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Bid Management Automation

Learn how to automatically optimize your target bids to improve campaign efficiency.

Karan Saraf avatar
Written by Karan Saraf
Updated over 7 months ago

To learn more about how to create and use rulesets for bid management, you can watch the tutorial video.

Overview

Effective bid management is essential for maximizing ad performance. It involves frequent adjustments to keep campaigns profitable by adapting bids based on performance. Bid Automation removes the manual work of tracking and adjusting numerous bids, instead allowing you to set rules for when and how to adjust bids across all your campaigns. Once set up, Adbrew automatically handles bid optimization at scheduled intervals, ensuring consistent, data-driven adjustments.


Getting Started with Bid Automation

1. Access the Rulesets Page

  • Go to the Rulesets page within your Adbrew dashboard.

  • Click Add New Ruleset in the top right corner.

2. Choose a Ruleset Template

  • Select a template or create a ruleset from scratch.

  • Adbrew offers three bid management templates:

    • Adbrew Rule-Based Bid Management: Increases bids for high-performing targets and decreases bids for low-performing targets, with a 3-day gap between adjustments.

    • Adbrew Moderate Automated Bid Management: An advanced ruleset that calculates the maximum affordable bid based on price, conversion rate, and target ACOS, adjusting bids within safe limits.

    • Adbrew Aggressive Automated Bid Management: Similar to the Moderate ruleset but uses a more assertive approach to scale the bids.

Tip for New Users: Start with the Basic Rule-Based Template for easier setup and analysis. You can customize the rulesets over time to suit your specific use cases.

If you decide to use the Moderate or Aggressive Rulesets Template, avoid making any changes to those rules before consulting your Customer Success Manager. These advanced rules are designed after considering many factors, and modifications may cause issues.

In this guide, we will be focusing on the first 'rule-based' bid management template.

3. Set Evaluation Period

  • Define the period for rule evaluation, typically 14 days is recommended.

4. Configure Schedule and Frequency

  • Choose the frequency, day(s), and time for automation to execute. We would recommend running it daily with days since the last change criteria or weekly without those criteria.

TIP: The "Days Since Last Change" criteria ensure that while automation may run daily, it won't make changes to the same target if changes have already been made within the specified "Days Since Last Changed" window.

5. Creating Rules

Next, you can stick with the predefined rules that come with the templates or add your own rules within the templates based on your criteria, such as clicks > X or ACoS < target ACoS, etc.

6. Finalizing and Linking Campaigns

1. Save Ruleset

  • Once rules are configured, click Save to store your settings.

2. Link Campaigns

  • Move to the Linked Campaign tab.

  • Click on Add New to select campaigns you want to associate with the ruleset, then click Submit.

3. Enable Automation

  • Ensure automation is enabled for each campaign. Select all campaigns, click Action, and select Enable Automation to activate bid adjustments.


Monitoring Bid Automation

To track the automation process and monitor bid adjustments:

  • Navigate to the Change History page.

  • Review all changes made by automation to understand how each rule impacts your campaign performance.


Exaplining Pre-defind Rules in Bid Automation Templates:

Each ruleset contains a sequence of rules that automatically adjust bids based on defined criteria. Here’s an overview of the standard rules in the rule-based template:

Rule 1: Pause Bleeding Targets

Purpose: Identify and pause keywords/targets that are consuming budget without generating sales.

Conditions:

  • Orders = 0 (No sales generated)

  • Clicks > (Statistically Significant Clicks × 10)

  • Additional protective criteria to not pause targets which are defined as branded or hero terms for accounts or products.

TIP: You can define terms that are very important for your brand as hero terms from the Settings > Brand Terms page. This allows you to exclude them from certain rules, enabling you to make changes to those targets or vice versa.

Technical Details:

  • SSC (Statistically Significant Clicks) is dynamically calculated by Adbrew based on the conversion rates of products in your ad groups. Note: If the products have no conversions (due to no orders), there is a fallback in place that uses the overall ad conversion rate of products, the total conversion rate of products, the conversion rate of products within the same label, or the account-level conversion rate.

  • SSC Example: If a product's conversion rate in an ad group is 10% (1 sale per 10 clicks), the SSC would be in the range of 10-12.

  • You can also use absolute click values instead of the SSC multiplier, but we recommend using SSC.

