How Much Should I Spend On Amazon PPC (Sponsored Product Ads)

Amazon PPC is one of those topics that EVERYONE has a question about. Here at TAS one of the most common questions we get is, ” How Much Money Should I Set Aside For My PPC Budget”

Hey there tas sirs and welcome back to the amazing seller a youtube channel right now we’re gonna take a minute to mine for a little bit of ppc gold and we’re gonna talk about a question that we get all the time about amazon sponsored product campaigns which is how much did i set aside for a daily budget on those campaigns i don’t know where to start should it be

Ten twenty thirty dollars we’re gonna dive into how much we should budget every day and some considerations to make as we scale alright guys so let’s just dive into it how much money should we set aside on a daily basis for those amer amazon amazon yeah amazon sponsored product campaigns those ppc campaigns that you hear us talk just so much about and the answer is

Well it depends and i know you guys have a love-hate relationship with that answer but the truth is it really does now i’m not just gonna leave you guys hang in there what i will say is that scott and i like to start let’s say start with between 10 and 20 dollars per day on those campaigns now keep in mind that means you’re gonna be spending between about three

And six hundred dollars a month where you want to start there is up to you if you want to get a little bit more aggressive start closer to that twenty if you want to be a little more conservative start closer to that 10300 dollars a month to spend on those amazon sponsored product campaigns now the budget is not the only thing they need to keep in mind here the

Second half of this equation is how much we’re going to bid you guys may have heard us talk in the past about our buddy dom who will bid four or five dollars even on the start to get that data back as quickly as possible so he can see what’s working typically i like to be a little bit more conservative than that somewhere between $1 and $2 is usually enough to

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Get me a good base of understanding right to get those wheels turning and get that data coming in now before we just set that and forget that we need to keep a couple things in mind first we need to keep an eye out over the next week or so for impressions generally speaking if we’re not getting mid hundreds so between 500 and thousand or more impressions a day

We probably need to raise that bit if we’re getting our bid if we’re spending through our budget that’s actually a good thing up front what we’re looking for is a break-even a cos right so we’re looking for an a cos or an average cost of sale that is about the same or less ideally right but if we can get it to be a the same that’s great as our profit margin so

For making 40% an acceptable a cos like a target a cos to shoot for it would be that 40% mark right now the reason that that number is important is because as we come in over the next few weeks and we start to make changes we’re gonna try to optimize for that right we’re then gonna bring that down as we start to pull the things out that aren’t working and we do

More of the stuff that is right so if we can get to that break-even point then as we start to do all of the things that we should be doing inside of those ppc campaigns those sponsor product campaigns that ecos is gonna come down even further as that a cos comes down that frees up more budget for us now let’s just say that a cos has settled around 20% right which

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Would be amazing right that’d be fantastic okay so it’s been there for a few weeks but we’re still spending our twenty dollars a day how much more can i increase that budget and keep that a cos the same well again it depends and scaling is kind of the third part of this equation right we have our initial budget we have our bid and then we have how do we scale so

As we start to scale first do not scale right away right if you see that forty percent do not just jump that budget to a hundred dollars a day that’s absolutely the wrong way to go about it and the reason for that is amazon is obviously gonna spend whatever money we give them right that’s their job they’re there to try to get our ad in front of people and in turn

Hopefully we’re getting them those sales right so what i would suggest doing if you’re at a place where your cos has been kind of flat right you’re in a good place but you just like to spend a little bit more money do not massively increase that budget instead slowly increase that budget take it up 10 15 20 percent a week take a step back after that week look at

Those numbers make sure they’re still the same and that add another 10 15 20 percent continue doing that until you’re a cos does not say stable why wouldn’t your a cos stay stable at that point well if you think about it logically there’s only a certain number of people who are gonna be searching for a stainless steel garlic press right and once we get that ad in

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Front of all of those people amazon is gonna start going further and further out on a limb to try to fulfill that budget obviously because one we’re spending honey with them and they’re cool with that but two they’re trying to get us more sales right because where they really make money is in those sales and those because all of those things so they’re gonna try

To do us a favor and spend through that budget at a certain point it just doesn’t make sense to steal that out and you’ll notice that there’s usually a uninflected point there if you’re spending you know 40 50 80 $100 a day that’s a fairly healthy budget except for in some of the very very competitive markets but for most people between 20 and 40 dollars a day is

Usually enough to get you 60 70 or even 80 percent of the way to kind of getting in front of everybody that you would want to be in front of if you guys have any questions about ppc make sure you leave them in the comments down below i also in the description i’m going to link up to about five five-and-a-half hours worth of content that we did over at the amazing

Seller comm forward slash ppc on everything you could ever want to know about pay-per-click we did some live q&a as we did a couple workshops they’re all linked up there just go to the amazing seller com ford slash ppc and as always ts if you guys have any questions make sure you leave them in the comments down below it’s not restricted to just ppc anything

Amazon or e-commerce related is always welcome and remember take action

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How Much Should I Spend On Amazon PPC (Sponsored Product Ads) By Brand Creators