The Bid+ Conundrum
Bid+ is a common conundrum for Amazon sellers. In this episode of The PPC Den Podcast we discuss how Amazon offers to increase your bid by 50% if it feels like your ad will reach the top spot, without going over your daily budget.
That’s so nice of Amazon. What could go wrong?
- 0:00 Introduction with Mike
- 0:57 What is Bid+?
- 1:12 Where is Bid+?
- 1:31 What does Bid+ do?
- 2:45 Is Bid+ worth it?
- 3:18 Should you be using Bid+?
- 4:10 What are ad rank and ad quality?
- 4:34 Example of ad rank and ad quality
- 5:41 Why most people avoid using Bid+
- 6:45 Rare occasions to use Bid+ and client example
- 8:23 Closing
Links & Resources
Join The Badger's Newsletter
and get ready to crush the competition
If you missed them, check out our previous episodes of The PPC Den Podcast:
- How Do I Create Data-Driven Product Pages on Amazon?
- Amazon’s Marketing Stream Explained: A Technical Breakdown
- What We Wish You Knew About Amazon PPC in 2022
- Amazon Key Metrics: What Do I Track & How Do I Influence It?
- Amazon’s New Expanded Product Targeting: How Do I Make the Most of It?
- What Accounting and Financial Metrics Should I Monitor as an Amazon Entrepreneur?
- What Ad Metrics Should I Track Weekly for Amazon?
- 10 Steps to Maximize Amazon FBA Inventory Limits
- How You Answer This Question Determines Your Amazon PPC Skill
- How to Send Google Ads Traffic to Your Amazon Listing (Classic)
- How Ad Badger Reduced ACOS from 45% to 35% in Two Weeks
- How Do I Make Excellent Amazon Sponsored Display Videos on a Budget?
- Why No One Watched Your Amazon Sponsored Brand Videos & How to Fix It
- How Do I Perfect My Amazon Inventory Management?
- How do I Use Amazon Ad’s Console Export Feature?
- How do I get started with Amazon DSP?
- Why Amazon’s Search Query Performance Dashboard is Awesome
- Common Mistakes with Amazon Product Listings and How to Avoid Them
- Which Non-PPC Skills Make You Better at PPC?
- New Keyword Research Approach: Gain New Clients for Amazon PPC
- Why and How to Use New Bulk Sheet Features in Amazon Ads
- Evolving Thoughts: Total ACOS for Amazon Advertising in 2022
- How Do I Increase My Amazon Market Share?
- How Do I Improve Amazon Total ACOS Fast? Boost Organic Ranking
- Seller Stories: Growing 10 Brands at Once and Managing by KPI’s
- Ad Badger’s Amazon SEO Guide Part 0: Master Keyword List
- Maximizing Your Search Term Use on Amazon Advertising
- How to Forecast Your Amazon PPC Approach
- Brand Metrics: How do you Make the Most of It on Amazon Advertising
- How to do Keyword Research for Amazon PPC: Back to Basics
- How to be Good at PPC: 3 Questions
- Ad Badger’s 2022 Amazon PPC Wishlist: 22 Tools and Features
- 3 Filters to Use Weekly in Your Search Term Report on Amazon
- How Should Amazon Professionals Optimize Tax Planning?
- What Are the Biggest Trends in Amazon PPC Q4 of 2021?
- The Complete Amazon Campaign Types Reference Guide
- Thank You for an Incredible Year!
- Should You Use Amazon Ad’s New Budget Rules?
- Q4 Strategy for Amazon Advertising in 2021: How Do You Prepare?
- How do I Fix my Decreasing Conversion Rate on Amazon Advertising?
- Find Your Bid Style: Which of These 7 Amazon Personalities Are You?
- Should You Trust Amazon Advertising’s New Opportunity Tabs?
- How to Tell A Story with Amazon PPC Data to Boost Client Satisfaction
- Why Community Matters for Amazon Advertising
- How to Send Google Ads Traffic to Your Amazon Listing
- Who to Hire for Your Amazon Growth Team
- How to Optimize for Total ACOS Goals in Amazon Advertising
- A Case for Segmenting Branded Keywords in Amazon PPC
- Ask Any PPC Question with Steven Pope of My Amazon Guy
- 5 Important Factors That Influence Amazon Ranking
- Now Hiring Amazon PPC Digital Marketer– Work at Ad Badger
- What to do When Diagnosing ACOS Increase
- What to do About Low Click – Low Sale Keywords
- How to Use Amazon’s New Budget Tab and Report
- What to do About Rising CPCs (PPC Boosters Series)
- Should You Segment Automatic Sponsored Product Campaigns?
