How Can Automated Bidding Benefit Advertisers? Will It Work To Your Advantage? 

by Tomer

July 1, 2022

Managing your PPC campaigns can be laborious. Advertisers need to check and analyze their biddings, keywords, and more to ensure the success of their ads. If you are still doing manual bidding, which we all know can be very time-consuming, maybe it’s time you consider automated bidding.

But how can automated bidding benefit advertisers like you?

In this blog post, I will explain what automated bidding means, how Amazon advertising automation works, the different bidding strategies and when to use them, and how you can benefit from automated bidding.

Be sure to read the entire blog post to learn the different e-commerce tools for Amazon and Google Ads that have automated bidding features to help you save time with your PPC campaigns and improve your overall Amazon PPC optimization strategies. 

What is Automated Bidding?

how can automated bidding benefit advertisers

Automated bidding is a bid strategy where bids are set automatically for you based on the probability that your ad will result in clicks or sales.

Every type of automated bid strategy will depend on a particular goal that you want to achieve for your business and are managed within a certain set of rules that you place yourself.

But what is the difference between manual bidding and automated bidding? Manual bidding is when you personally manage your keyword bids on Amazon or Google Ads or any advertising platform.

You decide how much you want to bid and manage your PPC account without the help of any smart solutions or an AI.  

Most first-time advertisers use manual bidding than automated bidding. While both are effective bidding strategies, as your business grows and you spend more money on paid advertising, managing them manually can be time-consuming.

Automated bidding allows you to manage your ads more efficiently with the assistance of an AI or a learning machine.

Instead of manually setting your maximum Cost-per-click (CPC) across your ads, automated bidding will automatically adjust your bids to maximize results based on the goals you set. 

What is Automation in Amazon and Google Ads?

Automation in Amazon and Google Ads is using tools to automate keyword and bid management. It is a set of technologies or processes that can perform workflows and tasks automatically. Basically, automation can help advertisers save time with their ad campaigns.

Advertisers who use automation for Google Ads and Amazon have seen a significant increase in visibility as well as sales since their products are displayed on the first page of search results. 

The machine learning capability of Amazon and Google Ads automation allows them to find the most relevant ad type based on the people searching for a specific product.

Did you know that Google Ads and Amazon can work hand in hand in increasing your visibility and conversion rates? 

I have a video on How to Send Traffic from Google Ads to Your Amazon Products.

What are the Amazon Bidding Strategies?

how can automated bidding benefit advertisers

With automated bidding, you let Amazon decide on how much you’ll spend on your ad. There are different Amazon bidding strategies and I’ll show you when to use each of them. 

Dynamic Bidding Down Only

For this type of bidding strategy, Amazon will lower your bids if your ad has a low chance of making a sale. This strategy can lower your ad costs. Dynamic bidding down only is best used when you’re still not so sure or confident with your ad campaigns.

If your ad is not making any sales, Amazon will lower the bid by up to 100%.

Dynamic Bidding Up and Down

Amazon will increase your bid if the chance of getting a sale is high and will lower your bid if the conversion rate is low. The main focus of this strategy is efficiency and conversion. You can use this strategy for your well-optimized ads to ensure profit. 

Amazon will lower your bids if your ads are not converting enough and will increase them by up to 100% if the chance of getting a sale is high. Please note that the 100% bid increase is for top-of-page placements only and for other bids it can only be increased up to 50%.

However, you need to monitor your ad spend with this strategy and you should be comfortable in spending over 100% of your bid when necessary. 

Fixed Bidding

For fixed bidding, the bid that you choose is fixed and will not be adjusted whether or not it is generating sales. While this strategy is not always recommended, some sellers use this when launching a new product or to boost brand visibility.

The focus of fixed bidding is to increase sales and impressions. 

Understanding each of these bidding strategies can help you decide which strategy is most suitable for your ad campaigns depending on your goals.

How Can Automated Bidding Benefit Advertisers?

To find out if automated bidding is the best option for you, here are some of its benefits.

Saves Time

Undoubtedly, automated bidding can significantly decrease the time you spend managing your PPC campaigns. With automated bidding, you don’t need to analyze your keywords and set the bids for each campaign manually.

It will be set for you depending on what you want to achieve. This can help you focus on other important tasks to grow your business.

Machine Learning

Another benefit of using automated bidding is machine learning wherein it evaluates your ads performance to optimize your ads depending on your goals. It analyzes and updates your bids more frequently based on historical data.

It can save you the headache of manually updating bids from time to time and understanding and analyzing the data.

