New-Launch Ad Budget Formula (CPC ÷ CVR × Target Sales)

For a product launch with no sales history, daily ad budget can't be derived from TACOS vs. ACOS revenue math (see Daily Budget Formula (Target Units × Price × Target ACoS)) since there's no revenue yet. Instead:

Daily budget = (CPC ÷ Conversion Rate) × Target Daily Sales

Each input is estimated rather than measured:

CPC — pull from the ad console's historical CPC view if the account has any relevant history, or average Amazon's suggested bid across several primary keywords if not. Suggested bid is treated as usable for this estimate even though it isn't recommended as an actual bid (see PPC Starting Bid Formula (Target ACoS × Price × Conversion Rate)).
Conversion rate — estimate from a prior launch, fall back to a general 5–15% range, or pull the category-wide rate (across all competing brands, not just one's own) from Brand Analytics → Search Analytics → Search Query Performance.
Target daily sales — set close to the average daily sales of page-one competitors (found via a tool like Helium 10) rather than an arbitrary number, since ranking requires roughly matching what's already selling on page one.

Once this total is computed, it still needs to be split across campaign types — see Budget Allocation Across Campaign Types (Aggressive vs. Lean Launch) — before it becomes individual campaign budgets.

Estimating CPC With No Launch Data

With no ad history yet, the formula's CPC input can be approximated from Amazon's own suggested bid figures (Manual Targeting → Keyword Targeting): pull suggested bids for several primary keywords and average them. This is explicitly a budgeting workaround, not an endorsement of suggested bid as an actual bid to place — suggested bid is treated as the wrong number to bid at, useful here only as a rough CPC stand-in when nothing else exists.

The conversion-rate input is better sourced from Brand Analytics Search Query Performance than guessed — see Per-Keyword Rank Ceiling & SQP Competitor Conversion Benchmarking for the category-wide conversion-rate method.

Из тем: PPC Campaign Structure & Bidding