What Top Sellers Know About Amazon PPC Budgeting That You Don’t

TL;DR

• Set structured daily budgets to control ad spend and test different strategies effectively.

• Allocate 70% of your budget to high-performing campaigns to maximize conversions and minimize waste.

• Use bid caps on auto campaigns to prevent Amazon from overspending on expensive, low-converting clicks.

• Regularly pause underperforming ASINs to shift the budget toward products that drive sales.

• Aggressively add negative keywords to eliminate irrelevant clicks and improve ACoS efficiency.

• Track ACoS and TACoS weekly to ensure your PPC spend is leading to both paid and organic growth.

Ever wonder how top Amazon sellers seem to scale effortlessly, while others burn through their ad budget with little to show for it? The secret isn’t just in spending more—it’s in spending smart. Successful sellers don’t throw money at ads and hope for the best; they have a strategy that ensures every dollar works harder and delivers maximum returns.

The difference between profitable campaigns and wasted ad spend often comes down to how well you plan your PPC budget. Are you allocating funds to the right campaigns? Do you know when to scale up or cut back? Are you tracking the right metrics to adjust your strategy in real time?

If you’re still guessing your PPC budget, you’re leaving money on the table. But don’t worry—this guide will walk you through the budgeting secrets top Amazon sellers use to maximize profits, minimize waste, and dominate their niche. Ready to take control of your Amazon PPC budget?

Quick guide:

• #1: Set a daily budget per campaign

• #2: Allocate 70% of the budget to proven campaigns

• #3: Set bid caps on automatic campaigns 

• #4: Pause underperforming ASINs in Sponsored Ads 

• #5: Use negative keywords aggressively

• #6: Monitor ACoS and TACoS weekly 

• #7: Use dayparting to stop ads at low-converting hours

• #8: Regularly harvest keywords from auto campaigns

#1: Set a daily budget per campaign

Amazon PPC works best when you control your spending instead of letting Amazon decide where your money goes. Setting a daily budget per campaign ensures that you don’t overspend on ads that aren’t performing well while giving you a chance to test different strategies.

Many sellers make the mistake of setting one large budget for all their ads, leading to wasted spend on underperforming keywords or placements. A structured daily budget helps you see where your money is actually working and prevents unnecessary losses.

Why setting a daily budget matters

• Stops Amazon from overspending on one campaign while others are ignored

• Gives better visibility into which campaigns bring real sales

• Helps scale high-performing ads without wasting money on low-performing ones

Example:

If you have a $50 daily budget, you can split it like this:

• $20 for an exact match campaign to target high-intent buyers

• $15 for an auto campaign to discover new keywords

• $10 for a product targeting campaign to place ads on competitor listings

• $5 for a low-bid experimental campaign to test new keywords

This setup ensures that your ad spend is controlled, giving you real data on what works. Monitor the results, adjust budgets based on performance, and scale the best-performing campaigns. A structured approach like this prevents unnecessary spending and improves overall PPC results.

#2: Allocate 70% of the budget to proven campaigns

One of the biggest mistakes sellers make is spreading their PPC budget too thin across too many campaigns, hoping something will work. However, the most successful sellers focus their budget on what’s already delivering results instead of wasting money on untested strategies.

A smart rule of thumb is to allocate 70% of your budget to proven, high-performing campaigns. These are the campaigns that consistently drive sales, have a strong return on ad spend (RoAS), and maintain a good ACoS. The remaining 30% can be used to test new keywords, ad types, or audience strategies.

Why this works

• Ensures your money goes where it has the highest chance of converting

• Keeps your best-performing ads running strong without interruptions

• Minimizes wasted spend on untested or underperforming campaigns

Example:

If your total PPC budget is $100 per day, you should allocate it like this:

• $70 for proven campaigns (manual exact match, best-converting keywords, high RoAS ads)

• $20 for experimental campaigns (new keywords, new targeting strategies)

• $10 for low-bid automatic discovery campaigns (to find future winners)

What Amazon PPC experts recommend

• Identify your top-performing campaigns by looking at ACoS, conversion rates, and RoAS

• Increase budgets on high-performing ads instead of spreading money across too many test campaigns

• Regularly analyze data to shift more budget to campaigns that continue to perform well

Following this strategy ensures that your strongest campaigns stay funded and profitable, while you still leave room for testing and scaling.

#3: Set bid caps on automatic campaigns 

Automatic campaigns can be great for discovery, but without proper bid limits, they can drain your budget quickly. Amazon’s algorithm will aggressively bid on keywords and placements, some of which may not convert. To prevent overspending, set bid caps so you stay in control.

