by Guest Contributor: Jelena, PPC veteran at AmazoniaPPC.

If you’ve ever set up a PPC campaign on Amazon you already know that there are a couple of mandatory elements to every campaign: start date, campaign name, targeting type, bidding strategy, and daily budget. There are some of the most common misconceptions about how daily budgets are being calculated and which campaign bidding strategy is best. We will shed some light on that topic in this article. Are you new to Amazon PPC? Learn the ropes in this article here.

How does PPC campaign daily budget work?

Most of the people that setup daily campaign budgets don’t really understand how they work. Misconception number one about it is – if you set a daily limit, the campaign won’t spend more than that. The truth is – Amazon uses the same system as Google for daily budgets of PPC campaigns.

The sum of money you enter to be your baseline daily budget is going to be understood by Amazon as an average of what you want to spend on a monthly basis. They take into account the number of days in a year and split it by number of months in the year to get the average number of days in a month: 30.4. Then, based on your daily campaign budget, they will calculate how much can you spend in a month, to leverage their traffic to your advantage every day, under the given daily budget average.