Optimize budgets and placements for Amazon ads

Business benefits

Maximize the output of your ads

Set a daily budget of $100 a day as a minimum.

Having a large budget means that Amazon won’t throttle you. For example, if you have a $10 budget, a $1 CPC on average, and 30 keywords, you won’t even be able to afford to get one click for every single keyword, every day.

However, if you are willing to spend $100, $500, or $700 a day, where it will be 30 cents, 50 cents, and 70 cents per click, then Amazon will find the most effective way to bring you as many clicks as possible. So there’s a much higher chance of you converting using that method as opposed to lowering the budget.

Find your campaigns with a good ROAS and increase the budget on those.

For example, if you set a $100 budget on a campaign, and now you found out that the return on ad spend is 4x, which means for every dollar that you spend, you’re making $4 in sales, increase the budget.

Always aim to increase the budget. You rarely ever want to cut down the budget unless you really, really are tight. Remember, you always want to lower the bids to not spend more money, but if you really have to, you have a super tight budget, and going over by $10 is going to be a huge issue for you, then you might want to control the budget.

Have only one ad group per campaign.

On Amazon, you have a campaign and then under the campaign, you have multiple ad groups. You cannot set an ad group-level budget, you can only set it at the campaign level. So if you have a campaign and then five ad groups, and your campaign daily budget is $100 a day, you would expect that each ad groupwould get $20 a day, however, that is not the case.

Because you don’t have control over how much money Amazon’sgoing to send to the different ad groups, to make sure that your budget goes all the way through into the ad group and then into those keywords, then you want to have one campaign, one ad group, and then 5-10 keywords.

Use a Bid by Placement Adjustment to optimize bugets.

There are two types of placements on Amazon, top of search first page and product pages. Amazon will give you data for when you showed up at the top of the search on the first page. Not the highest one, which is the sponsored brand, just the top search results that look organic.

When you show up at the top of the search the data shows your ROAS, your CTR, and CR. If you notice that, compared to the rest of the search, you have a much higher ROAS at the top of the search, you could do a bid by placement adjustment.

For example, you can go from $2 a bid, and add 100%, so $4, only if that means you can show up at the top of the search. So the bid is normally $2, but in the case that you can win the bid by showing up at the top of the search, by spending $4, which is 100% more, spend that money.

Last edited by @hesh_fekry 2023-11-14T18:08:34Z