Running Amazon ads but not seeing results? You’re not alone. Many sellers spend thousands on campaigns that barely convert. The problem isn’t your product—and it’s rarely your budget. It’s the way your Amazon product ads are managed, and a better understanding of Amazon product ads management could make a significant difference.
In this article, we’ll break down:
- The real reasons Amazon ads fail—even with big budgets
- What smart Amazon product ads management actually looks like
- How agencies like Velocity Sellers turn underperforming campaigns into scalable profit engines
If you’re tired of burning ad spend with nothing to show for it, keep reading. Let’s fix what’s broken and show you how to build Amazon ad campaigns that actually work.
Why Amazon Product Ads Fail (Even With a Big Budget)
Are your Amazon ad dollars vanishing without results? You’re not the only one. Many sellers can’t get good results from their Amazon ads, even with big budgets. The biggest problem isn’t the platform or your budget—it’s how you run these ads.
Poor keyword targeting
Amazon product ads often fail because of a weak keyword strategy. Sellers usually choose the wrong keywords or fail to update them as needed. Poor keyword selection wastes money and cuts down conversion rates.
Here are the most common keyword targeting mistakes:
- Using only broad match keywords – These attract too many wrong shoppers who won’t buy
- Not using negative keywords – You’ll pay for clicks from people who never plan to buy
- Using different match types wrongly – Mixing match types in one campaign makes it hard to see which searches work
This keyword data shows how varying bids, search volume, and competition affect Amazon ad performance.
Keyword Targeting Example:
Sellers also mess up by not sorting keywords by buyer intent. One expert puts it well: “Adding irrelevant search terms as exact matches to your negative keyword list helps you fine-tune your broad match campaigns”. Without this fine-tuning, you’ll show ads to people who don’t want your products.
Wrong ad type for the goal
Picking the wrong ad types for your goals is another big mistake. Amazon gives you several ad formats. Each works best for different parts of the buyer’s trip.
Sponsored Products work great for shoppers ready to buy right now. Brand-focused campaigns work best when your goal is to build awareness and drive store traffic. Display formats excel at retargeting and cross-selling to shoppers who have already shown interest. And with Amazon DSP, you can reach audiences far beyond the platform itself.
Most sellers rely too much on Sponsored Products and don’t use other types enough. This creates an unbalanced ad strategy. When ad types don’t align with business goals, you waste money and miss opportunities to reach customers at different stages of the shopping journey.
Lack of campaign structure
Bad campaign structure hurts Amazon advertising more than anything else, yet many ignore this issue. Without good organization, you can’t make your ads better.
Campaigns often suffer from messy naming, mixed targeting types, overlapping targets, and scattered ASINs. This mess makes it hard to track how well things work or make improvements.
Many sellers put too many products into a single campaign or ad group. This makes it hard to see which items drive sales and which cost money. Good grouping matters—you should organize campaigns by similar products, how well they perform, and keyword intent.
Sellers also create campaigns without clear goals. Without set goals, you can’t measure success or make smart budget and bid decisions.
No performance tracking or testing
The “launch and leave” approach ruins many Amazon ad campaigns. Sellers start campaigns but never check or improve them, so they keep doing worse.
Regular monitoring helps you:
- Stop keywords that don’t work
- Find search terms worth growing
- Change bids based on results
- Try different ad designs and product pages
Sellers often watch the wrong numbers, too. Instead of tracking important metrics tied to business goals, they focus on surface-level stats that don’t help profits. For example, worrying too much about click rates without considering conversion rates and ACoS (Advertising Cost of Sales) leads to poor decisions.
Not testing different ad designs and product pages means missing chances to make things work better. Testing helps you learn what your customers like and what makes them buy.
What Smart Amazon Product Ads Management Actually Looks Like
Smart Amazon advertising doesn’t need more money—it needs better management. Many sellers struggle with returns, but those who master strategic Amazon product ads management stay ahead of their competitors. Let’s get into what good management looks like day to day.
“Look at your hero image right now. Does it show the actual product? Does it say exactly what it is? If you zoom out and still don’t get the full message, fix it.” — John Aspal
Clear goals and KPIs
The foundation of innovative Amazon advertising starts with clear objectives. The core team sets specific goals that line up with business priorities before any ad launch. These goals usually fit into four categories: awareness, consideration, purchase, or loyalty.
After setting objectives, picking the right key performance indicators (KPIs) becomes vital:
- For awareness goals: Track campaign reach, impressions, and click-through rate (CTR)
- For consideration: Monitor CTR, cost-per-click (CPC), and engagement metrics
- For purchase-focused campaigns: Measure conversion rate, cost of acquisition, and return on ad spend (ROAS)
- For loyalty campaigns: Analyze repeat purchase rate alongside ROAS
Smart advertisers look beyond basic metrics like Advertising Cost of Sale (ACoS). They focus on complete indicators such as Total Advertising Cost of Sale (TACoS). This measures ad spend against total revenue, which gives a complete picture of advertising performance.
Strategic ad grouping and targeting
The right product grouping lays the foundation for successful Amazon PPC management. Yes, it is true that your campaign structure directly affects your targeting precision, bidding strategy, and budget allocation.
