Bidding strategies for Sponsored Products

Dynamic bids - down only

When you choose the dynamic bids - down only strategy, Amazon will reduce your bids for clicks that may be less likely to convert to a sale. If we consider that your ad may be less likely to convert to a sale, we might lower your bid for that auction. We may decrease your bids by up to 100% for all placements based on performance. This could happen, for example, on a less relevant search query or on a placement that doesn’t perform well, etc.

Dynamic bids - up and down

With a dynamic bids - up and down strategy, Amazon will increase your bids in for clicks that may be more likely to convert to a sale. With this strategy, we’ll also reduce your bids for clicks that are less likely to convert to a sale.

We may increase or decrease your bids by up to 100% for all placements based on performance. Take this into account when selecting your bid while using this strategy. 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 2 strategies.

If we consider that your ad is more likely to convert to a sale, we might increase your bid for that auction. This could happen, for example, if your ad appears for a highly relevant search query, for a shopper who is highly likely to purchase, or on a placement that performs well. If we notice another opportunity that looks less likely to convert to a sale, we might lower your bid for that auction. For example, Amazon can adjust your bid of INR 1.00 up to INR 2.00 for all placements.

With both dynamic bids - up and down, and dynamic bids - down only strategies, we'll adjust your bids in real time.

Fixed bids

With the fixed bids strategy, Amazon will use your exact bid for all opportunities and won’t adjust your bids. Compared to dynamic bidding strategies, you may get more impressions, but fewer conversions for your ad spend with this strategy.

You can manually adjust your base bids to optimize campaign performance. You can also use placement bid adjustments with fixed bidding campaigns to increase your bids for specific placements.

Bids by audience

In addition to selecting a bidding strategy, you can also adjust your bids by audience, which enables you to reach and engage custom-designed audience segments.

To get started, create your custom audiences in Amazon Marketing Cloud. These audiences will automatically appear in your sponsored ads account when you create new campaigns, allowing you to set specific bid modifications for each selected audience to enhance engagement. You can track how these audiences perform through the Audiences tab in the all campaigns page.

Learn how to create a rule-based audience.