Depends on where you're holding
Where are you today?
For exploring ads for products:
New to Amazon
That have a low margin
That do not have reviews yet
With low rank
Few organic sales
When you fist start selling a product on Amazon it's critical to know how to set your baseline expectations. If you advertise, will you get traffic to your page? Will you get any sales? How much will it cost for conversions?
The goal during the discovery phase of a product is to test the waters with a limited number of campaigns that can easily be kept in specific budget to minimize exposure.
Results from the exploratory phase set the stage for the strategy employed in the growth phase while using a limited BUDGET.
For growing products:
With sales history on Amazon
Average or high margin
Have at least 5 reviews
More market share available
Consistent organic sales
Many of the products we manage are in the growth stage. The whole purpose of advertising on Amazon is to accelerate growth and positioning of product, cutting the time it takes to achieve stable organic sales.
Once we know that a product can convert through PPC, we start to push sales through building aggressive campaigns.
As opposed to a focus on strict profit, our goal is to achieve higher revenues at an efficient ACOS.
For earning profit from products:
With high monthly sales
Strong organic sales
Significant market share
Brand name products
Specific profit targets
The final stage in the product-advertising life cycle is strictly based on the bottom line, which takes the total sales of the product into account more than the ad sales.
Ad sales will typically grow faster organic sales, so when you are trying to be profitable you must cap your ad spend so the organic sales can grow at the same pace.
The focus is on ad spend compared to total sales which is the TACOS metric.