Low Budget Campaigns to Boost Visibility and Sell Out | #JunglrAnswers

Summary

In this insightful video, the host addresses Cameron's question about promoting a new listing on a tight budget without sacrificing sales velocity and profitability. The discussion focuses on strategies for selling out a discontinued SKU within 20 weeks, emphasizing the importance of sales over ranking. The host suggests a low-cost, broad-sweeping approach with low bid automatic campaigns and broad match targeting, rather than aggressive ranking tactics. This strategy aims to maximize conversions at minimal cost, providing a practical solution for sellers looking to liquidate stock efficiently.

Takeaways

• 📈 The primary focus should be on sales rather than ranking, as ranking is a means to drive visibility and sessions, which then translate into sales.
• 🔢 With a limited budget and a goal to sell out 2,000 units in 20 weeks, it's crucial to calculate the cost per conversion and adjust ad bids accordingly to stay profitable.
• 💰 The speaker suggests a 'one dollar per conversion' budget strategy, which means spending no more than one dollar to acquire a sale through ads.
• ✅ Understanding the conversion rate of the product is essential to determine how much to bid per click to achieve the desired sales volume within the budget.
• 🚫 Chasing ranking aggressively might not be cost-effective in this scenario, as it often requires higher ad costs that may not align with profitability goals.
• 🛒 For a product that is being discontinued, the strategy should pivot from ranking to finding low-cost traffic that converts well to clear out the inventory.
• 🎯 The recommendation is to run a low bid automatic campaign and category targeting to capture broad, low-cost sales rather than focusing on aggressive ranking.
• 📊 Utilize search reports to identify successful, low-cost conversion areas from past ads and apply this knowledge to the new campaign strategy.
• 🏷️ Branded keywords and like product targeting can be effective for low-cost traffic, as they tend to convert well and are relevant to the product.
• 🔍 Employing a single-word broad match campaign can help capture a wide range of relevant search terms with low bids to find converting keywords.
• 📉 If certain search terms convert well, they should be moved into manual campaigns for more focused optimization and to avoid wasting the budget on non-converting terms.
• ⏳ The 20-week timeframe adds pressure to the campaign strategy, as it requires a balance between achieving sales goals and managing the limited budget effectively.

Q & A

What is the main goal for the SKU mentioned in the script?

The main goal is to sell out the 2,000 units of the SKU within 20 weeks without exceeding the $2,000 campaign budget, while maintaining sales velocity and profitability.

Why does the speaker suggest ignoring ranking in this campaign?

The speaker suggests ignoring ranking because the focus should be on achieving sales, not on ranking, especially since ranking often requires higher ad costs, which may not align with the goal of staying within a limited budget and timeline.

How does the speaker recommend calculating the cost per click (CPC) for the campaign?

The speaker recommends calculating the CPC by determining the conversion rate and then dividing the budget by the number of clicks needed for a conversion. For example, with a 10% conversion rate and a $1 cost per conversion, you would need to spend 10 cents per click.

What does the speaker say about the feasibility of achieving ranking within the given budget?

The speaker indicates that achieving ranking within the given budget is challenging because higher bids required for ranking would eat up the budget quickly, making it difficult to reach the goal of selling all 2,000 units.

Why does the speaker suggest running a low bid automatic campaign?

The speaker suggests running a low bid automatic campaign because the goal is to generate low-cost sales and visibility, not aggressive ranking. This approach can help capture broad, low-cost traffic.

What is the role of category targeting in the campaign?

Category targeting is recommended as another way to achieve low-cost visibility by targeting broad categories rather than specific high-cost keywords, which aligns with the goal of maximizing sales within a limited budget.

What advice does the speaker give regarding the use of search reports?

The speaker advises using search reports to identify low-cost, high-conversion keywords from past campaigns. These keywords can then be targeted in the new campaign to optimize cost-efficiency.

How should branded keywords be used in this campaign?

Branded keywords should be targeted because they often lead to lower-cost traffic that converts well. This can be particularly effective if the brand has some recognition and the goal is to maximize sales on a tight budget.

What is the 'single word broad match' campaign strategy, and why is it recommended?

