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Establishing a proper budget for PPC campaigns is a crucial part of Amazon success, but the complicated nuances of this process can make it one of the most challenging and daunting parts of maintaining a strong PPC campaign. While there’s no set of instructions for running a successful PPC campaign on Amazon, here are several guidelines and techniques that can help you take your success rate to the next level.

pay per click illustration with business tablet and money

 

Calculate the True Cost of Your Product

Many sellers fail to take into account various fees and extra budgeting costs associated with selling a product on Amazon. These fees could include shipping, storage, and advertising costs, and all these costs combined define the “true cost” of a product. The true cost is typically more expensive than sellers actually plan for. Not considering the true cost of a product can be a pitfall when it comes to PPC budgeting.

As a seller, taking into account a product’s true cost from the get-go will help you correctly forecast your budgeting capacity for PPC campaigns. You will avoid being burdened with unexpected fees or crippled by hidden costs. Once the true cost of a product has been established, sellers can budget for PPC advertising with greater confidence and chance of success.

Bid on All Types of Keywords

Establish a PPC campaign that relies on keywords from each category: broad match, phrase match, and exact match. Avoid devoting your entire budget to just one category to get the most effective use of your Amazon ad spend.

For example, bidding on broad match keywords alone isn’t an effective strategy because these keywords generally target a wider, sometimes unrelated, range of searches. You may end up throwing away part of your budget on irrelevant searches or on search terms that just don’t convert. Similarly, bidding on just exact match keywords isn’t effective because they are often extremely competitive, driving up the bidding price and draining your wallet.

Instead, devote a portion of your budget to competitive, exact match keywords, while still leaving room for phrase match and broad match keywords. With this balanced keyword strategy, you can bid on more words for a longer period of time, ultimately increasing your conversion rates.

Set an Ad Schedule

Timing is everything, even for your Amazon PPC bids. Statistically, Amazon sees a dramatic increase in traffic and sales between 4 and 6 pm MST. Create an ad schedule to ensure that you don’t exhaust your daily budget before this time so you can take full advantage of the increase in consumer traffic.

Additionally, because the Amazon market is in constant flux, bids are also in a perpetual state of change. Just because you had the top bid on a keyword today doesn’t mean you will still have the top bid tomorrow.

With this in mind, sellers should adjust their bids daily. Whether you use a computer program or make adjustments manually, it’s vital to make sure your bids are staying within your budget and that they are working for you instead of against you.

At Nozani, we not only have the industry experience and knowledge necessary to craft effective PPC budgets but we also have access to cutting-edge software to help you establish a budget with calculated precision. Learn more about our PPC budgeting strategies and tools.