At what point, and how long, would you run sponsored ads on new products? I’ve run them for a couple of weeks and have had several sales from them so far, to improve their ranking. But obviously from a profitability pov the ideal would be that the sales were 100% organic. Today, for instance, sponsored ad sales contribute 19% of total sales with a spend of £10 so not a huge amount but obviously adds up for a month. Would you just leave them running? I’m guessing the answer here will be ‘it depends’! But anyway.
If £10 is manageable and helping your ranking, it’s probably worth keeping them on for a bit longer.
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You’re right that the answer depends on your goals, but your current approach seems solid. Running Sponsored Ads for a few weeks to boost visibility and sales is a great way to improve ranking, especially for new products. If your ad spend is manageable (£10/day) and contributing to 19% of total sales, it shows your ads are working without overly straining profitability. You might consider gradually reducing your ad budget to see if the product maintains sales organically or adjusting your targeting to focus on high-converting keywords to improve efficiency. Leaving ads running for products that are still gaining traction is generally a good idea, as long as your ACoS (Advertising Cost of Sales) remains sustainable and aligns with your overall profit goals.
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Personally, I think that paying for PPC is a waste on money, unless you are competing in a particularly crowded niche.
I have a Chinese competitor, who copied two of my private label products (the trademark is still under pending registration), and they are paying for PPC just against me, being their only competitor, for almost a year already.
If you have access to Amazon Vine, consider this as an alternative.
Interesting take. The product in question is competing in a reasonably crowded niche of about 6 sellers, with two main competitors who both are using ads, so I figure if I don’t, my product will always be below theirs on the page. I agree partly it does seem a waste especially if you can get a sale without yet a further percentage going to amazon, but hmm I guess for now I accept the acos for what it is. I kind of see it as sales that wouldnt (possibly) exist without the ad spend I guess.
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