Overview

Amazon changed how advertising budgets work in 2025, allowing its algorithms to exceed daily budget limits by up to 25% when detecting high-value buying activity. The platform also front-loads spending in early hours and redistributes funds between campaigns automatically. Sellers need tighter monitoring systems to prevent cost overruns on tight-margin products.

Key Points

• 25% Budget Override — Amazon can spend up to 25% above your daily budget when algorithms detect strong buyer intent, turning a $100 cap into $125 actual spend
• Front-Loaded Spending — Campaigns burn through 60-70% of daily budgets in the first few hours if Amazon detects favorable conversion signals early
• Automated Fund Redistribution — The platform shifts money between campaigns based on predicted performance without explicit seller approval
• Schedule-Based Budget Rules — New rules let you set date ranges for Prime Day or custom events with automatic budget increases
• Performance-Based Rules — Auto-increase budgets when campaigns hit specific ROAS, CTR, or conversion thresholds you define

Budget Type Trade-Offs

• Daily Budgets — Provide immediate spending visibility but risk depletion by mid-morning, leaving products without ad coverage in afternoon/evening hours
• Monthly Budgets — Smooth spending over 30 days and prevent single-day exhaustion, but cumulative overspending can reach thousands before you notice
• Weekly Review Required — Check monthly budget campaigns every 7 days to catch accelerated spend before it compounds

Seller Impact

• Add 25% Buffer to All Budgets — If you plan $100/day spend, set campaigns to $80/day to account for the overage allowance and avoid budget surprises
• Build Emergency Pause Rules — Set up automated rules that pause campaigns when daily spend exceeds 115% of target by 2 PM EST
• Audit Negative Keywords Weekly — With faster budget depletion, every wasted click costs more. Add non-converting search terms from the last 7 days to negative lists