Blog / Why Most Amazon Stores Waste Ad Spend
Why Most Amazon Stores Waste Ad Spend
Written by Trishane Anthony
600+ followers
UPDATED
2025-07-01
Reviewed by Justin Neale
The Truth About Amazon Advertising
Amazon has become a pay-to-play platform, especially in competitive categories. While running ads is necessary, most brands approach it blindly—launching campaigns without a clear strategy, wasting thousands before realizing they’re barely breaking even.
At Wize Consulting, we often inherit accounts with bloated ad campaigns, irrelevant targeting, and poor keyword match types. The problem isn't that sellers aren't spending enough—it’s that they’re spending inefficiently. That’s the difference between a cost center and a sales engine.
Mistake #1: Bidding on Broad Keywords Without Intent
One of the most common mistakes we see is the overuse of broad match keywords. While they generate clicks, they often attract unqualified traffic. Sellers end up paying for exposure that doesn’t lead to conversions—and Amazon’s algorithm doesn’t care if that traffic buys or not.
We focus on building campaigns around buyer-intent keywords using phrase and exact match types. These convert at a much higher rate and allow for more precise control over ad spend. Our approach is to generate profitable traffic—not just more traffic.
Mistake #2: Poor Campaign Structure and No Segmentation
Many sellers dump all their products into one campaign or ad group, hoping Amazon’s algorithm figures it out. The result? You can’t track performance accurately, can’t control budgets properly, and you lose visibility into what’s actually working.
Our campaigns are built around tight segmentation. Each product gets its own structure, each match type is isolated, and negative keywords are used aggressively to block irrelevant traffic. This structure gives us granular control over every dollar spent.
Mistake #3: Ignoring Conversion Rate and Listing Quality
Even a well-targeted campaign will bleed money if it sends traffic to a weak listing. Many brands obsess over ads but neglect their product pages, which leads to high bounce rates and poor ROAS (return on ad spend).
We don’t run ads in isolation. Before scaling any campaign, we ensure the product listing is fully optimized—clear titles, strong images, persuasive copy, and compelling reviews. Without that foundation, you're just throwing money at a leaky funnel.
Mistake #4: Set-and-Forget Campaigns with No Optimization
Ad performance changes constantly. Consumer behavior shifts, competitors adjust bids, and Amazon’s algorithm updates regularly. Many sellers launch their campaigns once and check back weeks later—by then, they’ve burned through budget with little to show for it.
We actively monitor campaigns on a weekly basis—adjusting bids, pausing underperformers, and reallocating budget toward high-ROAS terms. Our optimization process is ongoing, because in digital advertising, set-it-and-forget-it is the fastest way to drain your budget.
How We Maximize Every Advertising Dollar
At Wize Consulting, our ad strategies are built for one goal: profitability. We don’t just focus on impressions or clicks—we focus on conversion and return. Our team uses Helium 10, Amazon Brand Analytics, and in-house tracking dashboards to stay on top of performance across every campaign.
Whether you’re launching a new product or trying to scale an existing ASIN, we build tailored ad campaigns that grow alongside your business. And most importantly, we ensure every dollar you spend is working *for* you—not against you.
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