When This Triggers: Example: A target has received 120 clicks (> SSC×10) but generated no orders in the last 14 days

Rule 2: High ACOS Correction (-20% Bid)

Purpose: Significantly reduce bids on targets that are severely exceeding your target ACOS.

Conditions:

  • ACOS > (Target ACOS × 2)

  • Clicks > (SSC × 1)

  • No prior bid changes in the last 3 days

TIP: The "Days Since Last Change" criteria ensure that automation does not make changes to the same rule unless the specified number of days since it was last changed by the same automation ruleset for the targets have passed.

This ensures that while the different targets of your campaign are regularly optimized with daily automation, the automation does not repeatedly change the same target every day, which could lead to compounding increases or decreases in bids.

Technical Details:

  • Action: Reduces current bid by 20% (multiplies by 0.8)

  • ACOS can be set as absolute value or Target ACOS multiplier

  • Target ACOS sources:

    1. Campaign-specific setting (if set)

    2. Account-level default (if no campaign setting)

When This Triggers: Example: If the target ACOS of the campaign is 25%:

  • Triggers when ACOS > 50% (25% × 2)

  • Target has received more than the minimum required clicks

  • Results in 20% bid reduction

Rule 3: Moderate ACOS Correction (-10% Bid)

Purpose: Make smaller bid adjustments for targets that are moderately exceeding target ACOS.

Conditions:

  • ACOS > (Target ACOS × 1.25)

  • Clicks > (SSC × 1)

  • No prior bid changes in the last 3 days

Technical Details:

  • Action: Reduces current bid by 10% (multiplies by 0.9)

  • Less aggressive than Rule 2

  • Designed for fine-tuning rather than major corrections

When This Triggers: Example: If Target ACOS is 25%:

  • Triggers when ACOS > 31.25% (25% × 1.25)

  • Target has sufficient clicks for statistical significance

  • Results in 10% bid reduction

Rule 4: High Profitability Boost (+20% Bid)

Purpose: Maximize exposure for highly profitable targets by significantly increasing bids.

Conditions:

  • ACOS < (Target ACOS × 0.5)

  • Clicks > (SSC × 1)

  • No prior bid changes in the last 3 days

Technical Details:

  • Action: Increases current bid by 20% (multiplies by 1.2)

  • Can set a maximum bid ceiling in advanced settings

  • Aggressive growth strategy for top performers

When This Triggers: Example: If Target ACOS is 25%:

  • Triggers when ACOS < 12.5% (25% × 0.5)

  • Target shows strong conversion efficiency

  • Results in 20% bid increase

Rule 5: Moderate Profitability Boost (+10% Bid)

Purpose: Gradually increase visibility for moderately profitable targets.

Conditions:

  • ACOS < (Target ACOS × 0.75)

  • Clicks > (SSC × 1)

  • No prior bid changes in the last 3 days

Technical Details:

  • Action: Increases current bid by 10% (multiplies by 1.1)

  • More conservative than Rule 4

  • Designed for steady, sustainable growth

When This Triggers: Example: If Target ACOS is 25%:

  • Triggers when ACOS < 18.75% (25% × 0.75)

  • Target shows good profitability

  • Results in 10% bid increase

Note: Rules in any automation rulesets execute in a top-to-bottom sequence. If a target meets the criteria for multiple rules, only the first applicable rule will apply.



Frequently Asked Questions (FAQs)

Q: How often should I run bid automation?

You can run automation either:

  • Daily with "Days Since Last Change" criteria (recommended)

  • Weekly without "Days Since Last Change" criteria The choice depends on your campaign volume and optimization needs.

Q: Can I run different rulesets for different campaigns?

Yes, you can create multiple rulesets and link different campaigns to each ruleset based on their specific requirements. However, in most cases, one ruleset should be sufficient for bid management, as most of the criteria you will use in your rule searches—such as target ACOS or click thresholds—will be dynamic and based on specific thresholds and performance.

Q: Can one campaign be linked with multiple bid management rulesets?

No, a campaign can be linked with only one one-time automation (scheduled to run only once at a chosen time) and one recurring automation (scheduled to run on a daily, weekly, or monthly basis).

Q: What's the difference between Moderate and Aggressive bid automation templates?

Both templates are advanced rulesets that utilize a variety of intelligently calculated metrics by the system, such as maximum affordable bids based on factors like price, conversion rate, and target ACOS, as well as statistically significant clicks based on the conversion rates of products. These templates make changes based on the performance of targets over different time periods.

