What is the bidding rule?

The bidding rule adjusts your keywords and targets bids to achieve your target ACOS.

Navigation: Automation > Bidding Rule

How does the algorithm work?

1. The system takes 30 days of keyword statistics, skipping the past 2 days to allow Amazon data to be updated. These are the current default settings which can be customized according to your needs.

Note: You can analyze up to 90 days of data and customize the number of days to skip.

2. The system aggregates keyword statistics in its own Ad Groups, calculating the ACOS of each keyword.

3. If you add a bidding rule to an Ad Group, the algorithm will adjust the keywords bid to meet the rule’s target ACOS.

4. The algorithm calculates how many bids to adjust for each keyword to meet the target ACOS.

5. Whenever the algorithm executes, it adjusts the bids a little at a time, depending on the assigned rule.

For example, the algorithm calculates a keyword optimum bid at $1.50. If the current bid is $2 and the rule allows a maximum 2% reduction, the algorithm will reduce the bid to $1.96 when it executes.

When the algorithm runs the next day, it will reduce the keyword bid from $1.96 to $1.92. This process will continue every day until the keyword reaches the target ACOS.