Amazon Ads: Tips, Strategies & Why Manual Beats Automated
Amazon Ads: Tips, Strategies & Why Manual Beats Automated
Running Amazon ads can feel like throwing money into a black hole—especially when you’re new to it. I’ve been managing Amazon advertising for years, and I can tell you that most sellers are making the same costly mistakes over and over again. They set up automated campaigns, let Amazon handle everything, and wonder why their ACOS is through the roof.
Here’s the truth: while Amazon’s automated systems have gotten better, I’ve consistently seen better results with manual campaigns when managed properly. This isn’t about being anti-automation—it’s about understanding when to use each approach and how to optimize for actual profitability, not just impressions.
In this guide, I’ll walk you through the strategies that actually work, share why manual campaigns often outperform automated ones, and give you actionable tips you can implement today to improve your Amazon advertising results.
Understanding Amazon Advertising Basics
Before diving into strategies, let’s establish what we’re working with. Amazon advertising pulled in $17.3 billion in Q4 2024, marking an 18% year-over-year growth, so you’re definitely not alone in investing here.
Amazon advertising works on an auction system. You bid on keywords, and when customers search for those terms, Amazon decides which ads to show based on bid amount, relevance, and ad quality. You only pay when someone clicks your ad, which is why it’s called pay-per-click (PPC).
There are three main types of Amazon ads:
Sponsored Products: These show up in search results and look like regular product listings. They’re the bread and butter of Amazon advertising.
Sponsored Brands: These are the banner-style ads that appear at the top of search results, featuring your logo and multiple products.
Sponsored Display: These can appear on and off Amazon, targeting shoppers who’ve viewed similar products or your competitors’ listings.
For most sellers, Sponsored Products campaigns are where you’ll see the best return on investment, especially when you’re starting out.
The Manual vs. Automated Debate (And Why Manual Usually Wins)
This is where a lot of sellers get it wrong. Amazon makes automated campaigns sound like the easy button—just set it up and let their algorithm handle everything. In reality, I’ve found that manual campaigns consistently outperform automated ones once you know what you’re doing.
Why Automated Campaigns Fall Short
Automatic campaigns allow Amazon’s algorithm to handle targeting and bidding, but they often target irrelevant keywords or bid too high. Here’s what I’ve seen happen repeatedly:
Wasted Spend on Irrelevant Terms: Amazon will show your ads for loosely related searches that don’t convert. I’ve seen campaigns spend hundreds of dollars on keywords that have nothing to do with the actual product.
Poor Bid Management: Amazon’s suggested bids are often inflated. The suggested bid range is frequently misleading because it’s designed to maximize Amazon’s revenue, not your profitability.
Limited Control: You can’t easily exclude bad keywords or adjust bids for specific terms that are working well.
When Automated Campaigns Are Useful
Don’t get me wrong—automated campaigns have their place. They’re perfect for discovering high-performing keywords and understanding what search terms customers use. I use them for:
- Keyword Discovery: Running auto campaigns for 2-3 weeks to see what terms Amazon finds
- New Product Launches: When you don’t have enough data to know which keywords will work
- Large Catalogs: If you have hundreds of products and need a starting point
But here’s the key: I treat automated campaigns as research tools, not as my main advertising strategy.
Why Manual Campaigns Deliver Better Results
Manual campaigns give you full control over which keywords and products your ads target, allowing you to set specific bids and use advanced optimization techniques. Here’s why they consistently outperform:
Precise Targeting: You choose exactly which keywords to bid on, eliminating waste on irrelevant searches.
Bid Control: You can set different bids for each keyword based on performance data.
Better ROAS: With proper management, manual campaigns typically achieve 20-40% better return on ad spend.
Scalability: You can systematically expand successful campaigns and pause underperformers.
Keyword Research That Actually Works
Most sellers approach keyword research backwards. They think about what they want to rank for instead of what customers actually search for. Here’s my approach:
Start with Competitor Intelligence
Look at what keywords your successful competitors are bidding on. Tools like Helium 10 or Jungle Scout can show you this data, but you can also get insights by searching for your main keywords and seeing which products consistently appear in sponsored positions.
Use Amazon’s Data
Amazon’s Search Terms Report shows the actual search terms that trigger your ads. This is goldmine data that most sellers ignore. After running any campaign for a few weeks, download this report and look for:
- High-converting terms you’re not specifically targeting
- Expensive terms that aren’t converting
- Variations of your main keywords that perform well
Focus on Intent, Not Volume
High-volume keywords aren’t always the best keywords. A term with 1,000 searches per month but a 20% conversion rate will make you more money than a term with 10,000 searches and a 2% conversion rate.
Look for keywords that indicate buying intent:
- “Best [product type]”
- “[Product] reviews”
- “Buy [product]”
- Brand-specific terms for competitors
Long-Tail Keyword Strategy
For example, instead of just bidding on “coffee mug,” also target:
- “ceramic coffee mug with handle”
- “dishwasher safe coffee mug”
- “large coffee mug 15 oz”
These longer terms typically have lower competition and higher conversion rates.
Bidding Strategies That Maximize Profitability
Bidding is where most sellers lose money. Amazon’s suggested bids are often inflated to encourage higher spending, so you need your own strategy.
My Bidding Framework
Start Conservative: Begin with bids 20-30% below Amazon’s suggestions. You can always increase them if you’re not getting impressions.
Use Performance Data: If a keyword has high ACOS (e.g., 220%), reduce the bid by 20-30%. For high-performing keywords with low ACOS, gradually increase bids to capture more volume.
