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Optimize Budgets - Single Account (Amazon): User Guide

Radhika Shenoy avatar
Written by Radhika Shenoy
Updated this week

What is it?

The Optimize Budgets - Single Account tool lets you optimize budgets for Amazon Ads by allocating more budget to campaigns that are driving more clicks/orders/sales or achieving spend targets. You can access the tool here.

What does it do?

The tool analyzes the spending on campaigns in your accounts. It helps you rearrange your target budget based on the spending capability of individual budgets.

This tool suggests balancing budgets by taking a part of the budget amount that won't end up being spent. This amount can be easily allotted to the ones that are already spending welland have the potential to drive more results during the remainder of the selected date range.

Why should you use it?

This tool makes it easy to:

  1. Reallocate budget to campaigns that are performing well.

  2. Adjust campaign budgets to meet a certain target budget for the month.

How does it work?

Date Ranges

On the left side filter, you can select which budgets and date ranges to use.

The date ranges include the option of "This Budget Cycle" which considers a custom cycle date, in case your monthly budgets don’t start on the first of each month. The Budget Cycle date is defined on the All Accounts Dashboard along with the monthly target budget amount. The Optimize Budgets - Single Account tool displays this information in the Simulation Budget field and This Budget Cycle date range.

Define Scope & Simulation Budget

On the left-side picker, select the budgets and date range to be taken into consideration, then enter the Simulation budget which you'd like to spend for your account/selected budgets and click on update.

You will find the following fields at the top of the page:

  • Simulation Budget. The budget that has to be spent by the end of the selected date range. If you’ve defined a Monthly Budget on the All Accounts Dashboard, you’ll see this information in the Simulation Budget field by default. Updating the simulation budget doesn't change your budgets in Amazon Ads, and won't affect the system-generated suggestions.

  • Projected spend till the end of the selected date range. The amount of money that will be spent by the last date of the date range.*

  • Actual spend till now. The amount of money that has already been spent by the day of analysis.*

  • Required daily spend to hit the target. How much the campaigns should spend every day for the rest of the date range to meet the target budget. If you have an additional budget available to meet your target, you can go on to the next step.

*Unless you’ve selected ‘Show paused’ on the left-hand budget picker, only spend from active campaigns is considered. To include all campaigns with performance data during the selected time period, please check the ‘Show Paused box’

Analyze Suggestions

To generate suggestions, the tool tries different daily budgets and, based on the historical spending and other performance metrics, the tool shows a potential daily spend for each of the budgets. If the potential daily spend is greater than your current daily budget, it'll be highlighted in yellow.

  • Daily Budget - Current daily budget for the entity

  • Edit Daily Budget - Option to set a new daily budget

  • Projected Spend - The amount that a budget will end up spending by the end of the selected date range.

  • Avg. daily spend - Average daily spend during the selected date range

  • Potential daily spend - Based on historical performance, the maximum amount the budget has potential to spend per day

Budget Simulator

Hovering over a row activates the blue Budget Simulator icon next to the Edit Daily Budget Field. This simulation calculates and suggests multiple options for setting

New Daily Budget and shows how much money can be spent over the period of the selected date range.

There are two columns in the Budget Simulator:

  • Daily Budget - A table of options for the New Daily budget that the selected budget is capable of exhausting.

  • Projected Spend - The amount of money the campaign(s) can spend if you select its corresponding suggested Daily budget.

Get Optimization Suggestions

In addition to tweaking the daily budgets manually, you can also get performance and goal based optimization suggestions from Optmyzr. After selecting the blue 'Get Optimization Suggestion' button, you'll see suggestions for budget optimization on each tab depending on the target you want to achieve: Optimize clicks, optimize ad orders, or optimize ad sales.

Note: If the system detects that sales are being recorded in the account, it will automatically choose the "Optimize for Sales" strategy. If no sales data is found, the tool will try to optimize for orders, and if that's not possible, it will fall back to clicks..

The top row is the current projection by the end of the selected time period if no changes are made. Each following row represents a different reallocation scenario and each line of suggestions carries different aggressiveness levels. Next to every figure, you'll see the percentage of increase/decrease the metric would undergo, should you apply the reallocation suggestions as such. The system won’t suggest decreases greater than 30% to the current daily budget.

Select the row that suits you better and scroll down to see the details. You will also see that the Required Daily Spend to Hit the Target and Projected Spend values at the top of the page have changed. Now you can keep tweaking the Edit Daily

Budget column to see how each change affects the spend projection.

To generate suggestions, the system checks if there are campaigns missing potential reach due to budget limits. Then, the tool tries different daily budgets, and based on the historical spend, it calculates potential daily spend.

Based on historical performance patterns, the system identifies those budgets that have a good chance of getting more clicks, orders, or sales(depending on the selected target). It doesn’t only look for cheaper clicks and orders or higher sales but also takes into account patterns, e.g., if the campaign(s) associated with the budget tends to perform well at the beginning or at the end of the selected period.

After you select a row, the system will reallocate budgets based on the selected goal.

The system considers the maximum limit for each budget’s saturation point. The saturation point is the maximum budget amount that will get more impressions.

Once you're done reviewing the suggestions, choose which budgets you want to apply the changes for, if not all, and press Apply Changes.

Supported campaign types

  • Sponsored Products

  • Sponsored Brands

  • Sponsored Display

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