When previewing results in the AdLabs bid optimizer, we aim to be as descriptive as possible for why certain adjustments are being made.
You will find these under the "Reasons" column in the preview pane. Below is a glossary to provide further insight to our adjustments.
Keyword Condition
High ACOS
The Keyword ACOS is above the user's Target ACOS and will be optimized with the Revenue Per Click formula.
The "ACOS threshold" (i.e., the point when this condition is triggered) varies with different Prioritizations. See more information in our "White Box" Bidding Algorithm article.
High Spend (No Sales)
The Keyword or Product Target spend is above the Target Cost-Per-Acquisition (CPA) without any sales.
Target CPA is determined by multiplying the Target ACOS and the Average Order Value (AOV) for that Ad Group or Campaign. Bids are optimized towards the user's Target ACOS based on AOV and CVR benchmarks along with the current number of non-converting clicks.
The "high spend threshold" (i.e., the amount of spend without sales to trigger this condition) varies with different Prioritizations. See more information in our "White Box" Bidding Algorithm article.
Low Visibility
The Keyword or Product Target clicks is below the average Clicks-to-Conversion (CTC) ratio, as determined by the Ad Group or Campaign. Bids are increased until a ceiling is hit.
The "clicks threshold" varies with different Prioritizations. See more information in our "White Box" Bidding Algorithm article.
Low ACOS
The Keyword or Product Targeting ACOS is below the user's Target ACOS. The bid will be increased until a ceiling is hit.
The "ACOS threshold" (i.e., the point when this condition is triggered) varies with different Prioritizations. See more information in our "White Box" Bidding Algorithm article.
Bid Limits
User Bid Ceiling
The user has entered a "Manual Bid Ceiling" which prevents the bid from going any higher.
Keyword Bid Ceiling
For Low ACOS keywords. We increase the bid up until we have reached the keyword's maximum affordable bid (based on keyword data), at which point the Keyword Bid Ceiling prevents further increase.
Ad Group / Campaign / Campaign Group / Profile Bid Ceiling
For Low Visibility keywords. We increase the bid up until we reach the maximum affordable bid for the Ad Group (assuming the Ad Group has enough data confidence).
If the Ad Group has low data, we reference the Campaign data. If the Campaign has low data, we reference the Campaign Group, etc., to Profile data.
Lowest Possible Bid
Amazon's rules do not allow bids to go any lower for this ad type.
Min Bid Increase
Bid is increased by $0.01 when a percentage increase would have been less than $0.01.
Max Bid Decrease
To prevent excessive sales loss when reducing bids on High ACOS keywords, we limit the one-time decrease by a certain percent.
We limit to -25% for "Balanced" and "Increase Sales" prioritization, and -50% limit for "Reduce ACOS" prioritization.
Campaign Budget
Sponsored Products & Sponsored Brands target bids can be up to 100% of the daily campaign budget
Sponsored Display targets bid must be less than 50% of daily budget
Placements
Campaign Performance
If the Campaign has enough data confidence for each placement (i.e., at least as many clicks as the average Clicks-to-Conversion and at least 1 order), the placement adjustments are calculated based on the campaign data.
Optimization Group Performance
If Campaign has low data for placements, we reference the Campaign Optimization Group placement data to calculate adjustments for that campaign.
Profile Performance
If the Campaign Optimization Group has low data for placements, we reference the entire Profile's placement data to calculate adjustments for that campaign.
Max One Time Change
When increasing bid adjustments for placements, we do not want to disrupt performance with any drastic changes.
We limit the maximum placement increase in a single optimization to either +33% or +33 percentage points, whichever is greater.
Lowest Possible Adjustment
The lowest value Amazon allows for a placement.
Highest Possible Adjustment
The highest value Amazon allows for a placement.