The 'single word broad match' strategy involves extracting single-word keywords from the listing and running them in a broad match campaign with very low bids. This strategy is recommended because it can capture long-tail searches at a low cost, helping to maximize sales within the budget constraints.

What is the potential risk mentioned regarding the 20-week sales deadline?

The potential risk is that the low-bid, broad-sweeping strategies recommended might not generate enough traffic quickly enough to meet the 20-week sales deadline, as the traffic volume depends on the market and auction dynamics.

Outlines

00:00

🛒 Managing Low-Budget Campaigns for Inventory Clearance

The first paragraph introduces a question from Cameron about conducting low-budget, short-term campaigns to sell a fixed amount of goods without exceeding the campaign budget. Cameron is looking to sell 2,000 units of a SKU that has become cost prohibitive and is being discontinued. The lifetime ad budget for this SKU is $2,000, and the goal is to sell out within 20 weeks. The discussion focuses on the importance of sales over ranking, the cost per conversion, and the challenges of achieving sales velocity and profitability within the given budget constraints.

05:03

🔢 Calculating Ad Spend for Maximum Sales Efficiency

In the second paragraph, the script delves into the mathematics of ad spending, emphasizing the difference between ranking and sales. It explains that ranking is a means to an end, not the end itself, and that profitability should be the primary focus. The speaker provides calculations to determine the cost per click and conversion rate needed to stay within the budget while attempting to sell the desired number of units. The summary highlights the difficulty of achieving a balance between ad costs, conversion rates, and the overall sales goal.

10:03

🎯 Shifting Strategy from Ranking to Low-Cost Sales

The third paragraph outlines a strategic shift from aggressive ranking to focusing on low-cost sales and visibility. The speaker recommends starting with a low bid automatic campaign and exploring other tactics such as category targeting and branded keyword targeting. The emphasis is on finding low-cost traffic that converts well. The paragraph also discusses the use of broad match campaigns with low bids on single-word keywords extracted from the listing, and the importance of not increasing bids even if the ad cost looks favorable. The strategy aims to maximize sales within the budget and the given timeframe, with a focus on profitability rather than long-term ranking benefits.

Keywords

💡Low-Budget Campaigns

Low-Budget Campaigns refer to marketing strategies that are cost-effective and aimed at maximizing visibility and sales within a limited financial scope. In the video, the concept is central to the discussion about how to sell a fixed amount of goods without exceeding the campaign budget, which is a common challenge for businesses, especially with a SKU that is being discontinued.

💡Sales Velocity

Sales velocity is the rate at which products are sold over a certain period. It is an important metric in the video because it directly influences the success of the campaign. The goal is to maintain a high sales velocity while staying within the budget constraints to ensure profitability.

💡Profitability Goals

Profitability goals are targets set by a business to achieve a certain level of profit. In the context of the video, these goals must be met while also selling out the remaining units of a SKU within a specified timeframe, highlighting the delicate balance between sales and cost management.

💡SKU Discontinuation

SKU Discontinuation is the process of ceasing to produce or sell a particular stock-keeping unit. In the video, the speaker discusses strategies for selling out the remaining units of a discontinued SKU, emphasizing the urgency and the unique challenges of such a campaign.

💡Visibility and Boost Rank

Visibility and boost rank refer to increasing the prominence of a product listing to attract more potential buyers. The video discusses the dilemma of whether to focus on boosting rank for long-term benefits or to prioritize immediate sales to deplete inventory, which is a strategic decision in the context of a discontinued SKU.

💡Campaign Budget

Campaign Budget is the total amount allocated for marketing activities. The video script discusses the challenge of managing a campaign with a fixed budget of two thousand dollars, which sets the stage for the discussion on how to effectively use this budget to sell out the remaining units.

💡Conversion Rate

Conversion rate is the percentage of clicks that result in a sale. The video emphasizes the importance of understanding the conversion rate of a product when planning an advertising campaign, as it directly impacts the cost per conversion and the overall profitability.

💡Organic Ranking

Organic ranking refers to the natural positioning of a product in search results based on relevance and popularity, without the use of paid advertising. The video script suggests that while organic ranking can contribute to sales, the focus for the campaign should be on direct sales rather than long-term ranking benefits.

