Which is better, Amazon advertising budget or bidding? How to calculate?

When many people do advertising on Amazon, they need to calculate the charging method first, so as to control their promotion costs and calculate their actual profits. Which is better, Amazon advertising budget or bidding?

Which is better, Amazon advertising budget or bidding?

Personal opinions can only provide ideas and cannot be copied completely.

1. We need to find our peak period. According to some categories, sales are generally better in the morning in China. But different products are different. For example, if the user group is the elderly, the shopping time is generally in the morning and noon in the United States. If the user group is programmers, then the order is more likely to be placed in the evening in the United States. For specific situations, you can use the Amazon report "All Orders" to find out the peak order time for your product.

2. Focus your advertising budget on peak hours. That way more customers can see your ads and convert them. During low order periods, many ads are usually clicked by competitors.

3. If the ad performs well, you can continue to increase the budget. If the performance is not good, you can keep the budget unchanged. Even if the budget is used up, there is no need to increase the budget. If the ad performs well but the budget has not been exceeded, you can try to increase the bid.

Remember this formula:

CPA=cost/number of conversions=(CPC*Click)/number of conversions. From this we can see that CPA is directly proportional to CPC&Click. The higher the CPC&Click, the higher the customer acquisition cost, which is inversely proportional to the conversion.

4. If you are doing a promotion, you must allocate sufficient advertising budget. At this time, the advertising conversion will be better. If the advertising performance is good, Amazon will give the advertising a higher weight. Later, the advertising will be able to obtain better ad position rankings with fewer advertising bids, thereby reducing advertising costs and increasing advertising conversion rates.

5. For automatic advertising, it is generally recommended to adjust the budget for better results. If it is for manual advertising, it is recommended to adjust the bid, which will have better results.

Compared with Amazon advertising budget and bidding, they actually have their own advantages. You need to choose according to your actual situation. However, when choosing a promotion tool, the most important thing is to pay attention to your own promotion costs.

Recommended reading:

What are the several ways to place Amazon ads?

What preparations should be made before launching Amazon ads? How to do it?

How much advertising money does Amazon have to spend in the early stage? How much does advertising cost?