Many sellers assume that auto campaigns should run without limits, but that’s how you pay high CPCs for broad, irrelevant clicks. By capping bids, you ensure your ad spend is efficient and focused on profitable searches.

Why bid caps matter

• Prevents Amazon from bidding too high on broad or low-converting terms

• Controls spending while still allowing keyword discovery

• Ensures your budget lasts longer instead of getting wasted on expensive clicks

Example:

Let’s say you launch an automatic campaign with a $20 daily budget. Instead of letting Amazon bid freely, you set a cap of $0.50 per click. This ensures:

• You don’t pay $2-$3 per click for generic, high-competition keywords

• Your budget lasts longer, allowing more data collection

• You only compete for affordable, profitable clicks

What Amazon consulting agencies suggest

Start with low bid caps ($0.30–$0.50) and gradually increase for better-performing keywords

Analyze search term reports to find and move profitable keywords to manual campaigns

Use negative keywords to eliminate irrelevant search terms and avoid wasted spend

#4: Pause underperforming ASINs in Sponsored Ads 

Not every product you advertise will bring in sales, and that’s okay. What’s not okay is continuing to spend money on ASINs that don’t convert. Running ads for underperforming products wastes your budget and drags down overall campaign performance.

If an ASIN has high clicks but low conversions, it means shoppers are looking but not buying. This could be due to a high price, weak product images, or poor reviews. Instead of letting these ASINs drain your ad spend, pause them and focus your budget on products that bring results.

Why this works

• Stops wasting money on products that aren’t converting

• Redirects budget to best-selling ASINs for better returns

• Helps improve ad performance by keeping only strong listings active

Example:

Let’s say you’re running Sponsored Product Ads for three ASINs:

• Product A: 200 clicks, 20 sales → Good conversion rate 

• Product B: 150 clicks, 3 sales → Poor conversion rate 

• Product C: 100 clicks, 15 sales → Decent conversion rate 

Product B is eating up your budget but isn’t converting well. Instead of spending more to “see if it improves,” pause it immediately and shift that budget to Products A and C, which are already bringing in sales.

How to spot underperforming ASINs

• High clicks, low sales → Poor conversion rate

• High spend, low RoAS → Not bringing in enough returns

• Lower star rating than competitors → Customers may be hesitant to buy

Regularly review your campaign data and pause products that aren’t making you money. This simple adjustment ensures your ad budget is spent where it works.

#5: Use negative keywords aggressively

One of the easiest ways to stop wasting money on bad clicks is by using negative keywords. When you don’t tell Amazon what not to target, your ads show up for irrelevant searches, leading to high spending with little to no sales.

Many sellers only add negative keywords once and forget about them, but top sellers update them weekly. The more irrelevant searches you block, the more focused and profitable your campaigns become.

Why negative keywords matter

• Prevents wasteful ad spend on searches that won’t convert

• Improves ACoS by ensuring your ads show for relevant shoppers

• Increases conversion rates by targeting only high-intent buyers

Example:

You sell premium stainless steel water bottles. Without negative keywords, your ads could show for:

• "plastic water bottle" → Wrong material

• "kids sippy cup" → Completely irrelevant

• "free water bottle" → People looking for giveaways, not buying

If you don’t block these, you’ll pay for useless clicks that never turn into sales. Adding “plastic,” “sippy,” and “free” as negative keywords ensures your ad only reaches shoppers looking for your product.

How to find negative keywords

• Check your search term report weekly for non-converting keywords

• Add low-converting, high-click terms as negatives

• Use broad and phrase match negatives to block entire groups of irrelevant searches

A strong negative keyword list saves money, improves ad performance, and gets your product in front of the right customers. Don’t let bad clicks eat up your budget—clean up your campaigns regularly.

#6: Monitor ACoS and TACoS weekly 

If you’re not tracking your ACoS (Advertising Cost of Sales) and TACoS (Total Advertising Cost of Sales) regularly, you’re flying blind. These two metrics tell you if your PPC campaigns are actually profitable or just draining your budget.

Many sellers focus only on ACoS, but that’s just half the picture. TACoS shows how ads impact your total revenue, not just PPC sales. If your TACoS is increasing while total sales stay the same, your ads are eating into your profits instead of driving organic growth.

Why tracking these metrics weekly matters

• Prevents overspending on ads that aren’t leading to long-term sales

• Shows when to scale or cut back on ad spend

• Helps balance PPC and organic growth to maintain healthy margins

Example:

You run an ad campaign and see these results:

• ACoS = 35% (Spending $35 for every $100 in ad sales)

• TACoS = 10% (Advertising costs make up 10% of total sales)

If your TACoS jumps to 15% but your total revenue isn’t increasing, it means your organic sales are dropping and you’re becoming too dependent on PPC. Time to rework your ads.