Expert campaign managers use four main grouping strategies:
- Attribute-based grouping groups similar products by features or purpose. This boosts click-through and conversion rates by making ads more relevant. Here’s a tip: products that share about 80% of keyword targets make perfect grouping candidates.
- Historical data-based grouping combines products with matching performance metrics. This helps with budget allocation and profitable bidding strategies. You won’t mix high-converting products with poor performers, which makes bid optimization easier.
- Price-based grouping splits products into different tiers. This works for targeted customer segments and optimized return on ad spend. To name just one example, premium headphones at $129 need different targeting than budget models at $49, even with similar keywords.
- Objective-based grouping creates separate campaigns for specific goals, such as new product promotion, inventory clearance, or different customer segments.
Continuous bid and budget optimization
Amazon’s advertising success needs constant fine-tuning of bidding strategies and budget allocation. Professional managers analyze performance data to make smart adjustments instead of setting and forgetting bids.
Top advertisers use dynamic bidding strategies rather than fixed bids. “Dynamic bids – up and down” lets Amazon adjust bids by up to 100% based on likely conversions. “Dynamic bids – down only” gives better cost control while staying in auctions.
Budget optimization matters just as much. Starting daily budgets at $10 per campaign keeps ads competitive throughout the day. On top of that, skilled managers give more budget to campaigns that perform well. They adjust spending based on performance data, often favoring broad, automated campaigns that typically deliver better results.
Use of automation and AI tools
Modern Amazon product ads management employs automation and artificial intelligence to boost campaign performance. These tools process huge amounts of data to make tiny adjustments that humans couldn’t handle.
Amazon’s AI-powered creative solutions help create more engaging content across images, videos, and audio formats. Brands that use AI-generated images see a 10.3% higher return on ad spend compared to regular campaigns.
At Velocity Sellers, we don’t guess when it comes to bidding—we use real-time data to adjust bids based on placement, keyword performance, and ACoS trends. Our team constantly lowers bids for high-ACoS, low-converting terms and boosts visibility for terms with strong ROAS potential. It’s hands-on optimization, not automation for its own sake.
Brands that integrate data-driven creative testing — including video, image, and headline A/B tests — consistently scale faster and waste less ad budget. These advertisers promote 5 times as many products and use twice as many images per advertised product as those working without AI tools.
The Ad Types You Should Be Using—and When
Amazon sellers often make a crucial mistake by choosing the wrong ad format for their goals. The right ad type can make a huge difference in your campaign results. Let’s learn about the four main Amazon ad types and when to use them best.
Sponsored Products – For high-intent shoppers
Sponsored Products are the foundations of Amazon advertising. These ads target shoppers who are ready to buy. They connect customer searches to product pages and appear clearly in search results and on product pages.
You’ll pay for Sponsored Products only when someone clicks your ad. These ads work so well because they blend naturally into search results with just an “Ad” label.
Sponsored Products work best to:
- Drive quick sales for specific products
- Get more eyes on new launches
- Boost organic ranking through better sales numbers
These ads shine at the time of conversion because they reach shoppers right as they decide to buy. The average conversion rate for Sponsored Products usually falls between 9% and 12%. This makes them perfect for bottom-funnel results.
Sponsored Brands – For brand awareness
Sponsored Brands (formerly known as Headline Search Ads) help you build brand recognition. They showcase your logo, custom headline, and up to three products. You’ll find these ads at the top of search results, giving excellent visibility to browsing shoppers.
You can choose from three Sponsored Brands formats: Product Collection with multiple products, Store Spotlight that shows off your Amazon Store sections, and Sponsored Brands Video with autoplay in search. Amazon’s data shows that 80% of Sponsored Brands sales came from new customers from 2018 to 2022.
These ads excel at:
- Launching new product lines
- Building brand visibility
- Getting traffic to your Amazon Store
- Telling your brand story through video
They work best in the mid-funnel stage, when shoppers compare options before choosing a product.
Sponsored Display – For retargeting and cross-sell
Sponsored Display gives you special targeting options on and off Amazon. Instead of using keywords, these ads target shoppers based on what they browse and buy.
You can use three main targeting approaches:
- Views remarketing to reach people who looked but didn’t buy
- Product targeting on competitors or related listings
- Audience targeting based on interests and shopping behavior
Sponsored Display really shines at retargeting potential customers. Research shows that Sponsored Display audiences help advertisers get up to 82% of sales from new-to-brand customers.
Amazon DSP – For off-Amazon reach and scaling
Amazon DSP (Demand-Side Platform) stands out as the most advanced advertising option. It lets you run programmatic ads across Amazon properties and the wider web.
DSP uses Amazon’s first-party data to precisely target audiences. It supports display, video, and audio ads. Unlike other options, DSP charges by the thousand impressions (CPM) rather than per click.
This platform works great for:
- Growing overall brand awareness
- Connecting with customers outside Amazon
- Running smart retargeting campaigns
- Creating streaming TV and video ads
DSP offers the most considerable reach but costs more. The managed service starts around USD 50,000, though certified agencies can access it with flexible budgets.