- When to Pause an Amazon Advertising Campaign
- Your Guide to Amazon Prime Day 2021
- The Dreaded Amazon Keyword Constriction
- Search Term Impression Share Reports in Amazon PPC
- How to Scale Your Amazon PPC Account
- How You Can Approach Seasonality in Amazon PPC
- Getting the Most Out of Amazon Reporting
- Amazon’s New Sponsored Display Audiences
- The Sponsored Display Double-Tap
- The Amazon PPC Checklist
- 10 Tips to Become a Great Amazon PPC Manager
- Getting the Most Out of Amazon PPC Management
- The ACOS Power Ratio for Amazon PPC
- Balancing Amazon PPC Optimization and Expansion
- 3 Reasons You’re Still Not Using Bulk Sheets and What to Do About It
- Hidden Amazon PPC Ratios
- Is Exact Match Always Best?
- 3 Questions to a Perfect Amazon Product Page
- The Trinity of Amazon PPC Revenue
- Ad Badger’s Amazon SEO Guide Part 4: Combining PPC and SEO
- Ad Badger’s Amazon SEO Guide Part 3: Into the Strike Zone
- Ad Badger’s Amazon SEO Guide Part 2: The Midgame
- Ad Badger’s Amazon SEO Guide Part 1: Getting Started
- A Look at Amazon’s New Sponsored Display Reports
- What Are Dayparting and Weekparting in Amazon PPC?
- Our Amazon PPC Wish List
- An End of Year Message from The PPC Den
- Thinking Strategically About Amazon Advertising
- How Keyword Dumping Ruins Your PPC Campaigns
- How to Become an Amazon Sponsored Display Master
- How and Why to Use Negatives in Amazon PPC
- Ramping Up For Cyber Monday & Black Friday with Data-Driven PPC Strategies
- Amazon’s New Sponsored Brands Reports
- Using Reverse ASIN on Your Own Product for New PPC Keywords
- Getting High Quality Product Reviews on Amazon
- The Podcast Turns 100
- How to Quickly Lower ACOS Using Bulk Operations
- How to Optimize Hundreds of Auto Campaigns at Once
- Prime Day Preparation: Capitalizing on the Most Important Days of the Year
- Keep Your Amazon Team on the Cutting Edge
- What do I do When a Keyword Doesn’t Convert?
- Hiring PPC Marketer (September 2020)
- How One Keyword Can Apply to Multiple Products
- Amazon Product Listing Optimization
- Common Questions About Amazon PPC Software
- Why Ad Badger? (What Our Customers Had to Say)
- Ad Badger Version 2 Launch: New Features
- Ad Badger Version 2 Launch: Why Is It Better?
- Rebuilding Ad Badger from the Ground Up
- 7 Habits of Highly Effective Amazon PPC-ers
- Boost Your SEO With High-Value Keywords
- Answered Prayers: Negative ASIN Targeting Comes to Auto Campaigns
- Much Ado About Budgets
- How to Get Over 100% Conversion Rates with Sponsored Display Ads
- New Launch Strategy for New Products: Skip the Auto?
- Amazon PPC Data Trends to Shape Your 2020 Strategy
- How Does Amazon PPC Work With Misspellings?
- Following Amazon’s Suggestions? The Mysterious Suggested Bid
- Negative ASIN in Amazon PPC Auto Campaigns: Is it Possible? (Part 2)
- Negative ASIN in Amazon PPC Auto Campaigns: Is it Possible? (Part 1)
- When You Should DIY Your PPC (And When You Shouldn’t)
- An Introduction to Targeting Options on the Amazon DSP
- Optimizing on a Hunch
- 5 Things You Don’t Know About Product Targeting
- Amazon PPC Stats During Covid-19 – April 2020
- Sponsored Brands Update: Now You Can Edit Creatives
- Amazon PPC Stats During Covid-19 – March 2020
- Seller Central Campaign Manager Is Moving to Amazon Ad Console in 2020
- Taking your Amazon Products & Campaigns Global: A Primer
- Best Practices for Selling on Amazon During Covid-19
- Principles and Mindset for Amazon Marketers During Coronavirus
- Coronavirus and Your Amazon PPC Campaigns
- How to Incorporate “Adjust Bids by Placement” Into Your Keywords Bids (Part 2)
- How to Incorporate “Adjust Bids by Placement” Into Your Keywords Bids (Part 1)
- Grow Your Amazon Campaigns With Demographics Data
- What Consumer Behavior Says About You: Amazon Brand Analytics
- How to Rise Lifetime Value with Market Basket Report
- Search Frequency Rank: How To Identify Most Important Keywords
- Long Tail Search Terms: The Amazon PPC Silent Killer
- ACOS: Amazon Platform Tax?