💡Cost Per Click (CPC)

Cost Per Click (CPC) is the amount spent on advertising for each click on an ad. In the video, the speaker calculates the maximum CPC that can be afforded based on the budget and conversion rate, which is crucial for determining the feasibility of the advertising strategy.

💡Broad Match Campaign

A broad match campaign is an advertising strategy where ads are triggered by a wide range of search terms. The video suggests using a low bid broad match campaign to capture low-cost traffic and sales, which is a departure from traditional ranking-focused strategies.

💡Targeted Advertising

Targeted advertising involves directing ads to specific audiences based on demographics or behavior. The video script mentions category targeting and branded keyword targeting as methods to find low-cost, high-converting traffic, which is essential for the campaign's success within the budget constraints.

Highlights

Cameron asks about low-budget short-term campaigns to bring visibility to a new listing and sell a fixed amount of goods without exceeding the campaign budget.

The focus should be on sales, not ranking, because ranking doesn't guarantee sales, but sales will naturally lead to ranking.

With a $2,000 budget for 2,000 units, the campaign needs to maintain profitability while ensuring all units are sold within 20 weeks.

The goal is to sell out the SKU before it's discontinued without exceeding the budget.

It's important to consider conversion rates when calculating the cost per conversion.

Cameron should avoid focusing on ranking because the campaign's budget and goals don't align with the high cost of ranking-focused strategies.

Low-cost, broad-reaching strategies like low-bid automatic campaigns and low-bid category targeting are recommended.

Running a low bid automatic campaign and targeting categories with low-cost traffic can help achieve the sales goals.

Using historical data to identify successful low-cost conversions can help optimize the campaign.

Single word broad match campaigns with low bids can help capture relevant traffic without overspending.

Adjust bids based on performance and profitability, rather than focusing on aggressive ranking.

The strategy pivots from ranking to achieving low-cost sales and visibility.

The success of this strategy will depend on the market dynamics and the cost per click in Cameron's niche.

The proposed approach focuses on broad visibility and low-cost sales, not just ranking, to achieve profitability.

The strategy is tailored to meet specific budget constraints while maximizing sales within the given timeframe.

