Amazon Announces 3 New Sponsored Products Bid Optimization Features

By Tinuiti Team

Earlier this week, Amazon announced 3 new bidding and reporting features for Sponsored Products that will help “improve performance, control, and insights”.

Introducing 3 New Bid Optimization Features:


1. Dynamic bidding

The first new beta is a campaign optimization setting now available for Sponsored Products.

According to Amazon, you can choose to have Amazon adjust your bid up or down in real time by a maximum of 100% based on the likelihood of conversion.

Dynamic bids – down only: What this means is Amazon will reduce your bids in real time for clicks that may be less likely to convert to a sale.

Pro-Tip: Any campaigns created before October 2018 used this strategy.

Dynamic bids – up and down: In this case, Amazon will increase your bids in real time for clicks that may be more likely to convert to a sale, and reduce them for clicks that may be less likely to convert to a sale.

Amazon will not increase your bids by more than 100% for placements at the top of the first page of search results. Since this strategy adjusts your bid up and down in proportion to the likelihood of a conversion, it may deliver more conversions for your ad spend compared to the other two strategies.

Fixed bids: When you choose the fixed bids strategy, Amazon will use your exact bid for all opportunities and will not adjust your bids based on likelihood of a conversion.

According to Amazon, this strategy is recommended for campaigns pursuing an awareness goal as you may get more impressions but not for campaigns which the main goal is conversion.

To learn more about dynamic bidding, Amazon has also released this short video.

2. Placement bid adjustments

Now Amazon allows you to adjust your bids by placement for top of search and product pages. With these settings, you can influence where your ads appear on Amazon.

3. Placement performance reporting

The last new feature provides performance data by top of search (first page), rest of search, and product pages placement groups, so that you can make more informed marketing decisions.

How do these new features impact advertisers?

“The new targeting feature provides brand new insight into where your ads are actually showing up and how you perform under each placement, ” 

Evan Walsh, Senior Marketplace Channel Analyst at CPC Strategy said.

“The new reporting includes metrics for Top of Search, Product Pages and Rest of Search ad placements. The primary way you’re actually able to utilize this information is through the Adjust Bids by Placement (previously Bid+) and Dynamic Bidding section under Campaign Settings.”

So, how does it work?

“For example, if you identify that the Top of Search placement performs the best for a specific campaign, you can increase your bid by a specified percentage when your ads compete for opportunities on that particular placement.”

“This will allow for a more dynamic bidding strategy specifically for ad placements which has never been accessible before.”

Next steps:

Keep in mind, all live Sponsored Products campaigns will continue to perform as they were and will be moved to Dynamics bid – down only.

Some of our readers might be wondering what will happen to “Bid+ campaigns”?

bid+sponsored products

Sponsored Products Bid+ is a beta feature (released in 2016) used by select advertisers to increase the opportunity to display ads in the top placement (aka the top row of search result pages).

When Sponsored Products Bid+ is turned on, Amazon increases the maximum CPC bid for all ads that are eligible to appear in the highest traffic placements at the top of Search results.

According to Amazon, with the addition of the new bidding features mentioned above, Bid+ is bnow being deprecated and live campaigns with Bid+ “on” are moved to Dynamic bid down with a 50% boost on Top of search placement.

For more on Amazon’s latest bidding features, email [email protected]

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