Amazon's new advertising policy is coming! Brother-in-law wants to reap the profits

I believe everyone has had enough of the gossip about my brother-in-law's divorce since yesterday. No matter how his 100 billion yuan fortune is divided in the end, it has little to do with us sellers. The storage fee that should be paid will not be reduced at all (yes, it is time to collect the monthly storage fee again)

The little clone also expressed his concerns in the previous article. Will the brother-in-law come up with some crooked ideas to collect money from the sellers? The answer is that before the divorce news was announced, the brother-in-law had already thought of a way to collect money.

Amazon has updated its in-site advertising policy

Let’s take a look at what has changed in CPC

Click to create an advertising plan in the background

Pull down the bidding position

This "beta version" is the updated content of the in-site advertising. It has changed from the previous fixed bidding to three bidding modes. In addition to the fixed bidding we have always used, two additional dynamic bidding modes have been added.

Let me briefly talk about these three options.

Only lower dynamic bidding

Under this strategy, the bid we set is the highest bid, so the bid will only be lowered when the Amazon algorithm determines that the probability of your product being sold is not high in a certain opportunity (for example, when a consumer searches for a related word), your bid will be automatically lowered. Any advertising campaign generated before January will automatically switch to this bidding strategy.

Dynamic bidding with up and down movement

This is the main point of this update. In addition to the lower bid mentioned above, this bidding strategy will also raise your bid based on the system's judgment. If the system thinks that your product has a higher chance of closing a deal on a certain opportunity (or a certain search, for example), the algorithm will raise the bid to display your product in a better position.

Fixed Bid

There is nothing much to say about this, we have all used it a lot, but I would like to say that after the new dynamic bidding is introduced, fixed bidding may get more exposure, but the conversion rate and transaction will be lower than dynamic bidding.

Dynamic bidding is definitely not a good thing for sellers!

Let me tell you the conclusion first

As for why, sellers, please take a look.

Bidding is an important weapon for sellers to compete for better positions, but the higher the bid, the better. This is the understanding that only those who have been operating CPC for many years can have. Most sellers (including Xiaofenshen when he first started to operate) think that the relationship between bidding and display position is a crude "how much money you give me, how good the position I will give you"

A price war between one or two sellers may just be a war among a small group of people, but once the number of sellers adopting high bidding strategies increases, the system will gradually increase the default bid, and this operation will affect all sellers in this category.

After the default bid is raised, the exposure that an advertising campaign with a bid lower than the default bid can obtain will drop sharply, and it will no longer be able to get a good display position. Even sellers who did not participate in the bid increase will have to increase their bids at this time.

As the cycle goes on, the bidding price of a category's ads will get higher and higher. You should have recently felt that advertising is becoming more and more expensive. In the past, you could get more than ten orders for $50, but now you can only get two or three orders for $50 , because the bidding price of the category is constantly rising.

▲Discussions in our seller communication group

The problem with Amazon's dynamic bidding is that it will greatly speed up the process of raising the overall bidding price of the category . In the past, everyone had to manually adjust the bid, observe the performance after the adjustment, and pay attention to the position of the competing products. All these operations made the bidding war process very slow.

And now, Amazon has handed over a fully automatic rifle to the sellers who were originally fighting each other with knives and swords.

Raise your bid? Compare with competitors? We will raise your bid automatically! If you raise your bid, I will raise my bid too. If we all raise our bid together, the bidding environment in the category will rise rapidly. Amazon Advertising will truly become a service that only people with money and resources can use.

▲Discussions in our seller communication group

The bidding strategy for adjusting the ad position below that replaced Bid+ further demonstrates the brother-in-law's desire to make money.

Originally, Bid+ supported a maximum bid of 10 times when competing for the prime position, but now it can be raised to 10 times! Now advertising has completely become a violent tool in the hands of the rich. In such a harsh environment, it will become increasingly difficult for small and medium-sized sellers to survive.

You can feel free to ask me about the new bidding strategy . We also welcome small and medium-sized sellers to join our seller group to discuss ways to deal with new advertising strategies . Scan the QR code to chat with me privately.

Source: Cross-border Business School

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