For instance, if you have multiple ad groups targeting similar keywords and overlapping audiences, it may be best to combine them into a single, more focused ad group.
This allows you to concentrate your budget on the highest-performing keywords and ad creatives, reducing waste and improving efficiency in the overall campaign.
By structuring your campaigns thoughtfully and making granular bid adjustments, you gain greater control over your Amazon advertising efforts.
This ensures your budget is allocated effectively, reducing wasted spend and promising better results.
Dig deeper: 6 Amazon marketing strategies to implement
Continuous optimization: Adapt or waste
Daily and weekly performance audits
Amazon Ads isn’t a “set it and forget it” platform. Continuous optimization, starting with regular performance audits, is key to minimizing wasted ad spend.
At a minimum, you should check key metrics like ACoS, CPC (cost per click) and CTR (click-through rate) daily to verify that your campaigns are on track.
Daily audits help you catch and address issues before they become costly. For instance:
If you notice a sudden spike in CPC for a particular keyword, it could indicate increased competition. You might choose to lower your bids to maintain profitability or shift the budget to higher-performing keywords.
Similarly, a drop in CTR might signal that your ad copy or creative needs refinement or that your targeting is off.
Weekly audits provide a deeper dive into campaign performance. This is the time to:
Review overall trends.
Assess the effectiveness of your bid adjustments.
Evaluate the impact of any changes you’ve made during the week.
Pay special attention to the performance of new keywords and ad groups, as these are where optimization can have the most impact.
Setting up alerts and automated rules within Amazon’s campaign manager can also help you respond swiftly to performance changes.
You can set up a rule to automatically increase bids on high-performing keywords or pause ads that fall below a certain CTR threshold. These tools help you maintain control while reducing the manual effort required for optimization.
Iterative changes vs. major overhauls
Optimization is often about making small, iterative changes rather than sweeping overhauls.
By making gradual adjustments, you can fine-tune your campaigns without risking significant disruptions to your performance.
Rather than completely rewriting your ad copy, you might start by tweaking the headline or CTA. Monitor the impact of these changes over time and continue revising based on the data.
However, there are times when a major overhaul is necessary, particularly if a campaign is underperforming overall.
In such cases, you might need to reevaluate your entire approach, from targeting and bidding strategies to ad copy and creative.
While these overhauls can be time-consuming, they are sometimes the best way to address fundamental issues driving wasted ad spend.
By regularly optimizing through audits, A/B tests and iterative improvements, you ensure your Amazon advertising campaigns stay efficient and effective.
This proactive approach reduces wasted spend and positions your campaigns for success in the long term.
Scale with efficiency: Expanding smartly
Identifying scalable opportunities
Scaling your Amazon advertising campaigns can be a powerful way to increase revenue, but you must be efficient to avoid unnecessary costs.
The first step is to identify which of your current campaigns are most suitable for scaling. Look for campaigns with:
Consistently low ACoS.
High conversion rates.
A strong return on ad spend (ROAS).
These campaigns are your best candidates for expansion because they’re already performing well, meaning you can confidently allocate more budget to them with minimal risk.
When scaling, start by increasing your budget incrementally. For example, if your campaign consistently delivers a 20% ACoS, you might start increasing the daily budget by 10-20% and monitor the results closely.
This approach allows you to scale up without overwhelming your budget or sacrificing performance. It’s also important to keep an eye on your inventory levels.
Scaling a successful campaign can lead to rapid sales increases, and the last thing you want is to run out of stock and waste ad spend.
In addition to budget increases, consider scaling through new ad formats or placements. Sponsored Brands and Sponsored Display ads offer additional visibility and can complement your existing Sponsored Products campaigns.
If you’re already seeing success with product ads, consider expanding into these formats to reach a broader audience and reinforce your brand presence.
Dig deeper: 5 reasons Amazon Ads is better than Google Ads for ecommerce
Maintain performance as you grow
As you scale your campaigns, it’s crucial to maintain the efficiency and performance that made them successful in the first place.
One common challenge is that as you increase budget and expand targeting, your CPCs may rise and your conversion rates might drop due to increased competition or less precise targeting.
To counteract this, continue to apply the optimization strategies discussed earlier, such as refining your keyword strategy, adjusting bids and regularly reviewing performance metrics.
Scaling doesn’t mean setting your campaigns on autopilot. Even as you grow:
Maintain a rigorous schedule of performance audits to ensure that your campaigns are still delivering strong results.
Keep an eye on key metrics like ACoS, CTR and conversion rates and be ready to make changes as needed to sustain profitability.
Another way to maintain performance while scaling is to reinvest in high-performing areas.
For instance, if a particular product or keyword drives exceptional results, consider creating additional ad variations to capitalize on that success. You can also reinvest in top-performing audiences by refining your targeting or increasing bids for those segments.
Finally, don’t be afraid to pause or scale back campaigns that aren’t delivering. As you expand, some experiments will inevitably fail and it’s important to recognize when to cut your losses.
By reallocating resources from underperforming areas to more successful ones, you can maintain overall campaign efficiency and continue to drive growth without wasting ad spend.
Keep an eye on rising CPCs and competition
As you scale, you may face increased competition, leading to higher CPCs. Monitor these changes closely, as rising costs can erode the profitability of a scaled campaign.
One way to combat this is by refining your targeting to prioritize high-intent keywords and audiences that are more likely to convert. Additionally, consider testing lower-cost placements or ad formats that may offer a better ROI.
If competition in your niche becomes too intense, it might be time to explore less competitive niches or long-tail keywords. Continuously analyze your competitors’ strategies and adjust your bids and budgets to ensure you’re not overspending in highly competitive areas.
By identifying scalable opportunities, testing new markets or product lines and maintaining a vigilant approach to performance as you grow, you can scale your Amazon advertising campaigns efficiently and successfully.
Maximizing impact and minimizing waste in Amazon Ads
A proactive approach to reducing ad spend waste in Amazon Ads requires:
Refined targeting.
Mastery of keyword strategies.
Optimized campaign structures.
Continuous performance improvement.
Intelligent automation.
Efficient scaling.
By applying these strategies, you can keep your ad spend focused on driving profitable growth. These actionable tips will enhance your Amazon Ads, reduce wasted spend and ultimately improve your ROI.
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