Dynamic bidding is an optimized bidding strategy designed to help Sponsored Products advertisers save time and effort, maximize conversion and optimize ad spend. With Dynamic bidding, Walmart Connect’s platform adjusts cost-per-click bids up or down in real time based on the likelihood that a customer will purchase the item if the ad appears in their search.  

Note: This can only be applied to Sponsored Products campaigns and is an addition to our current fixed bidding option.

Dynamic bidding benefits include: 

• Helps boost conversion: Machine learning helps identify when customers are likely to click on an ad. 
• Optimizes budget: Our platform automatically adjusts your bids up or down, helping you save money and/or spending on those likely to lead to conversions.  
• Saves time: Advertisers no longer need to constantly monitor in-flight campaigns.  
• Reduces advertiser guesswork: Our platform uses data to make informed adjustments. 

How Dynamic bidding works

Walmart Connect’s platform analyzes the ad’s contextual relevancy and the promoted item’s historical performance, in real time, to determine whether to raise or lower the bid. The advertiser’s base bid is a starting point.  
 

If the platform determines that a click is likely to lead to a conversion, it can raise the bid by up to 100% to help increase the chance of the advertised item serving in a competitive position. This can increase the chance that a customer will click on the ad.  

Note: The platform can also lower the bid by as much as 50% — but not below the minimum floor price — to help the advertiser save money on clicks it determines are less likely to lead to conversions.

Using Dynamic bidding

In the Campaign bidding strategy section, choose the bidding strategy that best suits your business goals. You can choose between Dynamic bidding, and Fixed bidding options.

Best practices
Campaign setup 

• Consider using campaigns with more than 10 items and keeping items within the same product category. Different categories and item types tend to show different conversion patterns. For example, wireless keyboards often convert at a higher rate than laptops, so grouping similar items can help produce more consistent results. 
• Use suggested bids to set your base bids competitively. This will help ensure your campaigns are performing well overall. You can then leverage dynamic bidding to help further enhance campaign performance. 
• Don’t duplicate campaigns to have one with dynamic bidding enabled and one disabled. This will cause the campaigns to compete against each other and may affect the performance of both. 
• Have items and keywords organized into multiple ad groups for each campaign. 
• If your brand sells in multiple categories, separate your campaigns by category. 

Campaign optimization 

• Leverage dynamic bidding for campaigns that are already seeing some performance on their items and/or keywords.  
• Maintain bids on items and keywords that are performing well in your live campaigns. Changes to bids should only be made when the item/keyword is not getting any clicks or conversions. 
• Avoid switching between fixed bidding, dynamic bidding or Target ROAS bidding for an in-flight campaign to ensure optimal results with dynamic bidding. 

 
Budget for Dynamic bidding 

• Monitor out-of-budget and budget-at-risk notifications. If your campaigns are running out of budget daily, they may not see optimal results with dynamic bidding. In this scenario, we recommend increasing your daily budgets to leverage dynamic bidding. 
• With or without dynamic bidding, avoid reducing budgets and/or disabling items/keywords for in-flight campaigns. This may affect your overall campaign performance. 
• Ensure that items in your campaigns are in stock to minimize effect on your campaign performance. 

Frequently asked questions

Q. What campaign types is dynamic bidding available for?

A. Dynamic bidding is available for manual and automatic Sponsored Products campaigns. 

Q. What should I start using dynamic bidding for my existing campaigns? 

A. You should start using dynamic bidding once you receive some interaction in impressions and clicks for your in-flight campaign. 

Q. What should I do if I see limited or no improvement with the dynamic bidding strategy? 

A. Masure your base bids are set to the suggested bids and try applying a bid multiplier at the placement/platform level. 

Q. Can I switch from dynamic bidding to fixed bidding strategy whenever I want? 

A. Yes, though it is not recommended to switch too frequently. 

Q. How could dynamic bidding affect ROAS? 

A. Our current dynamic bidding algorithm maximizes for conversion, so the effect on ROAS will be minimal. We recommend that you follow the best practices for dynamic bidding to get the most value from this optimized bidding strategy.