Amazon Ad Campaign Budget Settings

Is there a way to set your campaign budget to an ACOS or ROAS?

I’m guessing not, as this would allow advertisers to optimize their campaigns at the price of Amazon’s ad revenue profits.

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Yes, there is. From campaign manager, click the campaign name, then budget rules (left side). Find the “Add budget rule” button in the center of the screen. You have the options…

  • Rule Name (and enabled)
  • Type (Scheduled or Performance - you want Performance)
  • Date Range
    • Start/end dates
    • Recurrance - aka when to re-start the performance level (daily or weekly)
  • Performance metric
    • choice of ACOS, CTR, CVR or ROAS with < or <= or > or >= a certain percentage
  • Budget increase (%) when the rule is in effect
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Thanks so much! I find chasing the CPC rate by ACOS performance too time consuming.

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Curious why it forces me to increase the budget with an ACOS rule in effect. I set it to 1%, but it makes me wonder how this actually works. I set ACOS to be equal or less than 40%. Why does it need to increase budget for this rule?

It’s set up so that you can capitalize on a “great” day/week. If I usually am OK spending $50 per day in ads, but my orders go gangbusters and I’m out of daily budget, the special budget rule allows you to spend more in hopes that you continue the winning streak. (Think of how people describe Amazon’s “order faucet” as on/off - you want your ad running for the entirety of your “on” day!) Example below.

Example rule is to double my daily budget (100% increase) if my ACOS is less than 20%

  • Daily budget $50. ACOS = 25%, stop ads when $50 is spent
  • Daily budget $50. ACOS = 15%, stop ads when $100 is spent (or ACOS increases above 20%)

I hope that makes sense.

The “recurrance” parameter determines if I start over ACOS calculations after each day or week. In the sample above I used daily recurrance.

With weekly, a great week could potentially blow $700 on ads instead of $350 if my week’s ACOS stays below the rule. Keep in mind it’s percentage based, so theoretically one huge order on a Monday could drive the ACOS down low enough for the whole week to use the higher budget. (YMMV if this comes into play in your niche, or if your philosophy is OK to the higher spend for the whole week…)

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Thanks for the explanation. So it is still rooted in a CPC and dollar budget. I guess the trick would be to set that very low, and allow it to go high if the ACOS is doing very well.

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The more money I give Amazon, the more they take.

That is totally high. How do you make a profit? I freak out when my ACOS approaches 10%. It usually runs around 7% overall. My best campaigns are at 1.5%.

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My COGS is pretty low - I sell custom-made products. It seems when I’m advertising all campaigns I get a general sales lift on top of those captured in the ACOS.

At the current moment I’d be happy at 20% ACOS or lower. At that level I could have an unlimited budget.

BTW your avatar is awesome!

Thanks!

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