As an Amazon PPC agency, we spend most of our time immersed in the Amazon Ads interface, performing routine housekeeping tasks, fine tuning campaigns and studying data.
Of course, we know that not everyone spends their days studying their Amazon Ads account.
One question that we are often asked by clients who rely on our knowledge to optimize their ad performance is why their campaigns run out of budget.
The good news is that you don’t need to be continually checking on the status of your ad campaigns to ensure you don’t run out of cash as it’s now possible to get budget notifications and tailored recommendations sent straight to your inbox.
Turning on these notifications is an easy way to ensure that your campaigns are live as much as possible.
This is a useful alert to have because, if your campaign does eat up its whole budget, it will automatically be paused until the following day, meaning you could potentially miss out on substantial volumes of traffic and sales.
The basics of calculating your Amazon PPC campaign budget
Calculating your daily budget for Amazon Ads can feel like an impossible task when you first get started but, you can break it down into a more manageable job by first determining your monthly or specific campaign budget.
With that decided, you’ll now need to factor in additional considerations such as number of products or average bid amount to arrive at a realistic, affordable and sustainable daily budget.
Don’t forget, your default bid amount will also play a role in this decision. A default bid of $1 and a daily budget of $15 means you’ll be limited to just 15 clicks a day.
Another approach is to think about how many clicks you would like to receive and then work backwards from there to set a bid amount and your maximum daily budget.
It’s important to remember that your budget is not set in stone and you can revise it up or down as you see fit.
As your campaigns run and you are able to access real world data, you’ll need to review and optimize your campaign budget to arrive at the optimal ACoS while also maximizing sales figures.
Should you opt for auto or manual targeting?
Amazon’s ad dashboard gives you the choice of auto or manual targeting.
We recommend that you set slightly lower bids when choosing the auto option as those campaigns are more likely to receive a greater volume of impressions and clicks than manual campaigns.
If you decide to go for manual targeting, you’ll have a much greater degree of control and can adjust bids at an individual keyword level.
You will still get some help from Amazon here as it will provide you with an estimated amount you’ll need to bid in order to have your ad appear on the first page of the search results.
Remember, this is an estimate only so you should still use your own trial and error process and report data to adjust this bid amount. Often, we find that we can bid a good deal less than the suggested amount without sacrificing search visibility.
Using low budget alerts
Now that your budgets are all set up, you’ll want to know when any given campaign begins to run low. This is where automated notifications come in.
You can also see this information in Campaign Manager. This page will show you which campaigns are out of budget or have used at least 80% of the available budget for the day.
The out of budget email notification will be sent to the primary email address associated with your account. If you aren’t receiving alerts, check your spam folder.
Are Amazon budget recommendations helpful?
Amazon Ads will routinely send recommended budget increase notifications for your PPC campaigns.
The suggested budget is calculated using Amazon’s predicted traffic levels plus your own historical spend levels.
These recommendations can be helpful if you were already thinking of increasing your ad spend but there are other things you can try before you go ahead and up your budget to Amazon’s recommended level.
Reviewing your campaign data to determine which keywords are using the most budget is a sensible initial step.
If you find your campaigns are running out of budget due to a small number of search terms, other keywords could be missing out. To remedy this, you could increase your budget as per Amazon’s recommendations.
We would argue that moving the high budget phrases into a dedicated campaign would be a smarter option. If those search terms don’t convert, you may also want to pause them or try another tactic, such as dayparting.
Introducing negative keywords and removing other phrases that use up budget but don’t record conversions should also be explored before you decide to up your Amazon spend.