Top 5 Amazon PPC Mistakes and How to Avoid Them

We have made a list of 5 major and common mistakes that Amazon Sellers make while doing PPC. This becomes much more significant once you understand 78% of sellers make at least three major mistakes in their campaigns. These errors often go unnoticed for months, leading to wasted ad spend and missed sales opportunities.

The good news? Most of these expensive PPC mistakes are easy to fix once you know what to look for. Small changes in your campaign structure, keyword selection, and bid management can significantly improve your ACOS and profitability.

Poor Campaign Structure Killing Your ACOS

A messy campaign structure directly impacts your advertising costs. Our analysis shows that sellers with disorganized campaigns spend 45% more on average to achieve the same sales compared to sellers with well-structured campaigns. The most common issue is mixing too many different products in one campaign, making it impossible to control spending on individual items.

How To Build a Winning Campaign Structure?

Set up your campaigns based on product categories and profit margins. Start by separating products with different profit margins into separate campaigns. This allows you to set appropriate ACOS targets for each group. For example, if you sell kitchen products, create separate campaigns for high-margin items like specialty knives and low-margin items like basic utensils.

Create single-product campaigns for your best sellers. These campaigns give you maximum control over bids and keywords for your most important products. Track the search terms that convert well and use them to optimize your product listings.

Wrong Keyword Strategy Burning Ad Budget

Many sellers waste money on broad-match keywords that don’t convert. Data from successful Amazon campaigns shows that 70% of sales come from just 30% of keywords. The rest of the keywords often drain your budget without generating meaningful returns.

How To Create A Profitable Keyword Strategy?

Focus on specific, high-intent keywords that match your product features. Use your automatic campaigns to discover converting search terms, then move them to manual campaigns with exact match type. Remove keywords with high spend and no sales after 2-3 weeks of testing.

Monitor competitor brand keywords carefully. While bidding on competitor terms can work, they often have higher CPCs and lower conversion rates. Only target competitor keywords if your product offers clear advantages or better pricing.

Inefficient Bid Management Reducing Profits

Poor bid management is the leading cause of high ACOS. Many sellers either set bids too high initially or fail to adjust them based on performance. According to Amazon PPC experts, optimal bid adjustments should happen every 7-10 days, not daily or monthly.

How To Optimize Your Bidding Strategy?

Calculate your maximum profitable bid for each product using this formula:
(Product Price × Target ACOS × Average Conversion Rate)

 For example, if you sell a $30 product with a 25% target ACOS and 10% conversion rate, your maximum profitable bid would be $0.75.

Adjust bids based on placement performance. Top-of-search placements often convert 2-3 times better than other positions. If a keyword performs well in top-of-search, consider increasing the bid to maintain this position.

Over-Reliance On Automatic Campaigns

Many sellers leave their automatic campaigns running without proper monitoring, thinking they’ll optimize themselves. Our data shows that sellers who rely solely on automatic campaigns have 35% higher ACOS compared to those who use a balanced approach. While automatic campaigns are valuable for keyword research, they shouldn’t be your primary campaign type.

How To Balance Auto And Manual Campaigns?

Start with automatic campaigns at a lower daily budget to discover profitable search terms. Once a search term generates 2-3 sales, move it to a manual campaign with exact match type. Maintain your automatic campaigns at 20-30% of your total ad budget to continue finding new keywords.

Review your automatic campaign search terms weekly. Look for patterns in converting search terms to identify new product features or benefits that resonate with customers. Use these insights to update your product listings and manual campaign keywords.

Ignoring Advanced Campaign Features

Most sellers stick to basic Sponsored Products ads, missing out on valuable targeting options that could lower their ACOS. Advanced features like product targeting and portfolio campaigns often have lower competition and better conversion rates.

How To Use Advanced PPC Features?

Implement category targeting to reach shoppers browsing similar products. Target complementary product categories – for example, if you sell coffee makers, target the coffee beans category to reach active buyers. Use portfolio campaigns to manage budgets across multiple products and maintain consistent ACOS targets across your account.

Test Sponsored Brand ads for your best-selling products. These ads typically have higher click-through rates and can help establish your brand. Focus on creating compelling headlines that highlight your unique selling points.

One Final Thought

Fixing these Amazon PPC mistakes requires consistent effort and regular monitoring. Focus on one area at a time, measure the results, and adjust your strategy accordingly. Remember that even small improvements in your PPC campaigns can lead to significant savings in your advertising costs and better overall profitability for your Amazon store.