#Case Analysis# Why does the ad position become worse than before when the product bidding increases?

Preface

1. Is this data normal for new products? As shown in the figure below, when selecting products, the average price of the top products in this category was about 50 US dollars. In just over a month, the average price of the top products has increased to more than 20 US dollars. I calculated that 50 US dollars can only make a profit if 20 clicks are made, so the price was set at 50 US dollars. Currently, there are only a dozen vine reviews, with a score of 4.6 points. How should this product be advertised in the future?

 
2. If the keyword system recommends a bid of 1-2 USD, and the bid is set to 0.8, the exposure ratio of the ad positions - the homepage of search results and the rest of the search results pages is very large; but when I raise the keyword bid to 1.3, the exposure ratio of the ad positions - the homepage of search results and the rest of the search results pages has dropped significantly. Why is this? Why does the ad position get worse when the bid is raised? (Note: the percentage of the homepage markup and the percentage of the product page markup remain unchanged from beginning to end)

3. In the early stage of new products, should we only use automatic, or only use a few category precise keywords, or only use long-tail keywords, or use automatic and precise keywords, or use automatic and long-tail keywords? Or should we use a combination of several broad keywords precisely? Please save the child, I can’t hold on any longer if there are only clicks but no orders.

4. How to best set the bids for automatic, broad keyword, phrase, and precise?