Bids for Amazon's Sponsored Brands campaigns are surging 7-8 times higher than average. This could inflate average CPCs if advertisers follow these suggestions. It's crucial to base maximum bids on specific business KPIs and ad campaign performance.
👉 A noticeable surge in suggested bid ranges is evident leading up to the BFCM events
especially in the case of Sponsored Brands campaigns where bids are notably 7-8 times higher than the average bids for Sponsored Products.
Amazon calculates these suggested bid values based on winning bids for similar ads, but there could be different KPIs different brands could be following, or there could be some overestimation as well by Amazon.
Regardless, it could have potential consequences of advertisers following these inflated suggestions, as they could drive up average CPCs across the board.
Therefore, it becomes increasingly crucial to calculate your maximum bids based on two key factors:
1. Your specific business KPIs, such as ROAS, customer acquisition, and brand promotions,
2. The performance of your ad campaign in terms of its impact on your brand's growth. It's worth looking into the hourly and day-wise report data to pinpoint the most effective days and times for ad spending.