Amazon’s new feature – Budget rules
Are you an Amazon seller or vendor who advertises on Amazon? Or do you happen to optimize Amazon ads? Then you should know about Amazon’s new feature, budget rules.
One aspect of Amazon advertising that potentially boggles advertisers and agencies alike is campaigns running out of budget. And what follows is an immense manual approach to keep a tab on your campaigns to prevent them from going out of budget.
But finally, Amazon has introduced a feature called budget rules (the first-ever automation of its kind), for Sponsored Products ads specifically giving advertisers & agencies leverage to manage their campaigns better.
What are Budget Rules?
Budget rules possess a power-key potential allowing the advertisers to set budgets for every campaign in advance. By doing this, you can have more control over the budgets which is especially helpful for campaigns that run OOB. The feature will come in supremely handy during major holiday events such as Prime Day or Black Friday Cyber Monday (BFCM); or at seasonal and categorical events like Easter, Halloween, and Back to School, etc.
Types of Budget Rules
Amazon did not just introduce budget rules, they also provided a bifurcation to use these rules in two amazing ways:
- Schedule-based rules – This rule can be use for a customized date range or scheduled events such as Prime Day or BFCM. The rule increases the budget of the campaigns by whichever percentage is defined when the rule was created. You can choose custom dates on which the rule should apply to your campaigns; choose the recurrence understanding the nature of traffic your campaigns get – daily or on a specific day in a week or the weekends.
- Performance-based rules – Use this rule when you wish to increase the budgets of campaigns that reach a certain performance threshold. The thresholds are measured using campaign performance metrics such as ACOS, Click-through Rate (CTR), and Conversion Rate (CVR). These metrics are calculated using data from the previous 7 days for sellers and 14 days for vendors.
Benefits of Budget Rules
We already saw how the rules can be a savior during holiday events or peak days; the rules also give you a better helping hand and let you take precise control over your budgets. Your campaigns will have the least chances to go out of budget depending upon how wisely you let the rules sway. Not to miss, they do provide budget recommendations for special events.
Though this feature is stupefying and aids better in terms of budget control; sadly the manual work is not reduced to a great degree. One must still go campaign by campaign to set these rules rather than having a bulk update or an option to choose multiple campaigns, all at once, to set the rules.
Amazon has taken a huge step towards budget pacing. Now it is the advertisers, who need to sift and leverage the benefits this feature is offering.
Are you an Amazon seller who wants to expand? You might find our post “How to Sell Globally on Amazon” insightful.