Introduction
One of the biggest mistakes sellers make on Amazon?
💸 Spending 80–100% of their budget on 1–2 campaigns.
It’s easy to overfund your exact match keywords or ranking campaigns, but without a diversified budget strategy, your results will plateau — or worse, your ACoS will skyrocket.
In this guide, we’ll show you how to:
- Split your budget across different campaign types
- Allocate based on your product lifecycle
- Maximize visibility while controlling costs
- Set your brand up for long-term growth
Let’s dive into the smart way to structure your Amazon PPC budget.
Why Diversified Budget Allocation Matters
Think of your Amazon PPC budget like an investment portfolio.
You wouldn’t put 100% of your money into one stock — so why would you do it with ads?
Diversifying your spend helps:
✅ Mitigate risk
✅ Increase discoverability
✅ Support each stage of the buyer journey
✅ Lower blended ACoS
The 70/20/10 Rule for Budget Allocation
We recommend this baseline budget framework:
🔹 70% – Core Converting Campaigns
Your proven, profitable campaigns. Usually:
- Exact match
- Branded
- Top performing ASINs
🔸 20% – Growth & Testing
Campaigns you’re testing or scaling. Often:
- Broad / Phrase match
- Competitor targeting
- ASIN targeting
🔸 10% – Exploratory & Discovery
Auto campaigns, product launches, and keyword harvesting.
Budgeting by Campaign Type
| Campaign Type | Budget Allocation | Notes |
|---|---|---|
| Exact Match (Manual) | 30–40% | High ROI, controlled spend |
| Phrase & Broad Match | 20–30% | Balance between discovery & scale |
| Auto Campaigns | 10–15% | Use for keyword harvesting |
| Product Targeting | 10–15% | Boosts visibility on competitor ASINs |
| Brand Defense | 10–15% | Protect branded terms |
| Sponsored Brands/Video | 5–10% | Upper-funnel awareness |
Budget by Product Lifecycle
Your product’s stage matters. Allocate accordingly:
🚀 Launch Stage
- 60% for discovery (Broad, Auto, Product Targeting)
- 30% ranking terms (Exact, high bids)
- 10% on branded (if applicable)
📈 Growth Stage
- 40% to Exact & Phrase
- 30% Broad + Product targeting
- 20% Sponsored Brands/Video
- 10% for Auto & brand protection
🏆 Mature Stage
- 50% to top Exact match terms
- 20% competitor conquesting
- 20% Sponsored Brands & DTC
- 10% brand defense
Diversifying Across Match Types
Match types matter for budgeting too.
- Exact Match: High intent, high bid — keep it tight
- Phrase Match: Scalable with control
- Broad Match: Capped budget, monitor closely
- Auto: Great for keyword harvesting — but watch ACoS
Use search term reports weekly to shift budget toward terms that perform.
Campaign Prioritization Tips
✅ Don’t overfund new campaigns — let them prove performance
✅ Use performance-based funding — reallocate based on ACoS & ROAS
✅ Cap discovery campaign budgets to avoid wild swings
✅ Never spend more on defense than conquest — unless your brand is at risk
Weekly Budget Optimization Flow
- 📊 Review campaign performance
- 🧹 Pause or reduce high ACoS, low CTR campaigns
- 🔁 Shift budget into best ROAS performers
- 🔍 Allocate discovery budget to winners
- 🧠 Double down on profitable match types
- 💡 Add negatives to stop wasted spend
Common Mistakes in Budget Allocation
🚫 Running all match types in one campaign
🚫 Bidding the same on every keyword
🚫 Never refreshing creative on Sponsored Brand/Video
🚫 Ignoring product targeting as a scaling lever
🚫 Overspending on “branded” search with no competitors
Tools That Help
- Amazon Budget Report – Track campaign pacing
- Helium 10 Adtomic – Smart budget reallocation
- Bulk Sheets – Scale changes across accounts
- Search Term Reports – Real-time feedback loop
- Marketplace Valet Dashboard – (if applicable, plug here)
Final Thoughts
A diversified budget strategy isn’t optional — it’s the foundation of scalable PPC.
By splitting spend across:
- Campaign types
- Product stages
- Keyword strategies
…you protect your budget, drive better ROI, and fuel long-term growth.
Need Help Structuring Your Amazon Ad Budget?
At Marketplace Valet, we manage 7- and 8-figure seller accounts with:
✅ Smart budget allocation
✅ Match-type balancing
✅ Full-funnel campaign management
Let’s talk: justin@marketplacevalet.com
Or learn more: marketplacevalet.com
