Why Your Amazon PPC Is Bleeding Money (And How to Fix It)

Hey, it's Yonah from Amazon Growth Lab.

Let me share something shocking: 81% of Amazon sellers are wasting at least 40% of their ad spend on keywords that will never convert.

How do I know? We've audited over 1,200 Amazon ad accounts, and the pattern is always the same.

The PPC Mistake Costing You Thousands

Most sellers structure their campaigns around product categories or match types. This is fundamentally flawed.

Here's why: Amazon's algorithm doesn't optimize for ACOS or ROAS at the campaign level. It optimizes for relevance and conversion at the keyword level.

When we took over a home goods brand's account, they were spending $30K/month on PPC with a 42% ACOS. After analyzing their search term report, we discovered that 63% of their budget was going to keywords with zero conversions in the past 90 days.

The "Search Intent Matrix" That Cut ACOS in Half

We restructured their campaigns using our Search Intent Matrix:

1. Awareness Keywords: Terms people use when they don't know what they need yet (e.g., "how to organize kitchen")

2. Consideration Keywords: Terms people use when they know what they need but are comparing options (e.g., "best kitchen organizers")

3. Purchase Keywords: Terms people use when they're ready to buy (e.g., "bamboo kitchen drawer organizer")

4. Brand Keywords: Terms specific to your brand

By separating these into different campaigns with appropriate bidding strategies, we cut their ACOS from 42% to 19% while maintaining the same sales volume.

The Quick Win You Can Implement Today

Download your Search Term Report for the last 90 days. Identify any terms that have:

• More than 10 clicks

• Zero conversions

• Spent more than $20

Add these as negative exact matches to all your campaigns immediately. This simple step saved one of our clients $4,700 in wasted ad spend in just one month.

Remember: Amazon PPC isn't about spending more. It's about spending smarter on keywords that actually convert.

Talk later,

Yonah
Founder, The Prime Playbook

PS. If you have any questions, just reply to this email.