Auto campaigns have been designed to provide us with a ‘catch-all’ traffic generator, which can be useful for sourcing new buying keywords and identifying new ways to scale your ads. They also offer high ad reach; however, the quality of the clicks may vary – depending on where the user is in the conversion funnel on Amazon.
For the past few years, we all struggled with bidding techniques in busy automated campaigns, as the Amazon platform did not offer any extra layers of bid modifiers to help sellers filter out higher quality hits.
Thankfully, in 2018, the Amazon Sponsored Ad teams released a new bid setting for auto-targeted campaigns, and a new form of bid controllers was introduced to give advertisers more flexibility over their ad & keyword optimisations. Yesss!
With the introduction of these targeting options, you can now spend your budget on the most profitable kinds of keywords and placements for your business. You can decide to set different bids or even exclude individual targeting options depending on your aCos% needs and campaign goals.
The new bidding layers allow you to be a bit more flexible and experimental with different auto campaign strategies – from direct performance ads to awareness and complementary targeting. It is up to if you want to run 1x ‘all bids in one’ campaign or split your auto campaigns based on different bid CPC setting so that you can manage your ad budgets and monitor performance individually.
Here are some useful tips for different bid modifier strategies in your auto campaigns:
££££ Close Match
This keyword & placement group usually delivers the most profitable results within the shortest sales cycles
Can be great for advertisers with ROI & aCOS% goals
Should be used for finding high-quality keyword variations or top converting ASINS pages for your products
Also great for PPC product launches and tests
I personally always aim to have my Close Match bids maxed out (within my ROI & aCOS% target) compared to other bid types in the portfolio
£££ Loose Match
Great acquisition driver & new targeting opportunity finder
Usually the 2nd best performer and spender in the bid type portfolio (varies per industry – per
Can be used for ROI & aCOS% goals
Useful for identifying new revenue sources for your brand
Usually converts at a higher cost per sale compared to Close & Loose Match
Can help with boosting sales velocity
Complementary targeting is usually one of the more expensive bid types with slower sales cycles (varies per industry – per product type)
Not recommended for strict ROI campaign goals
Great for reaching upper-funnel searches and cross-selling your products on Amazon
It creates awareness and consideration for your brand
Can also be great for scaling your audiences and turning up the volume of traffic in your ad strategy
Here is an example of how you could distribute your ad budget based on bid type & performance goal in your Amazon campaigns. Please note that the final setup & your budget or bid distribution usually depends on the strength of your product, the industry and level of competition on Amazon.