Just recently, I stumbled upon a significant update in Amazon Advertising that could drastically influence your campaign performance. The change is in how Amazon manages the Sponsored Ads daily budget cap.
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? Previously, Amazon could increase your daily budget spend up to 25% on high traffic days, averaging it out over the course of a month. Post-March 27th ( campaigns created after March 27th), however, they’ve upped this limit to 100%, doubling your set daily budget on certain days.
For example, if your daily budget is $100, Amazon could spend up to $200 on a high traffic day, but it’ll make sure to balance this over the remainder of the month, so your average daily spend still comes out to your originally set cap.
The new update brings a level of flexibility, allowing you to set the ‘spend increase tolerance’ at either 25% or 100%.
While this update might have slipped in quietly, its impact is far from subtle. Although it can potentially maximize your visibility on high traffic days, opting for a 100% increase might not align with your goals. This strategy could lead to sales cannibalization on certain days.
✅ ➡️ To avoid unwanted surprises, I strongly recommend heading over to your Sponsored Ads settings and adjusting this option to 25%. If left unchecked, you are by default exposed to 100% increase in daily ad spend.
Check your Sponsored ads -> Settings to see if your campaigns are set up to leverage this update.
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