Campaign ad default bid

My first campaign was a big flop, it auto set up 50p per click. Just done a new campaign and it suggested £0.07, which I have done.

How do you decide what a click is worth? It’s not making much sense to me!

You need to work out how much ‘you’ are prepared to pay for that click, rather than what everyone else might pay.

It’s a bidding system, so (very simplified version) if you outbid everyone else on the same ASIN then you get your ad displayed.

If we’re selling the same type of item, and I can afford more advertising than you, my ads will appear more than yours.
However, if / when my campaign runs out of money, your ads will then start appearing.

Think of it like an auction for every possible ad.
If my maximum bid was £0.55, and your maximum bid was £0.88, you’d still only pay £0.56

Edit: Any new products will usually always cost you more as you’ll have no idea how many of those clicks will convert to sales. once you’ve been advertising for a while, you can probably start accounting for “X clicks = Y sales”.