The BEST Low-Budget Ad Strategy For Amazon KDP
Start Running Easy Low-Cost Amazon Ads Today
If you’re a beginner in Amazon KDP and looking for the best low-budget ad strategy, look no further than the Lottery Ad strategy. This method involves listing multiple books in one ad campaign and setting the cost per click as low as possible. This strategy has proven to be incredibly profitable, especially for beginners.
Why Lottery Ads Work:
- Increased visibility: Lottery Ads offer increased visibility for multiple books at a lower cost per click. This leads to more sales without breaking the bank.
- Consistent performance: Lottery Ads have consistently performed well, even during the Q4 period when ad costs typically skyrocket.
- Ongoing optimization: By monitoring and adjusting your ads regularly, you can maintain profitability and adapt to changing market conditions.
- Keyword and product ideas: Lottery Ads provide valuable data on keywords and products, giving you insights on what to create and how to target specific ads.
- Easy scalability: Lottery Ads are easy to scale, making them ideal for beginners who may be hesitant about running ads or don’t fully understand the process.
Case Study: Lottery Ads in the UK and US Markets
I’ve spent £6073.43 in the UK market alone running ad campaigns on Amazon since I started in July 2020. I have tried various different strategies to make my ads profitable running automatic and manual ads however this strategy has been the best and easiest to set up.
The lottery ad is highlighted in blue and compared to all the other ad campaigns you can see it has the most number of clicks (£0.05), the lowest cost per click, the most orders and sales.
I have also spent £90.03 since I started running this ad in August 2022 resulting in an amazingly low ACoS (Advertising Cost of Sale) of 10.06%.
An ACoS is a metric used to evaluate the performance of an advertising campaign on platforms like Amazon. It represents the ratio of ad spend to the revenue generated from the ads. ACoS is calculated by dividing the total ad spend by the sales generated through the advertising campaign.
In simpler terms, ACoS helps you understand how much you’re spending on advertising to make a sale. A lower ACoS indicates a more efficient and profitable ad campaign, while a higher ACoS suggests that the campaign may not be as cost-effective.
By monitoring and optimising ACoS, you can improve their advertising strategies and maximise the return on investment from their ad campaigns.
Since I started running the lottery ad strategy in August 2022 with 252 books, I have consistently maintained a low advertising cost of sale (ACOS).
I have spent £90.03 over the past 9 months which roughly works out the over £10 each month. This has resulted in sales of £895.31 and 153 orders over this period.
In the first month, the ACOS was 10.81%, but I was able to bring it even lower in September to 6.87% and then to 7.51% in October. Despite the cost of ads skyrocketing during Q4, I still managed to pick up clicks at a lower cost with an ACOS of 11.93% in November and 8.376% in December.
This success demonstrates the effectiveness of the strategy, even during periods of high competition. I believe that this strategy is an excellent way to get clicks without having to spend as much as other advertisers, and I highly recommend it to others looking to boost visibility for their books on Amazon KDP.
However, in January, the ACoS experienced a significant increase, reaching 19.36%. However, it dropped to 15.42% in February and further declined to 9.913% in March. By April, the ACoS picked up once more, settling at 14.29%.
I became quite comfortable with having a lower ACoS and didn’t need to make many changes. However, when January arrived, I assumed that everything would continue as it had been.
It’s important to remember that consumer spending typically decreases in January and throughout Q1. As a result, the same books that performed well in Q4 might not achieve the same success in Q1.
To optimize your ads, it’s crucial to monitor and adjust them accordingly. For instance, if you notice that certain books are generating a lot of clicks but not many orders, consider turning off that specific ad.
For example, in the screenshot, the first book listed incurred a cost of £5.56 with only one sale worth £4.16 and 116 clicks. This specific book is not profitable and is negatively impacting my overall campaign ACoS.
If I had been diligently monitoring my ads, I could have identified and deactivated this ad earlier, which would have consequently enhanced the performance of my entire lottery ad campaign.
Alternatively, you can also delve into the ad group settings and reduce the cost per click, ensuring you spend less during these months. Rather than waiting for your ACoS to decrease on its own, be proactive and make the necessary adjustments to improve your ad performance.
In the US market, the Lottery Ad strategy has resulted in an ACoS of 26.73%, which is higher than the UK market.
Despite not being as profitable, the primary goal of using these ads is to gain more visibility for your books and to acquire cheaper clicks, ultimately leading to more sales opportunities.
Takeaways
- Be patient: Lottery ads have low click costs, which means it takes time to build traction and see results. Don’t expect instant success, but trust that consistent efforts will pay off over time. The results I have obtained have come over a period of 9 months.
- Stay adaptable: Monitor your ads and be prepared to make adjustments. For instance, if you notice that certain books are not performing well during specific months, consider turning off their ads or reducing the cost per click.
- Use data for keyword and product ideas: Lottery ads can provide valuable information on keywords and products that your books are showing up for. This data can be found under search terms in the categories on the left-hand side and used to create new content or to run targeted ads.
- Experiment with different ad strategies: Don’t be afraid to try new ideas, like grouping books together based on their type eg, coloring books, short stories and novels. Testing various strategies can help you optimise your ads and achieve better results.
- Understand market differences: Running ads in different countries might yield varying results. It’s important to focus on visibility and cost-effective clicks rather than expecting the same results across all markets.
How to Set Up a Lottery Ad:
To set up your own Lottery Ad, you can watch this video below where I explain the full process.
Conclusion
The Lottery Ad strategy is an excellent low-budget ad strategy for beginners in Amazon KDP. By being patient and making necessary adjustments, you can achieve success with these types of ads. Give it a try and start increasing the visibility of your books today.
