If any of you already sells on amazon then you are very well aware of the advertising update system of the platform. However, amazon is not the biggest platform on which one can run their advertisements on that award goes to the big G Google. Very recently amazon has released a new update that changes few things and bring it closer to what google has already been doing for a while now.
Before this update the advertising on amazon was quite straightforward. You set your keywords, Bids and the daily budget and you are more and less set all that was left to keep it updated on the daily basis. However, you might have noticed something and this is that the current system does not allow for flexibility and this sometimes can hurt the business. Let’s understand this with the help of the example.
Imagine that you are running an ad campaign and your biding strategy is CPC (Cost Per Click) and your daily budget is 10 Rs. Now let’s say that one day you are getting more clicks than usual and your 10 Rs. are used. As soon as your 10 Rs are used your ads will stop running and you would not be able to get more clicks for the day. However, in this new update if your ads are getting more clicks on a certain day and your daily budget is completely used then amazon can spend up to 25% more of your daily budget to make sure that your ads can be shown to the most relevant audience. This makes sure that you will get the most visibility as possible while keeping you under your monthly budget.
Yes, it is true that amazon can now exceed your daily spend limit but it does not mean that amazon will spend 25% more each and every day. This is because at the end of the month you will not spend more than your budget multiplied by the number of the days in a month. So, looking back at our example we will not spend more than our daily budget (10 Rs.) multiplied by the number of days in a month (31). So, for a month we will not spend more than 10*31= 310. However, at any certain your daily budget can go more than your limit with is 10 Rs.
How this works.
The simple answer is inconsistency. Let me explain. Whenever you run ads on and digital platform they do not appear every single time when someone types your keyword. Now there are a lot reasons for why this happens, but right now we need to know that our ads do not appear every time, because of this reason there might be some days when your ads only appears 5 time where as on other days your ads can be shown 15 times so the extra 5 are compensated from the day when your ads was shown 5 less times.
- Click here to read about What does E-commerce consultancy do?
- Click here to read about Amazon new advertising update for daily budget
- Click here to read about Different amazon ad campaigns for different goals
- Click here to read about Amazon increased it’s fee
- Click here to read about 3 lessons to learn from teachers.
- Click here to read about How to get rid of dead stock?
