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Hot, hotter, hottest: Smart budgets for Amazon PPC campaign portfolios

Smart budgets

Smart Portfolio Budgets 

Today, we can proudly say that we’ve made Amazon PPC a little BID smarter. ;) We’ve just released an algorithm update for our Amazon PPC solution: Smart Portfolio Budgets. The new feature will help you to allocate your advertising budget intelligently across campaigns within the same portfolio.

How does it work?

  • You make a shared amount of advertising budget available to your ADFERENCE portfolio.
  • Our machine learning algorithms will make sure that your budget is going to the right campaigns. If keywords show potential to buy you more conversions, this is where we’ll put your budget. In order to decide which keywords to boost, our system calculates the likelihood for a keyword to lead to a sale of your products, based on past conversion rates, expected basket values and many other factors.
  • Plus: You won’t have to manually re-distribute your budgets ever again. 
Adjust Smart Portfolio Budgets for Amazon PPC here
Adjust Smart Portfolio Budgets for Amazon PPC here
You decide! Smart Budget is completely optional. Click on the edit icon next to your portfolio in your ADFERENCE dashboard to change your portfolio settings. Then enter the amount you have in mind to set your “Smart Portfolio Budget”, or click on the calculator icon to see the combined single budgets of all campaigns as a default value.

How will Smart Portfolio Budgets help me with my Amazon PPC portfolios?

Campaigns that are kept on a tight budget will never perform to their full potential. If campaigns are scratching at the budget limit, there is always the risk that they’ll run out of budget eventually. If they do, you will miss important ad placements.

Take this example: A vendor selling clothes on Amazon has added the campaigns “Knitwear_manual”, “Sweaters_manual”, and “Dresses_manual” to the portfolio “ACoS-25” with a budget of 50€ each.

With the spring season approaching, “Dresses_manual” gets a lot of traffic and clicks, while the other two campaigns become less and less relevant to shoppers searching for new clothes. As a result, “Dresses_manual” accrues more costs in a shorter time: it will run out of budget more quickly.

Smart Portfolio Budgets and Amazon PPC portfolios
Smart Portfolio Budgets and Amazon PPC portfolios

What would normally happen in this situation is that the vendor’s campaigns would stop showing Amazon Sponsored Products ads for dresses altogether, and miss out on valuable traffic and sales:

Smart Portfolio Budget intelligently allocates your advertising budget to maximize sales ENG
Smart Portfolio Budget intelligently allocates your advertising budget to maximize sales

Our idea for Smart Budget was to never have you worry about this scenario again: if you only have a certain budget to spend on advertising, the solution can’t be to make more budget available. Instead, we intelligently invest your budget across all related campaigns, before it is used up. This way, you will get the most sales or the most revenue out of your budget, depending on your optimization goals.

Should your portfolio happen to run out of budget entirely because the whole amount was spent across all of the campaigns in the portfolio, another mechanism in our system will kick in: Limited Budget Mode. We’ve written about this feature in connection with Google Ads before. Check it out to learn more about limited budgets in PPC and how we make them work.

Got any Questions or need help configuring your portfolio budgets? Feel free to ask your account manager.


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