How Velocity Sellers Fixes Broken Ad Campaigns
Seeing your Amazon ad campaigns underperform can be frustrating, especially when you can’t pinpoint the cause. Our team at Velocity Sellers has developed a systematic approach to fix broken ad campaigns and maximize ROAS.
Why Work With Velocity Sellers on Amazon Product Ads Management
At Velocity Sellers, we don’t guess—we optimize. Our team of experts builds and manages product ad campaigns that deliver real performance across Sponsored Products, Brands, Display, and DSP.
Here’s how we do it:
- Tailored campaign strategy built around your catalog and business goals
- Daily bid & budget optimization for lower ACoS and higher ROAS
- High-performance product grouping based on data, price tiers, and intent
- DSP access for brands looking to scale reach and retarget efficiently
- Real-time dashboards with metrics that actually drive decisions
Case in Point: Turning Blocked Ads into 47% of Sales
A home goods company faced major catalog issues—pricing mismatches, chargebacks, no clear ad strategy, and flat Vendor Central sales. Due to platform restrictions, they couldn’t run ads on many of their products.Velocity Sellers stepped in with catalog cleanup, A+ content, and a new Seller Central store. Advertising-restricted products were shifted there, along with new SKUs to expand reach.
Results:
- Ad spend: 5% of total sales
- Sales up 38% year-over-year
- 47% of all Amazon sales came from Seller Central in Year 1
We don’t outsource. We don’t ghost you. We manage your ads as if we owned your brand.
Audit of the current ad structure and spend
We start with a detailed audit of your existing ad structure. Our team examines campaign organization, naming conventions, and spending distribution to identify inefficiencies. Campaign metrics show us where you waste ad spend on keywords that bring traffic but no conversions. This whole picture reveals your budget’s weak spots.
Rebuild campaigns with better segmentation
After we spot the issues, we rebuild your campaigns with proper segmentation. Single-keyword campaigns work best for high-volume terms and branded keywords to stop “impression suppression”. Your most important keywords get the exposure they need, without fighting over budget.
Implement negative targeting and A/B testing
Performance improves through negative targeting—we add search terms that cost money but don’t convert as negative keywords. We run A/B tests on listing elements, such as main images and titles, simultaneously. These tests can boost sales by up to 16 units per test.
Use immediate dashboards for ROAS tracking
Tracking is vital, so we set up immediate dashboards that monitor key metrics, including ROAS, click-through rates, and conversion rates by placement. You’ll see results right away instead of waiting for monthly reviews.
Arrange an ad strategy with the product lifecycle
Your product’s lifecycle stage shapes our campaign approach. New products need strategies focused on visibility and finding keywords. Mature products work better with defensive campaigns and profitability optimization. This stage-based method ensures your ad spend aligns with what your product needs right now.
Ready to Stop Wasting Ad Spend? Let’s Talk
Are your Amazon ad campaigns eating up your budget without results? Your biggest problem isn’t Amazon – it’s how you manage your ads. A professional Amazon product ads manager can reshape the scene by turning those money-losing campaigns into profit centers.
What does Amazon product ads management have?
Professional management covers everything from setting up campaigns to making them better over time. You’ll get keyword research, intelligent ad grouping, bid adjustments, and up-to-the-minute data analysis through dashboards. A detailed management plan also handles all ad types—Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP when needed. This creates a comprehensive strategy that aligns with your business goals.
Is DSP worth it for Amazon brands?
Yes, in most cases. Amazon DSP gives you benefits you won’t find anywhere else. You get access to Amazon’s valuable first-party data and AI-powered targeting. On top of that, it lets you connect with customers on and off Amazon through premium ad spaces. The platform requires at least USD 50,000 for managed services, but certified agencies can help you start with less.
Can an agency lower my ACoS?
Yes, definitely. Professional management often cuts ACoS through systematic improvements. Agencies use strategies like negative keyword targeting, bid automation, and performance tracking. They also identify search terms that don’t work, so you don’t waste your money.
How long does it take to fix Amazon ad performance?
You’ll see your first data in 3-7 days, and clear patterns will show up after 2-4 weeks. Most campaigns find their groove within 1-3 months as Amazon’s algorithm learns where ads work best. A complete campaign turnaround usually takes 6+ months of steady improvements.
Final Thought: Your Ad Budget Deserves Better
Your Amazon ads shouldn’t feel like a gamble. The problem usually isn’t your product—or your budget. It’s a poor structure, a scattered strategy, and a lack of expert management.
With an innovative campaign framework, real-time optimization, and the right ad mix, Amazon ads become a real growth engine—not just a line item on your expense sheet.
Don’t settle for guesswork. Let expert hands turn your ad spend into sustainable, scalable revenue.
Let’s fix your Amazon product ads. Starting today.
Amazon Management Services
Optimize Pricing, Resolve Issues, Manage Cases, and Boost Sales. Our dedicated experts optimize pricing, resolve issues, manage cases, and provide top-tier support for your comprehensive Amazon success.
