If you're just starting out on Shopee and thinking about running ads, you’ve probably asked yourself: "How much should I actually spend?” Whether you're on a small budget or ready to invest a bit more, knowing how to allocate your ad spend wisely is the key to getting real results without burning through your wallet.

Let’s break it down simply, so you can start with confidence.
 

How Shopee Ads Budgeting Works

Shopee Ads uses a Cost-Per-Click (CPC) system, meaning you only pay when someone actually clicks on your ad, not just when it’s shown to users. For example, if your ad is displayed 10,000 times but only receives 10 clicks, you’re only charged for those 10 clicks, not the 10,000 views. This makes it a performance-based advertising model, where you pay based on the effectiveness (clicks) of your ads rather than the number of times your ad is shown.

Additionally, Shopee Ads operates on a prepaid basis. This means you need to load your Ads Credit before starting your campaign. If your credit balance runs out, your ads will stop running automatically until you top up the credit again. This ensures you have control over your budget and prevents overspending.
 

Begin with a Budget That Works for You

Shopee Malaysia recommends starting with a budget of at least RM20 per product when you first begin advertising. However, this is just a suggested starting amount, and you don’t need to spend RM20 every day. It’s more of a testing budget to see how well your ads perform.

When working with a limited budget, it's important to prioritise products with high sales potential. Shopee's algorithm constantly analyses available data to identify and recommend products that are likely to perform well when advertised.

In the Seller Centre, you'll find recommended products tagged with labels like "Best Selling", "Good ROAS", or "Top Searched". On the Shopee app, these products are marked with a 'thumbs up' icon.

The idea is that spreading your ad budget too thin across too many products can reduce the effectiveness of your ads. So, it’s better to start small, analyse the results, and then gradually increase your budget for the products that perform well.
 

Set a Daily or Total Budget Cap

Worried about overspending? Shopee allows you to set a Daily or Total Budget Cap to control your ad spend and avoid overspending. For example if you set:

• RM3 Daily Budget: Your ad will automatically stop running for the day once it has spent RM3.

• RM10 Total Budget: Your ad will stop running once the total spending across the campaign reaches RM10.

This feature helps you test your ads in a low-risk way. You can start with a small budget, assess how your product is performing, and then increase your budget as you gain confidence in the ad's effectiveness.

Other than that, Shopee offers the option to set a No Limit budget for maximum exposure, but this is generally recommended for more experienced sellers who are comfortable with larger spendings.
 

Set the Right Bid for Each Click

Your bid price is the maximum amount you’re willing to pay per click. For both Search Ads and Discovery Ads, the minimum bid is RM0.07, which is a good option if you're just starting out and testing your ads.

If you're unsure about how well your ad will perform, you can begin with the minimum bid. After a week, evaluate your ad's performance by looking at your ROAS (Return on Ad Spend) and ad rank:

• If your ROAS is good, but your ad rank is low (meaning it's ranked lower than competitors' ads), you might want to increase your bid slightly to improve visibility and push your ad higher in the search results.

• If you aim to rank higher quickly, you can use Shopee’s Suggested Bid, which will help your ad gain more exposure.

The key takeaway is to find the right balance between cost and results. It's important to avoid bidding too high without considering whether it will actually lead to better results.

From Small Budget to Big Results

Starting Shopee Ads with a small budget is an excellent way to begin your advertising journey on Shopee without breaking the bank. The key is to start small, monitor your performance, and gradually increase your budget for products that show the best results.

BigSeller’s Shopee Ads tools can simplify this process for you. With BigSeller, you can easily optimise your ads by using customisable options such as adjusting your budget, setting campaign duration, and refining your bidding strategies. Whether you're using Shopee's Search Ads or Discovery Ads, BigSeller provides the flexibility to fine-tune both types of campaigns for optimal performance.

With this integration, you can also track your Return on Ad Spend (ROAS) more effectively, ensure that your ads are delivering results, and stop wasting budget on underperforming products. The ability to make real-time adjustments means you can scale successful campaigns while pausing those that aren’t performing well.
 

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