How to Use Amazon’s Dynamic Bidding Strategies for PPC Success
Amazon’s Dynamic Bidding system allows advertisers to automatically adjust bids in real time based on the likelihood of conversion. This feature helps sellers optimize their Advertising Cost of Sales (ACOS) and improve Return on Ad Spend (ROAS) without manually adjusting bids. Understanding and effectively using Amazon’s Dynamic Bidding strategies can lead to better ad performance, higher conversions, and lower wasted ad spend.
Understanding Amazon’s Dynamic Bidding Options
Amazon provides three main bidding strategies:
1. Dynamic Bids – Down Only
•Amazon reduces your bid when it predicts that a conversion is less likely.
•Ideal for cost-conscious advertisers who want to minimize wasted spend.
•Best for new campaigns or products with low conversion data.
•Works well in highly competitive niches where CPCs fluctuate.
2. Dynamic Bids – Up and Down
•Amazon increases bids (by up to 100%) when it predicts a conversion is likely and reduces bids when conversion likelihood is low.
•Best for high-performing, well-optimized campaigns with strong conversion rates.
•Works well for seasonal campaigns, competitive niches, or time-sensitive promotions (e.g., Black Friday, Prime Day).
•Increases visibility in top placements but requires a higher budget.
3. Fixed Bids
•Amazon does not adjust bids automatically—your set bid is always used.
•Best for manual bidding strategies where advertisers want full control.
•Useful for stable campaigns with consistent performance.
•Works well for testing new keywords without Amazon’s interference.
Choosing the Right Dynamic Bidding Strategy
1. For New Campaigns & Budget Control → Use “Down Only”
•Helps avoid overspending while collecting data.
•Ensures bids are lowered if Amazon predicts a low conversion probability.
•Ideal for testing new products, keywords, or targeting methods.
2. For Competitive Campaigns & Higher Sales → Use “Up and Down”
•Increases bid for high-converting opportunities, boosting visibility.
•Works best for top-selling products with strong sales history.
•Requires frequent monitoring to avoid excessive spending.
3. For Maximum Control & Stability → Use “Fixed Bids”
•Ensures predictable spending without Amazon’s adjustments.
•Useful for campaigns with consistent conversion rates.
•Best for retargeting ads or niche product campaigns.
Optimizing Amazon Dynamic Bidding for Better Results
1. Monitor Bid Adjustments in Reports
•Download Placement Reports to analyze bid performance.
•Check if Up and Down bidding increases conversions or just raises costs.
2. Adjust Placement Modifiers for Top Performance
•Use bid adjustments to prioritize “Top of Search” placements.
•If “Product Pages” convert better, shift budget towards those placements.
3. Test & Scale Gradually
•Start with “Down Only” to collect data.
•Gradually shift to “Up and Down” for high-performing campaigns.
•Compare Fixed Bids vs. Dynamic Bids to find the most cost-effective approach.
4. Adapt for Seasonal & Promotional Campaigns
•Use “Up and Down” bidding for holiday sales, flash deals, and peak shopping seasons.
•Switch back to “Down Only” after the promotional period to control costs.
Final Thoughts
Amazon’s Dynamic Bidding strategies allow sellers to automate bid adjustments and maximize conversions. By choosing the right strategy—whether “Down Only” for budget control, “Up and Down” for aggressive growth, or Fixed Bids for stability—you can improve ad efficiency, reduce wasted spend, and drive higher sales. Regular performance monitoring and adjustments are key to making the most of Amazon’s automated bidding system.