Transcripts

all right this question comes from

Cameron Cameron this is a stellar

question

um so first off he says hi Elizabeth

thank you for your great content I

really appreciate the knowledge you're

sharing I appreciate you asking

questions and I appreciate you

appreciating

um so my question is regarding low

budget short-term campaigns to bring

visibility to a new listing and sell a

fixed amount of goods without exceeding

the campaign budget it's a very tall

order but I'm gonna give you some

answers

um so while still meeting sales velocity

and profitability goals I got tall order

but I'm going to give you some context

and stuff for example let's say I have a

SKU that has become cost prohibitive and

I am discontinuing it however I still

want to create a listing and sell out

the SKU before it's discontinued I have

2 000 units a lifetime ad budget of two

thousand dollars for this SKU and my

goal is to sell out in 20 weeks or less

how do I determine which campaigns to

run to gain visibility and boost rank in

a limited amount of time while still

staying within my budget to remain

profitable is it better to extend the

budget throughout a longer period of

time or all within the first couple

weeks to try and Achieve ranking quickly

thanks again Cameron or Cam all right so

here is the context completely uh ignore

ranking in this case you don't care

about ranking you care about sales

um I have a whole I I put out a

newsletter and if I can find the

document or maybe I'll put it out on

LinkedIn somewhere and the newsletter is

basically

the fact that ranking does not equal

sales sales equals sales ranking is a

means to an end because with ranking you

get visibility for your products and

therefore you drive sessions to listing

and those sessions through the

conversion rate will translate into the

actual sales numbers but rankings is a

means to an end and oftentimes when you

are running for ranking your ad costs

can be higher and profitability metrics

aren't always there unless you have like

an absolutely Banger conversion rate now

if you're able to like say lowered on

your pricing or do something else or

maybe it sounds like you're creating a

new lesson listing which is also going

to come with some kind of issues because

you won't have reviews on it so I'm not

sure how that it is and again long term

it's not going to be worth it for you to

pay for things like fine because you're

not going to see any really long-term

benefits from this although if you're

selling out in 20 weeks that's gonna be

um it's not like you're you're trying to

sell it in two weeks okay so here is the

context on this let's do some

mathematics here okay so if you have I

mean I don't even need to defy this but

you have 2 000 products and you have a

lifetime budget of two thousand dollars

which means you can afford one dollar

per

um conversion If all we're going to do

is sell through on the ads now yes could

you gain some organic ranking and do it

that way yes but you do kind of want to

take into account now I don't know the

actual price point of these products so

what you can do is you can take that one

and you can divide it by the price point

of the products and that would give you

technically

um what kind of a cost targets you would

have for this particular thing the other

thing that you're going to want to take

into account is the conversion rates of

the product if you've been selling it

before you would kind of have an ID on

this but how you do this is say it's a

on average 10 conversion rate so you

take one divided by 0.1 and that gives

you ten so in this case like say you had

a 15 conversion rate that would be one

divided by 0.15 which is going to give

you 6.66 and a billion and then you

could say okay on average let's do it

easy numbers let's say we have

um a 10 conversion rate so we had on

average 10 clicks to be able to generate

an order then we could take one so that

is the cost that you can afford per

conversion and you can divide that by

the 10 that we need and you can see like

oh I great I can spend 10 cents for

every single click and then an average

is going to equal out to my one dollar

budget now it sounds like what you're

doing is saying okay great

I want to be able to rank somewhere so

then I can get some kind of organic

ranking so it doesn't all have to be

driven through ads which is great in

theory but the problem is

um most likely you're going to have to

pay a much higher bid for something like

I would say on minimum you're probably

going to have to be spending on 50 Cent

bid so 50 cents uh times 10 is going to

equal five dollars so five dollars for

One Singular order and then all of a

sudden your five dollars are eaten up so

then if you take your two thousand

dollars and you divide that by five

dollars you only got 400 sales and

you're trying to move 2 000 units so you

can see how that mathematics doesn't

work up and in the end of it you're kind

of screwed because you might be stuck

there like you might have enough ranking

to do that but the problem is if you had

so if we had two thousand dollar or two

thousand units and we

um had to subtract you know we said we

could do move more assuming we can move

400 units that is why did that map not

work out my calculator is getting messed

up all right so you minus there are 400

units and then we still have 16

000 units to move where if we take 400

and we divide it by 16

000 units that gives us a ratio and add

uh add sale percentage meaning what

percentage of the total orders are

coming from ads that's only a 25

and in this case at the very

if you're trying to bang it out

um and rank products you might be able

to get to a 50 50 split in that case we

need to be able to move uh say a

thousand units by ads at the minimum if

we were if we were pushing it out there

and if you could only afford to spend

one dollar for all of those conversions

that still only gives you two dollars in

the conversions and if we're assuming an

average of a ten percent conversion rate

so now we only have to move what a

thousand units and we set a 10

conversion rate

um again I don't know your cost of goods

so that's that's going to change that

there so what was it we said

uh 10 so now we can spend two dollars

per unit sold and then we're gonna

multiply that by I mean maybe you can

work out the math that way I'm not sure

um but you can see how that gets kind of

crazy so I just showed you why it can

get kind of crazy and why going after

