Amazon is a powerhouse marketplace, with over 310 million active customers worldwide and 76% of shoppers heading straight to Amazon when looking for a product. With numbers like these, it’s no surprise that brands pour money into Amazon Advertising to grab their share of sales.
But here’s the catch – many sellers unknowingly bleed money. Are you also wasting money on Amazon ads without realizing it? If you’re running Amazon ads for your luxury brand and seeing disappointing results, you’re not alone. Many brands transitioning from 1P to 3P struggle to maximize their ad spend.
A poorly managed Amazon PPC (Pay-Per-Click) campaign can quickly drain your budget without delivering results. If you’re struggling with high ad spend and disappointing returns, you might be making one (or more) of these 7 costly Amazon ads mistakes.
The good news? Every mistake has a fix! Keep reading.
7 Amazon Ads Mistakes That May be Wasting Your Money
1. Lack of Strategy and Clear Goals
The Problem
Luxury brands often dive into Amazon ads without a clear plan. Running campaigns without well-defined goals – whether for brand awareness, conversions, or retargeting – leads to inefficient spending and poor results.
The Fix
- Start with a data-backed strategy.
- Define key objectives (e.g., increase conversion rate by 20% in three months).
- Understand customer buying behaviors and intent.
- Choose the right campaign types (Sponsored Products, Sponsored Brands, Sponsored Display) based on your goal.
- Set realistic KPIs to track success.
A structured approach ensures that every dollar spent aligns with your business goals.
2. Poor Campaign Structure and Targeting
The Problem
Many brands make the mistake of:
- Running only one type of campaign.
- Overlapping ad groups or campaigns, causing internal competition.
- Targeting the wrong audience or failing to segment.
This results in higher costs, cannibalization of your own bids, and wasted impressions.
The Fix
Diversify and structure campaigns properly:
- Use a mix of Sponsored Products, Sponsored Brands, and Sponsored Display to capture different stages of the buyer journey.
- Separate branded, competitor, and generic keywords to avoid competition within your own campaigns.
- Leverage audience targeting and retargeting to optimize for luxury buyers.
A well-structured approach increases efficiency and lowers costs.
3. Weak Keyword Strategy
The Problem
Using the wrong keywords – or failing to optimize them—is one of the biggest reasons Amazon ads burn money. Common mistakes include:
- Bidding on broad or irrelevant keywords.
- Ignoring long-tail keywords (which have higher purchase intent).
- Neglecting negative keywords, leading to wasted spend on irrelevant searches.
The Fix
- Conduct in-depth keyword research using tools like Helium 10, Jungle Scout, or Amazon’s own Brand Analytics.
- Target a mix of branded, competitor, and high-intent long-tail keywords.
- Regularly analyze search term reports to find new opportunities and weed out underperforming terms.
- Use negative keywords to filter out unqualified traffic and prevent wasted spend.
By refining your keyword strategy, you ensure your ads reach high-intent shoppers who are more likely to buy.
4. Ignoring Automation and Optimization Opportunities
The Problem
Some brands completely ignore Amazon’s automation tools, while others over-rely on them without proper monitoring. Failing to leverage automated campaigns or prematurely turning off existing ones leads to lost insights and inefficient ad spend.
The Fix
- Use auto campaigns strategically. Set them up alongside manual campaigns to discover high-performing keywords.
- Don’t shut down old campaigns too quickly. Let them collect data over time before making adjustments.
- Leverage Amazon’s bid automation tools (e.g., Dynamic Bidding) to optimize for better conversions.
- Continuously A/B test different bidding strategies to refine performance.
A mix of manual oversight and smart automation ensures consistent campaign optimization.
5. Subpar Ad Content and Landing Pages
The Problem
Even the best campaign strategy won’t save ads that don’t connect with customers. Many luxury brands fail by:
- Using generic, unengaging ad copy.
- Not showcasing premium value in their creatives.
- Sending traffic to unoptimized landing pages that don’t drive conversions.
The Fix
- Refine your ad creatives: High-quality imagery, compelling copy, and strong CTAs make a huge difference.
- Highlight your brand’s unique value: Emphasize exclusivity, craftsmanship, and benefits that set you apart.
- Optimize your product detail pages: Ensure they have SEO-rich descriptions, premium visuals, and persuasive bullet points to boost conversions.
- Test different creatives and messaging to see what resonates most with your audience.
Better ads and landing pages mean higher conversion rates and lower wasted ad spend.
6. Inefficient Budget and Bid Management
The Problem
Luxury brands often overspend on underperforming ads while underfunding high-potential campaigns. Common mistakes include:
- Setting bids too high for low-performing keywords.
- Not adjusting budgets based on real-time data.
- Running out of daily budgets too early in the day.
The Fix
- Analyze historical data to identify high-ROI keywords and allocate more budget there.
- Set bid adjustments based on performance metrics, not gut feelings.
- Monitor daily spend and pacing to ensure campaigns don’t shut off prematurely.
- Use placement modifiers to bid more aggressively on high-converting placements.
A smart budget strategy maximizes ad efficiency and profitability.
7. Not Leveraging Data for Performance Improvement
The Problem
Many brands fail to regularly analyze and optimize their ad performance. Running ads without reviewing key metrics results in wasted ad spend and missed growth opportunities.
The Fix
- Use Amazon’s analytics tools to track impressions, CTR, CPC, ACoS, and ROAS.
- Regularly refine ad copy, keywords, and targeting based on performance insights.
- A/B test different ad variations to see what delivers the best results.
- Implement ongoing optimizations instead of a set-it-and-forget-it approach.
Continuous optimization keeps your luxury brand competitive and profitable on Amazon.
Final Thoughts
Amazon advertising can drive revenue, but only if used correctly. By avoiding these seven costly mistakes, luxury brands transitioning to 3P can maximize ROI, reduce wasted spend, and scale their presence effectively.
Success on Amazon requires a data-driven, strategic approach. Once you start optimizing, you’ll see the difference in lower costs, higher conversions, and better brand positioning. Don’t let your Amazon PPC budget go down the drain – take charge, analyze data, and optimize continuously!
Need expert help optimizing your Amazon ads? Contact our team for a tailored ad strategy that delivers real results!