As an Amazon PPC agency, we deal with all types of account tuning day in, day out. One of the biggest questions we face from our clients is the issue with their Amazon Ads budget depleting.
It is now possible to keep up-to-date with your Sponsored campaign budget status with tailored notifications and recommendations straight to your inbox. This will help you keep your campaigns live for as much of the time as possible.
If your daily budget runs out during the day, your campaign will become paused which means no more of your ads will show until midnight of the next day. This means that you could miss out on valuable ad impressions and sales conversions through your Amazon Sponsored Ads. The budget tool will keep your ads running to maximise your sales opportunities.
How does an Amazon PPC Ad Campaign Budget work?
One of the most efficient ways of calculating your daily budget is to first consider your monthly or campaign-specific budget. Then you should allow for other factors such as quantity of products and your starting bid. When you have grappled with this data, you will be in a position work out your daily budget.
Now your primary objective is to gather as much significant performance data as possible. If you have, for example, 1000 products in your campaign, a daily budget of £10 would take a relatively long time to see clicks and the all important performance data for each product.
Also, think about how your default bid will affect your budget. A default bid of £1 with a daily budget of £10 will yield a maximum of 10 clicks per day.
Another approach to budget calculation is to think about the number of clicks you would like to receive. Then you can set your bid amount and maximum budget to reflect this and get as many ads appearing in search results as possible. You need to know what works and what doesn’t.
After the data has been generated, you will be able to review and optimize your campaigns to get as low an ACoS as possible and as many sales as possible.
Bidding strategy for auto vs manual targeting Amazon campaigns
It is recommended to bid slightly lower for a campaign with auto targeting than one with manual targeting. Amazon auto targeting campaigns are more likely to receive more impressions and clicks than what you are likely to receive from a manual campaign.
If you are using manual targeting, you can tweak your bids on a keyword level. The Manual-targeting reporting system will give you the estimated keyword bid needed for an ad to appear on page 1 of search results.
This is something you would need to take with a pinch of salt as we have managed to get away with paying far less than the recommended bid in the past.
Automated notifications will tell you when your ad campaigns are running low on budget
To check out the real-time budget notifications, look at the top of Campaign Manager page. This is the page where ad campaigns are created and managed. From here, you can see at a glance which campaigns are out of budget or status is at least 80% of spend. These notifications can be found at the top of the page when signed in to your Amazon campaign manager.
Using account specific recommendations to optimize your Amazon PPC budgets
Amazon’s notification of recommended budget increases for each campaign could potentially enable you to get the most out of your advertising campaign. These are based on your historical spend and Amazon’s predicted traffic levels.
When promoting your products on Amazon through sponsored Ads, specifically manual targeted campaigns, it is important that you allow your campaigns enough budget to have the flexibility to give all targeted phrases a chance to trigger your sponsored product listings. This will allow you to determine which phrases convert best into sales.
Before adjusting your budget to spend more on Amazon due to budget limitations, we would recommend analysing the search phrases that have caused the daily budget overspend on Amazon.
You may find that after day two of your campaigns running live that certain phrases use up most of your campaign’s budget. These terms could then not allow other keywords you are targeting the opportunity to trigger your adverts and convert into a sale. It’s at this stage you need to consider pausing the term/set of terms or moving them into their own campaign to better control their spend.
Ensuring that you have a good list of negative keyword and removing terms that take up most of the budget and don’t result in any sales is the first place to start before increasing your budgets on Amazon.