Budget should follow proven efficiency rather than a fixed percentage of revenue. Once a campaign converts below your break-even ACOS, additional spend on it is profitable and should be increased until efficiency degrades. For a new product, a common starting approach is a modest daily budget held long enough to gather statistically meaningful click data before judging anything.
Why percentage-of-revenue rules mislead
Rules like 'spend 10% of revenue on ads' ignore whether that spend is working. If your campaigns return below break-even, 10% is too much. If they return well above, 10% is leaving money unclaimed.
Scale by keyword, not by account
Increase budget where specific keywords are profitable, not across the whole account. Account-level budget increases push money into weak campaigns alongside strong ones.
Watch for the point where more spend stops producing proportional sales — that is the ceiling for that term, and pushing past it is where efficiency collapses.
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