In Amazon's daily operations, the traffic and number of purchases at each time point are different. Therefore, can we set different bids for different times to reduce ineffective advertising costs and avoid low bids not getting traffic during peak hours?
Before we start, we can download the order report to determine the peak order time. The specific process is not described here. After processing, the recent order time for my store is as follows:
From the graph, we can see that the peak order period is from 11 to 14 in Pacific Time (US site time), and the low order period is from 0 to 6. Therefore, we can set high bids for peak periods and low bids or even turn off ads for low periods.
Previously, operations had to stay up late or use ERP to achieve these operations, but now they can be set in the Amazon backend. For specific settings, you can refer to [Exploring Automated Adjustment of Amazon Advertising]. I tested with two ads that were neither too high nor too low.
The categories are the same, only the models are different, and the keywords used are core keywords. The premium time for both ads is set the same, and the test lasted for 7 days.
Conclusion#
First, let's talk about the conclusion. The following process is for further analysis based on your own needs.
After testing, the time-based bid ladder did not have a significant impact on the two tested ad campaigns. This is because even during the low order period, it only means that there is less traffic during that time, but it does not prove that the conversion rate is low during that time. Instead, it may affect the control of bids and keyword ranking.
Due to time constraints, I will not conduct further tests under other conditions. This test only applies to specific situations and specific links, and does not represent everyone. Because there is a considerable amount of organic traffic, a higher CPC can be accepted. You should adjust your bids based on your actual situation and not get too caught up in the details of the data. Just observe the changes in the data. Please think carefully before adopting the conclusions of this article, and I am not responsible for the results.
For the 3C category I am currently in, if the product price does not have a significant competitive advantage, it is still necessary to strive for the top position on the homepage, which will result in better conversion. The lower the base bid, the easier it is to rank in other positions and product pages.
If there is a large coupon available, you can try increasing and decreasing the bid to potentially achieve better returns.
Link A#
Link situation: new product, no reviews, newly opened ad, test data for the past 7 days before testing in the third week of July (7.15 - 7.21)
- Clicks: 44
- Spend: $220
- Conversion rate: 18.18%
- CPC: $5
- ACOS: 43.58%
Summary 1#
Comparison of data from 7.22-7.29 with 7.14-7.21
- Increase in clicks: 142
- Increase in spend: $866
- Decrease in conversion rate: 3.73%
- Increase in CPC: $0.9
- Increase in ACOS: 243%
I also compared the first week of July (conversion rate 7.5%), the second week (conversion rate 6.25%), the third week (conversion rate 18.18%), and the test week (conversion rate 12.36%).
The $8 coupon was launched on the third week on 7.18, and the bid mode was switched to increase and decrease on 7.16.
From this group of data, we can see that a large discount has a significant impact on the conversion rate. The main reason for the increase in conversion rate is that the large discount also brings good conversions to ads on product pages and other positions. Therefore, if there is a large discount, using the increase and decrease bid strategy may be more effective, so the conversion rate in the third week is the best.
Day 1, US time 22#
Discount: $10
Bid: $2
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from 7 to 23 daily
Clicks: 20 (Top 3, Rest 7, Product 10 with 2 orders)
Spend: $77
Conversion rate: 10%
Actual CPC: $3.85
TACOS: 83.89%
Day 2, US time 23#
The conversion rate for non-top positions is too low, so in order to get top positions, the bid is adjusted to $3.
Discount: $10
Bid: $3
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from 7 to 23 daily
Clicks: 46 (Top 14 with 2 orders, Rest 20 with 6 orders, Product 12 with 0 orders)
Spend: $278
Conversion rate: 17.39%
Actual CPC: $6.04
TACOS: 134.40%
Day 3, US time 24#
Discount: $10
Bid: $3
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from 7 to 23 daily
Clicks: 38 (Top 10 with 1 order, Rest 19 with 3 orders, Product 9 with 1 order)
Spend: $231
Conversion rate: 13.16%
Actual CPC: $6.1
TACOS: 89.93%
Day 4, US time 25#
Discount: $10
Bid: $3
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from 7 to 23 daily
Clicks: 36 (Top 13 with 1 order, Rest 14 with 2 orders, Product 9 with 1 order)
Spend: $218
Conversion rate: 11.11%
Actual CPC: $6.06
TACOS: 44.34%
Day 5, US time 26#
Reduced CPC to $2.5, halved the clicks, observed on Saturday and Sunday, and resumed at $3 on Monday.
