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By Laura Meyer · February 18, 2025 · Curated by George's Blog
Don't make this common mistake when optimizing your Amazon Ad spend for "profitability." One of the biggest pitfalls in optimizing Amazon advertising for "profitability" is over-investing on branded search terms.Last year, this issue felt like an epidemic. In the majority of audits I conducted, brands were allocating over 50% of the Amazon Paid Search budget to branded keywords. While defensive advertising has its place, the true goal of ad spend should be incrementality—not just capturing existing customers.Through myHorizons, Envision Horizons' proprietary analytics suite, we can track ad spend distribution across branded, category, and competitor terms in real time using our keyword-identifying algorithm. Additionally, we cross-reference this data with New-to-Brand (NTB) vs. returning customers, providing deeper insights into acquisition efficiency and long-term growth.One of the biggest educational moments we introduced to clients and prospects was that a high ROAS doesn’t necessarily mean business growth. In many cases, it just means you're paying for customers you’ve already acquired through other channels.Take, for example, a premium bedding client we onboarded in Q3. Their branded keyword strategy wasn’t protecting sales—it was draining their ad budget and suppressing organic growth. By strategically reallocating their spend, we reduced branded keyword investment from 70% to 28%. Instead of losing ground, they saw organic sales climb to 60% of total revenue.Here’s how we helped them make this strategic shift…hashtag#AmazonStrategy hashtag#AmazonKeywords hashtag#AmazonAdvertising