Bid Optimisation Algorithm
Optimising campaigns is typically a time-intensive activity for humans as it requires you to review historical data in-depth to make the appropriate targeting adjustments you believe will help meet your campaign goal. To elevate time pressures, we've created Robert, a virtual assistant, to optimise campaigns daily, tweaking the bid price of each targeting criteria assigned to your campaigns. Robert is an opt-in feature that Enterprise users can enable on a case-by-case basis for supported campaigns.
For the Amazon Ads cost-per-click advertising formats, the bid price is the maximum you're willing to spend to secure a click on your advert. However, the bid price set by Robert is liable to change via the Dynamic Bid modifier property assigned to each campaign. Regardless you never pay more than a penny or cent higher than the second highest bid as it's a second-price auction. Check out this Seller University video to learn more.
Every time the Bid Optimisation Algorithm runs, it will process data for the last 14 days to determine the Categories, Keywords and Product ASINs that are driving Ad Sales and those that aren't. For the unsuccessful targeting criteria, Robert will gradually decrease the bid price and, therefore, Ad Spend. Conversely, Robert will also increase the bid price for targeting criteria driving performance to outbid competitors and win more frequently.
To see a complete list of supported Advertising and Targeting Types, please read Which Advertising Types are supported by the Bid Optimisation Algorithm? to learn more.