One of the biggest fears of running paid marketing is that you'll spend too much money. Fortunately, there are three key ways that you can limit your ad spend to stay within your marketing budget.
The first way is to use a modest bid for your Sponsored Products campaign. Through my team’s extensive testing, we've found that 0.39USD is a good starting point for your bid that can get impressions and clicks while still keeping your books profitable. By choosing “Dynamic Bids - down only” or "Fixed bids" for your bidding strategy, you'll never spend more per click than the bid amount you’ve set. If you’re willing to spend more than that bid amount (up to double), you can choose a bidding strategy like “Dynamic bids – up and down.” With this strategy, Amazon Ads will raise your bids (by a maximum of 100%) in real time when it appears that your ad may be more likely to convert to a sale, and lower your bids when it appears less likely to convert to a sale. It's never a bad idea to double-check your bid when creating your campaign to ensure that your bid is reasonable and that your bidding strategy is set up as you intended.
Another way to limit your ad spend is by using a small budget for each individual campaign. Amazon Ads recommends authors start with a daily budget of $10 to help keep your ads running all day. In most cases, when authors use a lower bid combined with a lower daily budget, these campaigns may not spend in full anyway.
Here's one last convenient feature: You can also choose a budget for your ad portfolios. A portfolio is like a folder for your ad campaigns. You can create a portfolio for all the ad campaigns you have for a certain book, and then set a monthly budget cap for all of the ads in that portfolio. For example, if you set a monthly budget cap of $20 for one of your
portfolios, then those ads would pause and stop spending once they've collectively reached that dollar amount.
By using lower bids, lower budgets, and a portfolio budget, you can ensure that your campaigns won't spend more than you're comfortable with.