Amazon has a feature called Budget Rules for Sponsored Products ads, which permits sellers to set budgets for each of their campaigns in advance.
Amazon Budget Rules allows sellers to automatically increase budgets during major events such as Prime Day, Black Friday, Cyber Monday, or during seasonal/categorical events like Easter, Halloween, and back to school.
How Sellers Benefit Using Budget Rules
Sellers can set campaign budgets in advance using two types of budget rules for Sponsored Products (Scheduled-based and Performance-based).
Schedule-based rules allow sellers to set budgets in advance for a customized date range or special sales event.
The rule will increase the campaign budget by the percentage a seller specifies during the date range the seller sets in the rule or during the special event selected.
For schedule-based rules, sellers can choose from Amazon recommended shopping events (like Valentine’s Day or Prime Day), or they can select a custom time period with daily or weekly recurrence. Sellers should choose the recurrence based on their understanding of the type of traffic that their campaigns usually get (daily, on a specific day of the week or on the weekends).
Sellers can also increase their budgets for a limited time in a day according to the specified percentage.
There are four parameters that sellers need to provide when setting the Schedule budget rule. They are rule type, date range, recurrence, and ‘increase budget by’.
Pro Tip: Amazon will recommend special events based upon the products in a seller’s campaign and when they anticipate more demand triggering a need for an increased budget. For example, a seller may receive information related to their previous best budgets for a Cyber Monday sale. If a seller removes or updates their products from a campaign, Amazon will not remove the rule, but the recommendations might change.
Performance-based rules allow sellers to set rules to increase their Sponsored Products campaign budgets when their campaigns meet a certain performance threshold using campaign performance metrics such as ACoS, click-through rate, conversion rate and ROAS.
Amazon calculates these metrics using data from the previous seven days for sellers and fourteen days for vendors. Campaigns must have a minimum daily budget of $10 to use performance-based rules.
Pro Tip: Once a seller has implemented either a scheduled or a performance-based rule, he or she will not be able to decrease their budget for that campaign. Amazon only allows a seller to increase their campaign budget or go back to their ‘normal’ budget for the campaign.
Budget Rules permits sellers to exercise better control over their budgets, which can be a life-saver during seasonal sales periods or on peak days. If you are interested in learning other proven strategies that can help your Amazon business to be more profitable while reducing your Ad Spend budget, schedule a call with the Entourage Management Services team.
Entourage: Software to Scale Amazon Ads and Results Driven Management.
He is the owner and founder of PPC Entourage, one of the original amazon ad software and management companies. Mike started off as a physical therapist in 2015 and just knew there had to be a better way so he started his ecommerce journey. Using the power of Amazon Ads, he built a 7 figure brand in less than one year. Now he helps other sellers do the same with free valuable education, PPC Entourage software and the ad agency. He is also the author of the Amazon Ads Playbook series.
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