Amazon has made changes to its bidding strategy for Sponsored Brands campaigns, introducing dynamic bid adjustments to help advertisers stay competitive. This update affects Sponsored Brands and Display campaigns on the platform.
The recent update allows Amazon to adjust bids for Sponsored Brand ads by up to 300%, similar to the existing capability for Sponsored Display campaigns. This means that Amazon can increase the bid for a Sponsored Brand ad by up to 300% if they anticipate a higher likelihood of conversion.
For example, a bid of $1 could be raised to as much as $4 based on Amazon’s assessment of conversion potential.
Impact on Advertisers
For advertisers, this update carries several implications:
- Possible Cost Surge: Anticipate a potential significant increase in Cost Per Click (CPC), particularly during high-traffic periods such as holiday sales events.
- Adjustments Aligned with Objectives: These bid adjustments apply specifically to Sponsored Brands campaigns with the campaign goal set as “Drive page visits.”
- Inability to Opt-Out: Currently, there is no option to deactivate this feature for Sponsored Brands campaigns.
What you can do.
Here are some actions you can take to adjust to these changes:
- Monitor Your Spending: Keep a close watch on your advertising expenditure and anticipate potential increases in advertising costs.
- Regularly Monitor Campaign Performance: Keep a regular check on your campaign performance to make sure that your ads are still performing effectively and that you are maximizing your advertising budget.
- Reassess Your Strategies: It may be necessary to reassess and modify your advertising strategies in light of these changes.
Conclusion
Amazon’s updated bidding strategy for Sponsored Brands campaigns represents a significant change that advertisers should be mindful of. By comprehending the implications of this change and adapting your advertising strategies, you can ensure the continued success of your campaigns.
