Kapoq’s bidder considers not only your parameters in Kapoq, but also adjusts for Amazon and Walmart settings like platform or placement-based bid modifiers and dynamic bidding strategy. These factors are reflected in the "Adjustment Factor" field, which is also displayed as a separate column in the overall Targets table. You can view the calculations by hovering over the bid adjustment column in the targets tab.

Below is a look into our weighted adjustment factor displayed in the application.

In the top left of the table, you'll notice "Click Share" and "Max Increase". Click share is based on the historical proportion of clicks that go to each placement for the campaign; we multiply that by how much your bid can be increased due to bid modifiers and dynamic bidding settings for the placement in question. This calculation determines how much Kapoq will reduce your bid as a result of the bid later being increased by these factors.

For instance, adding a placement modifier to TOS will increase your effective bid for TOS. However, Kapoq will adjust your bid down based on the current click share going to TOS to align the post-modifier bid to your max ACOS parameter. This means that increasing the TOS % will drive more traffic to TOS and away from other placements, while keeping your overall bid aggression consistent with your objectives. Without these adjustments, using placement modifiers could cause your bid to be too high relative to your max ACOS.

Similarly, Kapoq will automatically reduce your bid aggression if you run up & down dynamic bidding such that that the maximum bid (including placement bid modifiers) that Amazon could adjust your bid to for the placement corresponds to your Max ACOS target. Because Amazon will not always raise your bid to the maximum level possible, this means that up & down dynamic bidding is actually the least aggressive setting while running Kapoq automation, and fixed bids are the most aggressive.