How to calculate Amazon advertising budget? What are the methods?

On the Amazon platform, many people usually do promotion. There are many ways and tools for promotion. Many people choose to place advertisements. How to calculate the Amazon advertising budget?

How to calculate Amazon advertising budget?

1. Daily advertising budget.

It is recommended that sellers start their PPC advertising campaigns from $50 to $100 per day, and can also start from $5 to $10 per day.

Regarding the seller's budget setting: If the seller runs out of money, the advertising promotion will be forced to stop. If the initial investment amount is not enough, increase the budget in time. You only need to increase the daily budget when there is profit. You can also change keywords by deleting or changing them.

Example: If the seller's ad running period is limited to 7 days, the daily budget is $10.

If those ads only generate $100 in sales after Amazon fees and the seller’s cost of goods, then your ads are not working. You need to review the keywords you previously targeted and find out why they are not converting.

But if these ads can bring in $500 in sales, it means that the method is correct. During the product promotion period, sellers should increase their budgets based on actual revenue so that the seller's effective ads can run longer, which will result in higher sales.

2. Keyword bidding.

A keyword bid is the amount you are willing to pay when bidding against your product competitors for ad placement.

If you set your keyword bid to $0.50, a wider range of consumers will click on your ad. If your competitors bid higher for a particular keyword, your product will have a better ad placement.

The calculation method of Amazon’s advertising budget is actually very simple. Like every promotion tool, it has a charging rule. You can look at what kind of promotion effect you want to achieve and consider it based on your own promotion budget.

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?