There are many different ways to split and optimize your Amazon PPC budget. The first is to set an average daily budget. You can also set a daily marketing budget, limit your ad spend to certain days, or split your budget by account level. By adjusting your budget accordingly, you can spend less on a day that has the highest traffic.
Calculating your Amazon PPC budget
To make the most of your Amazon PPC campaign, you need to know how much to spend. A good guideline is to set a budget of 10% of your total revenue. You can then add new campaigns as your sales increase. Once you’ve figured out your budget, you’ll be ready to launch your campaign.
Then, divide that amount by the number of days you want to spend on each campaign. This way, you can allocate equal resources to your campaigns. You can also adjust the budgets if you want to focus on a certain type of campaign. For example, if your monthly budget was 60 percent, you would multiply that number by six every day. Using this formula, you can set up an Amazon PPC campaign that’s profitable.
Another way to calculate your Amazon PPC budget is to calculate the cost of sales (ACoS) and your profit margin. The ACoS is a key metric for Amazon advertising, because it tells you how much each sale costs you in advertising budget. You should aim for an ACOS below 10%, as a higher percentage will hurt your sales. However, if your ACOS is too high, you should reevaluate your strategy. Consider whether you should increase or decrease your spending.
Limiting your Amazon PPC budget to high-traffic days
Limiting your Amazon PPC budget to high traffic days is a great way to increase your revenue while reducing your Amazon PPC spend. Whether you sell products on Amazon or not, every brand has peaks and valleys during a calendar year. For example, many sellers will see the majority of their sales during the fourth quarter. Conversely, a brand selling summer-oriented goods will likely see stronger sales in the warmer months.
The first step in setting your budget is determining how much money you can spend on advertising. Amazon allows sellers to set a daily budget of up to $912. You can either set a fixed daily budget or an average budget for the month. You can also limit the total amount of money you spend on PPC advertising on Amazon on any given day.
Another important aspect of Amazon PPC is keyword research. If your competitors have higher-traffic days than yours, it might be time to change your keywords. Using Google Keyword Planner will help you determine how competitive your keywords are. By doing this, you can make a more targeted and relevant keyword selection for your Amazon PPC campaign.
Splitting your Amazon PPC budget
The first step in setting up an Amazon PPC campaign is to set a budget. You can start with as little as 10% of your total revenue, and you can add campaigns as your sales increase. A budget will make it easier to analyze and tweak your campaigns. However, it is important to remember that Amazon PPC is not a “one-shot” deal. It takes time and effort to see results.
The next step is to create an effective product page. A detailed product page will increase the conversion rate. Then, optimize your Amazon PPC listing. Using popular keywords is also important. People will search for popular products on Amazon using specific terms, so it is critical to include those terms in your listing.
Once you have determined which keywords will drive the most sales, it’s time to split your Amazon PPC budget by product. This may be difficult for e-commerce sellers with large lists of products. However, if your products are similar, it might make more sense to use one ad group. The goal is to choose highly relevant products that are a match for your target keywords. You can choose up to three different keywords per product.
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