Auction Time Bidding

PPC advertising has become more complicated over the years with several factors to consider when bidding. For instance, apart from the keyword customers are using, you should also consider the location, audience, age group, device, and gender.

Processing all this information can be a lot of work. With automated bidding, it can look at all these factors and process bids in real-time. It can set reasonable bids for a particular auction for you. 

Improvement in Campaign Performance

The main benefit of using automated bidding is to improve the overall campaign performance.

With its ability to process data in a short period of time and analyze the best bid strategy for a specific campaign, it can help improve visibility, site visits, and more conversions while ensuring that you don’t go overboard with your budget. 

Top Automated Bidding Software Tools for Amazon

how can automated bidding benefit advertisers

If you think you are ready to try automated bidding for your PPC campaigns, then here are the top automated bidding software tools for Amazon that you can try. 

Scale Insights

Scale Insights is designed to use AI to help you grow and manage your FBA Business with PPC Automation and Advanced Analytics. You can use my affiliate link to get your FREE TRIAL for 30 Days. It does not require a credit card and expires on its own.

Helium 10

Helium 10 is an all-around Amazon tool that covers almost everything you need. One of its features is the Helium 10 Adtomic tool which is AI-driven and can help you create campaigns based on your goals. It can perform keyword bid management for you. 

Adtomic is part of the entire Helium 10 software, however, to have access to Adtomic, you need to avail of at least their Diamond Package which is $197/month.

Helium 10 is suitable for both beginners and seasoned Amazon sellers. The templates available to create campaigns are easy to understand and easy to set. 

The smart auto-suggestions feature can provide keyword suggestions and adjust bids for you, so you don’t have to spend lots of hours with manual bidding and keyword search work. If you want to save money on Helium 10 check out this Helium 10 coupon to get discounts. 

Apart from Adtomic, the Helium 10 Cerebro and Helium 10 Magnet are keyword research tools within the software to provide you with relevant keywords for your ads. Using all these Helium 10 features can give you a headstart with your competitors.

Sellics

Another interesting Amazon advertising tool is Sellics. It’s one of the first advertising tools available for Amazon sellers. It can automate your campaign management by allowing Sellic’s AI algorithm to do the job for you or set the rules by yourself. 

Apart from automated campaign management and bidding, other helpful features are competitor research, SEO optimization tools, ad scheduling, and more. The starting price for Sellics is at $198/month with a free 14-day trial period.

Seller.Tools

Seller.Tools is an all-in-one Amazon software suite that includes PPC management. The company focuses more on automating the process for Amazon sellers. This allows sellers to automate their ad scheduling and bid management. 

Some of the features of Seller.Tools are Keyword Harvesting, AI-Driven Suggestions, Ad scheduling, and Negative Targeting. To use the full Amazon PPC feature, your subscription must be the Professional package or higher. The subscription fee starts at $197/month.

Sellozo

Sellozo is another AI-powered PPC tool that can automate most of your campaign management. One of its features is the Ad Dayparting where you can set when your ads will be run and when not to run them.

Another feature is the AI-Driven Bid Management which adjusts bids for you. It analyzes the best keywords to bid on and the best time to do it.

Other helpful features are Drag-and-Drop Keyword Discovery and Machine Learning-Based Keyword Research. The price starts at $104/month and it is suitable for both experienced and new sellers.

BidX

The main feature of BidX is its machine learning algorithm that helps set up and manage PPC campaigns. Its 1-Click Campaign Creation and Presets allow you to save time setting up your campaigns with one click based on your saved presets. 

The Algorithmic Bid Optimization feature collects performance data from Amazon and identifies the performing ones and the worst ones. It can adjust bids for you automatically based on the collected data. Other helpful features are Automated Keyword Suggestions and Profitability reports. 

The starting price for BidX is $149/month with a 14-day trial period. While it is suitable for both beginners and experienced sellers and vendors, advanced sellers may take advantage of its advanced features. 

Conclusion

Automated bidding can benefit advertisers in many ways, especially those who are new to setting up PPC campaigns. However, it is still best to understand the ins and outs of creating and managing PPC campaigns before handing over your ad campaigns to automated bidding software tools. 

Are you using any of the tools mentioned above? Tell us your experience in the comments below and let’s learn how to maximize their features. 

About the author

My name is Tomer, and I founded Sourcing Monster to share proven tips and methods that I use every day for my Amazon business to provide value and growth for you as well as you journey through your own business!

Feel free to comment or share any feedback down below!

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