How Ad Badger Manages Amazon Keyword Bidding

Ad Badger’s powerful Bid Optimizer manages Amazon keyword bidding by:

  1. Using an individual strategy, not a portfolio strategy to bid on every item. Every keyword will be perfectly tuned with it’s own level of performance. 
  2. Optimizing individual keywords and ad groups even if they’re brand new.
  3. Evaluating your RPC, TACoS, and TCPC
  4. Studying and updating bids monthly and getting smarter with AI technology
  5. Providing transparency of why it bids the way it bids
Here’s a video and transcription explaining why our Bid Optimizer is the most effective way to manage Amazon PPC bidding. 

Let’s go a little deeper into how the Bid Optimizer works. 

Here are the points Michael talks about on how Ad Badger manages your keyword bidding.

1. Our Bid Optimizer Uses An Individual Strategy, Not a Portfolio Strategy 

The first thing is, the Bid Optimizer uses an individual strategy instead of a portfolio strategy. Essentially what that means is, we optimize every single item, keywords or ad groups, so you won’t end up with a campaign where you have a hero keyword with great performance that it carries the entire campaign. Every keyword will be perfectly tuned based off its own level of performance with those products. In a portfolio strategy, sometimes you’ll end up with high performers carrying the entire ad group, and poor performers wasting money every single month. With this individualized strategy, we’re able to help keep your campaigns well optimized down to the keyword level.

2. We Optimize Individual Keywords and Ad Groups Even if They’re Brand New

Now the second thing, the Bid Optimizer works for new keywords and ad groups. I wanted a bid optimizer to work from day one. Even Google, with all of the resources still tell you that you need to wait until your campaign gets at least 15 conversions before you can turn on bid optimization. 

I wanted our users to be able to dump hundreds of keywords in their account, and never worry about changing a single bid. For these newer keywords without conversions, we do something called the Inch-Up method, which I talk about in another video linked below:

Find the full post on the Inch-Up Method here

3. The Tool Evaluates Your RPC, TACoS, and TCPC

The third thing we do is we take a look at revenue per click, compared to our Target ACoS, to figure out the Target CPC. So good bid optimization looks at how much you’ve made per click, and then predicts how much you’ll make per click in the future.

Think of it this way, if you have 50 clicks and made $100, that means on average, every time you get a click, you make $2. If you want a 50% ACoS, what’s about 50% of $2? Around $1. This is the core thesis behind Ad Badger.

4. We study and update bids monthly and get smarter with AI technology

Now the fourth thing. We study and update monthly. The Bid Optimizer gets smarter every month. Once a month we study our bid algorithms and we improve it. Seasonality, we’re working on it. Coming up with what to do, leading up into Prime Day or Black Friday, we’re brainstorming that. This is where it starts to turn into science fiction and AI machine learning. 

A GIF comparing Ad Badger's AI abilities to the Terminator

And in fact, the more people that sign up and turn on the Bid Optimizer, the smarter it gets. The Badger is learning every single impression, and it’s learning from every single click and conversion. And we’re making a lot of progress and we are still just in beta (for now).

5. We Love Transparency

The fifth thing that we do, is give you the transparency you need. I have never seen a Bid Optimizer that actually tells you the history of what it did, why it did it, and lists all the changes that it made day by day. This is what we do inside Ad Badger. So you never have to worry about what’s actually going on inside your campaigns. 

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@Jeff Bezos

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