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Improve Performance By Adjusting Bids And Budget On Amazon

After making an investment in Sponsored Ads for making your product visible to potential buyers, it’s time to make performance efficient campaigns that supports your investment to the fullest! But how?

Learn the most effective ways to optimize your Amazon bidding strategies to improve the visibility, efficiency, and performance of your ad in the marketplace. Because that’s the real trick!

Making your Amazon product visible at top of the searched page is no piece of cake!

It takes several experimentations with your Amazon campaign bidding strategies to finally get to fully proof money making Amazon PPC Strategy.

It is a well- known fact that every 4 out of 5 sellers face difficulty in setting a successful Amazon PPC strategy. Then there are intriguing sellers who want to understand the real and most powerful methods to stand out be that 1 out of 5 sellers.

Enlighten yourself with the finest and most workable Amazon PPC bidding strategies and be that “one” seller to stand out!

Keeping those 4 sellers in mind, we have prepared an updated Amazon PPC guide to improving your performance by adjusting bids and budget strategies. These key tips will help you increase the exposure of your brand in the market while driving in traffic and sales to your listings. Also, before getting into the best ways to optimize your campaign, learn some key steps on “How to review and refine your Amazon keyword strategy”.

So without further ado, let us get started!

Bidding Strategies For Your Amazon Advertising

We all know that Amazon follows a trend where there is an increase in the number of ad placements significantly, simultaneously giving advertisers more precise control over targeting their ads. In January 2019, Amazon introduced new bidding features to help Amazon sellers make the most out of their budget and Amazon PPC bidding strategies that can make a huge difference in your Amazon campaigns.



Not long ago,’Bid+’ was one of the existing targeting tools to get your Ads placed at the most valuable place on the page i.e. top of the search reports. For more precise targeting, Amazon introduced two new features that were –

  • Dynamic bids
  • Adjust bids by placements

Handpicking the best strategies depends upon your PPC goals. No matter what you sell on Amazon whether it’s a fish tank or fish food, advertising on Amazon requires a proper Amazon bidding strategy. Your bidding strategy decides who will win the Amazon auction game- you or your competitors!

Turntable to your side by applying an effective bidding strategy and rule!
For that you need to know the basics of the new features introduced by Amazon i.e Dynamic bids and Adjust bids by placements!

DYNAMIC BIDS –How do they work?

Dynamic bids allow Amazon to adjust bids in real-time depending upon the conversion rate and probability.


Dynamic Bids- Down Only

With this bid strategy, your bids will be automatically reduced in real-time for clicks that are less likely to get converted.
For example- Suppose you are advertising iPhone covers and you have set bid $1.00 for the keyword “iPhone mobile covers”.

Now if Amazon sees an opportunity where your advertisement is less likely to convert may be because of poor ad placement or less relevant search term, they may lower your bid to $0.20 for that auction to avoid your ad spent.

Dynamic Bids – Up and Down

In addition to reducing bids for ineffectual clicks, with this bid strategy, Amazon may increase bids up to 100%, if your click is most likely to convert and for all other placements bids can be increased by 50%.

This strategy adjusts bids up to and down according to the probability of conversion and this is the reason it may be more beneficial to use this strategy than the other two strategies.

Suppose, you are advertising the same iPhone cover as stated above and have bid set to $1.00 for your keyword “iPhone mobile covers” , Amazon will find opportunities where your ad is more likely to convert for sale and it may adjust your bid to $1.40 for that auction.
If it finds an opposite opportunity where your ad is less likely to convert to produce a sale, your bid may be lowered to $0.20 for that auction.

Fixed bids

With this bid strategy, Amazon will use a fixed bid (whatever you stated) regardless of the chances of your ad getting converted!

You’ll get more impressions for sure with this bid strategy but you might get less conversion rate as compared to dynamic bid strategy.

Adjust bids by placement – How does it work?



Adjust bids by placement has taken over the “Bid+” strategy for an improved Amazon PPC campaign. Use this feature in addition to ‘Dynamic Bidding’ — to fine-tune your final bid and align your strategy.

Set your base bid to increase by 0% to 900% (also known as 10x) for the top of the search (first page) AND/OR product detail page.
When it comes to sponsored Products, Amazon has divided the placement into to view the performance of your bids –

  • Top of Search – Sponsored product ads that appear at the top row on the first page of search results.
  •  Rest of Search –It refers to the ads that appear in the middle or bottom of the result page i.e  the search result that come after ‘Top of Search’
  • Product Pages –It refers to sponsored product placements on the product details page, and other placements outside the search results, like the add-to-cart page.

How often should you Adjust Bids by Placement?

Bid modifiers can be adjusted every two weeks for smaller accounts and for larger accounts, those who want to be on the top can adjust their bids by placement twice a week.
The best advice you can get for adjusting the bids is to always measure the ACoS and optimize accordingly! If you are constantly getting unsatisfactory ACoS then you must take care of your Amazon bidding strategy thrice a week.

Don’t miss an opportunity to make a bigger revenue by optimizing and monitoring your placement bids!

Even if your campaigns are performing well, these 5 mistakes can always hinder your campaign’s performance and make you spend tons of money

  1. Not paying attention to Bid Optimization-
    It’s always important to keep an eye on your Amazon budget adjustment and Amazon PPC bidding strategies. You can’t let a week pass by without doing a proper bid optimization.
  2. Guessing the bids-
    Set your bids by a purely observational sense and not just a guess. Don’t try to guess what bid will work and what not!
    However, sometimes you might feel like you’re guessing correctly and your campaign performance is improving but it’s not the right way and should be avoided!
  3. Making big changes based on one instance-
    You can hurt your campaign’s performance by making drastic changes to bids based on little evidence. You should have big evidence in order to back up your big bid adjustment.
  4. Obsession with lowering ACOs-
    Yes, ACOs at 1% may seem great but is it really? You should always look out for making a maximum profit which isn’t directly proportional to lower ACoS!Even with 1% ACoS, there are chances you’re leaving plenty of money on the table.
    Hence, it is important to constantly keep an eye on your ACoS and try to find the number where your campaigns perform exceptionally well giving you the maximum profits.
  5. Not paying attention to bid history-
    The more attention you pay to the data, the more chances there are for you to have a successful Amazon bidding strategy. Try to find the perfect CPC by calculating RPC. RPC can be calculated by taking the total sales for a keyword and dividing it by the total clicks for that keyword. Calculate RPC for the past 30 days, 60 days and 90 days to know how RPC has changed due to seasonal factors.


  • In order to generate a successful Amazon PPC bidding strategy, be particular and accurate with your Amazon keyword research!
    Setting different bids to different keywords is of great importance!
  • Keep your ACOS goals in front of your mind and define proper Amazon bidding strategies to support each of the campaigns.
  • Optimize and monitor your placement settings on a regular basis to get the most out of your budget.
  • Understand the Amazon PPC Bidding Strategies properly to have total control of your campaigns.
  • Pay attention to the do’s and don’ts for proper bidding optimization.

Paint a bigger picture!

Don’t leave a chance to be on the top of the search! Experimenting with proper analysis can
change the face of your Amazon PPC account.

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