Let’s talk about the setting and optimization methods of advertising budget, bidding, and switching time.
Budget setting for PPC advertising
When we want to create an advertising campaign, the first step is to set a daily budget for the campaign in addition to naming the campaign.
First, let’s take a look at the definition of budget. The daily budget refers to the average daily cost that the seller is willing to spend for each advertising campaign within a month. On the advertising campaign management platform, sellers can change the daily budget at any time. Although we set a daily budget, Amazon calculates it on a monthly basis. If we set a daily budget of $100, then the budget for a month is $3,000. This budget setting will only control the total budget of this month not to exceed $3,000, but will not control the budget of a certain day. There may be a situation where $100 is spent on the first day and $200 is spent on the second day.
When we set the daily budget, what we must do is to determine the budget based on the number of promoted products to ensure that the daily budget can meet the promotion of all products in the advertising campaign. The calculation of the daily budget depends on the following two conditions.
1. Number of advertising products
When a seller’s advertising campaign includes multiple products, consider investing $0.51 per day for each advertising product. Based on this guideline, if the advertising campaign includes 20 products, the initial daily budget should be $10.20.
2. Check the default bid of the ad
The daily budget and ad bid will affect the number of clicks on the product. If the daily budget is $10 and the default bid is $1, you may only get 10 clicks a day. Sellers need to set budgets based on the expected number of clicks and bids, otherwise it will be easy to overspend or underspend the budget.
In addition to setting a basic daily budget, we also need to use the “Add Budget Rules” function in the background to develop a set of effective budget rules to ensure that our budget can serve the overall advertising goals.
We need to formulate corresponding budget rules from two aspects: on the one hand, according to the sales time nodes, increase the budget during high traffic time or specific date range, such as “Black Friday”, “Cyber Monday”, “Member’s Day”, etc., and the system will automatically increase the advertising budget according to a certain proportion; on the other hand, according to the actual sales situation, which is often called “chasing the rise and selling the fall”, when the sales data is good, or when a certain set data target is achieved (such as ACoS target), the system will automatically increase the budget according to a certain proportion. By formulating corresponding budget rules, we can help us maximize advertising profits and minimize losses.