19 Aug Are you familiar with Amazon Advertising’s New Budget Rules?
Amazon launches a new feature in the Advertising console. Now with budget rules, you can increase your budget on high-traffic days and hours and combine it with performance rules based on ACOS, CTR, or CSV.
From Nozama Solutions we tell you all about this new Amazon Advertising feature
Amazon Budget Rules
Budget rules allow you to: set rules to increase your campaigns’ daily budgets during higher purchase volume events, or optimize your spend based on performance metrics.
You can choose between two types of budget rules:
- Programmatic-based rules. They allow you to set budgets in advance for special events (Prime Day, Cyber Monday, Christmas…) or based on a custom date period. This rule will increase the campaign budget by the percentage you specify during the set date range or during the selected special event. Amazon can recommend events based on your products and demand forecast.
- Performance-based rules. They allow you to set rules to increase budgets for your Sponsored Products campaigns only if they reach a certain performance threshold using metrics such as advertising cost of sales (ACOS), click-through rate (CTR), and conversion rate (CVR). This data is calculated from the last 7 days and in those campaigns whose daily budget is at least €10.
How to Create and Manage Budget Rules on Amazon
You can create or update rules for existing campaigns by clicking the campaign name on the Budget Rules tab in Campaign Manager.
The active rules of your campaigns are analyzed once a day to calculate the next day’s daily budget. If the rule meets the conditions set, Amazon will increase the budget for the next day by the amount or percentage you selected. Campaigns won’t run out of budget as long as the campaign spend is less than the increased budget. If the rule doesn’t meet the set conditions, the daily budget specified for the campaign will be applied.
The rules are automatically updated once they have been created, so that you can calculate the budget for that day immediately. Similarly, the rules for a campaign are evaluated each time the campaign’s daily budget is modified to correctly calculate the split over the course of the day.
You can set multiple rules for a campaign. If more than one rule meets the set conditions, the rule with the highest budget increment will be applied. For example:
Imagine a “Running Shoes for the Fourth Quarter” campaign, which has two rules in place:
- Increase the budget by 20% from November 1 to November 30
- Increase budget by 100% on November 27 (Black Friday)
When the rules are evaluated on November 26 (the day before the date match) the 100% budget increase will be implemented for November 27, as it is the highest increase.
Once you’ve set up your budget rule, you’ll be able to view and access your adjusted daily budget and rule status in Campaign Manager through the Amazon Advertising APIs.
Create Heat Maps to know when your Products have the most sales and thus get the most out of these new Budget Rules.
With heatmaps, you will be able to identify what time and what day of the week your products have the most sales, knowing this data, you will be able to work with the performance rules and increase the budget thus increasing the visibility of your product and make the most of those HOT traffic peaks to maximize the performance of your product.
You can easily create heat maps by downloading the company report “sales and traffic” and converting it to a pivot table in Excel so you can detect which days of the week are the ones with the most sales. You can also connect to the Amazon API and dynamically generate the report with days, hours, ASINs, and Marketplace.
If you need advice or have questions about how to do it, contact us and we will help you without obligation.