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PPC Launch Budget Estimation - Amazon Product Launch

Published on April 18, 2024

About this video

*Free sheet included* Calculate how much money you need for an *Amazon PPC Product Launch* per day. In this video, I will be sharing steps you need to take to estimate how much money you need for a PPC product launch *per day*. This calculation can also be used when you want to push a certain keyword and *increase its organic rank through PPC*.

The steps outlined in this video are: 1. Keyword research 2. Using our PPC Launch Budget Calculator 3. Important notes about Helium 10 CPR and Datarova DSTR numbers

For more actionable advice tailored specifically to your business, visit: https://www.amazoniappc.com

As promised, here's the link to our Google Sheet *PPC Launch Budget Calculator*: https://docs.google.com/spreadsheets/d/1k2jwme_H0Fyt_NvfX-Uj8TfhddCytHbyP3jwUXhoxZE/copy

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Transcript

hi guys this is Igor from Amazonia PPC and in this video I'm going to talk to you about how we estimate PPC budget for a product launch now I've did a basic search on Amazon us for a garlic press and I've applied uh just the basic filters in cerebro just so I get some Real Results um to show you guys uh please make sure to do your proper keyword research using cerebro uh I feel like many many people are just neglect Advanced filters that nowadays rro really offers like um how many you can filter out how many products are already ranked for the C C and keywords Etc that's for another topic now let's move to to what we have today okay so I've exported only uh five keywords five top search volume keywords now obviously depending on your budget you may not want to go ahead and aim for a top um search keyword or maybe depending on your budget and relevance you may uh go lower down the the line so uh but for the sake of explanation I've selected garlic press and few others uh by search volume and what you want to make sure is that you export search volume keyword sales and these suggested bids from here helium 10 and obviously the CPR number from Helium 10 now uh you co you should copy that to the calculator that I have it's a part of the fancy calculator that I already shared in my previous video uh about the placement calculator make sure to to check that too let me just move my head so placement calculator you can find that in our previous video pretty handy thing uh so let's get back to ranking um you ahead and copy keyword uh keyword search volume and keyword sales from Excel or Google Google sheet so these three Fields over here uh plus you want to copy helium 10 Max maximum suggested bid now obviously um this isn't the case that you're going to see maximum bid of less than a dollar but for the sake of calculation let's do this so we copy uh the cpcs over here and uh next thing that we do is actually want to pull what Amazon suggest us uh as a maximum bid maximum suggested bid uh there are few ways to find that you can go ahead and create a blank new uh campaign and then in the keyword field you can input the the keywords uh how I use you use it is that I go to existing campaign and just uh select uh to add additional keywords and make sure that you uh turn off Broad and phrase and you want to do only exact make sure also that you've select the suggested bit now copy our uh keywords that we need over here to it's like we are adding our keywords to existing campaigns now what we have here is that Amazon is going to give us suggested bit like the range of minimum suggested maximum suggested and on average what you want to go ahead and take the maximum suggested bit just to be sure so also make sure that you don't mix up the order of Cs make sure that uh they are copied in the same order that you wanted them to have so 1.20 6 we're going to go ahead and do that here 1.26 um 120 [Music] 0.51 0 81 and lastly 138 1.38 nice um now we have two our important columns now I like to have this like like a l bit modifier column column where I increase by 50% what Amazon is suggesting you can go crazy and add the add there change the formula and have whatever the increase that you would like to to see over there let just drag this to include the the last one okay um the next thing that you need is going to be the CPR number from Helium 10 also make sure you're copying everything as uh as it it is already sorted okay now important note about the helium 10 CPR number CPR number um these are the estimated sales that you need over the course of eight days now to get the Daily Number obviously we uh divide that by eight and these are the daily sales that you need in order to rank for these keywords note uh CPR number from Helium 10 uh actually gives you pretty wide range of how you're going to rank so that that's actually uh positions 1 through 16 uh so it doesn't include 17 and Below but one through 16 and therefore the max suggested bid that they offer is you can easily think that that's really on a lower end uh between those positions so uh once again this is an estimation just to give you a perspective so far I've seen it's pretty accurate but uh it's not definite so have in mind that always aim to estimate more than you would uh uh more than you would uh that the numbers actually show you now uh here you can see that uh I've created a few formulas that actually create the daily budget for these keyword now how this works is that you have to estimate your conversion rate okay if this is your first product launch then it's kind of tricky to estimate the conversion rate but you can estimate for example what's what's a category conversion rate on average and maybe go lower than that and maybe higher than that uh obviously uh for product lach we we assume that you already optimized your listings especially for mobile um but I'm going to cover the mobile optimization optimization for mobile phones uh in my next video but make sure that uh everything is fully optimized before the product launch now what I like to do here is that I have a conversion rate like an average that we can expect if these numbers are not in line what you have in your category you can really go ahead and change them we can for example let's do I don't know some competitive category and have like I don't know four five six 7 8 and let's I don't know let's do 11 whatever and immediately you get a CPA over here that's calculated obviously how many clicks you need times the average CPC and average CPC you have over here so this the this this is actually the average of what you all input over here now depending on your budget you can select if you want to use Amazon suggested bid as a calculation or maybe launch bid calculation this uh automatically uh changes or maybe helium 10 um suggestions uh to be sure I would go with launch bid uh again as I said let's uh prepare for the worst and hope for the best um so if you do that obviously our daily budget increased by three times because uh we changed the conversion rates but anyway as I said you can you can input whatever you like here so on uh what I what what I did here is that I've put an average of CPA that we can expect um and then you have how many how much money you need to pay for a single sale and obviously if you need four sales times 25 that means around $111 for for for those four sales a day then when you combine all that it's uh 1,500 per day yeah it may sound a little bit heavy but again uh it can be really lower than that or you can just aim for lower lower than that uh note for us uh sellers uh there's a tool called I don't know I I keep hearing that people don't know about it data uh which is only for US market so if you sell on US market I really recommend you to use this uh tool it has many good features but what I like best about it is because it really gives you uh they they have a number uh sorry they have a metric called dsdr if I'm not mistaken daily sales to rank uh their number is sign significantly higher than helium 10 and but it shows you top three positions really important top three positions uh so how many sales you need for a certain keyword for top top three positions now if you aim for that use data rower numbers um if you don't aim for top three but want to have a decent launch then you can you can use helium 10 with a slightly increased suggested bits as in previous video I'm going to also share this file with you down in the description box and also in the comments so if you like the file please uh say thanks in the comment section and you free free to use it also if you think that something need need to be updated or refreshed please let me know I'm going to update for the for the future use and for other people to to use that um yeah also please uh make sure that you use K helium 10 keyword tracker and add all of these uh keywords in your tracker enable the that little rocket button to uh have uh daily sorry hourly updates on your on your ranking uh that be it yeah so let me know what do you think in the comments and yeah see you in the next video bye guys

