Bid per click determines rankings in search results and clicks received. Higher values lead to better placements and more clicks. But also higher cost per click (CPC) and thus higher ACoS. Conversely, by reducing bids per click.
The bids per click you see in Targeting are calculated by Advigator based on your conversion rate, average sale price, and the ACoS target you choose.
You can change the bid per click for one or more keywords using custom targeting. Otherwise, by changing the ACoS target, you can change the overall level.
Changing the ACoS target
If, for example, you go from an ACoS goal of 20% to 30% then bids per click will increase on average by 50% (30/20 - 1). And the other way around, if you go from 30% to 25% then bids per click will decrease by 16% (25/30 - 1).
Deciding the ACoS target is the same as deciding the trade-off between visibility and campaign profitability. We understand that you wish to have both high visibility and high profitability. However, since Amazon advertising is based on an auction system, you need to find the right trade-off.
Profitability (Target ACoS: 20-30%)
Benefits: Higher profitability, you will be able to keep campaigns active in the long run
Unfavorable effects: Low visibility if the product is new or the product card has a low conversion rate
Visibility (Target ACoS: 30-50%)
Benefits: Many impressions and clicks
Unfavorable effects: Many impressions and clicks | High ACoS and budget spent quickly. You may be forced to stop campaigns due to running out of cash.
If your product has a good CTR and a high conversion rate, you can achieve good positions in search results even with a low Target ACoS.
In general, we recommend keeping a Target ACoS around 20-30%. Or lower depending on your category.
Even if you have recently launched a product, it is recommended to start with a Target ACoS around equilibrium. And increase it slightly only if there are no clicks in the first few days.