I've had my shop for over 12 years and most of that time have had a max budget of $1000 per day. While we don't always use that to the max, we vary throughout the year. We recently noticed that our ad budget was lowered to $100 a day with no notice and no explanation as to why. I reached out to Etsy support and they gave me some blanket statement about how its automated and because of my payment history and current payment account status it determines this. This is completely false, we NEVER have an outstanding balance and Etsy automatically removed any fees from our sales daily. I feel like Etsy did this in its weird attempt to weed out older shops or something. I'm just beyond frustrated at this point and Etsy Support is an absolute joke, might as well have an automated system because the people on there never can do anything to help.
Update: Can't even add "Etsy support" as a label when creating this post. Laughable.
It's based on the most recent ad performance.
We've been maxing out the $100 its been lowered to every month though.
Etsy now lowers the ad budget if the full amount isn't used.
So how are we supposed to raise it again if we've been maxing out the $100 budget everyday for almost a year?
It's up to admin to raise it above your limits. All you can do is email them or request a phone callback and see if you can convince them to increase it.
You've been spending $36,000 a year on ads?
Yes, actually way more than that.
Wow that you spend $100 a day on ads. Is it really that useful to you? Do the ads bring in that much business?
Great if it does.
But to answer your question only Etsy can decide. They raise and they lower based on what they determine is best for a shop.
@LittleMountainTop: Have you read 'What determines the limit for my maximum daily budget?' on https://help.etsy.com/hc/en-us/articles/360033701174-How-to-Set-Up-and-Manage-an-Etsy-Ads-Campaign