What is the difference between daily budget and lifetime budget in Amazon Ads?

• A. Daily budget caps spend per day; lifetime budget caps total spend over the campaign’s duration.
• B. Daily budget caps total spend; lifetime budget caps per day.
• C. Daily budgets set bid levels; lifetime budgets set click limits.
• D. Daily budget never changes; lifetime budget adjusts automatically.

Answer: (A)

The main idea is how spend is limited over time. A daily budget is the maximum you’re willing to spend in a single day; once that daily cap is reached, the system reduces or pauses delivery for the rest of the day. A lifetime budget is the maximum you’re willing to spend for the entire campaign across its scheduled duration; the system paces delivery to stay within that overall cap and the campaign stops once the total reaches the budget (or when the end date arrives).

Note that budgets control how much you spend, not how much you bid. Bids determine your cost-per-click or cost-per-impression, while budgets set the upper limits on spend. Budgets can be adjusted, but the daily budget governs per-day spending and the lifetime budget governs total spend over the campaign’s life.