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Do you follow Amazon’s budget suggestions when you have an ad that is using all of it’s budget?

I do.

Amazon’s suggest budget increase is based on how much they think the ad will spend by the end of the day based on what has been already spent and how fast it spent. I don’t like to have to babysit my ads that much, so I increase by the amount they say to.

Often, I have to increase more but it doesn’t run out of budget as fast. And ad out of budget isn’t running at all and that’s bad. If an ad is running out of budget frequently, even when you continually increase it, it’s usually a good time to start tweaking your bids down.

Traffic is finite depending on your targeting so you could be overpaying. And if the performance of the ad begins to drop, I would definitely begin lowering bids.