Ever find your Amazon PPC campaigns running out of budget by midday? You’re not alone. It’s a common challenge that leads to missed opportunities, especially during peak shopping hours in the evening. However, with a few strategic adjustments, you can keep your campaigns running longer and capture valuable sales throughout the day.
Here’s how to make your budget last:
Step 1: Analyse Your Campaign Performance
Start by understanding where and how your budget is being spent. Amazon’s Budgets tools can provide a clear picture:
- Budgets Tab: Take a look at the “Avg. time in budget” metric to understand how often your campaigns run out of budget. It also shows the estimated missed impressions, clicks, and sales. As with many things Amazon, take these with a grain of salt as they are estimates, but it’s a helpful starting point.
- Filters: Apply the “Almost or out of budget” filter to get a sense throughout the day which campaigns are running out of budget.
Step 2: Review And Adjust Your Daily Budgets
When launching a new campaign, it’s crucial to allocate enough budget during the testing phase. A sufficient daily budget ensures your campaign generates enough impressions, clicks, and eventually orders to provide meaningful data for optimisation. Limiting a campaign with an overly low budget can result in low sales, unprofitable campaigns, and missed growth opportunities.
Here’s a simple calculation to estimate your minimum daily budget for a campaign:
- Define Your Target Orders Per Day: For example, let’s aim for 5 orders daily.
- Factor in Conversion Rate (CR): If your CR is 10%, you need 10 clicks to generate one order. For 5 orders, that’s 50 clicks per day.
- Calculate Based on CPC: With an average CPC of £0.50, 50 clicks will cost £25. This is your minimum daily budget.
If your daily budget is far below this threshold, your campaign might not even have a chance to convert.
Step 3: Increase Daily Campaign Budgets
If your campaigns are running out of budget too early, it often makes sense to increase the daily budget. For example, let’s say the campaign is advertising your best-selling product line. If it has a strong conversion rate and is performing profitably, you wouldn’t want to limit its potential by setting a low budget. A restricted budget can prevent the campaign from generating enough clicks to lead to conversions.
Here are factors to take into account when considering increasing the daily budget:
- Is the campaign running out of budget multiple days in a row or was there simply a temporary spike in clicks today?
- Is the campaign performing profitably?
- Is the campaign generating sales?
- Is the campaign advertising your best-seller or any other priority product line, e.g. NPD?
Answering these questions with 'Yes' is a good sign that the campaign (and your bottom line) would benefit from an increase in budget.
Step 4: Reduce Unprofitable Spend
When increasing the budget isn’t feasible, it’s time to optimise your campaigns:
- Drill down into your campaign details: How many ad groups does your campaign have? How many ASINs are you advertising? How many targets are you targeting?
- Reduce wasted ad spend: Are any targets, ads or ad groups spending a disproportionate share of your budget? For example, if one target uses 60% of your budget but only generates 10% of orders, consider pausing it.
For tips on making your ad spend more efficient and stretching your budget further, read our article on How to Make Your Amazon PPC Budget Last the Entire Month.
How We Can Help
Keeping your campaigns active all day doesn’t have to be a time-consuming task. At fern, we offer tools and strategies that make managing Amazon PPC campaigns more efficient:
- Campaign Monitoring: Stay informed with alerts for campaigns hitting their daily budget across multiple days.
- Budget Automation: Ensure your campaigns remain live during the day by automatically optimising budgets.
- Expert Guidance: Through our 1-on-1 coaching plan, we work closely with you to optimise your campaigns and achieve your goals.
Whether you’re trying to keep your campaigns active throughout the day, make the most of your ad spend, or optimise performance without overspending, we’re here to help. Let’s work together to ensure your Amazon PPC campaigns run efficiently and effectively.
Ready to take control? Let’s chat!
