You’ve built your Amazon business past the early hurdles. Sales are flowing in. Reviews are steady. Now the big question surfaces — how much should you really spend on advertising?

It’s not a one-size-fits-all answer.

For six- and seven-figure sellers, the wrong ad budget can either drain profits or stall growth. The key lies in spending with precision, not just ambition.

Let’s explore how you can strike that balance.

Start with This: What’s the Goal Behind Your Ad Spend?

Not all sellers advertise for the same reasons.

Before you calculate a budget, define your goal.

• Are you launching a brand-new product?
• Trying to increase profit from an existing bestseller?
• Looking to boost organic ranking?
• Clearing aging inventory?

Each scenario comes with its own ideal ad spend strategy.

For instance, a product launch may require higher upfront spend. A profitable product line might need tighter control with optimized bidding. Clearing inventory? You may need a faster, costlier push.

The budget depends on the direction you’re headed.

Why ACoS Alone Isn’t Enough Anymore

You might be tracking ACoS closely. And while it’s important, it doesn’t tell the full story.

Smart sellers today also track TACoS — the Total Advertising Cost of Sales.

Here’s the difference:

• ACoS tells you how efficiently your ad spend converts into revenue.
• TACoS tells you how your ads contribute to total revenue, including organic sales.

If your ACoS looks healthy, but your TACoS keeps climbing, it’s a red flag. It might mean your ads aren’t driving brand lift, just replacing what you used to earn organically.

Good Amazon Advertising Management means tracking both.

What’s the Right Budget for You?

Let’s break it down by business size and strategy phase.

Six-Figure Sellers

You’re growing. Every campaign teaches you something new. At this stage, you may not have deeply dialed-in data, so experimentation matters.

A typical range:
10% to 20% of monthly revenue

Why the wider range? Because some sellers are launching, others are scaling. You might need to invest more in Sponsored Products or explore new keyword opportunities.

Flexibility is key here. Set goals, track results, and pivot often.

Seven-Figure Sellers

Now it’s about refinement. With more SKUs, larger volumes, and a bigger catalog, small inefficiencies get expensive.

A typical range:
5% to 15% of monthly revenue

You don’t need to overspend to win. At this stage, performance insights and campaign maturity take priority. A platform like Amazon Ads Manager can help you manage this complexity efficiently.

Core Metrics to Watch Before You Scale

Throwing more money at campaigns without data is a fast way to lose profits. These metrics will help you budget wisely.

Break-Even ACoS

Know your margins inside and out. If your break-even ACoS is 25%, you shouldn’t consistently run ads above that unless you have a long-term organic ranking strategy.

TACoS Movement

If TACoS decreases while revenue increases, it’s a sign that your ads are contributing to growth, not just driving sales.

This is where smart Amazon Sponsored Ads Management pays off.

Keyword Performance

Your top-converting keywords deserve more budget. Non-performers should be paused or reworked. Don’t spend equally across all search terms — focus on what drives actual profit.

Click-Through Rate

Low CTR means poor targeting or weak listing content. Improve your copy and imagery before increasing ad spend. Better CTR often reduces your CPC over time.

How to Divide Your Budget by Campaign Type

Your total budget is just the start. Knowing how to split it makes the difference between effective and inefficient advertising.

Sponsored Products

Allocate 70% to 80% of your total spend here.

These ads deliver high intent traffic. They are the engine of most Amazon PPC Campaigns, and they’re essential for both rank and sales velocity.

Sponsored Brands

Allocate 10% to 15% here.

These work well if you have a product line or want to increase brand visibility. Sponsored Brands work better once your brand has some recognition.

Sponsored Display

Keep this at 5% to 10%.

Great for retargeting and product display placements. Display ads can help bring back warm traffic but don’t usually deliver the same efficiency as Sponsored Products.

Don’t Forget the Hidden Costs

Running Amazon ads is never just about your CPC.

There are other hidden costs sellers often overlook:

• Time spent managing and adjusting campaigns
• Subscription fees for ad management tools
• Creative resources for graphics and videos
• Cost of poor-performing campaigns left running too long

Factoring these in helps determine the true cost of your Amazon Ad Optimization strategy.

When to Scale vs When to Pull Back

Scaling spend without scaling performance? That’s how margins shrink.

Here’s when to increase your ad budget:

• ACoS is consistently below your target
• Organic sales are rising in parallel with ads
• You’re launching new SKUs with solid initial reviews
• You’re approaching seasonal demand peaks

And here’s when to pause or cut back:

• ACoS is above break-even for more than two weeks
• Click-through rates are dropping
• Inventory is running low and restocks are weeks away
• Sales volume is flat despite increased spend

Spend according to performance, not emotion.

Optimize Before You Spend More

It’s tempting to think spending more equals earning more.

But if your campaigns aren’t optimized, more money just magnifies the loss.

Here’s what effective Amazon Advertising Management looks like before scaling:

• Analyze your search term report weekly
• Turn off keywords that drain spend but don’t convert
• Use exact match for your high-converting terms
• Set clear ACoS targets by SKU

This is where automation tools can be a game-changer. The right Amazon Ads Manager helps you manage rules, bids, and campaigns without drowning in data.

Think Beyond the Dashboard

Not all gains are visible in your ad console.

A good campaign improves:

• Organic ranking
• Review generation
• Brand recall
• Customer lifetime value

That’s why short-term ACoS spikes aren’t always bad — if they’re part of a well-planned long-term move.

Look at your bigger picture. Sometimes, temporary dips lead to permanent growth.

International Sellers — Adjust Your Budget Accordingly

Selling across multiple countries? Your ad strategy needs extra layers.

Different regions have different:

• CPC rates
• Consumer behavior
• Language requirements
• Fulfillment and competition levels

Your budget for a new market may need to start higher. That’s normal. Over time, you’ll gain the data to optimize based on that region’s dynamics.

When Should You Bring in a Professional?

If your monthly ad spend has crossed $10,000, or if you’re juggling more than five SKUs across multiple marketplaces, it might be time to delegate.

A professional Amazon Sponsored Ads Management service can:

• Reduce wasted spend
• Improve ROAS (Return on Ad Spend)
• Free up your time
• Keep up with Amazon’s ever-changing ad features

Growing brands often see greater returns once they hand this off to experts.

Final Thought: Smarter Budgets Build Better Brands

There’s no perfect Amazon ad budget. What works for one seller may not work for another.

But every successful seller does one thing consistently — they spend based on strategy, not guesswork.

They watch the right metrics.

They adapt when the data shifts.

They don’t chase results. They engineer them.

If you’re ready to start managing ads like a data-driven business, not just a brand with ambition, Amazon Ads Manager take the guesswork out of your strategy.

Because in the world of Amazon ads, every dollar should be working just as hard as you do.