Cost per click
Sponsored products works with a CPC (cost per click) model. This pricing model works on the basis of a second price auction system, where you and other advertisers bid on the ad spaces for your articles. You set the maximum amount you want to pay for a click on an ad. The sharper your bid, the more likely your ad will be shown. Within popular categories or with expensive articles, the CPC usually increases. The reverse is also true. A second price auction system means that if advertiser A bids 90 cents and advertiser B bids 1 euro, advertiser B wins the auction and ends up paying 91 cents per click (highest bid + 1 cent).
The minimum click price varies by category. You can see in your campaign for each article what the minimum bid is. If your articles get no impressions, then your bid is too low. You may also get a lot of impressions and clicks but no sales. In that case, it’s better to lower your bid slightly. Your ACoS gives a good indication of whether your ads are profitable.
Can I change my CPC bid during the campaign?
You can set and edit bids for any item or keyword in the campaign dashboard. Unless you choose automatic bidding. In that case, the system determines the optimal bid for the campaign.
My offer is high. Why does my ad barely appear on one of the categories and almost always appear on another?
Every time a customer lands on a search results page or product pages or category pages, the system checks which advertisement should be shown. The algorithm takes into account aspects such as relevance, price, page context, keywords and your bid price. In other words, even if you have the highest bid, your ads will not be shown if our algorithm does not find the location relevant. Therefore, make sure you use the correct description and keywords on your product page. Don’t forget to set a competitive bid as well.
What is the automatic bidding strategy?
With automatic bidding, the work is done for you. The bids are automatically set to generate as many conversions as possible. With “advanced” you use ACoS to indicate approximately how much you want to pay for your sales.
How do I determine which bid to bid?
When you launch a campaign, you will see the average CPC in similar campaigns. This gives you a good benchmark. You also see what the minimum CPC is, which is determined by all advertisers. Is it your first campaign? Then start with the CPC that you also use for other channels (such as Google) or an automatic campaign.
Different bidding strategies within sponsored products
Sponsored products helps ensure a high position for your article on bol.com’s list pages. In return, when a customer clicks on one of your sponsored articles, you pay a certain price per click. Setting how much you are willing to pay per click is done through a bidding strategy. You either let bol.com’s algorithm determine this click price automatically or you set a bid manually yourself. This is then the maximum price per click for your sponsored article. Read more about the different bidding strategies below:
1. Automatic bidding strategy
A campaign with an automatic bidding strategy is the perfect way to start. Not only if you are new to the world of sponsored products, but also if you advertise more often. When you choose automatic bidding, you can set a desired ACoS between 5% or 50%. The automatic bidding strategy will then use this desired ACoS as a guideline for the bids in this campaign. Note: it is a guideline and the realised ACoS could be higher or lower.
Automatic bidding gives you valuable insights. Especially at the beginning of the campaign when you don’t yet know exactly how much you should pay approximately per click (CPC). The system can then take this from you. Is your campaign with automatic bidding strategy running smoothly? Fine! Notice that you are paying too much or too little for a click? Then you can adjust the desired ACoS in ‘campaign settings’. It can also be interesting to set up a new campaign and opt for manual bidding. A good indicator for this is the metric ‘average winning bid’. This is the average click price paid by the winning advertisers in the auction. Does it turn out to be a lot lower than your average CPC? Then you might want to set your target ACoS a bit tighter or set a manual bid.
2. Manual bidding strategy
You can also choose to bid manually. This way, you set a bid in your campaign per article or per keyword. This bid is the maximum click price you pay. Do you find it difficult to estimate what your bid should be? Set a bid that is the maximum you are currently willing to pay for a click. Do you notice after a few days that your bid is too high or too low to achieve your desired results? Then adjust your bid and repeat this process several times until the results are in line with your expectations.
You can bid on ‘products’ or ‘keywords’ in a manual campaign. What is the difference and why should you choose one and not the other?
Bidding on products
If you bid on products, you set a maximum click price per product. In other words, this is the maximum amount you want to pay per click when someone clicks on your article. The advantage of this bidding strategy is that you have a lot of control over the click price you pay per article. For example, you choose to set the same bid for each article. Every now and then, you can also raise the bid for one article and lower it for another. This way, you put certain articles in the spotlight from time to time!
Bidding on keywords
If you bid on a keyword, you set the maximum click price per keyword. Do you have articles you want to show on many different keywords? Then it might be interesting to bid on keywords. For example, you set a higher bid for certain keywords than for other keywords.