Amazon Advertising and Bid Optimization: Lessons from the Experts

February 21, 2024

Amazon advertising has become an essential part of the e-commerce landscape. With millions of shoppers turning to Amazon to search for and purchase products, having a presence on Amazon has become vital for brands and third-party sellers. However, with increasing competition, optimizing your Amazon advertising strategy is key to success.




In this article, we look at some expert lessons on how to effectively use Amazon advertising and optimize bids.


Focus on Relevant Keywords


When setting up product targeting campaigns on Amazon, a common mistake is trying to target as many broad keywords as possible. Experts recommend focusing your budget on the most relevant search terms that indicate a high customer intent to purchase.


Often long-tail, niche keywords will convert better rather than just bidding on your brand name or a broad category term. Regularly review your search term reports to identify which keywords drive sales and shift budget accordingly.


Set Dynamic Bids


Amazon offers various bidding strategies from manual bids to dynamic approaches that automatically optimize based on your targets. Most experts, like We Are Polymer specialist Amazon agency, favor dynamic bidding over manual fixed bids. Leveraging Amazon’s algorithms usually leads to better optimization over time. Begin with a target cost-per-click (CPC) and then allow their system to adjust bids to hit your targets based on conversion data.


Test Bid Strategies


Rather than relying on a single bidding method, routinely test out different approaches. For example, try out a target CPC bid against a target return on ad spend (ROAS) bid to see which delivers better performance. Be systematic with your experiments and let them run for long enough (at least 2 weeks) before drawing conclusions.


This will allow Amazon’s systems to react and optimize based on the new constraints.


Monitor Key Metrics




Keep a close eye on the key metrics that indicate the health of your advertising account rather than simply focusing on sales. Track metrics like impression share, relevance rate and outranking percentage. Drops in these areas often indicate opportunities to improve keyword targeting, bids or campaign setup. Use available reports to dig deeper into performance by brand, product type or peak selling times.


Optimize Campaign Structure


How you structure your Amazon advertising campaigns will impact their performance. Most experts suggest separating out brands, products and keywords into distinct campaigns grouped by themes or seasonality. This allows for better targeting, specific bids and personalization for the customers you want to reach. Check that your match types accurately reflect your goals for each keyword or product targeted too.


Amazon advertising provides a flexible platform to drive sales but getting the most from it requires optimizing bids and campaign structure based on performance data. Leveraging Amazon’s on-site customer intent through relevant keywords, letting the algorithm manage dynamic bids and systematic testing are key lessons from the experts.


Keep assessing the metrics that matter to tune your account over time and outrank competitors. And if you are struggling to optimize your campaign, consider working with an experienced agency.


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