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Bidding Algorithm: FAQ

Frequently asked questions about value-based bid changes

Updated over 7 months ago

How often will my bids change?

Flywheel evaluates bids multiple times throughout the day to account for changes in performance. Current updates of performance data by Amazon and Walmart are once per day.

Why Are My Ads Not Showing Up In The Same Positions?

The position of your ads depends on your bid and ad quality. Placement depends on a lot of factors, such as sales velocity, reviews, inventory levels, status, and more.

Does the Platform Bidder account for other data trends and marquee events?

Yes, the bidder incorporates seasonality, day of the week, and events like Prime Day into its conversion rate forecasts. It also considers historical conversion rate variations based on product category, price, targeting type, and more.

Why did the bid decrease on a target that was performing well in the past?

Often, a bid that has been lowered significantly is in response to external factors that are affecting performance. If the conversion rate drops, for instance, the bid decreases to avoid overspending. Conversion rate can be affected by many factors such as reviews, ratings, and price.

How are bid changes on a target determined?

To understand the bid on a given target, look at the factors that govern the bid:

  1. The conversion of the target. If this is going up or down, the bid will follow.

  2. The set ACoS Target. If the ACoS Target is changed, the bid will follow it.

  3. The payoff per order. If the sale price has changed and the SKU is getting more or less revenue per order, the bid will follow it.

Why was the bid decreased/increased even though the ACOS was low/high?

Your campaign ACOS may be above or below its ACoS Target and still contain individual targets that are spending too much or too little. The Bidder assesses each target independently and changes an individual bid depending on how the target is performing.

It’s also important to remember that the Bidder is driven by ACoS Targets. If the campaign ACOS is below ACoS Targets, then bids will increase on average to spend more and to drive more sales.

How can I manually control bids during marquee events like Prime Day or Black Friday?

Options include adjusting Flywheel settings, temporarily turning off the Bidder, or creating temporary ad groups for manual bid control. These strategies offer flexibility while ensuring optimal bid management during key events.

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