Discount: $10
Bid: $2.5
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from 7 to 23 daily
Clicks: 9 (Top 3 with 0 orders, Rest 4 with 1 order, Product 2 with 1 order)
Spend: $48
Conversion rate: 11.11%
Actual CPC: $5.41
TACOS: 38.58%
Day 6, US time 27, Saturday#
Discount: $10
Bid: $2.5
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from 7 to 23 daily
Clicks: 14 (Top 7 with 1 order, Rest 4 with 0 orders, Product 3 with 0 orders)
Spend: $78
Conversion rate: 7.14%
Actual CPC: $5.6
TACOS: 163.04%
Day 7, US time 28, Sunday#
Discount: $10
Bid: $2.5
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from 7 to 23 daily
Clicks: 15 (Top 2 with 0 orders, Rest 13 with 3 orders, Product 0 with 0 orders)
Spend: $77
Conversion rate: 20%
Actual CPC: $5.14
TACOS: 106.26%
Link B#
Old link, with reviews, test data for the past 7 days before testing in the third week of July (7.15 - 7.21)
- Clicks: 161
- Spend: $664
- Conversion rate: 12.42%
- CPC: $4.13
- ACOS: 124.53%
Summary 2#
Comparison of data from 7.22-7.29 with 7.14-7.21
- Increase in clicks: 218
- Increase in spend: $1517
- Increase in conversion rate: 1.93%
- Increase in CPC: $1.61
- Increase in ACOS: 28.48%
I also compared the first week of July (conversion rate 12.44%), the second week (conversion rate 14.79%), the third week (conversion rate 12.42%), and the test week (conversion rate 15.22%).
With a low base bid, even if the top position is added with a bid, more clicks will be concentrated on other positions and product pages, reducing the effectiveness of the base bid. Although the conversion rate decreased after lowering the base bid, with the same spend, more clicks were obtained, resulting in similar orders. However, it did not help much with the natural ranking of keywords.
If there is no large coupon available, it is still recommended to use a high base bid + top bid.
Day 1, US time 22#
Discount: $10
Bid: $3
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from Monday to Friday, 7 to 23 daily
Clicks: 57 (Top 38 with 6 orders, Rest 7 with 3 orders, Product 12 with 1 order)
Spend: $300
Conversion rate: 17.54%
Actual CPC: $5.28
TACOS: 51.30%
Day 2, US time 23#
The $10 coupon expired and was not continued.
Discount: None
Bid: $3
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from Monday to Friday, 7 to 23 daily
Clicks: 39 (Top 40 with 6 orders, Rest 4 with 0 orders, Product 5 with 1 order)
Spend: $308
Conversion rate: 14.58%
Actual CPC: $6.44
TACOS: 37.55%
Day 3, US time 24#
Discount: None
Bid: $3
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from Monday to Friday, 7 to 23 daily
Clicks: 48 (Top 38 with 7 orders, Rest 3 with 0 orders, Product 6 with 0 orders)
Spend: $312
Conversion rate: 14.58%
Actual CPC: $6.51
TACOS: 56.45%
Day 4, US time 25#
Discount: None
Bid: $3
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from Monday to Friday, 7 to 23 daily
Clicks: 50 (Top 38 with 8 orders, Rest 4 with 0 orders, Product 7 with 0 orders)
Spend: $310
Conversion rate: 16%
Actual CPC: $6.2
TACOS: 42.11%
Day 5, US time 26#
After reducing the base bid to $2.5, there was a significant decrease in CPC, and with the same spend, there were 20 more clicks. However, there were also more clicks on the product and other page positions, and the conversion rates for these two positions have not been good. (But the clicks obtained in the top position are the same)
However, referring to the time when the $10 coupon was launched, the conversion rates for these two positions were also good. So today, I will continue to use the $10 coupon and keep everything else the same to observe the changes in the data.
Discount: $10
Bid: $2.5
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from Monday to Friday, 7 to 23 daily
Clicks: 67 (Top 33 with 6 orders, Rest 19 with 2 orders, Product 15 with 0 orders)
Spend: $317
Conversion rate: 11.94%
Actual CPC: $4.74
TACOS: 65.11%
Day 6, US time 27, Saturday#
Discount: $10
Bid: $2.5
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from Monday to Friday, 7 to 23 daily
Clicks: 3
Spend: $11
Conversion rate: 0%
Actual CPC: $3.88
TACOS: 86.07%
Day 7, US time 28, Sunday#
Discount: $10
Bid: $2.5
Bid strategy: Fixed bid
BID: Top 50%
Base budget: $10
Budget rule: 3000% premium from Monday to Friday, 7 to 23 daily
Clicks: 3
Spend: $14
Conversion rate: 0%
Actual CPC: $4.96
TACOS: 178.58%