Question: Match the bidding strategy to the definition. Amazon will reduce your bids in real time for clicks that may be less likely to convert to a sale.
- Dynamic bids - up and down
- Fixed bids
- Dynamic bids - down only
Explanation
Dynamic bids - down only allows Amazon Ads to lower bids in real time when a click is less likely to convert. This bidding strategy helps reduce spend on lower-conversion opportunities while keeping the original bid as the maximum amount. It does not increase bids above the selected bid amount. This approach supports cost control while still using conversion signals during auction-time bidding.
Why the other options are incorrect
Dynamic bids - up and down can both increase and decrease bids based on the likelihood of conversion.
Fixed bids uses the exact bid and does not adjust bids based on conversion likelihood.
Source for verification
https://advertising.amazon.com/help/GCU2BUWJH2W3A8Z7
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