Amazon US launches new SP advertising bidding feature

Recently, Amazon US SP advertising has updated a new bidding model: rule-based bidding.

Rule-based bidding is a dynamic bidding strategy that applies to product promotion campaigns that have been running for at least 30 days. This means that only ad groups that have been running for more than or equal to 30 days have this option, and newly created campaigns are not applicable to this new bidding strategy.

Amazon’s official advertising campaign qualifications are:

1. Product promotion can use rule-based bidding.

2. Advertising campaigns can use any type of delivery method: automatic delivery, keyword delivery, or product delivery.

3. Before setting up rules, your campaign must have been running for at least 30 days and have had at least 30 conversions in the last 30 days.

4. In addition, your campaign must meet a minimum daily budget requirement of $10.

This bidding mode is equivalent to an upgraded version of "Dynamic Bidding - Increase and Decrease". The difference is that by choosing this bidding mode, on the one hand, you can set the ROAS (return on advertising expenditure = sales brought by advertising/advertising expenditure) of the ad group. If you set the ROAS to 5, it is equivalent to requiring the conversion rate of this ad group to reach about 20%. Amazon will aim to achieve a ROAS value of 5 and automatically adjust the bidding of the ad group to allocate traffic.

However, Amazon cannot guarantee that the set ROAS limit will be reached . If it is not reached, and the ROAS of this ad group decreases within 21 days, Amazon will stop this bidding mode on behalf of the seller and enable the seller's previous bidding strategy and targeting level bidding. This 21-day period does not include special dates such as Prime Day or Black Friday.

On the other hand, to reduce risk, sellers can set an average bid limit for the campaign. Amazon guarantees at the campaign level that if the seller sets an average bid limit for the ad group, the bid automatically matched by the platform will not exceed the bid limit set by the seller by more than 25% (for example, if the seller 's limit is $1, the average CPC automatically matched by the platform will not exceed $1.25).

Amazon officials said that while providing this optional bid limit allows sellers to better control advertising campaigns , it may limit the Amazon platform's ability to achieve the ROAS value set by the seller . Therefore, whether to set it or not depends on the specific performance of the ad group.

Changes to rule-based bidding on special dates

On special dates, such as Prime Day and Black Friday, average bids may increase. Sellers will receive emails from Amazon and messages through Amazon 's user interface (UI) so that sellers can increase their average bids to match the special date.

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