The Aggressive template employs more assertive bid adjustments for faster scaling, while the Moderate template takes a more conservative approach to scale slowly and efficiently.

Q: What is SSC (Statistically Significant Clicks)?

SSC is a dynamically calculated value that represents the ideal number of clicks needed for a conversion of a product based on the historical conversion rate of that product within its ad group.

If a product has no orders in its ad group (resulting in no conversion rate data), there are different fallback options in place, such as the overall ad conversion rate of the product, the overall conversion rate of products including organic sales, the conversion rate of other products mapped in the same category or subcategory label, and the account conversion rate.

Q: What happens if a target matches multiple rules?

Rules are executed in top-to-bottom order. Once a target matches a rule's criteria, subsequent rules are skipped, and only the first matching rule's action is applied.

Q: How does the system protect against excessive bid changes?

Several safety measures are in place:

  • Use of "days since the last change" in the criteria to have a cooling period between changes to the same target

  • Maximum/minimum bid thresholds in advanced settings to prevent excessively high or low bids.

Q: Can I protect specific keywords from automation?

A: Yes, you can define those terms as hero terms from the settings > brand terms page and then add criteria to don't make changes on hero terms in your rulesets.

Q: Why aren't my rules being applied?

Common reasons include:

  • The automation toggle is off for the campaign. Go to the Campaign Manager page, search for the campaign, and check the automation column.

  • The target hasn't met the minimum click requirements.

  • A previous change was made within the cooling period.

  • The target is defined as branded or hero terms, and the ruleset has criteria that exclude changes to those terms.

  • The campaign isn't properly linked to the ruleset.

Q: What should I do if my bids are changing too frequently?

You can:

  1. Increase the "Days Since Last Change" period

  2. Adjust the automation frequency

  3. Increase the minimum click requirements

  4. Set more conservative ACOS thresholds

Q: How do I know if my automation is working effectively?

Monitor these key indicators:

  1. Overall ACOS trending toward target

  2. Reduction in non-performing spend

  3. Increased sales from profitable targets

  4. A balanced distribution of spend across campaigns

Q: Can I modify the default rules?

Yes, you can customize:

  • ACOS thresholds

  • Bid adjustment percentages

  • Click requirements

  • Execution frequency

  • Maximum/minimum bid limits

Q: Can I temporarily disable automation?

Yes, you can:

  1. Toggle off automation for specific campaigns

  2. Pause rulesets

  3. Unlink campaigns from rulesets

Q: How do I handle seasonal changes?

You can:

  1. Create separate rulesets for seasonal periods

  2. Adjust target ACOS temporarily

  3. Modify bid adjustment percentages

  4. Change automation frequency during peak seasons]

Q. Does ‘Days since last change’ consider manual changes also?

No, it does not. ‘Days since last change’ will only take into consideration the changes that have been made by any bid Ruleset. Manual changes will not be taken into consideration.

Q: Can I run two bid management rulesets simultaneously on the same campaign?

Only one bid management ruleset can be set to a recurring frequency at a time. To run two simultaneously, one must be “Once” while the other can be recurring. This avoids conflicting adjustments and maintains performance

Q: How can I ensure my keywords are not paused or decreased in bid too aggressively?

To protect important keywords from being paused or having their bids reduced too aggressively, designate them as "hero terms." You can do this by navigating to Settings > Brand Terms and adding the keywords you want to protect.

Then, within your automated rules, set criteria to exclude keywords containing hero terms (e.g., “Keyword does not contain hero term” for accounts or products). This will ensure that these keywords remain unaffected by certain automation rules, maintaining their bid stability and performance.

Q: Is there an option to set a rule that only pauses targets but doesn’t change the bid?

Yes, you can set a rule in the Bid Management ruleset to only pause targets without adjusting bids. Ensure that the rule action is set to "Pause Target".

Q: What happens if I manually overwrite a bid in the Amazon ad console that Adbrew has already adjusted through its automation?

If you manually overwrite a bid in the Amazon ad console that Adbrew has already adjusted, the manually updated bid will take precedence over the actual bid. Adbrew periodically fetches data from the ad console, so the updated bid value may take some time to reflect within Adbrew. To speed up this process, you can use the 'Force Refresh' button in Adbrew to sync the latest data as soon as possible.

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