Amazon DSP Bidding Strategy: Full Budget vs Performance

You embark on the journey to reach your ideal clients specifically off-amazon. 

There are a few things you need to figure out before you hit that publish button. Bidding strategy is one of the key factors impacting the overall success of the campaign. Getting the bidding strategy right will set the tone of the campaign for the desired outcome. 

𝐓ℎ𝐞 𝐛𝐢𝐝𝐝𝐢𝐧𝐠 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐲𝐨𝐮 𝐜ℎ𝐨𝐨𝐬𝐞 𝐝𝐞𝐩𝐞𝐧𝐝𝐬 𝐨𝐧 𝐭ℎ𝐞 𝐜𝐚𝐦𝐩𝐚𝐢𝐠𝐧 𝐨𝐛𝐣𝐞𝐜𝐭𝐢𝐯𝐞 𝐚𝐭 𝐥𝐚𝐫𝐠𝐞. 

Amazon offers you a couple of bidding options. There's no one-size-fits-all approach hence you might find yourself using both of the bidding strategies for your specific needs. Each bidding strategy comes with its own set of advantages. 

𝐋𝐞𝐭’𝐬 𝐥𝐨𝐨𝐤 𝐚𝐭 𝐭𝐡𝐞 𝐨𝐩𝐭𝐢𝐨𝐧𝐬. 𝐓𝐡𝐞𝐲 𝐚𝐫𝐞:

𝟏. 𝐖𝐡𝐢𝐥𝐞 𝐬𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐟𝐮𝐥𝐥 𝐛𝐮𝐝𝐠𝐞𝐭, 𝐦𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 

𝟐. 𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 

Let’s understand each of the options better. 

𝐖𝐡𝐢𝐥𝐞 𝐬𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐟𝐮𝐥𝐥 𝐛𝐮𝐝𝐠𝐞𝐭, 𝐦𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞:

Consider this as an autopilot for your campaign. Amazon will utilize the entire specified budget while still trying to get the best results.

The algorithm will steer your bids to drive the clicks, conversions, or brand awareness you aimed for.

This bidding strategy considers - pacing score, max bids & flighting setting to determine the bids

𝐔𝐬𝐞 𝐂𝐚𝐬𝐞 - You are new to Amazon DSP or You want to create awareness for the product you recently launched or when you have a set spending limit.

𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 - Very easy to set up, minimal campaign management & assured way to meet the allocated budget.

𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞

As the name suggests, this strategy emphasizes performance. It puts you in the driver's seat to maximize the clicks & conversions.

Performance is preferred while budget utilization takes the back seat.

This bidding strategy considers multiple factors to decide the bids, they are, base bids, submitted bids & delivery expectations with a few others.

𝐔𝐬𝐞 𝐜𝐚𝐬𝐞 - Perfect for goal-specific campaigns such as conversions or subscription sign-ups. Also ideal when you want to drive ROI while being flexible on budget.

𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 - Focused on achieving your goals, more conversion rate & greater control on budget allocation.

𝐂𝐡𝐨𝐨𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲: Let me spill the beans. The right strategy depends on your business goals.

If you want to drive brand/product awareness, go for the While spending full budget, maximize performance

If you aim for specific goals like conversions or clicks, choose the maximize performance bidding strategy.

So, the next time you want to create a DSP campaign, you are equipped with a clear strategy to get the best out of the DSP campaign.