Amazon has released a host of new features recently and one of them is a new way to change bids on campaigns. This feature is called Dynamic Bidding and this article gives you an overview of what it means and how it works. 

What is Dynamic Bidding?

Dynamic Bidding allows you to set a bidding strategy at a campaign-level based on the objective for that campaign. These strategies include:

  • Dynamic bids-down only: Bids lowered based on likelihood of conversion
  • Dynamic bids-up and down: Bids changed based on likelihood of conversion
  • Fixed bids: Bids stay static

What does this look like in Seller Central?

You can assign a Dynamic Bidding strategy to a particular campaign within campaign settings in Campaign Manager.

What's the benefit of Dynamic Bidding?

Dynamic Bidding allows you to implement some automation to your bidding strategy and campaign management.

What are the impacts of using Dynamic Bidding?

The risks and rewards of Dynamic Bidding vary based on the strategy you implement.

Dynamic bids-down only

This is the default behavior for any campaigns created prior to January 2019. Using this strategy means your bids will function as they always have. This strategy works best with Flywheel's bidding algorithm.

Dynamic bids-up and down

This strategy allows Amazon to increase your bids by almost 100%, so there is a high risk of spend. Sellers implementing this strategy must be tolerant of spend and make sure they are closely monitoring TACoS to make sure they are getting corresponding growth for their spend. This strategy is not recommended for use with automated Flywheel bidding.

Fixed Bids

We recommend regular bid changes for the most efficiently run campaigns. Implementing an automated bidding algorithm that makes performance-based changes is recommended over leaving bids static.

How does Dynamic Bidding work with Flywheel?

For best results, we recommend using the "Dynamic bids-down only" option. Flywheel allows you to set a MACS, review granular bid changes and monitor performance.

Did this answer your question?