One of the most frequently asked questions we get from clients and potential clients is: What is a healthy Amazon Tacos?
The generic answer you’ll usually get is somewhere between 5-15%.
But the true answer is that a healthy Tacos means we are spending the least possible to accomplish our goals, and every dollar is purposely spent.
I like to give an analogy to a supermarket. Someone is opening a supermarket, and they come to a marketing company asking how much they should spend for marketing.
The first thing the marketing company will do is ask questions.
- Where are you opening the supermarket?
- How much competition do you have in the area?
- Will your supermarket stand out in any way, or it’s just another store?
- What are your revenue goals for year one?
- How much money do you have in the bank?
The same is with Amazon.
Let’s say you have a product with almost no competition (doesn’t happen too often, I know 🙂 then even a Tacos of 2% might be too high.
Or if you are in a super competitive category and in order to maintain your market share, you need to have a 20% Tacos, and you are still profitable at the end of the day, then 20% is the right Tacos for you.
The job of a PPC manager is to spend purposefully to accomplish the goal of the account and not spend an extra unnecessary $1.