ranking is probably not your best bet

because the numbers are not really going

to work and the thing with ranking is

oftentimes we're giving up in the short

term to be able to have a long-term gain

because you you're going to continuously

replenish stock and you're gonna see

those residual benefits on the back end

you have no long-term benefits of

ranking so what you have to do is you

have to figure out your question is not

necessarily where or can I rank or where

should I rank your question is how can I

sell

again I'm going to assume that at the

very minimum we're gonna be able to get

70 of the units so I'm going to take 2

000 I'm going to multiply them by 0.7 to

get 70 I'm going to assume that I'm

gonna have to move uh you know 1400

units through ads

I I would say I would start there at the

very minimum and so if we have two

thousand dollars and we're gonna move

1400 units not fourteen thousand

fourteen hundred

um that gives us a dollar forty two

that's still not even the full two

dollars

um to be able to move a unit so my

question is where can I move the unit

um

at this and then if I take this and I

divide it by 10 because I'm assuming a

10 conversion rate I need to spend 14

cents cost per click to be able to move

those again super hard if you're going

after rankings ridiculously hard so your

question is one

is it possible to maybe give a little

bit a wiggle room in the budget not

super sure in that

um but the second thing is where can I

get low cost traffic that's going to

convert

your biggest friend here and I'm gonna

tell you something that goes against you

know every General convention out there

as far as you know figuring out good

keywords going after exact match going

super targeted pushing those hard for

ranking that's not your goal because

that that those strategies are going

after ranking your goal is low cost

sales and low cost visibility so what I

would recommend doing is I would start

slower lower and shotgun I would

recommend running a low bid automatic

campaign now again this is going to be

completely contrary to all the other

launches out there because again this is

not our goal is not aggressive ranking

our goal is broader low-cost sales so I

would run a low bid Auto see what you

can pick up I would also run

um low bid category targeting I would

determine another kind of offshoot of a

little bit category targeting would be

do you have

um

do you have any competitors that you

recognize if you've been running ads on

these before what I would recommend

doing is going into the search reports

identifying where you've converted well

in the past and where you've gotten

really good low-cost conversions and

then I would take those and I would plug

those into your ad system if you don't

have that

um then it might not make sense to do

that but I would look at that you can

also use expanded asym targeting which

can be good again you're trying to

figure out low cost

broad sweeping conversions is your goal

um so I would look at that I would look

at

um

if you have any sort of branded traffic

I would Target your branded keywords and

potentially other like products that you

think

um you could actually do really well on

um kind of again like branded product

targeting searches again that's going to

be low-cost traffic and it's it should

you know those tend to convert pretty

well so I would look at that and then I

would also look at

um there are certain campaigns that we

run we call them what is it

uh it's a single word broad match

campaign so essentially what you do is

you go and you scrape the listing you

put it into a keyword

um

what is it a keyword

density tool you essentially extract all

of the single word

keywords that are contained within the

listing you can also do this for some of

your top competitors if you don't really

have you know maybe the listing fully

fleshed out which you should you may not

um so you can just basically you're just

grabbing all the single word relevant

keywords and then what you want to do is

you want to throw these into a broad

match now typically what I recommend is

putting a 20 cent bid on these as you've

as I've kind of demonstrated you know if

you're gonna sell like say 70 of these

through ads which even if you're cooking

it

um you might start to get somewhere to

the 50 50 Mark if you're not absolutely

blowing it out for ranking I would

expect

70 of these total sales to come from ads

um so that gives you roughly again we're

assuming a 10 conversion rate if you get

a better conversion rate you can make

those numbers even better and you can

have more wiggle room in the ad cost but

I would um recommend looking at

um

maybe even setting like a 14 Sun bet or

a 15 cent bid again depending on the

market the market is going to determine

how much traffic you can get at a 14

Cent bid even if it's a broader match

type even if it's only going to trigger

those long tail Search terms

um but you might start them in 20 cents

because maybe you can get cost per

clicks to 14 cents what you're going to

do is you're basically going to throw in

all of those keywords and then you're

going to put really low bids

um on all those keywords you do you not

want to increase those beds do not do it

even if the a cost looks absolutely

phenomenal I wouldn't do it if you find

any Search terms that are converting in

these I would then take them out and

roll them into manual campaigns and

that's what I would do I would I would

do a very like broad sweeping low bid

low-cost

strategy and then just anything I find

that is converting within my target so I

can make work I would just be pumping

that to no end

um and that should get you to the

profitability goals now the only kind of

iffy part in this is going to be this 20

weeks or less and having a specific

deadline on this because when you go low

bid kind of broader the market and what

kind of volume you can get based on like

what the search Market is and what the

um bidding auction looks like in your

space is going to determine how much

traffic you can get from those

strategies so that would be my

recommendation I know it completely

pivots on strategy and the whole ranking

idea but hopefully you find it really

helpful and again thanks for the

question I appreciate it oh and by the

way if someone's listening to the end

and you really uh like me answering this

question

um there will be a form below where you

can go and submit your own Amazon

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