If you are using Amazon PPC, there is a good chance you have received this e-mail from Amazon:

Your PPC Campaigns Are Reaching Budget

So apparently my PPC campaign has reached its budget. But what exactly does it mean?

So, our daily budget consists of how many people click on our ad and how much we pay per click.

Max budget = Clicks * Bid

So, for example:

If we have set our bid at $1,00 and 20 people click on our ad, we have spend $20 of our budget. So if our max budget is set at $10 our campaign will stop half way through the day.

This sucks as we are missing out on ten potential people per day that could click & buy our product!

How to react?

So we basically have two options to fix this problem:

A). Lower our bid

When our campaign reach it’s budget we are pretty much bidding too high on our keyword. More people could click on our ads then our budget currently allows. So we can simply reduce our bid to fix this problem.

I have written a more advanced tutorial on how to best adjust your Amazon PPC bids here.

B). Increase our max budget

This is a more straightforward approach. We can keep bidding the same as we have done before and raise our maximum budget. However, I usually don’t take this approach as I have set my max budget for a reason, and I think it’s better to lower your bid to fix this problem.