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by Marketing Guru (8.0k points)

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by Marketing Guru (8.8k points)

For Sponsored Brands bidding and budgets, keep it simple: start from your target ACoS and average order value, then scale what works and cut what doesn’t. 

A common way to set an initial bid is: target ACoS × product price × expected conversion rate (for example, 25% × ₹1,000 × 10% ≈ ₹25 max CPC). Use higher bids in a separate “brand defense” campaign for your own brand keywords (usually best ROAS), moderate bids for generic/category keywords, and low, carefully tested bids for competitor terms.

For budgets, many advertisers keep a small but stable portion of total ad spend on Sponsored Brands (around 15–25%), then split that roughly into: brand defense (20–30% of SB budget), generic growth (40–60%), and competitor / experiments (10–20%).

Review performance weekly: raise bids and budgets on keywords and campaigns that meet or beat your ACoS/ROAS target and consistently hit budget caps, and lower bids or pause those that spend 2–3× your target CPA without sales.

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