🧭 Overview
Budget allocation is one of the most critical—and most misunderstood—parts of Amazon PPC success. This guide explains how to structure and distribute your ad budget across Brand, Non-Brand, and Defense campaigns to scale profitably without waste.
▶️ Watch: PPC Budget Allocation Explained in 60 Seconds
👤 Who This Is For
This guide is ideal for:
🆕 New Amazon sellers setting up PPC and unsure where to spend first
📈 Growing brands dealing with rising ad spend and uneven results
🛡️ Established sellers protecting branded traffic from competitors
🧠 Sellers who want predictable, scalable PPC performance
🧩 Key Concepts You Need to Know
🏷️ Brand Keywords
Search terms containing your brand or product names.🔍 Non-Brand Keywords
Generic or competitor terms used by shoppers still comparing options.🛡️ Defense Campaigns
Campaigns designed to block competitors from capturing your branded traffic.📊 TACoS (Total Advertising Cost of Sales)
Ad spend divided by total revenue—used to measure long-term efficiency.📄 Search Term Report
Shows the actual customer queries that triggered your ads.
🛠️ Step-by-Step Budget Allocation Framework
1️⃣ Separate Campaigns by Intent (Non-Negotiable)
Create three distinct campaign groups:
🏷️ Brand Campaigns
Your brand keywords and branded ASINs
Goal: High conversion, low CPC traffic
🔍 Non-Brand Campaigns
Generic, category, and competitor targeting
Goal: New customer acquisition
🛡️ Defense Campaigns
Exact-match brand keywords and branded ASINs
Goal: Protect branded search results
⚠️ Common Pitfall: Mixing brand and non-brand keywords in one campaign hides performance data.
2️⃣ Allocate Budget by Business Stage
Use this as a starting framework:
🆕 Launch Stage
🔍 Non-Brand: 60–70%
🏷️ Brand: 20–30%
🛡️ Defense: ~10%
📈 Growing Brand
🔍 Non-Brand: 50–60%
🏷️ Brand: 25–35%
🛡️ Defense: 10–15%
🏆 Established Brand
🔍 Non-Brand: 40–50%
🏷️ Brand: 30–40%
🛡️ Defense: 15–20%
💡 Pro Tip: Base budget splits on brand demand maturity, not revenue alone.
3️⃣ Protect Brand & Defense First
Always fully fund Brand and Defense campaigns before scaling Non-Brand.
Why this matters:
✅ Higher Conversion Rates
💰 Lower CPCs
🚫 Prevents competitors from stealing brand traffic
Action Checklist:
Ensure campaigns never show “Limited by budget”
Use Exact Match for Defense brand keywords
4️⃣ Scale Non-Brand with Controls
Non-Brand is where most budget waste happens.
Best practices:
⬆️ Increase budgets only on keywords with stable ACoS
🧹 Regularly add negative keywords from Search Term Reports
🗓️ Scale budgets weekly, not daily
💡 Pro Tip: Treat Non-Brand as a controlled growth lever, not a spending engine.
5️⃣ Rebalance Monthly Using Data
At least once per month, review:
📊 Spend share vs revenue share
📉 TACoS trends
📈 Contribution to organic growth
⚠️ Common Pitfall: Chasing the lowest ACoS instead of profitable scale.
🌍 Real-World Examples
Example 1: Growing Private Label Brand
📦 2-year seller with rising spend, flat revenue
🔧 Separated Brand and Non-Brand campaigns
📉 Reduced waste via negatives
✅ Result: 18% lower TACoS, higher brand revenue
Example 2: Established Brand Under Attack
🏆 7-figure brand
🚨 Competitors bidding on brand terms
🛡️ Launched Defense campaign with exact match
✅ Result: Lower CPCs, stronger brand dominance
🚫 Common Mistakes to Avoid
❌ Overspending on Non-Brand too early
Fix: Prove Brand & Defense efficiency first
❌ Ignoring Defense campaigns
Fix: Always defend branded demand
❌ One budget pool for all campaigns
Fix: Segment by intent
❌ Optimizing only for ACoS
Fix: Use TACoS and total revenue impact
✅ Expected Results
After applying this framework, sellers typically see:
📉 Reduced wasted ad spend
📈 More stable growth
🛡️ Stronger brand protection
🔄 Easier scaling with fewer surprises
❓ FAQs
How much should I spend on brand keywords?
Enough to ensure brand campaigns never go out of budget.
Do small sellers need Defense campaigns?
Yes—brand demand attracts competitors at any size.
Should I pause Non-Brand if ACoS is high?
Not automatically. Evaluate TACoS and ranking impact.
How often should budgets be rebalanced?
Monthly for most sellers; bi-weekly for high-volume accounts.
To help you apply this framework consistently, use the Amazon PPC Budget Allocation Checklist (Brand vs Non-Brand vs Defense).
It’s designed for monthly reviews and pre-scaling budget checks inside Amazon Ads.