The basics of success:
Understanding sponsored ads

The truth about budget

Budget is a big topic for most advertisers. After all, you’re growing a business and want to know you’re spending money wisely. It’s natural to have some questions about how much advertising will cost you.

Here, we help answer those questions by showing you what’s true and false when it comes to budget.

True or False: There’s an upfront fee to advertise.

False: There’s no upfront fee to advertise, and no monthly fee either. When you create a sponsored ads campaign, you choose your own budget as well as the amount you want to bid for a click. You’ll only pay when a customer clicks on your ad, and you’ll never be charged more than your bid amount.

True or False: Advertising is expensive.

False: Sponsored ads are designed to work with your individual budget. You’ll want to choose one that’s high enough to help you reach your goals, but that will vary from advertiser to advertiser. In general, you’ll see results—ad impressions, clicks, and sales—with a budget of just $10 a day.

Our main piece of advice: never set a budget you’re not comfortable with. You can always start smaller and then invest more as you find what works best for your business.

On average, sellers who launch an ad campaign with a budget of at least $5 have up to 140% more ad-attributed sales than those who set a budget lower than $5.*

*Within their first 60 days of advertising with Sponsored Products.

True or False: I get to choose my budget.

True: Sponsored ads are designed to fit every budget, and to give you full control over it.

With Sponsored Products, you’ll set a daily budget, or the maximum amount you want to spend on advertising per day. With Sponsored Brands, you have the choice to set a daily budget or a campaign-level budget, the maximum amount you’re willing to spend over the course of the campaign.

True or False: I’ll be able to adjust my budget after I set it.

True: That’s right. You can always change your budget, no matter the reason.

If you set a daily budget, you can increase it or decrease it at any time. Note that you can only increase campaign-level budgets, so if you think there’s a chance you might want to lower your budget before your campaign ends, consider choosing a daily budget for more flexibility.

True or False: I’ll be charged for how many people view my ads.

False: Sponsored ads are cost-per-click, meaning you’re charged only when a customer clicks on your ad.