- 7 Tips to Get More Clicks on Amazon Ads
- Live Amazon PPC Campaign Audit
- Amazon PPC Keyword Research in 2020: RPSB Revisited
- New Year, New Badger: The 3 T’s of Amazon PPC
- Ad Badger’s Top Predictions for Amazon PPC in 2020
- 7 Bad PPC Habits to Kick in 2020 & 3 Good Ones to Start
- … And a Badger in a Pear Tree
- The PPC Tasks We Put On Our Project Management Tools
- A Data-Oriented Approach to Advertising in December
- Exploring Bid Change History in Sponsored Products
- The Wait is Over… Search Term Reports for Sponsored Brands Are Here
- See Your Search Terms Without Downloading a Report
- What to Do When It’s Time to Sell Your Amazon Business
- New Product Targeting Options for Sponsored Brand Ads
- Ramping Up for Cyber Monday and Black Friday with Data-Driven PPC Strategies
- The 6 Layers of Campaign Structure Complexity
- Amazon PPC Today vs. Yesterday: What’s Changed, What Hasn’t
- Listener Q&A: What Happens When You Go Out Of Stock?
- Make Your Best Keywords Better with Single Keyword Campaigns
- 6 Levels of Amazon PPC Mastery
- Say Hello to a New Sponsored Product Report
- Amazon Campaign Change History
- How to Advertise Commodity & Unique Products
- Amazon SEO– Bridging the Gap with PPC
- Amazon’s New Sponsored Display Ads (Beta)
- Listener Q&A: Optimizing Placement Settings
- The Problem with Optimizing Low-Converting Products (and How to Solve It)
- 4 Reasons Why Lowering Your Bids Won’t Always Lower Your ACOS
- What to Expect from 30 Days of Running Amazon Ads
- Should You Segment Your Branded Keywords in Amazon Ads?
- Promoting Your Products with Amazon Coupons
- 3 Effective Ways to Optimize Amazon PPC Bids
- 4 Things Amazon PPC Does Better than Google & Facebook Ads
- Into the Great Unknown: Amazon DSP
- Increase Conversion Rates for Sponsored Brand Ads
- Clickfraud, Who to Hire, and More Common Amazon PPC Questions
- The No-Hype, All-Data Approach to Prime Day PPC
- Improving Your Account with Amazon Reports
- The Complete Guide to Self-Auditing Your Campaigns
- A Round-Table Discussion About Placement Settings
- My 5 Predictions for the Future of Amazon PPC
- The Importance of Indexation for Amazon PPC
- Click Through Rate (CTR) Rundown
- An Introduction To Bulk File Operations
- The Latest Sponsored Brand Ad Updates
- Defining Your PPC Goals & Setting ACOS Targets
- Making Sense of New to Brand Metrics
- Should You Bid on Competitors’ Branded Keywords
- Our Gripes About Amazon Sponsored Brand Ads
- Amazon Advertising Launch Strategy for New Products
- The Ultimate Amazon PPC Roadmap
- How to Scale Using PPC – A Case Study
- The Star-Crossed Lovers (Organic & Paid Traffic)
- Cranking Up Conversion Rates
- All Things Negative Keywords
- The Dreaded Amazon Data Reporting Delay
- What We Love About Amazon PPC
- First Look on New Bid Options in Amazon
- Dissenting Thoughts on PPC Budgets
- The Strangest, Most Popular PPC Strategy: The Keyword Dump
- Product Targeting – Into the Great Unknown
- Campaign Naming Systems
- Hitchhiker’s Guide to Sponsored Products (Part 2)
- Hitchhiker’s Guide to Sponsored Products (Part 1)
- Amazon PPC Advertising Stats
- The Advanced Basics of Amazon PPC
- Amazon’s New Product Targeting Features
- The Bid+ Conundrum
- Why We’re Living In The Golden Age of Amazon PPC
What’s the big deal about bid+?
This campaign feature will increase the bids of your keywords, which is why it doesn’t exist in Auto Campaigns, because there are no keywords in Automatic Sponsored Product Campaigns. There are only keywords in Manual Sponsored Product campaigns and Sponsored Brand Ads, but in terms of Bid+, we’re only talking about Manual Sponsored Product campaigns.
Essentially, what Bid+ will do is it will increase bids 50% if it thinks you will get in a top spot.
Example: If you’re running Sponsored Products in a Manual Campaign and you’re bidding on a mason jar and you’re currently only showing up in the bottom of the page, perhaps. If Amazon thinks by increasing the bid 50%, you will end up on the top spot, it will do so. That is what Bid+ means.
So, if you’re bidding a dollar, and if it thinks that at $1.50 you might appear in the top spot, it will increase the bids up to $1.50.
Now, that is why it does it, and really the why’s actually a little bit debatable…
Is it even worth it for you to increase your bids 50% to get into a top position for everything?