How to use this data effectively

• Keep ACoS aligned with profit margins (Lower ACoS if ad costs are too high)

• Use TACoS to track organic growth (If TACoS is rising, check if organic sales are improving)

• Adjust bids and budgets accordingly (If ACoS is too high, pause or refine underperforming ads)

A weekly check on ACoS and TACoS helps you catch problems early, optimize your budget, and make PPC work for long-term growth instead of just short-term sales.

#7: Use dayparting to stop ads at low-converting hours

Most sellers let their ads run 24/7, assuming that every hour is equally profitable. But the truth is, not all hours bring in sales—some just drain your budget. This is where dayparting (also called ad scheduling) comes in. It allows you to run ads only when conversions are highest and pause them during low-performing hours to save money.

Many sellers don’t realize that Amazon’s ad costs fluctuate throughout the day. Bidding at the wrong time can waste your budget on clicks that don’t convert. Instead, analyzing your sales trends and adjusting ad schedules can maximize ROI.

Why dayparting is a game-changer

• Prevents wasted spend during times when shoppers browse but don’t buy

• Increases ACoS efficiency by focusing ad spend on peak conversion hours

• Reduces unnecessary competition by avoiding high-cost bidding periods

Example:

A seller notices that most of their sales happen between 8 AM – 10 PM, but their ads run 24/7. After checking reports, they realize:

• Clicks from 12 AM – 5 AM have a high ACoS but almost no sales

• Bids are more competitive during early morning hours leading to inflated costs

• Most sales happen after 10 AM when shoppers are actively buying

By adjusting their campaign to pause ads from 12 AM – 5 AM, they save money without losing conversions.

What Amazon brand consultants recommend

• Use Amazon’s reports to identify high and low-performing hours

• Test pausing ads during non-converting times for a week and track changes

• Gradually optimize schedules to spend more on peak hours and cut back on weak ones

Dayparting isn’t about running fewer ads—it’s about running them smarter. By eliminating ad spend during low-converting hours, you can stretch your budget, improve conversions, and make every dollar work harder.

#8: Regularly harvest keywords from auto campaigns

Amazon’s automatic campaigns are great for discovering new keywords, but if you’re not regularly harvesting and moving the best keywords to manual campaigns, you’re leaving money on the table. Auto campaigns let Amazon decide which search terms trigger your ads, but once you find what’s converting, it’s smarter (and cheaper) to take control.

Many sellers run auto campaigns for months without reviewing search term reports. This results in paying high bids for keywords that could be optimized in manual campaigns for better control and lower costs.

Why harvesting keywords from auto campaigns is crucial

• Finds high-converting keywords you might not have thought of

• Allows you to bid more efficiently in manual campaigns

• Stops Amazon from overbidding on expensive search terms

Example:

A seller runs an auto campaign for a stainless steel coffee mug. After checking the search term report, they find:

• "Insulated coffee mug" – 15% ACoS, strong sales 

• "Plastic coffee cup" – High clicks, no sales 

• "Leak-proof travel mug" – Low ACoS, high conversions 

Instead of continuing to let Amazon bid on these, they:

• Move "insulated coffee mug" and "leak-proof travel mug" into a manual exact match campaign with controlled bids

• Add "plastic coffee cup" to negative keywords to stop wasting ad spend

How to do this effectively

• Check search term reports weekly to find high-performing keywords

• Move best keywords to manual exact or phrase match campaigns

• Block low-performing keywords as negatives in auto campaigns

Top sellers don’t let Amazon make all the bidding decisions. By regularly harvesting auto campaign keywords, you get better control, lower costs, and higher returns on your Amazon PPC spend.

Your PPC budget is either working for you or against you

Every dollar in your Amazon PPC budget should be leading to sales. But if you're not actively optimizing your campaigns, Amazon will gladly take your money without delivering results. The top sellers don’t just spend—they spend wisely.

Take these next steps now:

• Analyze your PPC performance and pause underperforming ads

• Set bid caps and negative keywords to stop wasting money

• Optimize auto campaigns by moving high-converting keywords to manual

• Track ACoS and TACoS to ensure profitability

The difference between guessing and growing comes down to strategy. If you’re ready to get real results, working with Amazon consultants can help you optimize smarter, scale faster, and make your ad budget work harder.

The question is: Will you start managing your PPC smarter today, or keep losing money tomorrow?