Low Budget Campaigns to Boost Visibility and Sell Out | #JunglrAnswers
Summary
TLDRIn 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
- đ 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.
- đą 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.
- đ° The speaker suggests a 'one dollar per conversion' budget strategy, which means spending no more than one dollar to acquire a sale through ads.
- â 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.
- đ« 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.
- đ 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.
- đŻ 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.
- đ Utilize search reports to identify successful, low-cost conversion areas from past ads and apply this knowledge to the new campaign strategy.
- đ·ïž 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.
- đ Employing a single-word broad match campaign can help capture a wide range of relevant search terms with low bids to find converting keywords.
- đ 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.
- âł 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
đ 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.
đą 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.
đŻ 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.
Mindmap
Keywords
đĄLow-Budget Campaigns
đĄSales Velocity
đĄProfitability Goals
đĄSKU Discontinuation
đĄVisibility and Boost Rank
đĄCampaign Budget
đĄConversion Rate
đĄOrganic Ranking
đĄCost Per Click (CPC)
đĄBroad Match Campaign
đĄTargeted Advertising
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
advertising question and I you might get
a custom video
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