If you are not sure where to start, you can commit to reinvesting a certain percentage of your revenue into advertising and you’ll have the amount set aside to spend on Amazon PPC. Ideally, your advertising budget should be approximately 10% of your total revenue.
If you want to maintain current revenue amounts, then 5% to 10% of sales allocated toward advertising may suffice. If you want rapid growth, then you may need to push that number higher, possibly to 20% or more depending on the industry and type of business you operate.
When you decide to use Amazon PPC as part of your marketing strategy, you’ll need to know how much you should spend per day. You’ll also want to calculate the cost-per-click and optimize your ad groups. In this article, you’ll learn how to set a daily budget for your PPC campaign and make ad groups that are tightly themed.
Setting a daily budget for Amazon PPC
Amazon PPC allows you to set a daily budget based on a percentage of the projected revenue for a particular day. Once you reach your daily budget, your ads will stop showing. The remaining budget can be added to the next day’s budget if you choose. Alternatively, you can set a fixed budget per campaign. This way, you can ensure that your budget is evenly distributed across all your campaigns. In addition, it will be easier for you to determine the exact amount to spend on each campaign.
The first step in setting a daily budget for Amazon PPC is to identify your ACoS (average cost per click). This way, you can get a better idea of the results you will get from your campaign. The average CPC is 0.20, so if you set your daily budget to PS50, you can expect to receive 250 to 500 clicks per day. It is also important to understand the duration of the campaign.
Optimizing your ad groups
One of the most effective ways to increase brand awareness is by grouping similar products. However, it is not the best idea to create separate ad campaigns for different variations of a product. These ads may be competing with each other, which could result in cannibalization. To prevent this from happening, group the similar products into one package and use the same Amazon Standard Identification Number.
When creating an Amazon PPC campaign, you should focus on increasing the number of sales you generate. This means eliminating products that are not converting or have a low click-through rate. Identifying and eliminating products that are not performing well can be done by using tools like Amazon Benchmarker.
Creating tightly themed ad groups
Creating tightly themed Ad Groups is a key component to optimizing your Amazon ppc campaign. This process helps you to organize your keywords into sets that are relevant to one another. You can then create ad copies that include the keywords that match the theme of the ad groups. By keeping your keywords focused, you will improve your overall Quality Score by eliminating irrelevant keywords.
Ad groups can be created to target the different types of products you sell. In order to maximize your conversion rates and optimize your campaigns, you must optimize your keyword selections. The more targeted your ad groups are, the more relevant they will be, resulting in better quality scores, discounts, and Ad Rank. However, be careful not to use too many broad terms in your ad groups. It may be better to use exact matches or phrase matches.
Setting a campaign duration
Regardless of the type of product that you are selling, Amazon PPC offers an affordable, flexible solution to selling products and services. Using Amazon PPC for your products or services can give you the competitive edge in your market and ensure that you are visible to the right audience. For example, you may sell seasonal items and need a way to move them during the slower months of the year. However, even if your products and services are seasonal, Amazon PPC will provide visibility to the right audience for your business.
Amazon PPC campaigns can be optimized through ad data. These data can give you a better understanding of your market than keyword and search term relevance alone. By combining behavioral data with demographic data and bids, you can better understand your target audience.
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