Wait for Sufficient Data: Don’t make bid adjustments until a keyword has at least 30-40 clicks. Making decisions on 5-10 clicks is like flipping a coin.
Match Type Strategy
Amazon offers three match types, and most sellers use them wrong:
Exact Match: Use this for your proven, high-converting keywords. Bids can be higher here because you know these terms work.
Phrase Match: Good for capturing variations of your main keywords while maintaining some control.
Broad Match: Use sparingly and only for keyword discovery. The traffic quality is usually poor, but it can help you find new terms.
Bid Adjustment by Placement
Top-of-search placements significantly outperform other ad placements for click-through rate and conversion rate. I typically increase bids by 50-100% for top-of-search placement on my best-performing keywords.
Campaign Structure for Success
How you organize your campaigns matters more than most sellers realize. A messy campaign structure leads to poor performance and wasted spend.
The Structure I Use
Single Keyword Ad Groups: Each ad group contains only one keyword (or very closely related keywords). This gives you maximum control over bids and makes optimization much easier.
Separate Campaigns by Match Type: Don’t mix exact, phrase, and broad match keywords in the same campaign. They perform differently and need different bid strategies.
Product-Specific Campaigns: Group related products together, but don’t put your entire catalog in one campaign. You want to be able to optimize for each product’s specific performance.
Negative Keyword Strategy
Negative keywords prevent your ads from appearing for irrelevant searches. This is crucial for controlling costs. I regularly review search term reports and add negative keywords for:
- Terms that get clicks but no sales after 30+ clicks
- Completely irrelevant searches
- Competitor brand names (unless you specifically want to target them)
- Terms like “free,” “cheap,” or “DIY” that indicate low purchase intent
Optimization Tactics That Move the Needle
Optimization isn’t a one-time task—it’s an ongoing process. Here’s my weekly optimization routine:
Performance Review Process
Monitor Key Metrics: Focus on ACOS, conversion rate, and total sales rather than just clicks or impressions.
Keyword Performance: You can increase bids on high-converting keywords and decrease bids on underperforming keywords to maximize ROI.
Search Term Mining: Look for new keywords in your search term reports that are performing well but aren’t specifically targeted.
Budget Management
I typically:
- Increase budgets on high-performing campaigns by 20-30%
- Pause or reduce budgets on campaigns with consistently high ACOS
- Set higher budgets during peak shopping periods
Creative Optimization
Your product listing quality directly impacts ad performance. Even the best keywords won’t convert if your listing is poor. Focus on:
- High-quality images that clearly show the product
- Compelling titles that include main keywords
- Bullet points that address customer pain points
- Competitive pricing relative to similar products
Advanced Strategies for Experienced Sellers
Once you’ve mastered the basics, here are some advanced tactics:
Dayparting
Some products sell better at specific times of day. While Amazon doesn’t offer built-in dayparting, you can use budget rules to increase spending during peak hours and reduce it during low-performance times.
Seasonal Adjustments
Adjust your strategy based on seasonal trends:
- Increase budgets before peak seasons
- Add seasonal keywords (“Christmas gifts,” “back to school,” etc.)
- Adjust bids based on increased competition during high-traffic periods
Competitor Targeting
Use Sponsored Display campaigns to target customers who’ve viewed your competitors’ products. This can be particularly effective for capturing customers who are comparison shopping.
Common Mistakes That Kill Profitability
I see these mistakes over and over again:
Setting and Forgetting
Amazon advertising requires active management. Set aside time each week to review performance and make adjustments.
Focusing Only on ACOS
Low ACOS isn’t always good if it means you’re missing sales opportunities. Sometimes it’s worth a higher ACOS to capture more market share or launch a new product.
Not Testing Enough
Test different ad copy, keywords, and bidding strategies. What works for one product might not work for another.
Ignoring Organic Rank Impact
PPC campaigns can help improve your organic rankings. Sometimes it’s worth running ads at a higher ACOS for strategic keywords if it helps your organic visibility.
Tools and Resources
While you can manage Amazon ads manually, some tools make the process much easier:
Amazon Native Tools: Use Campaign Manager, Search Term Reports, and Business Reports for free data.
Third-Party Tools: Helium 10, Jungle Scout, or SellerApp can provide additional insights and automation features.
Bid Management: Tools like Teikametrics or PPC Entourage can help automate bid adjustments based on your rules.
Measuring Your Success
Don’t just look at ACOS—consider these metrics:
Total Advertising Cost of Sales (TACOS): This includes the impact of ads on organic sales.
Return on Ad Spend (ROAS): Revenue divided by ad spend gives you a clearer picture of profitability.
Organic Rank Improvement: Track whether your ads are helping improve organic positions for target keywords.
Total Sales Growth: The ultimate goal is growing your overall Amazon business, not just optimizing individual campaigns.
Conclusion
Amazon advertising works, but it requires strategy and active management. While automated campaigns have their place for keyword discovery, manual campaigns consistently deliver better results when properly managed.
The key is starting with solid keyword research, structuring campaigns for optimization, and continuously testing and refining your approach. Don’t expect overnight success—good Amazon advertising is built over time through consistent optimization and learning from your data.
Most importantly, remember that advertising is just one part of your Amazon success. Great products, competitive pricing, and excellent customer service matter just as much as your PPC strategy.
Start with manual campaigns for your best products, use automated campaigns for discovery, and always make decisions based on actual performance data rather than assumptions. With patience and the right approach, Amazon advertising can become a profitable growth driver for your business.
