Why are budget rules so exciting!


Amazon has introduced an exciting new feature. The Budget Rules feature enables sellers to set rules to adjust daily budgets for shopping events, or based on performance metrics according to your business goals! Utilising this feature would prove to be extremely economical for your business as it expeditiously reduces the amount of manual optimisation required.

What is the purpose of budget rules?

Budget Rules are an automatic optimisation and management feature for Amazon advertising campaigns. Through the campaign management section of your campaign, you can adjust the rules according to your business goals. Using these preferences, the system will automatically increase the campaign budget during peak selling periods. For example, setting the budget to automatically increase for events such as Prime Day.

Introducing budget rules ensures that the top-performing campaigns continue to run, and reduce the spending on lower-performing campaigns. With the introduction of various new fees from amazon and the current economic climate this is a significant feature. Budget rules has the potential to save businesses time and money through automatic adjustments. It automatically invests in the campaigns with a greater performance outcome according to your personal preferences. Therefore, rather than wasting valuable time using manual optimisation, it will be done for you.

What rules can you choose from?

There are two types of budget rules you can choose from when setting up your campaign. The first is by schedule, referring to setting up the budget rules to adjust according to a time frame or event. The second type of rule is by performance, which will set the budget to increase according to the performance of the campaign. Amazon will evaluate the active rules on your campaigns once a day to calculate the daily budget for the next day. Assuming the rule meets your campaign conditions it will be adjusted.

The Schedule Rule

Choosing to create your budget rule according to a schedule is excellent for those selling seasonal products. It gives you the ability to set a budget to increase during peak events and periods of time; for example, you could choose to increase the budget of you campaign for advent calendars between the 15th November – 1st December. This can be used in conjunction with Amazon’s timing insights, sellers can schedule their budget increases in coordinate with when their customers are engaging with a campaign. There is no minimum cost with the schedule rule, and Amazon will recommend events to you based on which ones work best for the category you are selling in.

Performance Rule

Alternatively, choosing to use the performance-based rule is also very useful. Through assessing the performance variables such as ROAS from the past week the feature automatically optimises the budget. Automatic adjustments significantly aids in the conversion rates as it ensures well-performing campaigns are spending. As a result, you reach customers when the product is succeeding, rather than making an assumption. Therefore, the rule is useful for saving the seller time as well as making money. However, there is a caveat of a minimum $10 daily budget.

Why are they useful?

Both of the types would be helpful for driving conversions, whether that be peak time periods or peak performance periods. The option to overlap the rules is also useful for example, as you could set a campaign’s budget to increase by 50% during October and by 80% on Halloween. The flexibility of the feature is very beneficial as it gives greater optimisation opportunities. However, the greater budget increase will be used if the rules overlap, which is something that sellers should be aware of.

The system reduces human error in the campaign budget systems. Automatically monitoring performance will prevent overspending on campaigns, which could make a big impact. It is not uncommon for human error to push companies over their budget limits. Budget rules removes this danger through ensuring the adjustments are constrained to the campaign preferences. The rules and performance are evaluated immediately, each time it is modified.

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Clear Ads are digital advertising experts with a wealth of knowledge and experience. We have helped hundreds of businesses to fulfil their selling potential through Amazon advertising. If you would like to hear how we could help you use budget rules to take your campaigns to the next level request a callback.

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