AutoPilot Update: Jolting new and weak keywords
AutoPilot is a sophisticated tool designed to optimize bidding strategies by adjusting bids up or down based on keyword performance. For keywords that exceed the target Advertising Cost of Sale (ACoS) or those that have spent more than a defined minimum threshold, AutoPilot typically decreases the bids. This helps in managing the budget more efficiently and ensures that overspending on underperforming keywords is minimized.

Conversely, for keywords that have not met the minimum spending threshold, AutoPilot tends to increase the bids. This approach aims to give these keywords a better chance of achieving impressions and clicks, potentially leading to conversions.

The bid adjustments made by AutoPilot are continuous and fall within a range defined by the expected bid for each keyword. This expected bid is forecasted based on either the Revenue Per Click (RPC) of the product or the RPC of similar keywords grouped in keyword clusters. Any bid changes that fall outside this forecasted range are regulated by OptiGuard. For instance, if the expected bid for a keyword is $1.00 and the aggression setting is 50%, OptiGuard will typically prevent the bid from dropping below $0.50 or rising above $1.50.

AutoPilot’s optimizations are straightforward for keywords with spending history. However, for new keywords added to a campaign that lack spending or sales history, AutoPilot incrementally increases their bids. This process is governed by the "Optimize New Keywords" setting, which by default is set to 1. This means that each day, AutoPilot will increase the bid for at least one new keyword that has no prior spending or sales data. This gradual approach prevents sudden overspending and allows for controlled testing of new keywords in a campaign.

In contrast, the "Boost Bids for Weak Keywords" setting targets keywords that have historically underperformed. Unlike new keywords, where the minimum number of keywords is optimized, for weak keywords, the maximum number of keywords in the settings is optimized. This means that AutoPilot will boost bids for a maximum of one weak keyword. In a well-performing campaign with keywords achieving ACoS below the target, AutoPilot will refrain from boosting bids for weak keywords, even if the setting allows for it.

In summary, AutoPilot employs a balanced and dynamic strategy to bid optimization, ensuring effective budget management while maximizing the potential of both new and weak keywords in advertising campaigns.

Popular posts from this blog

Guide to Amazon Kindle Direct Publishing (KDP)

Kindle Direct Publishing: How to Make Real Money on Amazon.

E-Commerce has no borders: Myth or reality?