Achieve Your ACOS Goals on Amazon PPC with this Bidding Formula (How to Optimize Bids - Part 2)
Updated: January 26, 2025
Summary
The hosts of the Amazon Ads Podcast discuss bid changes and optimizations following their visit to the Amazon Ads offices in NYC. They explain the criteria for bid adjustments and the importance of weekly optimizations based on a LinkedIn poll. Detailed explanations of formulas for bid changes, using metrics like Target ACoS and Revenue per click, are provided along with insights on calculating Target CPC and top-of-search multipliers. The episode wraps up by stressing the significance of audience engagement to sustain the podcast series.
Introduction to Amazon Ads Podcast
The hosts introduce the Amazon Ads Podcast in episode three, discussing their recent visit to the Amazon Ads offices in New York City.
Overview of Bid Change Criteria
They discuss the criteria for making bid changes and mention the importance of weekly optimizations based on a LinkedIn poll.
Bid Change Formulas and Calculations
Explanation of different bid change formulas, including the concept of increasing or decreasing bids based on target ACoS and Revenue per click.
Utilizing Cross Multiplication
Detailed explanation of using cross multiplication to determine Target ACoS and bid changes for keywords.
Target CPC Calculation Method
Discussion on calculating Target CPC using Revenue per click and various multipliers for bid adjustments.
Influence of Top-of-Search Multipliers
Explanation of the impact of top-of-search multipliers on bid adjustments and CPC calculations.
Conclusion and Call to Action
Wrap-up of the episode, emphasizing the importance of audience engagement to continue the podcast series.
FAQ
Q: What is the importance of weekly optimizations in Amazon Ads?
A: Weekly optimizations in Amazon Ads are important to ensure that bid changes and strategies are adjusted promptly for better performance.
Q: How can cross multiplication be used to determine both Target ACoS and bid changes for keywords?
A: Cross multiplication can be used to find the relationship between target ACoS and bid changes, helping to optimize advertising strategies efficiently.
Q: Explain the concept of increasing or decreasing bids based on target ACoS and Revenue per click.
A: Adjusting bids based on target ACoS and Revenue per click involves finding a balance between profitability and ad performance, aiming for optimal results.
Q: What are the criteria for making bid changes in Amazon Ads?
A: The criteria for making bid changes in Amazon Ads include factors like target ACoS, Revenue per click, and the impact of top-of-search multipliers.
Q: How is Target CPC calculated using Revenue per click and various multipliers for bid adjustments?
A: Target CPC is calculated by considering Revenue per click and applying different multipliers to adjust bids effectively for desired outcomes.
Q: What is the impact of top-of-search multipliers on bid adjustments and CPC calculations?
A: Top-of-search multipliers can significantly influence bid adjustments and CPC calculations, leading to changes in ad placement and cost-per-click rates.
Q: Why is audience engagement emphasized as important at the end of the episode?
A: Audience engagement is crucial to maintain interest in the podcast series and gather feedback for improvement, ensuring its continuation and success.
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