How would you determine the optimal bid for your keywords?

  • Post
    Jacob Craig
    Enhanced
    none

    Let’s say you are managing a PPC campaign for a new product on Amazon. You have been running the campaign for a few weeks and notice that your ACoS (Advertising Cost of Sales) is higher than your target ACoS, which means you are spending more on ads than you are generating in sales. You decide to adjust your bid strategy to try to improve your ACoS.

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      Satoru
      Enhanced
      JP

      My technique would be to decrease the bids with regard to the ACOS, supposedly our target ACOS was 50% (just a random figure) & current ACOS is around 120%, I would not directly opt. to reach 50%, as that can make our ads less effective than they should be, so I will decrease the bids in the interval, suppose our bid is currently set to $1.1 ($1.05 is our CPC), I will cut around by $.10 or $.15, you will have to continue the behavior till either the ACOS become 50% or the keywords stop getting clicks & sales (this would tell you that the minimum bid to get sales almost equal amount is that current bid and should you move on with the keyword or not).

      Robert John
      Beginner
      US

      To control the ACOS you can change the strategy like if your match types or keyword’s bid is $0.60 and you are not set the placement, decrease the bids to $0.30 and set placements of 100% it will cost you same $0.60 but you can try it.

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