When to Lower PPC Advertising Spend on Amazon FBA - PPC Mastery Summit Q4 2021 | Summary and Q&A

TL;DR

Learn when to lower your ad budgets based on key scenarios, such as stockouts, underperforming keywords, unprofitable campaigns, and high PPC bids.

Key Insights

• 🫠 Q4 requires a healthy budget to avoid stockouts, making it crucial to allocate ad spend strategically.
• 🫠 Underperforming keywords can be identified through clicks without sales, allowing for optimization and better allocation of ad spend.
• 🤯 Unprofitable campaigns after three months may require lower budgets or pausing to avoid wasting ad spend.
• 🪡 Excessive PPC bids can signal the need to explore other platforms or adjust advertising strategies.
• 🫠 Lowering ad budgets in off-seasons or when facing diminishing returns can free up resources for more effective campaigns.
• 🫠 Assessing goals, whether prioritizing profit or growth, determines the allocation of ad spend.
• 🤕 Banned products or irrelevant keywords can affect ad display, requiring adjustments and understanding Amazon's policies.

Transcript

ppc experts talk all the time about how to grow sales decrease a cost massage that tacos but one thing they don't frequently talk enough about is when to lower your budgets in this video i will focus on eight key areas on where you can lower your campaign budgets and what scenarios you'd want to do that my name is stephen pope and i'm the founder o... Read More

Questions & Answers

Q: Why is it important to lower campaign budgets during Q4?

Lowering budgets during Q4 can help prevent stockouts, which are more likely to occur due to increased demand, restock limits, and higher PPC costs.

Q: How can I identify underperforming keywords?

Look for keywords with clicks but no sales and monitor the search term report to identify wasted ad spend. Negative targeting and keyword optimization can help improve performance.

Q: When should I consider lowering ad budgets or pausing campaigns?

If you've been advertising for three months without making a profit or facing intense competition with low profit margins, it may be necessary to lower budgets or pause campaigns.

Q: What should I do if PPC bids are too high?

If bids are unaffordable, explore advertising opportunities outside of Amazon, such as Google or Etsy, where costs may be lower.

Summary & Key Takeaways

• Planning for Q4: Raise prices and bet long on inventory to avoid stockouts, which is the primary reason to lower campaign budgets.

• Underperforming Keywords: Consider lowering budgets or pausing keywords with clicks but no sales, and optimize ad groups by identifying wasted ad spend.

• Unprofitable Campaigns: If advertising for three months with no profit margins or facing steep competition, it might be necessary to decrease ad spend.

• High PPC Bids: When bids are unaffordable, explore other advertising opportunities on platforms like Google or Etsy.