Frequently asked questions

How do I calculate the daily PPC budget I need for an Amazon product launch?

The calculation starts with keyword research. For each keyword you want to rank for, you need three data points: the estimated daily sales required to reach page one (derived from Helium 10's CPR number divided by eight, since CPR covers an eight-day period), your estimated conversion rate for the launch, and the average cost per click for that keyword. Dividing your required daily sales by your conversion rate gives you the number of clicks you need per day. Multiplying that by your average CPC gives you the daily PPC spend needed for that keyword. Sum this across all your target keywords to arrive at your total daily launch budget.

What is Helium 10's CPR number and how should I use it for launch planning?

CPR stands for Cerebro Product Rank and represents the estimated number of sales needed over an eight-day period to rank a product on page one for a specific keyword. Dividing the CPR number by eight gives you the approximate daily sales velocity you need to sustain during your launch period. It is worth noting that CPR covers positions one through sixteen, not just the top three, so it is a conservative estimate. If you are targeting the top three positions, you will likely need a higher daily sales velocity than the CPR number suggests. Always budget for more than the minimum the numbers indicate.

Should I use Amazon's suggested bid or a higher launch bid when calculating my launch budget?

Use a bid that is meaningfully above Amazon's suggested maximum, not the average or minimum. During a launch, you need to generate impressions and clicks immediately, and low bids risk not winning enough auctions to reach your required daily sales velocity. A common approach is to take Amazon's maximum suggested bid and add a further buffer of thirty to fifty percent. This ensures you remain competitive in the auction from day one. You can always reduce bids after the launch period once your organic ranking has improved and you need less paid support to maintain visibility.

How does my conversion rate estimate affect the launch budget calculation?

Conversion rate is the multiplier that connects the number of sales you need per day to the number of clicks you need to buy. If your target is four sales per day and your estimated conversion rate is ten percent, you need forty clicks per day. If your conversion rate is five percent, you need eighty clicks for the same four sales, which doubles your daily spend requirement. For a first launch with no historical data, using a conservative estimate below the category average is the prudent approach, since a new listing without reviews will typically convert lower than established products. Building a buffer into your conversion rate assumption protects you from underestimating the budget.

What is the difference between Helium 10 CPR and Datarova's daily sales to rank metric?

Helium 10's CPR estimates the sales needed to rank anywhere in positions one through sixteen over eight days. Datarova's daily sales to rank metric is focused specifically on reaching the top three positions for a keyword, which is where the majority of organic clicks are captured. The Datarova number is typically significantly higher than the Helium 10 CPR equivalent. If your goal is aggressive launch to top-three positioning, the Datarova metric gives you a more realistic target. If your goal is to establish page-one presence and build from there, the Helium 10 CPR is a reasonable starting point, provided you account for its conservative nature.

How long should I run a PPC-heavy launch budget before I expect to see organic ranking improvement?

A focused launch campaign running at the required daily sales velocity typically produces visible organic ranking movement within eight to fourteen days for most categories. The time depends on how competitive the keyword is and how consistently you maintain the required sales velocity throughout the launch window. Tracking your keyword positions daily using a tool like Helium 10 Keyword Tracker with hourly update notifications allows you to see ranking movement in real time and adjust your bids or budget if momentum slows. Once you have reached your target organic position, you can begin reducing your launch bids and testing how much PPC support is needed to maintain the ranking.