Understanding Amazon's PPC Campaign Budgets: Daily Budgets and Fixed Cap

As of my last update in August 2023, Amazon does not publicly disclose a specific daily budget for its advertising spend. However, it is known that Amazon invests significantly in advertising across various platforms, including its own services and third-party sites. In 2022, Amazon's advertising revenue was around $31 billion, and analysts have projected continued growth in this area. For specific figures or changes in their ad budget since then, you would need to check the latest financial reports or news updates from Amazon.

How Do Campaign Budgets Work in Amazon PPC?

There are two distinct kinds of spending plans you can set up in Amazon PPC:

1. Normal Daily Budget for Individual Ad Campaigns

It is necessary to set a normal daily budget for each ad campaign. The maximum daily budget use over the scheduled month is determined in the following manner:

Daily budget X number of days left in the scheduled month Maximum use each scheduled month.

Important: The daily budget is a normal value. If your daily budget isn't spent in one day, the unused spending will rollover to the next day.

Spending plan distribution for individual ad campaigns gives you more control to achieve the following objectives:

Ensure evenly distributed ad spending across all campaigns. Specific budget allocation according to the productivity of each campaign. Helpful as an expense cushion but not essential for campaign optimization.

Example of an average daily budget:

A campaign will start on the sixth of January with a $10 daily average budget. The total campaign spend over the scheduled month (26 days remaining) will be $260. On the sixth of January, only $8 is spent. The unused $2 will rollover to the next day, meaning the budget for the seventh of January can reach a limit of $12.

2. Fixed Daily Account Budget Cap

An daily budget can also be set for the entire advertising account, Seller Central: Campaign Manager Advertising Settings Daily Budget Cap. This budget determines your total daily spending for your Sponsored Products account.

Contrary to your normal daily budget, this value is an exact figure throughout the day. This means your total spending each day for your entire account will not exceed the value fixed here.

Example of an account-level budget:

In your Sponsored Products account, you have 3 ad campaigns running, each with a budget of $20. The daily budget for your account is fixed at $50. When your total consumption reaches $50 in one day, your ads will cease running for all 3 campaigns until the next day.

Understanding these two types of budgets can help you manage your Amazon PPC campaigns more effectively. By setting strategic budgets, you can control your spending, optimize ad performance, and achieve your marketing goals.