Channel bid multipliers are a valuable tool provided by Marketplaces like Walmart and Amazon to help advertisers optimize their advertising campaigns. These multipliers allow advertisers to adjust their bids based on specific placements or platforms within a campaign. Here's why they're important and how they can benefit your advertising strategy:
What Are Channel Bid Multipliers?
Channel bid multipliers are settings that allow advertisers to adjust/target their bids strategy for different placements or platforms within a campaign. For example: Walmart’s Desktop multiplier and Amazon’s Top of Search multiplier (Read More)
Functionality: For example, a 20% bid multiplier means raising the bid to 120% of the base bid for the specified placement/platform.
Available Platforms: As of May 2024, Walmart provides options for both platform and placement bid multipliers for Sponsored Products campaigns, while Amazon offers placement bid multipliers for Sponsored Products and Sponsored Brands campaigns.
Why Use Channel Bid Multipliers?
Tailored Campaigns: Channel bid multipliers enable advertisers to tailor their advertising campaigns to their specific objectives, whether it's maximizing efficiency or expanding ad exposure based on product lifecycle.
Granular Control: Channel bid multipliers provide additional levers to more precisely adjust bids based on the value of a placement or platform, enhancing control over achieving goals like efficiency or share of voice based on specific conversion rates or visibility needs.
Maximize Efficiency: By adjusting bids for different placements or platforms, advertisers can optimize their campaigns to achieve their desired advertising efficiency.
Expanded Exposure: Multipliers also allow advertisers to increase exposure in certain placements or platforms where they see potential for higher returns.
Channel-Bid-Multiplier-Aware Bidder Enhancement
Historically, the Teikametrics’ Predictive AI bidder did not digest or account for channel bid multipliers. Users need to balance raising bids for specific placements/platforms with maintaining overall campaign efficiency, which can be complex.
The AI bidder has been enhanced to anticipate channel effective bids using bid multipliers and click distribution data. Bids are automatically adjusted to maintain expected advertising efficiency based on channel bid multipliers. Adjustments are evidence-driven and resistant to data noise, ensuring reliable performance.
Key Considerations
Seamless Integration: ACoS targets are set at the ad group level and are the applied goal for all keywords or targets within the ad group. Bids will automatically be adjusted based on the campaign-level channel bid multiplier.
Mitigated Gap: The enhancement helps mitigate the gap between user-set ACOS Targets and observed ACOS due to channel bid multipliers.
Continuous Optimization: While the enhancement improves bid calibration, other factors may still influence campaign performance, requiring ongoing optimization.
Channel bid multipliers offer advertisers a powerful tool to optimize their advertising campaigns on platforms like Walmart and Amazon. With the AI bidder's enhanced functionality, advertisers can make data-driven adjustments to maintain advertising efficiency and drive better results.
What actions do I need to consider?
If you previously reduced ACOS targets to account for the channel bid multipliers, ACOS targets need to be raised to the expected level.
If you are not sure where you would like your expected ACOS to be we suggest the following ACOS Target increase based on the level of channel bid multiplier you have set. Note the increased suggestions are by percentage of your current ACOS Target. For example if your ACOS Target is 30% now and the suggestion is to increase by 4%, your new ACOS Target should be 31.2%.
Sum of Channel Bid Multiplier Settings | Suggested ACOS Target increase |
Below 15 | 4% |
15 to 30 | 10% |
30 to 60 | 15% |
Above 60 | 25% |
If you maintain current level of bids by maintaining your current ACOS targets, and you are using channel bid multipliers, you may see bids decrease for the ad group, which could lead to a decrease in traffic. The impact will be greater when the multiplier is greater, or if the volume of traffic from a placement with a modifier is more significant.
If you have any questions or need further assistance, feel free to reach out to our support team. We're here to help you maximize the effectiveness of your advertising efforts.