When you create a new ad campaign, you will want to decide how to budget your advertising money. You can set a daily budget for Sponsored Products or Headline Search Ads. The way the budget is spent differs between the two kinds of ads.
The daily budget is a daily amount you are willing to spend on a campaign over a calendar month. In Sponsored Products campaigns, this amount is averaged over the course of a month. For example, if you set your daily budget to £100, Amazon will deliver up to £3,100 worth of clicks in that calendar month, assuming you start your campaign on the first day of a 31-day month. However, on any given day you could spend less or more than your average daily budget. For example, if your budget is £100 and you receive £90 worth of clicks on the first day, you could receive up to £110 worth of clicks on the second day. This would bring your total spend over two days to £200, which averages to £100 per day.
For Headline Search Ads, the daily budget is the total amount you are willing to spend per day on a campaign. Each day is capped at the amount you have set but you might not always hit your daily budget limit.
To calculate your average daily budget:
1. Decide how much you are willing to spend on your campaign for a month. For example, let's say your monthly budget is £3,100.
2. Calculate your average daily budget by dividing your total budget of £3,100 by 31 days. Your average daily budget would be £100.
You can change your daily budget at any time. From the Advertising view, click the amount in the Daily Budget column and enter a new amount. You can also change the daily budget by clicking the campaign name and selecting Campaign Settings.
The Sponsored Products daily budget cap is an optional setting that controls how much, in the aggregate, all of your active Sponsored Products campaigns can spend per day. You can access this setting under the Advertising Settings tab in Campaign Manager.
Example: You have two campaigns each with a daily budget of £50. If you set a daily budget cap of £75, then your ads will stop displaying once your total account spend reaches £75, even though the total budget for your two campaigns is £100.
If you are not sure what to set for a daily budget across Sponsored Products campaigns, you can leave this blank and set a separate budget for each campaign.
The lifetime budget is the total amount that you are willing to spend on one Headline Search Ad campaign for as long as it runs. Once your campaign has reached the lifetime budget limit you have set, it will stop running ads.
The minimum amount you can set for a lifetime budget is £100. You will be charged periodically during your campaign as the outstanding balance reaches £1, £50, £150, £200, £350 and £500 and up until the campaign's entire lifetime budget is spent.
For example, if you set your lifetime budget to £1,000 for a campaign running for 10 days, Amazon will deliver up to £100 of clicks per day. If you receive £90 in clicks in the first day, the budget the next day will be £110 to make up for not reaching yesterday's budgeting threshold. Once you reach your cap of £1,000, your campaign will stop serving ads.
Lifetime budgets are paced throughout the day so that your entire budget will incrementally accrue clicks and not spend your entire budget in one day. Once a lifetime budget is set, you will only be able to increase your budget for the campaign.