These two are most likely the questions in most sellers’ minds since Amazon announced that Prime Day will start on the 13th of October. But these are trick questions… Here’s why.
The best practice with Amazon Advertising is to have your campaigns always on. While you might think that this is a scheme to make you spend more on marketing on Amazon, the advantages of having your campaigns running always, outweigh the disadvantages:
- First of all, your campaigns build relevancy, which means that you are more likely to get an advantage vs of your competitors. Read more about relevancy.
- In our research of managing diverse Amazon PPC campaigns for different brands, we’ve seen that new campaigns can have an ACPC (average cost per click) between 15%-40% higher than a campaign that’s been live for at least 3 weeks. So, if you started your campaigns a few weeks before, you are most likely to pay less for every click vs a competitor that is just starting their campaigns.
Are you late in setting up your campaigns for Prime Day 2021?! Don’t worry, we can help. Get in touch today!
This leaves us with the second question: When should I increase my budgets and bids?
We recommend you take this decision based on your objectives, budgets and overall strategies. Here are a few scenarios:
- If you have a high budget and what to win the auction always – increase your budgets and bids now. Make sure you have enough budget to last you through Prime Day though, as that’s when the bulk of shopping will be. Also, make sure you remain profitable. Reading about ACoS will help.
- If your budget is somewhere in the middle when compared to your competitors, consider increasing your budgets and bids gradually, depending on what you see on the site. Be smart with your targeting and even consider focusing on one or two keywords only.
- If your budget is small, you may consider getting the edge before Prime Day and lower your budget and bids on the 2 days of the event. This may sound strange to you, but this is because there is less competition now, while on the day of the event, you are most likely to burn through your budget and still lose, as your competition has a larger budget.
If you have planned a retail promotion either before or on Prime Day, it can be very efficient. Plan to increase your budgets and bids as soon as your promotion starts. The combination between a deal and Amazon PPC is the most effective strategy we have seen on Amazon.
We hope these tips will help you in your journey to Prime Day this year. And, as always, we are here if you need help defining or implementing your strategy on Amazon. Get in touch!