before selecting an appropriate bidding strategy:
1.If you aim to generate more orders, it's advisable to start with 'Fixed Bids' to ensure sufficient exposure. Simultaneously, optimize your listing information (main images, videos, A+ content, 5-point descriptions, etc.) to enhance ad conversion rates. Once the conversion rate stabilizes and results in consistent orders, consider using 'Dynamic Bidding - Up and Down' to further increase sales.
2.If your goal is to clear inventory with minimal investment, consider using 'Dynamic Bidding - Down Only.' This might secure exposure at lower bids during less competitive periods, helping to control ad spend.