Ooo, that's risky

19th July 2022

Hey,

It's another beautiful day here in the UK, with temperatures expected to reach almost 40°C (104°F), so the paddling pool is definitely coming out today to keep the boys cool (I think I'll need a dip at some point too!)


Before then, however...


Bidding on Amazon Ads is a hot topic, no doubt about it. Some bidding strategies are frowned upon, others are wildly celebrated.

However, I want you to know that there is no right or wrong way to bid; there is only the right bid for you.

The amount you bid will depend on several variables, including but not limited to:


  • Your core objective
  • Your strategy
  • How many books are in your series/catalog
  • The genre you write in
  • Whether your books are in Kindle Unlimited
  • Whether you write standalone books or you write in a series
  • What you are prepared to pay for a reader/lead/customer

So, how do you know what your starting bid should be if this is your first foray into Amazon Ads?

When setting up your campaign, Amazon will provide you with a “suggested bid” and a “suggested bid range,” based on the book you're advertising and the targets you have selected (e.g., keywords, categories, products, etc.)

You could base your bids on the suggested bid itself, however, I have found from all the Amazon Ads I have run that the suggested bids aren’t overly accurate.

I prefer to work off the suggested bid range that Amazon provides. And with these numbers, there are two approaches you can choose from:

- Option #1: Start with high bids (top of the bid range*) and decrease my bid until I find an equilibrium point of good sales/page reads and a reasonable cost per click.


- Option #2: Start with low bids (bottom of the bid range) and increase my bid until I find an equilibrium point of good sales/page reads and a reasonable cost per click.


The latter option of starting with a low bid and increasing over time is generally the slowest approach, but also the safest. So, if you’re not in a rush, are perhaps a little risk averse, or you are only prepared to commit a small budget to Amazon Ads, then this is a great way to begin.

If you have a larger budget and are less risk averse, then starting with a higher bid could be for you. You will typically see results much quicker with this approach, sometimes not the results you want to see if you’re getting clicks but no sales, but results and data nonetheless.

My preferred approach ... Start with a high bid and lower over time as I start to collect data.

Ultimately, only bid what you are prepared to lose, particularly during the testing phase when you are just dipping your toe in the water with Amazon Ads.

Bid wisely.

To Your Success
- Matt



Whenever you're ready, there are 4 ways I can help you:

  1. Receive The Morning ACOS For Authors (almost) every day directly into your inbox
  2. Learn and develop your Amazon Ads skills with Amazon Ads Academy For Authors
  3. Join other authors on a monthly Amazon Ads Group Coaching Call with me, as well as access to a private community to be part of the conversation, ask questions, help others, as we discuss all things Amazon Ads for Authors
  4. Read The 7 Day Authors Guide To Amazon Ads, a comprehensive book on my Amazon Ads Strategy (it's free to download to your Kindle on Amazon and also available in Hardback and Paperback formats)