Home»Blog»

Amazon introduces Sponsored Display optimization strategy with cost controls – November 23, 2023

Posted by Jimi Patel | November 23, 2023

Amazon has recently rolled out a groundbreaking feature – Sponsored Display Optimization Strategy with Cost Controls (beta). This game-changing feature allows advertisers like you to streamline the management of your Sponsored Display campaigns, making it easier than ever to reach your target audience and achieve your goals.

 

Why is it important?

Before this launch, setting bids and targets required a fair amount of guesswork, which often led to suboptimal campaign performance. With the new Optimization Strategy feature, you can now specify performance-based parameters that align with your objectives. Amazon’s sophisticated machine learning capabilities then take the reins, ensuring your campaigns are continuously optimized for success.

 

How does it work?:

  • Here’s the gist: You define your advertising objective, select the products you want to promote, set a daily budget, and specify the average cost per click or 1,000 viewable impressions (vCPM) you’re comfortable with. The magic happens when you choose your targets and bid values.
  • Targets selected: Different targeting options allow you to reach diverse audiences. Amazon’s machine learning models dynamically adjust bids in real-time to ensure your costs align with your desired value. This means you reach the right people with relevant ads while paying only when it works.
  • Bid values:Bids signal the maximum you’re willing to pay for a specific action (view or click). The Amazon Ads auction ensures you only pay the minimum bid required to win, eliminating the need for complex bid strategies.

By using these optimization strategies, Amazon’s machine learning models take into account past campaign performance and similar campaigns. They continually adjust bids and targets to help you achieve as many actions as possible while staying within your specified cost per action (CPA) and daily budget. If costs rise too high, bids are reduced, and if they’re below your target, they are increased to maximize scale.

 

This new feature is set to revolutionize your Sponsored Display campaigns, driving better results and reducing the complexity of bid management.

 

Feel free to reach out to our Amazon PPC experts if you’d like to explore how to integrate this exciting feature into your Amazon advertising strategy. We’re here to help you make the most of this opportunity!

Published by Jimi Patel

Jimi Patel, is a Co-founder and CEO at eStore Factory, an Amazon SPN certified agency that serves as a one-stop solution for all your Amazon business needs. Having helped countless brands increase sales and grow their footprint on Amazon, Jimi provides the most practical and effective solutions for your business. He is highly skilled in developing and executing plans that align with your specific business goals and objectives. When not working, Jimi enjoys practicing yoga and traveling to new places. He is an avid reader and enjoys staying up-to-date on the latest trends and developments in the e-commerce industry.