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How much to bid

Hey,

Today, I'm off to an in-person event, about an hours drive from home, to talk to a group of authors about all things advertising and Amazon Ads, so very much looking forward to this, meeting some new folks and helping them get to grips with Amazon Ads.

Before I go, I'd like to do the same for you in this edition of The Morning ACOS.

And today, I'm talking bidding. Specifically, where to start the bids on your Amazon Ads - high or low?

When setting up your Amazon Ads, you'll see a “suggested bid” and a “bid range,” based on the book(s) you're advertising and the targets you've selected (e.g., automatic targeting groups, keywords, categories, products).

You could of course base your bids on the suggested bid, however, I have found a better option is to base your bids on the bid range.

And using the top and bottom numbers of the bid range, there are two approaches to choose from:

Option #1: Start with high bids (top of the bid range*) then decrease the bid until you find an equilibrium point of good sales/page reads and a reasonable cost per click.

Option #2: Start with low bids (bottom of the bid range*) then increase the bid until you find an equilibrium point of good sales/page reads and a reasonable cost per click.

* If the top or bottom of the suggested bid range is more than $1 when starting a new campaign, I wouldn't recommend starting that high! Personally, I'll bid up to $0.98 maximum, even if the top of the suggested bid range is $2.73. That is too high a bid for a new campaign and you can still gather solid data with a $0.98 bid.

The latter option of starting with a low bid and increasing over time is generally the slowest approach, but also the safest.

So, if you’re perhaps a little risk averse, or have a small budget for Amazon Ads, then this is a great way to begin.

Depending on the genre of your book(s) and your targeting options, a low bid could be anywhere from $0.02 to $0.50, or even higher.

With this slow, steady, and safe approach to bidding, I recommend starting with a bid of between $0.30 and $0.40, even if the low number of the bid range is higher than this.

After 5-7 days, you'll know if this bid is too low if you've received no or low impressions (the number of times your ads are shown).

Bidding lower than $0.30 is unlikely to garner many impressions, clicks, and sales.

If you have a larger budget to play with and are less risk averse, then starting with a higher bid could be for you.

When bidding on the higher end of the bid range, you will typically see results much quicker, sometimes not the results you want to see if you’re getting clicks but no sales, but results and data nonetheless.

My preferred approach to bidding...

Start with a high bid and lower over time as I start to collect data.

A high bid for one book could be very different to a high bid for another book and will also be affected by your targeting.

Some targets could cost you more than $2 for a single click!

If this high-bid approach suits you more than the low-bid approach, bid an amount towards the top end of the bid range of your selected targets.

Then, over time, you can reduce your bid by $0.03 – $0.10 cents every five to seven days until you find that sweet spot of strong sales/page reads and a CPC (cost-per-click) that works for you.

Ultimately, with bidding, only bid what you are prepared to lose, particularly during the testing phase when you are just dipping your toe in the Amazon Ads water.

You got this.

To Your Success
- Matt

Whenever you're ready, there are 3 ways I can help you:

1. Sell 100's of books every month with Amazon Ads, in under 60 minutes per week here.

2. Follow my step-by-step blueprint for finally mastering Amazon Ads here.

3. To receive short, daily tips, tricks and ideas, follow me on Twitter, where I post a few Amazon Ads insights each day.

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