Saturday, 28 June 2025

Advanced Bidding Strategies for Amazon Ads: Lower ACoS, Boost ROAS, and Scale Smarter

 

Note: This article is also published on our main website. For the latest version and more resources, visit AdmazonIQ.com.

Advanced Bidding Strategies for Amazon Ads: Lower ACoS, Boost ROAS, and Scale Smarter


If you’ve been running Amazon Ads for a while, you know one thing: bidding can make or break your campaigns. Whether you’re running Sponsored Products, Sponsored Brands, or even exploring newer formats, how you manage your bids determines:

  • How often your ads appear
  • How much you pay per click
  • Whether your campaigns are profitable

Yet, many advertisers set default bids and hope for the best. Unfortunately, that’s a surefire way to waste budget and miss opportunities. Advanced bidding strategies let you control costs, improve ROAS, and outmaneuver your competitors.

Pro Tip: Think of bidding as your power lever on Amazon. Small changes can massively impact your visibility and cost-efficiency!

Amazon’s Bidding Options Explained

Before optimizing, let’s clarify the three core bidding types Amazon offers:

1. Fixed Bids

Your bid stays exactly where you set it, regardless of Amazon’s algorithm or likelihood of conversion.

  • ✅ Good for: Predictable CPC costs, testing specific bid levels
  • ❌ Drawbacks: Doesn’t adapt to auction dynamics; can miss opportunities

2. Dynamic Bids — Down Only

Amazon lowers your bid in real-time if it believes a click is less likely to convert.

  • ✅ Good for: Protecting margins, cautious advertisers
  • ❌ Drawbacks: Might reduce visibility if Amazon over-adjusts

3. Dynamic Bids — Up and Down

Amazon raises your bid up to 100% if a click is likely to convert and lowers it if not.

  • ✅ Good for: Max visibility, aggressive scaling
  • ❌ Drawbacks: Higher CPCs, requires close monitoring

Bid Strategy Comparison Table

Here’s a quick comparison of Amazon’s core bidding types:

Bid Strategy Best For Risk Level
Fixed Bids Predictable costs, testing new products Low
Dynamic Down Only Protecting margins, cautious advertisers Low-Medium
Dynamic Up & Down Max visibility, aggressive scaling High
Pro Tip: Start cautiously with Dynamic Down Only before switching to Up & Down. It’s safer and avoids overspending!

Dayparting (Advanced Tactic)

Unlike platforms like Google Ads, Amazon’s console doesn’t currently offer built-in hourly scheduling for Sponsored Products or Sponsored Brands campaigns.

However, you can still apply a basic form of dayparting manually:

  • ✅ Pause your campaigns during low-converting hours
  • ✅ Resume them during prime performance windows
Definition: Dayparting means adjusting your advertising activity by hour of day or day of week to improve efficiency.

For example, if your data shows conversions spike between 7 pm and 11 pm, you might pause your campaigns overnight to reduce wasted spend.

How to Pause and Resume Campaigns

  1. Log into your Amazon Ads Console.
  2. Go to the list of campaigns you want to adjust.
  3. Click the status toggle to pause the campaign.
  4. When ready, toggle them back to “Enabled.”

Note: This approach is fully manual. Amazon does not currently offer automatic scheduling for hourly bidding changes.


Key Takeaways

  • Test bidding strategies cautiously.
  • Monitor placement reports for smart multipliers.
  • Use dayparting manually to avoid waste.
  • Continuously analyze search term reports for optimization.
Pro Tip: Always balance aggressive bids with profitability. High bids without analysis can quickly drain budgets.

Ready to Optimize Your Amazon Bidding?

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