That’s a big point of contention when you’re using Bid+, is that it’s not just going to put it on your best converting keywords, it’s not just going to put it on your branded terms, it’s going to put it on everything inside of that Manual Campaign.
This is not a keyword setting, so you can’t apply it to just one keyword. It’s also not an ad group setting, so you can’t apply it just to one ad group. It is a campaign level setting, which will impact every product, every keyword inside that Manual Sponsored Product campaign.
Should you use it? This is a big maybe
Essentially, what it’s doing is it’s increasing your bid to improve your ad rank. On Amazon, it’s very important to understand. All this is a concept borrowed from Google Ads, which is why optimizing Google Ads campaigns is so valuable when optimizing Amazon advertising because you know a lot of the terminology.
Essentially, ad rank is a component of two big features. It’s your bid, which is what Bid+ changes, and then it’s sort of your quality score or your ad quality.
On Amazon, it doesn’t have a specific name. On Google, it’s called Quality Score. On Facebook, it’s called Relevance Score. On Amazon, it’s called nothing because they haven’t given it a name. We like to refer to it as sort of the ad rank and then the ad quality. Essentially, what ad quality is it’s your expected clicked through rate, it’s your expected conversion rate, it’s your expected revenue per click. It’s all of the organic factors that we think of when we think about products ranking organically. It’s the paid version of these.
Here’s a whole post on Amazon SEO.
Example: Essentially, let’s take two advertisers. If advertiser one is selling mason jars and advertiser two is also selling mason jars, and we’re both bidding the exact same dollar, who’s going to appear first even without considering Bid+? Who’s going to appear first if all things are equal? Well, it’s the person who’s going to appear first is the one with the higher ad quality, the one with the higher click-through rate, the one with the higher conversion rate, the one with the higher revenue per click, the one with the higher BSR. All of these things are influencing this person’s ad quality.
If I’m the second place advertiser, is it worth it for me to maybe turn on Bid+ and maybe get ahead? Yeah, probably. The higher position I am, the more clicks I’m going to get, the more conversions I’m going to get, the more sales I’m going to get. Then, maybe my ad quality will increase and surpass my advertiser. That is one conceptual benefit of running Bid+.
In general, I avoid Bid+. In general, a lot of the Amazon professionals I know avoid Bid+ only under certain circumstances.
Why do most people avoid it?
Well, most people aren’t bidding based off position. Most people are bidding based off of target ad cost over sales.
So, they’re bidding based off their target KPI, when most Amazon seller’s target KPIs are going to be ACoS, and that’s it. If we’re currently at our target ACoS, we want to make sure we maintain that bid. We don’t want to turn Bid+ on and increase our cost per click too much, and then maybe blow past our ACoS. If we are way over our ACoS, having Bid+ on will make it harder to get to where we need to be. We need to lower our bids a little bit to reduce our cost per click and get our ACoS where we need it.
Bid+ Will Increase Your ACoS
In general, most people aren’t optimizing for position, most people are primarily optimizing for target ACoS, which is why turning this feature on actually will probably lead to an ACoS increase because your clicks can potentially rise 50%, what brings us to the off chances, the rare circumstances where I actually do turn on Bid+.
Example: We actually had a client just this month (it’s the middle of October right now) and we had a client in the beginning of October say, “Hey my ACoS is actually too low. We were sitting at about a 19% Acos,” and they want it to go all the way up to about a 25, 27% ACoS … all the way up to 30 for some certain product groups.
Of course, the reasons why this wanted this were to really just feel their organic sales. They wanted to improve everything. They wanted to just increase total top line revenue. They were profitable at the low teens, and they were also profitable in the 20’s. So, they wanted to push it. They wanted more value, more clicks, more sales, all those good things. So, we were looking at some of our campaigns and we were doing bid optimization. In addition, we had so much room to grow on some of these campaigns where we were sitting at a eight or nine percent ACoS, and we had the room to increase bids so much and get more aggressive, and show up more often that we did actually turn on Bid+. That account is doing better than it ever has.
So when do you turn bid+ on?
Long-term, will we continue to keep this on? Probably not. We use it has a short-term boost.
Other rare circumstances where you might use it: Maybe you have a competitor campaign or maybe you have a branded campaign. For things that you always want to appear really, really high and really, really aggressively for. Maybe you might turn it on to just always be sure that you’re trying to stay a little bit ahead of the competition. Maybe you still do your bid optimization for your target ACoS, but then you always want the little extra boost just in case you wanted to get ahead.
Talk to us about your bid+ experience
That is it for this discussion of Bid+.
Do you use Bid+? I would love to hear more, but in general, you can head over to adbadger.com/podcast for all of our episodes. We also have an Amazon PPC membership course which you should definitely check out. We have lots of discussions on when you should use Bid+ when it’s working, when it’s not working, what kinds of campaigns, and I will see you inside the Badger Den.