Managing your Amazon PPC budget effectively is crucial for driving profitable traffic and sales. Here are 5 strategies to help maximize your advertising spend on Amazon.

First, set a daily budget limit and use Amazon’s automated bidding strategies like Target CPA or Target ROAS. This allows Amazon’s algorithms to optimize bids while staying within your budget. Review performance daily and adjust bids and targets as needed.

Set Daily Budget Limits and Use Automated Bidding

When setting daily budget limits for your Amazon PPC campaigns, it is important to first determine your overall goals and targets. Consider the maximum amount you are willing to spend per day based on your profit margins and revenue goals. Setting conservative daily budgets at the start and increasing them slowly over time often works well. Monitor performance closely and adjust budgets up or down based on results. For example, increase budgets for well-performing campaigns driving conversions and sales at an acceptable cost, and decrease budgets for poorer performing campaigns to control costs.

Using automated bidding strategies for your Amazon PPC campaigns can help optimize costs and maximize performance over time. Start by enabling automated bidding at the ad group or campaign level, rather than keyword level when first getting started. Options like dynamic bidding help Amazon automatically adjust bids to target positioning and costs based on your budget and campaign goals. Give automated bidding sufficient time to optimize, often a few weeks, before evaluating performance. Make incremental bid and budget adjustments rather than drastic overhauls. Tools like Amazon’s bid recommendations can provide additional suggestions for bid optimization over time. Testing different automated bid strategies and settings can help identify an optimal automated approach for your PPC campaigns.

Optimize Keywords and ASINs for Relevance

Optimizing keywords and ASINs for relevance is an essential strategy for managing your Amazon PPC budget effectively. When setting up your campaigns, take the time to do thorough keyword research and select highly targeted keywords that are directly related to your products. Avoid using broad match keywords as this opens your ads up to many irrelevant searches that can quickly eat through your budget. Carefully analyze your search term report to identify low converting keywords that are not driving sales. Either refine these keywords or pause them to optimize spend on more productive terms.

When it comes to ASIN targeting, be very selective about which ASINs you choose to advertise for each campaign. Only include ASINs that are highly relevant to your targeted keywords. Do not just automatically target all of your ASINs as this spreads your budget too thin. Take the time to analyze your product sales data and identify your best selling and most profitable ASINs. Focus your PPC budget on driving sales for those top performing ASINs. You can always expand your ASIN targeting over time, but keep it narrow initially. Monitoring your campaign’s attributed sales reports will show which ASINs are generating sales and which are underperforming. Optimize accordingly.

By continuously refining your PPC campaigns to target more relevant keywords and your highest converting ASINs, you can drive more sales and ROI from your Amazon advertising spend. Avoid wasting budget on broad keywords and irrelevant product targets that generate clicks but not sales. Relevance is key in PPC, so optimize for it in your account setup, keyword selection, ASIN targeting and ongoing optimization. With a highly relevant foundation across these elements, you can make the most out of your available PPC budget.

Adjust Bids and Manage Traffic Based on Performance

One of the most important aspects of running a successful Amazon PPC campaign is managing your budget effectively. This involves regularly analyzing campaign performance data, adjusting bids, and optimizing traffic sources to get the most out of your advertising spend.

When reviewing campaign metrics, pay close attention to your click-through rate (CTR), conversion rate, and cost per click (CPC). If you see CTRs or conversion rates dropping over time, that’s a sign you may need to refine targeting or update listing details to improve relevance. You can also lower bids on keywords that aren’t converting well and raise them on high-performing keywords. Try A/B testing different bid amounts to find the optimal CPC.

Make use of Amazon’s automatic targeting options to have your ads show for relevant search queries without having to manually add keywords. Enable automatic targeting at the campaign or ad group level. However, keep a close eye on which search terms drive traffic and sales vs. those that don’t convert. You may need to add negative keywords over time to avoid spending too much on irrelevant queries.

Analyze performance data for each campaign, ad group, keyword, and product. Identify low-performing areas that are dragging down your results and consider pausing or removing them altogether to improve campaign efficiency. You can also create separate ad groups for branding keywords, product name keywords, etc. to manage bids more granularly based on performance.

Amazon provides powerful automation features like dynamic bidding which automatically sets optimal bids based on your targets. Consider leveraging these to take the manual work out of bid management. Just check in periodically to ensure your targets are still aligned with your goals.

