To help sellers achieve optimal visibility and return on investment, the Sponsored Products platform provides Suggested Bids and Bid Ranges during ad group creation. This feature guides your bidding strategy by providing dynamically updated, market-driven insights based on the collective performance of similar products.
The Overall Idea
The system analyzes current market trends and historical performance data to offer a competitive bidding spectrum:
- Suggested Bid: This is a data-driven recommendation that estimates the likely winning price for a click, based on the average bid of your selected products, adjusted for successful past auctions.
- Bid Range (Lower & Upper Bounds): This range shows the spectrum of successful bids for most ads in your product category. It helps you understand the minimum acceptable bid to be competitive and the highest bid commonly used by others.
- Dynamic Updates: Both the suggested bid and the range are updated daily to reflect current market competition and trends, ensuring you are always bidding with the most relevant information.
What You Will See?
The platform intelligently adjusts the information it displays during the ad group creation process to ensure clarity and relevance:
- Product Selection is Required: You must first select the products you want to promote within the ad group to generate any bid guidance.
- Display Logic: Based on your selection, one of three scenarios will occur:
- Suggested Bid + Range Displayed: If your product selection is cohesive, the platform will show both the specific Suggested Bid and the full Bid Range.
- Range Only Displayed (Bidding Diversity): If you select products from categories with very different bid prices (e.g., high-value electronics and low-value books), the system will display the Bid Range only. In this case, the platform recommends using AI-driven automated bids due to the wide value gap in your product selection.
- No Guidance Displayed (Automated or Outlier): If you choose to use the automatic product selection feature, no suggested bids or ranges will be shown. This also occurs if the Suggested Bid is calculated to be below the minimum Lower Bound of the range.
- Competitive Positioning: You maintain full control and can bid higher or lower than the suggested range to align with your specific campaign goals, such as aggressively maximizing visibility or prioritizing cost-efficiency.
- Low Bid Warning: If you enter a bid that is below the lower bound of the suggested range, a warning will appear to highlight that your bid may be too low to be competitive in auctions, prompting an adjustment if greater exposure is desired.
