Bid per click

Increase accuracy with custom keywords and negative keywords

Advigator calculates and adjusts the bids per click for each product and keyword every day according to this formula:

Bid=Selling priceConversion rateTarget ACoSBid = Selling \ price * Conversion\ rate * Target\ ACoS

In practice, the bid per click that you will find in the campaigns in Amazon Advertising could be slightly different because corrections are made to solve cases with little data, changes in the monthly conversion rate and the average sales price etc.

This formula guarantees that, in the long run, if the sales price and conversion rate remain constant, the product will have an ACoS equal to the chosen ACoS Target.

Target ACoS

Target ACoS is the main setting you will give to campaigns. Think of it as the rudder of a ship.

If you want to increase the visibility of the product, increase the ACoS target, and you will proportionally increase all the offers per click. The targeting strategy, on the other hand, controls the number of keywords entered. The conservative has fewer keywords than the balanced, which in turn has fewer keywords than "no filter". The amount of traffic they will capture is determined by the bid per click and therefore by the Target ACoS.


What is different from the bid suggested by Amazon?

The suggested bid is simply an average of other sellers' bids. It is not optimal based on the selling price of the product, the page conversion rate and the desired ACoS.

Having a higher selling price than competitors allows you to have higher offers per click and therefore greater visibility. The same goes for the conversion rate. If the page converts clicks into orders better, there will be a need for lower advertising spending, and therefore you are willing to spend more for a click, outclassing competitors. For these reasons, the offer suggested by Amazon is never considered by Advigator to choose offers per click.