Regularly check your search term and placement reports. Seeing which keywords and placements drive the most conversions can inform where to focus your budget. You may uncover new relevant keywords and advert placements that warrant additional investment.

Don’t forget to factor in external factors that impact performance over time like seasonality, holidays, sales, and new product releases. You may need to increase bids around peak sales periods then scale back when demand falls. Stay agile and keep a close eye on metrics so you can respond quickly.

With regular analysis and refinement using the strategies above, you can maximize your Amazon PPC ROI. The time invested in properly managing budgets, bids, and traffic sources pays off exponentially in the long run through more efficient spends and better results.

Structure Campaigns and Leverage Automation

Managing your Amazon PPC budget effectively requires strategic campaign structuring and automation to maximize ROI. Here are some tips:

Segment your campaigns into tightly-themed ad groups around specific products, categories or keywords. This allows you to set more relevant ads and closely monitor performance and spend at the ad group level. Create campaigns for both branded and non-branded terms so you can allocate budget accordingly based on opportunity.

Leverage Amazon’s automatic targeting options like product targeting and automatic targeting to expand your reach efficiently. Allow Amazon to show your ads on relevant search terms you may be missing.

Use negative keywords extensively to avoid spending on irrelevant traffic. Add any search terms that trigger your ads but don’t convert to your negative keyword list. Review search term reports regularly for new negative keywords opportunities.

Set specific match types for your keywords to control match coverage. Use phrase and exact match for more relevant traffic, broad match for discovery. Apply campaign or ad group level bid adjustments as needed based on match type performance.

Automate bids at the ad group level based on real-time performance data. Leverage Amazon’s bid strategies to optimize for clicks, conversions or target CPA – this takes emotion out of bid management. Review bid strategies frequently.

Schedule ads to run only during your peak selling hours or seasons. Pausing low-performing ad groups can also help manage budget.

Use Amazon’s campaign budget optimization to automatically redistribute budget to your better performing campaigns. Let Amazon automate budget allocation across campaigns based on opportunity.

Regularly review search term and ASIN targeting reports to identify low-value placements and apply additional negatives or refine targeting. Cutting waste is key to maximizing ROI.


Managing your Amazon PPC budget effectively requires careful planning and strategy. Here are some tips for optimizing your budget:

Set realistic targets for your campaign based on your budget, products, and competition. Don’t overextend your budget by trying to be too broad. Focus on products and keywords where you can get the most return.

Use auto campaigns and manual targeting together. Let Amazon find new relevant keywords through auto campaigns, then add the best performers to manual campaigns where you can fine tune bids and ad copy.

Organize campaigns and ad groups around product type, brand, keyword theme etc. This makes it easier to analyze performance and adjust bids and targets.

Use negative keywords to weed out irrelevant traffic that drives up costs without conversions. Identify low performing keywords and continually add negatives.

Set specific match types for keywords to control which searches trigger your ads. Use broad match conservatively for finding new keywords, exact and phrase match for proven, high converting keywords.

Monitor and tweak bids frequently based on performance. Use auto-bidding strategically for dynamic bid optimization. Increase bids on high performing keywords, lower for underperformers.

Use remarketing campaigns to target visitors who left without buying. Remarketing has high conversion rates so warrants a higher budget allocation.

Review search terms regularly and add good performers to targets. Also add poor performers to negatives to avoid spending on irrelevant traffic.

Analyze performance data frequently and kill poorly performing campaigns, ad groups, and keywords to free up budget for better ones. Don’t get attached to underperformers.

Use campaign scheduling to align budgets with peak sales times and turn off campaigns during low return periods to conserve budget.

Test campaign variations to find what works. Test different match types, bids, targeting, ad copy etc. Scale up what performs.

Automate and streamline campaign management processes so you can optimize more efficiently. Use bulk workflows, scripts, and software tools to save time.

Monitor external factors that impact sales and adjust budgets and bids accordingly. Stay on top of seasonality, supply issues, pricing changes etc.

Keep a buffer for reallocating budget to new opportunities. Don’t spend 100% of budget up front so you have funds to test new products, keywords, and campaigns.

Review account health frequently and take corrective actions to avoid suspensions and restrictions that would disrupt campaigns. Optimize product detail pages to adhere to Amazon’s guidelines.

Using these strategies can help maximize your advertising ROI by spending budget more efficiently. Continual testing, monitoring, and optimization is key to improving performance over time.

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